Joint Statement on Establishment of DFC-MIGA Consultative Group on Political Risk Insurance for Ukraine
London – The availability of political risk insurance, including war risk insurance, can play a critical role in promoting private sector investments in Ukraine to aid its economy, recovery, and eventual reconstruction. Given their collective expertise in the provision of risk-mitigation products and their experience in Ukraine, the U.S. International Development Finance Corporation (DFC) and the Multilateral Investment Guarantee Agency (MIGA) have agreed to establish a consultative group to facilitate collaboration and coordination regarding their respective work in Ukraine.
In line with the U.S. government’s efforts, including through DFC, to support the Ukrainian economy in the face of Russian aggression, consistent with MIGA’s strategy in supporting the private sector in Ukraine, and in furthering the goals of the London Conference Framework on War Risk Insurance for Ukraine, DFC and MIGA will use the group to build on their established relationships to:
- Identify potential opportunities for direct collaboration on projects;
- Engage with the Ukrainian government and the private sector to share market insights and address any potential issues, including regulatory or business-related issues;
- Engage on a quarterly basis to exchange relevant and appropriate information on their efforts in Ukraine; the current state of, including on and outlook for, the non-commercial insurance market, with additional engagements as necessary;
- Ensure efficient delivery of political risk insurance in Ukraine by coordinating individual efforts; and,
- Clarify and communicate to third parties (including public and private sector entities) the different products available to mitigate risk for investors in Ukraine, both foreign and domestic.
The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests across sectors including energy, healthcare, critical infrastructure, small business support, and agriculture. Our investments adhere to high standards and respect the environment, human rights, and worker rights. Currently, DFC has more than $800 million in exposure in Ukraine, including more than $500 million in political risk insurance.
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders.
Since its creation, MIGA has issued over $70 billion in guarantees across 123 developing countries in support of more than 1,000 projects.
Elizabeth Howton, (202) 458-5922, firstname.lastname@example.org
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