Insurance of Foreign Investments in Ukraine
Ukraine has a domestic mechanism for insuring direct investments against war and political risks through the Export Credit Agency of Ukraine (ECA). International instruments such as MIGA and the US International Development Finance Corporation (DFC) may supplement this protection following a project-level assessment. Statutory investment guarantees and bilateral investment treaties are separate legal instruments, not insurance products.
This article is intended for foreign investors, German and international project sponsors, and legal, finance, and risk teams assessing investment protection and insurance solutions for planned or ongoing projects in Ukraine.
1. Insurance, state guarantees, and investment treaties compared
2. Insurable and non-insurable risks
3. Legal framework in Ukraine: legislation and regulatory context
4. ECA of Ukraine — the domestic investment insurance instrument
5. MIGA and DFC — international insurance instruments
6. What is not insurance: the EU Ukraine Facility, EBRD, and other institutions
7. National ECA programmes for investors from certain countries
8. Access to insurance coverage — step by step
9. Legal risks outside insurance coverage
10. Key documents before applying
11. Compliance: UBOs, sanctions, and anti-money laundering
12. Common mistakes and limits of coverage
Frequently Asked Questions
How DLF Can Help
1. Insurance, state guarantees, and investment treaties compared
In practice, three layers of protection are often confused, although they are governed by different rules and enforcement mechanisms.
Statutory investment guarantees arise under the Law on the Regime of Foreign Investment. They include, in particular, national treatment, protection against uncompensated taking, and claims for unlawful state action. Such rights must be enforced through court or arbitration proceedings and do not result in an automatic payment.
Insurance and guarantee instruments offered by ECA, MIGA, DFC, or national programmes are based on a contract or guarantee. Payment requires an insured event, compliance with the applicable terms, and sufficient proof of loss. The Law on Investment Activity permits investment insurance but does not guarantee that a product will be available for every project.
Bilateral investment treaties may provide investors with international remedies, including investment arbitration. They are not insurance and do not provide short-term liquidity.
| Type of protection | Enforcement mechanism | Indicative timeframe |
|---|---|---|
| Statutory investment guarantee | Court or arbitration proceedings | Depends on the dispute |
| Insurance / guarantee (ECA, MIGA, DFC) | Claim notification and review | Depends on the contract |
| Bilateral investment treaty | International investment arbitration | Usually long-term |
These instruments can be combined, but they do not replace proper legal structuring or project due diligence.
2. Insurable and non-insurable risks
No product covers every risk without limitations. Coverage is always determined by the programme rules, the policy or guarantee, the project location, and the underwriting outcome.
War risks may include war, armed conflict, aggression, hostilities, civil unrest, terrorism, sabotage, occupation, or annexation.
Political risks may include expropriation, state non-performance, payment moratoria, and restrictions on currency conversion or transfer.
Commercial war-risk insurance is also available, but only through specific insurance and reinsurance programmes. A DFC-backed reinsurance facility for ARX supports a portfolio of war-risk policies for companies operating in Ukraine. Availability, territory, insured assets, exclusions, and pricing are determined individually by the insurer and broker.
Business interruption and loss of profit are instrument-specific: MIGA may cover business interruption under its war and civil disturbance cover, while other instruments require express policy wording. Active combat zones and temporarily occupied territories are subject to specific exclusions or eligibility limits.
3. Legal framework in Ukraine: legislation and regulatory context
The special ECA mechanism is based on a law in force since 1 January 2024. The insurable risks and procedure are set out in Cabinet of Ministers Resolution No. 388, as subsequently amended.
The Law on Insurance provides the general regulatory framework for the insurance market. ECA insurance of direct investments against war and political risks operates under a separate statutory framework and ECA internal policies.
Statutory investment guarantees remain applicable in parallel. Cross-border compensation or insurance payments must also be reviewed under the applicable currency rules. During martial law, the National Bank of Ukraine applies both restrictions and specific relaxations for insurance payments. Before concluding a contract or filing a claim, the procedure for making the relevant payment should be assessed under the current NBU rules.
