The UK plans to create a war risk insurance scheme for Ukraine's recovery – Bloomberg

The UK plans to hold a Conference on Ukraine's Recovery in London on 21-22 June, with the aim of gaining the support of world leaders and executives for proposals to fund the country's post-war recovery.

This was reported by Bloomberg.

Discussions between the UK and Ukraine's allies ahead of the meeting have focused on how to encourage investment, by having governments take on the costs of war risk insurance.

It is noted that the risk of war-related losses, along with long-term political and economic instability, have led to a sharp increase in the costs of insuring investments in Ukraine, often pricing out both investors and private insurers.

According to World Bank estimates, the cost of Ukraine's recovery is about $411 billion, of which $14 billion is required for critically important expenses in 2023. This figure could rise after the escalation of military operations and the demolition of the Kakhovka Hydroelectric Station this week.

According to the publication, the UK wants to demonstrate progress in creating an insurance scheme later this month. While governments will likely promise to provide Ukraine with new direct funding, private investments under government guarantees would be a cheaper way of raising additional funds.

Efforts are also being made to lobby countries that do not have direct ties with Ukraine, with the aim of aiding in the recovery. The UK is trying to persuade Saudi Arabia and Turkey to participate in the conference.

Background. Earlier, Mind wrote that British military and intelligence services are investigating the cause of the demolition of the Kakhovka Hydroelectric Station.