Will war risk insurance save Ukrainian businesses?

Tomas Fiala’s Dragon Capital Group was the first to register its project — the M10 Lviv Industrial Park — for an insurance guarantee from the World Bank’s Multilateral Investment Guarantee Agency (MIGA). The insurance is to start soon.

Since the start of the full-scale war in Ukraine and by June business asset losses are estimated at USD 11.4 billion, with at least 426 large and medium-sized private enterprises and state-owned companies damaged or destroyed due to Russian aggression, according to the Kyiv School of Economics (KSE).

The number may in fact be significantly higher, since there is currently no information on facilities in Ukraine’s temporarily occupied territories. In addition, the companies suffered significant losses due to Russia’s blowing up of the Kakhovka hydroelectric power station, forcing businesses to relocate or shut down operations in the affected area.