The Unity Facility grain transportation insurance mechanism for the Ukrainian maritime corridor, which has been in effect since November 2023, has been expanded to include vessels that carry not only grain but also any other cargo, said Crispin Ellison during an online USUBC webinar.
“We were able to create a mechanism where the prices are much lower than half of those in the normal commercial market,” he said.
Formally, the operation of the mechanism begins on March 1, 2024. Created using a public-private partnership in which the Government of Ukraine provided a $20M indemnity fund, the Unity Facility allows for the insurance of approximately 1,000 vessels per year with a maximum insured value of $50M for each vessel, which is sufficient to provide coverage for the export of about 30 million tons of grain.
A parallel insurance mechanism for cargo coverage supported by EBRD financing is currently being considered.