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Asters Advises Export Credit Agency of Ukraine on Launching Novel War Risk Insurance Mechanism

Asters Advises Export Credit Agency of Ukraine on Launching Novel War Risk Insurance Mechanism

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Asters, working with Brodies LLP, has advised the Export Credit Agency of Ukraine on developing a new war risk insurance mechanism for the international export of Ukrainian goods through the Black Sea. Watson Farley & Williams reportedly advised the Ministry of Economy of Ukraine. Norton Rose Fulbright reportedly advised arranger Marsh Limited.

According to Asters, the new mechanism, approved by the Ukrainian government, was formalized by a Framework Reimbursement Agreement signed by the Ukrainian Export Credit Agency with Marsh Limited as arranger, Ascot Underwriting Limited as lead underwriter, and a group of underwriters acting through Lloyd's of London.

The mechanism involves placing relevant funds in accounts at Ukrainian state banks – Ukrgasbank and Ukreximbank – "enabling these banks to issue corresponding irrevocable letters of credit, each confirmed by DZ Bank AG. This provides shipowners and vessel charterers with cover for the transport of goods through the Black Sea and supports the agreed reimbursement of underwriters in the event of payment of claims," Asters reported.

Since the beginning of the Russian full-scale invasion, export logistics have emerged as a critical concern for Ukraine. "It is difficult to overestimate [the war risk insurance mechanism's] significance for securing a steady export of food and other critical supplies from Ukraine to the rest of the world [in times of war] through Ukraine's most convenient but extremely vulnerable route along the Black Sea," Asters Senior Partner Armen Khachaturyan, who led the firm's team, commented. "The benchmark deal may well serve as a good precedent for similar solutions in other war-affected areas of the world contributing to international trade and geopolitical stability. We are happy to be a part of this tremendous effort."

Asters at a Glance

Founded in 1995, Asters is the largest Ukrainian law firm with offices in Kyiv, Washington D.C., Brussels and London.

The Firm provides efficient transactional legal advice and represents clients on a broad spectrum of matters arising in the course of doing business in Ukraine. Asters has extensive industry-specific experience and plays a leading role in advising clients in various market sectors.

Asters’ 130-strong legal team combines world-class professionalism and quality with clear understanding of local realities so that our clients receive practically oriented advice in the most client-friendly manner. Asters’ lawyers received law degrees from the best European, Ukrainian and US law schools, including Yale, Harvard, Chicago University.

Asters has consistently remained at the top of the Ukrainian legal market throughout its history being acknowledged as Ukraine Law Firm of the Year by Who's Who Legal (2018-2022), The Lawyer European Awards (2020-2021), Chambers Europe Awards 2020 and holds top positions in the most authoritative international market reviews: The Legal 500, Chambers Global and Chambers Europe, IFLR 1000, Who's Who Legal, Best Lawyers.

Firm's website.