Risk Mitigation Instruments
Whether investing or exporting – companies can rely on guarantee and risk-mitigation instruments provided by the German government, the EU and other European partners to secure their business activities in Ukraine against political and economic risks.
Euler Hermes export credit guarantees
Through Euler Hermes export credit guarantees, exports can continue to be secured despite the war. Both commercial and political risks are covered, such as payment default, transfer restrictions, or state interventions. Unlike in many other countries, simplified conditions apply to Ukraine, ensuring that small and medium-sized enterprises can also conduct their business securely. Each application is reviewed on a case-by-case basis.
UFK guarantees
UFK guarantees are part of the German Federal Government’s raw materials strategy and protect lenders of raw material projects, including in Ukraine, against default risks. The prerequisites for a guarantee are eligibility for support, national interest, and long-term supply contracts with German buyers. In the field of raw material extraction, they can also be applied to non-project-related corporate financing. UFK guarantees are granted on a case-by-case basis.
Investment Guarantees
The German Federal Government has introduced a special scheme for Ukraine, which allows German companies to secure investments despite the current war risks. This covers risks such as expropriation, transfer restrictions, or state interventions. The guarantees explicitly also cover losses caused by acts of war.
The administration of the investment guarantees is carried out by PricewaterhouseCoopers. Each application is reviewed on a case-by-case basis.
Notably, Ukraine now accounts for the largest share of all active investment guarantees.
Multilateral Investment Guarantee Agency (MIGA)
The Multilateral Investment Guarantee Agency (MIGA) of the World Bank protects private investors and lenders against political risks that are particularly relevant due to the war in Ukraine – including expropriation, civil unrest, breach of contract, or transfer restrictions. Coverage includes compensation for material asset losses, temporary or complete business interruptions, and loan defaults resulting from war and unrest. In this way, MIGA helps secure investments even under difficult conditions and facilitates the financing of reconstruction. For German companies, this creates an opportunity to safeguard their engagement in Ukraine over the long term despite high risks.