4. ECA of Ukraine — the domestic investment insurance instrument
The law in force since 1 January 2024 authorises the Export Credit Agency of Ukraine to insure qualifying direct investments and investment loans against war and political risks.
ECA has two main instruments:
- Insurance of the investor's direct investment;
- Insurance of an investment loan for the financing bank.
Under the current ECA product conditions, investors may be Ukrainian or foreign individuals or legal entities. For direct investment insurance, the investor must hold at least 10% of the corporate rights in the project company. The project must involve facilities or infrastructure for the processing industry and the export of goods, works, or services of Ukrainian origin. Eligibility of service, technology, infrastructure, domestic-market, or import-substitution projects should be confirmed with ECA in advance.
| Risk category | ECA approach |
|---|---|
| War, armed conflict, aggression, hostilities, or mass unrest | Listed as a war risk; contract terms apply |
| Violent change of the constitutional order or seizure of state power | Listed as a war risk |
| Terrorism and sabotage | Listed as a war risk |
| Occupation or annexation | Listed as a risk; project location is assessed when the contract is concluded |
| Expropriation or other compulsory deprivation of property | May be included as a political risk |
| State non-performance, payment moratorium, or transfer or conversion restriction | May be included as a political risk |
| Loss of profit and business interruption | Not assumed to be standard cover without express policy wording |
| Active combat zones or temporarily occupied territories | Project assets in such areas do not meet the basic location condition when the contract is concluded |
The exact scope of cover is determined by Resolution No. 388, the current ECA policy terms, and the individual contract. Key points include exclusions, the deductible, the insured amount, waiting periods, notification duties, and proof of loss.
Separately, a state support programme for war-related damage to business property is available. It has different eligibility requirements and is not equivalent to ECA direct investment insurance.
5. MIGA and DFC — international insurance instruments
MIGA provides political risk cover for qualifying investments in Ukraine. Its product categories include war and civil disturbance, transfer restriction and currency inconvertibility, expropriation, breach of contract, and non-honouring of sovereign financial obligations. War and civil disturbance cover may also include asset loss and business interruption.
MIGA uses the SURE Trust Fund for Ukraine, among other instruments. Each project undergoes an individual review of eligibility, legal and economic structure, compliance, and applicable environmental and social requirements. There is no automatic entitlement to coverage.
DFC has provided political risk insurance for specific Ukraine transactions. In 2024, it announced instruments totalling USD 357 million, including war-risk and reinsurance solutions. The ARX structure supports commercial war-risk policies for businesses operating in Ukraine.
Depending on the transaction, DFC may cover currency inconvertibility, expropriation, and political violence, including terrorism. Requirements concerning the investor, origin of capital, and project should be confirmed directly with DFC before an application is prepared. In June 2026, DFC and MIGA signed a cooperation agreement on coordinated political risk solutions under the United States-Ukraine Reconstruction Investment Fund.
6. What is not insurance: the EU Ukraine Facility, EBRD, and other institutions
International financial institutions may reduce project risks through guarantees, loans, equity, or blended finance. These instruments are not equivalent to investment insurance.
The Ukraine Investment Framework under the EU Ukraine Facility has EUR 9.6 billion in guarantees and grants and is intended to mobilise up to EUR 40 billion in investment. Private investors do not apply for an insurance policy under this framework; they access financing programmes offered by authorised implementing institutions.
The EBRD is a development bank. Since the start of Russia's full-scale invasion, it has deployed more than EUR 10.5 billion in Ukraine through loans, equity, guarantees, and other financing instruments. These instruments may distribute project risk but are not war-risk policies sold directly to investors.
Within the World Bank Group, MIGA provides political risk guarantees, while IFC primarily provides debt and equity financing. UkraineInvest supports investors with information and coordination but is neither an insurer nor a guarantor.
7. National ECA programmes for investors from certain countries
National programmes depend on the investor's country of origin and approval of the specific project.
