Ukraine is developing an agreement with Lloyd’s regarding the insurance of ships in the Black Sea

Ukraine is finalizing the development of an agreement with global insurers regarding the insurance of vessels going from/to Ukrainian ports on the Black Sea.

Currently, the agreement is “being developed and actively discussed” between the relevant ministries, as well as local banks and international insurance groups, including Lloyd’s of London, Ukrainian Deputy Minister of Economy Oleksandr Hryban told the Financial Times.

According to him, the scheme can be implemented already in September, and it is assumed that from 5 to 30 ships will pass “dangerous places” in Ukrainian waters.

“It depends on how the structure will work and what will be the level of risk sharing between the government and private insurance companies,” said Hryban.

He also said that the state’s share of the risk will probably be covered by the country’s state road fund, which was created to repair Ukrainian roads and is financed by the fuel sales tax.