EKF cautiously opens exports to Ukraine
EKF is now resuming individual coverage in war-torn Ukraine
The war is still ongoing in the Ukraine. Despite this, EKF Denmark's Export Credit Agency, is finding that some Danish companies now have an appetite to trade with Ukraine again. Therefore, EKF is now resuming individual coverage in the country. This move is supported by Minister for Business Simon Kollerup.
"From the Danish side, we will do everything we can to help the Ukrainians after Russia's invasion. Therefore, it is really good news that EKF is now boosting exports from Denmark to Ukraine, so that we can contribute as far as possible to normalising the situation for the many people affected by the war. It is both beneficial for Danish companies and for the Ukrainian people," says Business Minister Simon Kollerup (S).
Therefore, EKF is currently in dialogue with selected business partners about opening business on short credits in Ukraine.
"We are seeing an initial interest from some of our customers to do business with Ukraine again. We would like to help support this. Therefore, we are now in dialogue with the relevant banks and credit insurance companies about being able to insure Danish exports to Ukraine again," says CEO of EKF, Peder Lundquist.
Decrease in exports to Ukraine
Danish exports to Ukraine have fallen by up to 40 percent compared to the fourth quarter of 2021. A reinsurance scheme could mean that the commercial credit insurance companies that offer insurance of private companies' short-term payment risks of e.g. export, can reinsure their risks with EKF.
Exports to Ukraine are important, not just for Danish companies. Denmark is a small, open economy that is heavily dependent on foreign countries, therefore exports are one of the most important driving forces for economic growth in Denmark.
Before the war in the Ukraine, it was traditionally an important export area for Denmark within agriculture and technology consultancy.
Therefore, it makes good sense already now to cautiously open up exports to Ukraine.
EKF will, in cooperation with the Danish banks and credit insurance companies, discuss the details of the opening, so that we are ready to support Danish business and make a contribution to getting exports to Ukraine going again.