UK Export Finance Support for Ukraine

Nusrat Ghani Excerpts

Tuesday 16th January 2024 Written Statements

[The Minister for Industry and Economic Security (Ms Nusrat Ghani)]

Nearly two years since Russia brutally invaded the sovereign territory of Ukraine, the UK continues to stand resolutely with the Ukrainian people against Russian aggression.

The UK is providing significant economic, humanitarian and defensive assistance to Ukraine, including through export credits and insurance from UK Export Finance (UKEF). As part of the UK’s support for the repair and defence of Ukraine’s critical infrastructure, UKEF has already agreed to provide financing for the reconstruction of six bridges in Kyiv and support for Urenco’s contract to supply fuel to Ukraine’s largest power producer, Energoatom, and provided payment risk insurance for UK exporters trading with Ukraine.

Government Ministers have decided it remains in the national interest for UKEF to stay on cover for Ukraine. This means that UKEF’s £3.5 billion of financial capacity for UK exporters and their buyers in Ukraine is still available.

The heightened risk of supporting Ukraine during a war falls outside UKEF’s minimum risk standards as set by HM Treasury and is not a typical activity undertaken by UKEF. Therefore, ministers must instruct UKEF to operate.

Depending on the volume and value of the transactions supported by UKEF, the Government could incur up to £3.5 billion of contingent liabilities over time. UKEF will assess transactions on a case-by-case basis in accordance with normal policy and practice, while also obtaining written consent from Ministers and HMT before providing support for each transaction.

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