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UK Export Finance support for Ukraine

Statement made on 16 January 2024

Statement UIN HLWS182

Statement

My Hon Friend the Minister of State for Business and Trade (Nusrat Ghani MP) has today made the following statement.

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 6 Bridges in Kyiv, 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 £3.5bn 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 of UKEF’s minimum risk standards as set by HMT 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 £3.5bn of contingent liabilities over time. UKEF will assess transactions on a case by case basis in accordance with normal policy and practice, whilst also obtaining written consent from Ministers and HMT before providing support for each transaction.

Linked statements

This statement has also been made in the House of Commons

Department for Business and Trade
UK Export Finance support for Ukraine
Ms Nusrat Ghani
Secretary of State for Department for Business and Trade
Conservative, Wealden
Statement made 16 January 2024
HCWS185
Commons