Asters has served as a Ukrainian legal advisor to the Ukrainian Export Credit Agency on establishing a first-of-its-kind war risk insurance mechanism for international export of Ukrainian goods through the Black Sea. The new mechanism, approved by the Ukrainian government, was formalized by a Framework Reimbursement Agreement signed by the Ukrainian Export-Credit Agency with Marsh Limited as arranger, Ascot Underwriting Limited as lead underwriter, and a group of underwriters acting through Lloyd's of London.
The mechanism involves placing relevant funds in accounts at Ukrainian state banks — Ukrgasbank and Ukreximbank, enabling these banks to issue corresponding irrevocable letters of credit, each confirmed by DZ Bank AG. This provides shipowners and vessel charterers with cover for the transport of goods through the Black Sea and supports the agreed reimbursement of underwriters in the event of payment of claims.
The Asters team, led by Senior Partner Armen Khachaturyan, provided comprehensive legal advice to the Export Credit Agency of Ukraine on Ukrainian law issues during the negotiation and drafting of transaction documents.
The Brodies LLP team, led by partner Michael Stoneham and legal director Ben Powell, provided comprehensive advice to the Export Credit Agency of Ukraine on English law issues, while Norton Rose Fulbright LLP acted as legal counsel for Marsh Limited.
Armen Khachaturyan comments: "The created war risk insurance mechanism appears to be truly innovative from commercial and legal standpoints while addressing interests of the multiple involved parties. It is difficult to overestimate its significance for securing a steady export of food and other critical supplies from Ukraine to the rest of the world at a war time through Ukraine's most convenient but extremely vulnerable route along the Black Sea. The benchmark deal may well serve as a good precedent for similar solutions in other war-affected areas of the world contributing to international trade and geopolitical stability. We are happy to be a part of this tremendous effort."
PJSC Export Credit Agency is a company authorized by the government to stimulate export transactions and protect Ukrainian exporters from the risk of non-payment and financial losses related to foreign trade contracts through insurance, reinsurance, and guarantees.
Asters is the largest full-service law firm in Ukraine with offices in Kyiv, Brussels, London, and Washington, D.C., and access to over 125 jurisdictions through a well-developed network of partner law firms.
