2 Aug 2022 13:14

Risk insurance is principal condition of investment in Ukraine - Volker

MOSCOW. Aug 2 (Interfax) - The insurance of risks associated with the current crisis is the primary condition of investment in Ukraine, Kurt Volker, former U.S. ambassador to NATO who also served as U.S. special representative for Ukraine in 2017-2019, said at the Warconomics Talks with members of the European Business Association (EBA).

Volker believes that the insurance of such risks to investors should be the key objective of the coming months and years, which will allow drawing investment in the Ukrainian economy, the Ukrainian media said with the reference to the EBA website. The governments of partner states need to assign a certain amount of funding to subsidize the risk insurance, he said.

The halt of business operations, the disruption of logistic routes and supply chains, and the suspension of exports are the factors putting pressure on the economy and increasing inflation in Ukraine, Volker said, adding that financial support from the international community is highly valuable under these circumstances but Ukraine would need a lot of resources to recover.

As to whether U.S. investors are ready to come to Ukraine, Volker said he could see substantial support for and interest in Ukraine, including on the part of the private sector, yet the guarantee of investment security and return and protection of investors' interests remains unclear. There is need for practical guidelines as to how foreign investors can come to Ukraine in these conditions, he said.