Germany's federal investment guarantees are available to qualifying German companies and have been used for projects in Ukraine. They may cover war, expropriation, breach of binding state commitments, and transfer restrictions. Each application is reviewed and approved individually.
Austrian and UK investors may examine OeKB and UKEF instruments, respectively. These programmes are not automatically equivalent to the German investment guarantees. Product type, Ukraine coverage, export or nationality requirements, and exclusions must be confirmed with the relevant programme.
8. Access to insurance coverage — step by step
Each instrument has a separate application procedure that requires preparation.
ECA of Ukraine: apply directly to the agency; prepare documents confirming an ownership interest of at least 10% of the corporate rights and the export orientation of the investment; verify compliance with the Cabinet of Ministers resolution; conclude the insurance contract.
MIGA: prepare the investment project for submission to the agency; MIGA reviews eligibility at project level; underwriting includes review of title documents, ownership structure, and compliance with SURE Trust Fund requirements.
DFC: apply directly to the corporation; eligibility requirements should be confirmed before preparing the documentation.
Recommended steps for investors:
- Identify instruments that may be suitable for the project
- Conduct a legal review of the corporate structure and asset documentation
- Screen all direct and indirect shareholders against applicable sanctions lists
- Prepare documentation on the ultimate beneficial owner (UBO) in accordance with anti-money laundering law
- Document the baseline condition of the assets — inventory, valuation, and photographs
- Confirm project eligibility with ECA, MIGA, or DFC
- Prepare the documentation package and submit the insurance application
9. Legal risks outside insurance coverage
A claim is often denied not because the risk itself is excluded, but because the investment structure contains unresolved legal defects.
Title risk: If title to an asset is improperly registered or undisclosed encumbrances exist, the insurer may deny the claim for non-compliance with the policy terms. Legal review of the assets before applying is not a formality; it is a prerequisite for compensation.
Contractual risk: Obligations assumed by a person without proper authority, or contracts drafted incorrectly, may create grounds for challenging payment.
Compliance risk: A company that breaches sanctions rules or UBO disclosure requirements may lose eligibility for compensation at the qualification-screening stage.
Regulatory risk: The absence of permits or licences required for business activity in Ukraine may be used as a basis for denying a claim connected with regulatory non-compliance.
Legal due diligence carried out before an insurance application is intended to identify these risks — insurance does not replace sound legal documentation.
10. Key documents before applying
Ownership and asset evidence:
- Title documents for real estate, movable property, equipment, and intellectual property rights
- Extracts from the State Register of Real Property Rights and the Unified State Register of Legal Entities
- Photographic records of the current condition of the assets
- Valid permits and licences required for the business activity
Corporate and financial documents:
- Corporate documents of the project company
- Evidence of the ownership interest in the corporate rights (at least 10% for ECA)
- Key commercial contracts and permitting documents
- Project financing documents confirming the designated use of funds
Compliance documents:
- Sanctions-screening results for all direct and indirect parties (OFAC and EU registers)
- UBO documentation in accordance with anti-money laundering law
- Evidence of the lawful source of funds (AML/KYC)
When an insured event occurs, early involvement of legal counsel is critical: claims and compensation requests require qualified legal support from the first day.
11. Compliance: UBOs, sanctions, and anti-money laundering
ECA, MIGA, DFC, and participating financial institutions conduct compliance checks under their internal rules and the applicable sanctions regimes. Missing UBO documentation or an identified sanctions risk may result in rejection at the qualification-screening stage.
| Check | Who requires it | Note |
|---|---|---|
| Sanctions screening (OFAC) | DFC; de facto standard | Screen all direct and indirect shareholders |
| EU sanctions screening | EU institutions; de facto standard | Use EU registers for legal entities and individuals |
| UBO documentation | ECA; MIGA; DFC; banks | In accordance with anti-money laundering law |
| AML/KYC | All financial institutions | Source-of-funds documents; standard procedure |
| Documentation of the investment and funding route | Depends on the programme | Confirm with the institution and legal counsel |
| Repatriation and compensation | ECA; DFC; legal review | NBU restrictions under martial law may apply |
Sanctions lists are updated continuously. A positive screening result at the application stage does not guarantee that no issues will arise later; systematic ongoing monitoring is required.
