The Cabinet of Ministers has introduced a war-risk insurance mechanism for farmers, which provides reimbursement from the budget of up to 60% of the paid insurance premium, said Taras Vysotsky, First Deputy Minister of Economy, Environment, and Agriculture.
“Access to agricultural insurance during wartime is not just a financial tool but an important condition for economic resilience. That is why the government has introduced a new mechanism: the state reimburses up to 60% of the insurance premium for farmers in frontline communities and up to 45% for other producers,” he wrote on his Facebook page following a meeting with representatives of the agricultural sector.
The deputy minister noted that agro-processing companies currently face not only war-related threats but also challenging weather conditions, such as droughts or spring frosts. Due to this combination of factors, the cost of insurance services in the sector remains high.
Vysotsky emphasized that the strategic goal of the Ministry of Economy is to create a market-oriented system that combines private insurance, reinsurance, and state support. Currently, the ministry is consulting with businesses to determine acceptable insurance rates, remove barriers to financing, and define the list of risks that remain uncovered.
“The decisions and proposals developed by businesses, we are ready to review in detail and gradually implement. This kind of dialogue allows us to shape state policy based on the real needs of the economy,” the deputy minister concluded.
