Commission approves EUR 1.5 billion Polish State aid scheme to support reinsurance for war-related transport risks in Ukraine
The Commission has approved a EUR 1.5 billion Polish scheme to provide reinsurance of insurance for transport on the territory of Ukraine. The scheme aims to support trade between Poland and Ukraine, which has been disrupted by Russia’s ongoing military aggression.
The scheme consists of reinsurance covering war-related risks (such as damages resulting from direct military operations, acts of sabotage, terrorism, uprisings, and riots) to insurance companies offering insurancefor transport in Ukraine. The direct beneficiaries of the measure will be insurance companies in Poland, whereas the indirect beneficiaries will be transport companies providing services in Poland and delivering goods on the territory of Ukraine. The public export credit agency (‘KUKE’) will cover 80% of the insurance, whereas insurance companies will cover the remaining 20%.
The Commission approved the scheme under Article 107(3)(c) TFEU, which enables Member States to support the development of certain economic activities subject to conditions, finding it necessary, appropriate, and proportionate to support transport and trade with Ukraine. The scheme incentivizes activity that would not occur without public support and includes safeguards to limit competition distortions by being open to all authorized insurers and transport companies in Poland while ensuring insurers retain sufficient risk.
For more information, see the Commission’s PR.