MMC collaborates with Ukraine to provide insurance for Black Sea grain

20 November 2023 — Andrei VICTOR
Global re/insurance broker Marsh McLennan (MMC) in collaboration with the Ukrainian government, the Export Credit Agency of Ukraine, Ukreximbank, Ukrgasbank and DZ Bank, announced the launch of a new facility – Unity – to provide affordable insurance supporting the export of grain and other critical food supplies globally from Ukraine’s Black Sea ports.

Underwritten by insurers based at Lloyd’s of London, Unity will provide up to USD 50 million in hull and separate protection & indemnity (P&I) war risk insurance. Ukreximbank, the State Export-Import Bank of Ukraine, and state-owned Ukrainian bank Ukrgasbank will provide standby letters of credit, each confirmed by DZ Bank, to support the facility which itself is backed by the Ukraine Ministry of the Economy, providing shipowners and charterers with war risk insurance in the absence of safe corridors. Global law firm, Norton Rose Fulbright, provided advisory services.

“The launch of this insurance facility will especially benefit the developing nations that buy much of Ukraine’s grain and also help Ukraine’s future recovery and reconstruction endeavors”, said John Doyle, President and Chief Executive Officer, Marsh McLennan.

“The launch of the Unity facility will enable Ukraine to provide vital food supplies to the world at the same time as supporting the Ukrainian economy and keeping the Black Sea open for international trade. This partnership between the Ukrainian government, Marsh McLennan and Lloyd’s of London is a sign of confidence in our economy and demonstrates that Ukraine is open for business”, said Denys Shmyhal, Prime Minister of Ukraine.