Investing in Ukraine: Japan first to allocate $23M to cover war risks

This was announced by Prime Minister Denys Shmyhal of Ukraine during the government meeting on Tuesday, an Ukrinform correspondent reports.

"Japan is the first country to contribute $23 million to cover war risks when investing in Ukraine," Shmyhal said.

He clarified that this is a contribution to MIGA, which will allow Ukraine to return private foreign investments much more easily.

Read also: Ukraine, Japan sign grant agreement on $400M for reconstruction

As reported, on April 14, the Ministry of Reconstruction of Ukraine and the Japan International Coeration Agency (JICA) signed a grant agreement on the allocation of $400 million. The funds will be used to restore Ukraine’s critical infrastructure, damaged as a result of hostilities.

MIGA, Multilateral Investment Guarantee Agency, is one of the five institutions of the World Bank Group. MIGA was established in 1988 to promote foreign direct investment in develing economies by helping to reduce the risks of currency conversion and remittance restrictions, government breach of contract, exprriation, war, and civil unrest.

Since its inception, MIGA has guaranteed nearly $70 billion in 122 develing economies to support nearly 1,000 projects.

MIGA launched the Target Fund for the Support of Ukraine’s Reconstruction and Economy (SURE).