Vessel insurance program involving Export Credit Agency launched in Ukraine

MOSCOW. Jan 10 (Interfax) - The State Export-Import Bank of Ukraine (Ukreximbank) and Ukrgazbank issued letters of credit of $10 million each following an application from the Export Credit Agency in favor of a pool of 14 UK insurers in order to reduce the cost of insuring vessels that use the Black Sea route unilaterally opened by Kiev, Ukrainian media said, citing the agency's website.

The letter of credit mechanism helps cut risk costs for UK insurers, thus reducing current insurance contributions for vessel owners and making this maritime corridor more affordable for a large number of exporters, it said.

The mechanism was developed through cooperation between the Ukrainian and UK governments specially to enable vessel owners' access to affordable insurance coverage to export grain and other goods from Ukraine by sea.