This groundbreaking arrangement doesn’t just safeguard the physical voyage of goods but also acts as a financial shield for underwriters, ensuring reimbursement in case claims payments become necessary.
Legal Maestros and International Collaboration
Michael Stoneham, Brodies’ Head of Energy and Infrastructure Finance, along with Legal Director Ben Powell, orchestrated this legal symphony, collaborating with experts in shipping, marine insurance, and regulatory law. Asters, Ukraine’s largest law firm, joined forces, led by Senior Partner Armen Khachaturyan. Yaroslav Petrov, Head of Asters’ London office, was seconded to Brodies, enhancing the global legal collaboration.
Brodies Guides On War Risk Insurance For Ukrainian Exports : A Strategic Reimbursement Framework
Marsh Ltd., a prominent insurance broker, took the role of arranger and sought counsel from Norton Rose Fulbright. Ascot Underwriting Ltd. stepped up as the lead underwriter. The Export Credit Agency, in tandem with underwriters at Lloyd’s of London, formalized the agreement through a reimbursement framework. This framework sets the terms governing contracts during a specified period, offering clarity on crucial factors like pricing.
Crucial Implications for Ukrainian Trade
As Ukraine grapples with the aftermath of Russia’s invasion in February 2022, which led to a catastrophic 50% collapse in foreign supplies, this insurance breakthrough becomes paramount. Ukrainian exports, witnessing a staggering 35% drop in value – over $44 billion – in 2022 compared to the previous year, underscores the gravity of the situation.
Paving the Way for International Trade Preservation
Michael Stoneham emphasized the significance of this agreement, stating that it “marks a significant step in ensuring that vessels exporting vital supplies from Ukraine to the world can continue to do so.” He expressed hope that this insurance framework could serve as a blueprint for conflict situations globally, preserving the fabric of international trade.
