Raiffeisen Bank, three leading Ukrainian insurers sign memorandum

MOSCOW. April 11 (Interfax) - Raiffeisen Bank and Kiev-based insurance companies Arcs, Universalnaya and INGO have signed a memorandum on cooperation on a program to insure the property of the bank's business clients against military risks, Ukrainian media reported.

The insurance companies will provide cover for property that the bank will use as loan collateral.

"This is the Ukrainian market's first such a product. It was developed in collaboration with the international broker Aon and the Ukrainian companies Arcs, Universalnaya and INGO. Thanks to the [risk insurance] instrument, Ukrainian companies will be able to minimize risks when delivering investment projects, raise additional financing and mitigate risks associated with the loss of property as a result of hostilities," Raiffeisen CEO Alexander Pisaruk said at a briefing.

Pisaruk said he was grateful to the USAID Business Resilience Investment Project for providing technical expertise while the project was being drafted.

Other Ukrainian insurance companies are welcome to join the memorandum following accreditation by the bank and insurance broker.

The first case might be presented in six months.

Arcs CEO Andrei Peretyazhko said businesses were highly interested in such insurance, but it is not available to most enterprises due to its high cost. Only 10 of the company's 100 corporate clients that expressed an interest in receiving property insurance against military risks received it.