Ukraine / Large Power Transformer Supply Project under the Emergency Recovery Programme (Underwriting of Advance Payment Insurance)
～The First Advance Payment Insurance Case for an Intermediary Trade Transaction～

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has underwritten an Advance Payment Insurance policy for a transaction in which a Japanese trading company procures large power transformers from a supplier incorporated in the Republic of Türkiye and supplies them to Ukraine.

Since Russia's invasion of Ukraine, the country has faced severe electricity shortages, making the stabilization and restoration of its power supply an urgent priority. To address this situation, the Government of Japan and the Japan International Cooperation Agency (JICA) are implementing the Japanese grant aid, “The Programme for Emergency Recovery.” As part of this programme, this transaction will supply large power transformers to a Ukrainian power transmission and distribution operator.

This transaction represents the first project under the category of intermediary trade transactions involving goods purchased in a foreign country and delivered to a third country, which became eligible for Advance Payment Insurance in March 2024 following the amendment of the Trade and Investment Insurance Act in July 2022. In addition to contributing to the stabilization and restoration of Ukraine's power infrastructure, this insurance coverage is expected to encourage further participation by Japanese companies in recovery and reconstruction projects.

NEXI will continue to work with the Government of Japan and relevant organizations to actively support Japanese companies in expanding their business in overseas markets and in undertaking initiatives to address challenges facing the international community.

Contact:
Trade Credit Insurance Underwriting Group Ⅱ
Trade Insurance Department
E-mail: yushutsuhoken-daini-group [at] nexi.go.jp
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