12. Common mistakes and limits of coverage
- Eligibility not confirmed before the project begins. ECA's export-orientation requirement, MIGA's phased approach, and uncertainty regarding DFC conditions must be checked before the investment decision, not afterwards.
- Applying after an insured event has occurred. Retroactive coverage is generally excluded; insurance must be arranged in advance.
- Confusing legal guarantees with insurance products. Statutory guarantees are enforced through legal proceedings, not insurance payments, and do not provide immediate liquidity.
- No baseline documentation of asset condition before the loss. The insurer requires a basis for assessing damage; without it, compensation may be reduced or denied.
- Corporate structure does not meet eligibility requirements. An insufficient ownership interest or an opaque ownership structure is a common reason for rejection.
- Relying exclusively on a single instrument. ECA, MIGA, DFC, and bilateral investment treaties complement one another; an effective protection structure normally combines several layers.
Frequently Asked Questions
Can a foreign company currently insure its investment in Ukraine against war risks?
ECA of Ukraine accepts applications from foreign and Ukrainian investors where the investor holds at least 10% of the corporate rights and the project is oriented towards the processing industry and exports. MIGA offers war-risk coverage through project-specific underwriting supported by the SURE Trust Fund. No instrument guarantees automatic coverage; each project is assessed individually.
What risks does ECA cover under current law?
ECA insures direct investments against the war and political risks listed in the government resolution, including armed conflict, aggression, mass unrest, violent change of the constitutional order, terrorism and sabotage, state non-performance, a state-imposed payment prohibition, and the inability to convert or transfer currency. The full risk list, coverage conditions, limits, and application procedure are established by a Cabinet of Ministers resolution that should be reviewed by qualified legal counsel before any investment decision.
Does MIGA provide coverage in Ukraine — and is it currently available?
MIGA actively covers investments in Ukraine. It assesses Ukrainian projects individually under its current programme and underwriting rules. Investors should contact MIGA directly to confirm the eligibility of a specific project.
Is there a state subsidy in Ukraine for war-risk insurance premiums?
The ECA programme for direct investments is not a general premium subsidy. A separate state support programme for war-related risks to business property may provide different compensation or premium mechanisms depending on the region and asset type. Its current terms must be reviewed separately from ECA investment insurance.
Does the EU Ukraine Facility provide insurance to foreign investors?
No. The EU Ukraine Facility (Pillar II / Ukraine Investment Framework) is a EUR 9.6 billion guarantee instrument that reduces investment risks through EU budget guarantees channelled via international financial institutions. Private investors do not apply directly. Access is provided through the EIB Group, EBRD, IFC, KfW, and other authorised institutions. It is not an insurance product.
What documents should be prepared before applying for war-risk or political-risk insurance?
Before applying, investors should prepare title documents for assets and register extracts; valid permits and licences; key corporate and commercial contracts; sanctions-screening results; UBO documentation; evidence of the ownership interest in corporate rights (at least 10% for ECA); and project financing documents. Photographic documentation of the current condition of the assets is an important part of insurance preparation.
How DLF Can Help
DLF attorneys-at-law supports foreign investors in selecting and legally preparing protection instruments for projects in Ukraine. This includes corporate structuring and due diligence, review of title, permits, UBO and sanctions risks, preparation of documents for ECA, MIGA, or DFC, and review of insurance, guarantee, and project contracts under Ukrainian contract law. DLF also supports claim documentation and legal strategy following a loss. The firm does not offer or distribute insurance products.
Igor Dykunskyy, LL.M., Partner, Attorney-at-law — DLF attorneys-at-law
Contacts: +380 44 384 24 54, info@dlf.ua
This material is intended for general information. The application of the approaches described depends on the circumstances of the specific case and requires a separate legal assessment.