Sponsored By

Ukraine humanitarian corridor insurance protection announcement expected

As a second ship has made its escape from the war in Ukraine, the Kyiv government is struggling to agree a new insurance deal that will underwrite vessels using the new corridor.

Nick Savvides, Europe correspondent

August 28, 2023

2 Min Read
Primus track marinetraffic
Image: Screenshot from Marinetraffic

VesselsValue AIS shows the 32,600 dwt Primus is now in international waters, about 100km north of Istanbul, with its cargo of steel bound for Senegal in West Africa. Ukraine Deputy Prime Minster Oleksandr Kubrakov posted on X, formerly Twitter, on Sunday that the Primus had sailed from Odessa port having been there since 22 February 2022.

Other vessels may follow, but discussions over the implementation of a scheme to underwrite shipping using Ukraine’s Black Sea ports is coming under fire.

A local transport source said that the government’s plan to use fuel duties, paid by Ukrainian road users, to jointly underwrite the cost of insurance with international insurance companies, is coming under scrutiny.

The source believes that an announcement by the Ukrainian Government on the insurance plan is imminent.

Under the terms of the plan a majority of the risk is expected to be taken by Ukrainian taxpayers, and some in Ukraine are baulking at this suggestion. But if Ukraine is to maintain its grain exports it will need to persuade vessel operators that they can be compensated given the level of threat from Russian mines and its navy, mainly in Ukrainian waters.

The humanitarian corridor, announced last month by Kyiv following the dissolution of the grain corridor, which Russia decided to leave, has left vessel operators nervous, though the Ukrainians believe they can adequately protect a corridor that runs close to the shore.

Related:Joseph Schulte leaves Odessa port

Russian military has in the last few weeks bombed the uninhabited ‘Snake Island’, scene of the famous stand-off between the Russian and Ukrainian military in the early part of the war, but these attacks are seen as a warning to shipping in the area that Russia is capable of targeting vessels in the region.

The source was sceptical, however, that vessel operators would risk sending vessels into the war zone. “I think more ships will leave, but I doubt that any more ships will come to Ukraine,” he said.

A package under discussion, first reported by the Financial Times on 21 August, is coming under scrutiny in Ukraine with locals wondering why major multi-billion-dollar companies, making a profit from transporting Ukrainian grain need Ukrainian taxes, used to repair roads, to underwrite their operations.

About the Author

Nick Savvides

Europe correspondent

Experienced journalist working online, in monthly magazines and daily news coverage. Nick Savvides began his journalistic career working as a freelance from his flat in central London, and has since worked in Athens, while also writing for some major publications including The Observer, The European, Daily Express and Thomson Reuters. 

Most recently Nick joined The Loadstar as the publication’s news editor to develop the profile of the publication, increase its readership and to build a team that will market, sell and report on supply chain issues and container shipping news. 

This was a similar brief to his time at ci-online, the online publication for Containerisation International and Container News. During his time at ci-online Nich developed a team of freelancers and full-time employees increasing its readership substantially. He then moved to International Freighting Weekly, a sister publication, IFW also focused on container shipping, rail and trucking and ports. Both publications were published by Informa. 

Following his spell at Informa Nick joined Reed’s chemical reporting team, ICIS, as the chemical tanker reporter. While at ICIS he also reported on the chemical industry and spent some time on the oil & gas desk. 

Nick has also worked for a time at Lloyd’s Register, which has an energy division, and his role was writing their technical magazine, before again becoming a journalist at The Naval Architect for the Royal Institution of Naval Architects. After eight successful years at RINA, he joined Fairplay, which published a fortnightly magazine and daily news on the website.

Nick's time at Fairplay saw him win the Seahorse Club Journalist of the Year and Feature Writer of the Year 2018 awards.

After Fairplay closed, Nick joined an online US start-up called FreightWaves. 

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like