The European Commission has approved a €1.5 billion Polish scheme for state-supported reinsurance of transport insurance on Ukrainian territory. This scheme helps maintain trade flows between Ukraine and Poland, disrupted by Russian military aggression.
The Polish scheme
Poland notified the Commission of a €1.5 billion scheme where the public export credit insurer KUKE provides reinsurance for war-related risks, such as damage from military actions and sabotage. Direct beneficiaries are insurance companies in Poland, and indirect beneficiaries are transport companies delivering goods to Ukraine.
The scheme fills a market gap in insurance for war-related risks for transport companies. KUKE covers 80% of these risks, while insurance companies retain the remaining 20%. The scheme is effective until 30 June 2027.
Commissions assessment
The Commission assessed the scheme under EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union. The scheme is necessary and proportionate to facilitate the development of transport services and provides sufficient incentives without distorting competition.
Background
State aid can be approved under the Temporary Crisis and Transition Framework or Article 107(3)(c) TFEU, provided the aid remains necessary and proportionate.
The non-confidential version of the decision will be made available under case number SA.111121 in the Commissions State aid register once any confidentiality issues have been resolved.