The EU gave Poland the green light to allocate 6.4 billion PLN for export insurance to Ukraine

The European Commission has agreed that Poland will provide 6.4 billion PLN in public aid for the reinsurance of transport insurance on the territory of Ukraine. This is to support transport companies delivering goods to the territory of the country resisting the Russian invasion.

Poland has submitted a public aid program (which is always approved by the EC), under which the Export Credit Insurance Corporation KUKE provides reinsurance related to events associated with the war: damages resulting from direct military operations, acts of sabotage, terrorism, uprisings, or riots.

The direct beneficiaries of the support will be insurance companies operating in Poland, while transport companies delivering goods to the territory of Ukraine will benefit indirectly.

“The program fills a market gap in providing insurance against war-related risks incurred by transport companies due to the ongoing Russian military aggression in Ukraine,” the EC stated in a press release issued on Friday.

The aid will take the form of reinsurance guaranteed by the State Treasury. KUKE will cover 80% of the war-related risk, while insurance companies will cover the remaining 20%.

According to the Polish program, insurance companies, after deducting the commission covering acquisition costs and administrative costs of the insurance, will pay an appropriate premium to KUKE for the risk. “This will ensure a constant and appropriate risk assessment and pricing,” the EC concluded.

However, the support does not cover standard commercial risk.

The program will be in effect until June 30, 2027 (04.04.2025)