The USA and the UK Will Help Insure Vessels in the Black Sea

by Meifan Honcharuk
Friday, October 21, 2023
The USA and the UK Will Help Insure Vessels in the Black Sea

States will help Ukraine implement a mechanism for protecting and insuring ships exporting food from Ukraine

Minister of infrastructure and community development of Ukraine Olexandr Kubrakov, at the Kyiv conference The future of Ukrainian export, reported on some of the difficulties that Ukraine faced due to the Russian blockade of the Black sea. Following Russia's withdrawal from the Grain agreements, the Ukrainian NAVY developed an alternative grain corridor through which civilian cargo vessels could enter Ukrainian waters, load grain and export it. However, logistics along this corridor are too expensive. For example, during the "grain corridor times", insurance for 1 vessel amounted to 1-1.5% of the cost of the vessel itself and the goods on board. Now, this percentage averages 5%, and the first vessel that entered through the alternative corridor cost 7%.

To reduce the insurance rate to 1-1.5%, Ukraine is attracting partners from the USA and Great Britain: "There are mechanisms, we will move along them with the governments of Great Britain and the USA," said Kubrakov.

Today, we speak about ships blocked in the Black sea at the beginning of a full-scale war and after the aggressor country withdrew from the Grain agreements. However, now, having ensured the safety of logistics along the Ukrainian alternative grain corridor, another 10 foreign ships are also entering Ukrainian waters to load grain.

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