The European Commission has approved under EU state aid rules a Polish scheme worth €1.5 billion, or 6.4 billion złotys, to provide state-backed reinsurance for transport insurance on the territory of Ukraine.
This scheme will help to maintain and facilitate trade flows between Ukraine and Poland, the Member State with the longest land border with Ukraine, which have been disrupted by the ongoing Russian military aggression. Under this scheme, the aid will take the form of public reinsurance, provided by the public export credit agency ‘KUKE’. KUKE will cover 80% of war-related risks, while insurance companies will retain the remaining 20%.
The insurance companies, after deducting the commission covering the costs of acquiring and administering the insurance, will pay KUKE the appropriate risk premium. This will ensure that risks are continually assessed and priced appropriately. The traditional commercial risks associated with transporting goods are not covered by the scheme. The scheme will run until 30 June 2027. (Original version in French by Anne Damiani)