Germany Expands Insurance for German Investments in Ukraine

by Meifan Honcharuk
Monday, August 7, 2023
Germany Expands Insurance for German Investments in Ukraine

The German government announced an increase in security guarantees for businesses that are developing in Ukraine during the war

On August 7, the federal Ministry of economy of Germany announced changes in the program of sovereign investment guarantees. The extension of the state security guarantees is aimed at German enterprises ready to open their own business abroad – in Ukraine, where the struggle for territory and freedom with the Russian invader continues.

"These are long-term loans that German companies often use in addition to ordinary equity participation to finance Ukrainian subsidiaries," says the Ministry in a statement.

This means that such a decision creates an even more significant amount of government security for companies developing in another country during a war. The German government is ready to provide guarantees for the recovery of property losses, transfer and conversion risks. The German government is also ready to cover company losses due to the total loss of investments. The adopted document provides for the repayment of payments for using loans and increasing investments in Ukraine.

The adoption of such amendments gives positive dynamics to the development of foreign investment in Ukraine. Germany attracts local businessmen to develop in Ukraine, thereby demonstrating its readiness to provide serious guarantees in case of business destruction due to the Russian war in Ukraine and complete confidence in the Ukrainian armed forces. The German Ministry of economy itself called the adoption of the latter decision a "sign of trust and solidarity".

You will be interested