The French Government has already allocated EUR 1.2 billion of macro-financial assistance to Ukraine, which was agreed upon in February 2022 at a meeting between President of Ukraine Volodymyr Zelenskyy and President of France Emmanuel Macron. And the Export Credit Agency of France Bpifrance will work on the possibility of war risk insurance.

This was discussed at the meeting in Paris between First Deputy Prime Minister – Minister of Economy of Ukraine Yuliia Svyrydenko and Deputy Director General of the Treasury of France Muriel Lacoue-Labarthe (pictured).

“Ukraine is interested in cooperation with Bpifrance and the Treasury of France. It will be a mutually beneficial cooperation: Ukraine will receive targeted long-term and cheap funds that it will be able to use for reconstruction. And French business will have the opportunity to take part in projects to restore Ukraine,” Yuliia Svyrydenko noted.

In turn, Muriel Lacoue-Labarthe reported that the French Government has already allocated macro-financial assistance for Ukraine. 

As stated during the meeting, from the allocated EUR 1.2 billion, EUR 1 billion can be used to guarantee credit risks, and EUR 200 million – for Ukraine to attract direct lending from the French Treasury.

At the same time, the condition for lending in the amount of EUR 200 million is the involvement of at least 50% of French manufacturers and contractors in the implementation of relevant projects. 

At the same time, the guarantee of credit risks requires the involvement of only 20% of French business in the projects. Under such conditions, Ukraine will get extremely favourable preferential financing. Moreover, all risks are covered by Bpifrance – the Export Credit Agency of France. 

“This will be long-term and cheap lending. And what is important for us, in this case there is a possibility of a high level of localization,” Yuliia Svyrydenko noted.

The issue of war risk insurance by Bpifrance was also discussed during the meeting. As Yuliia Svyrydenko emphasized, despite the fact that the war in Ukraine continues, there is a significant interest of investors in projects accumulated, in particular, on the Advantage Ukraine investment platform.

Therefore, the introduction of effective war risk insurance mechanisms would significantly accelerate the investment attraction process. Furthermore, Ukraine is extremely interested that the insurance mechanisms to be offered by Western institutions are applied to Ukrainian business as well. 

As mentioned during the meeting, Bpifrance currently does not have adequate war risk insurance instruments. Therefore, the French Government listens to Ukraine’s proposals and, therefore, is ready to consider and implement such instruments in the near future.