Global insurance companies have reportedly decided not to insure any Ukrainian landings or aircraft in the country’s airspace, a report from Reinsurance News has revealed.
The Ukrainian government has since pledged funds of up to $592m to try to keep its airspace open to commercial flights.
On social media, Prime Minister Denys Shmygal said that the funds “were allocated to ensure flight safety in Ukraine for insurance and leasing companies.”
Adding that, “This decision will stabilise the situation on the market of passenger air transportation and will guarantee the return to Ukraine of our citizens who are currently abroad.”
Reflecting the rising security concerns, numerous airlines have reportedly stopped flights into Ukraine, while others are said to be considering the immediate future of their flights into the country.
Some insurers have reportedly decided to withdraw cover; publications in Ukraine have reported that the Lloyd’s marketplace has suspended cover for flights passing through the region’s airspace.
At the same time, Reinsurance News said reinsurers have told insurers in Ukraine that their aircraft are not protected against war risks.
Airlines without insurance protection will not be able to fly above Ukraine and given that Ukrainian Airlines leases the majority of its aircraft, this will have a huge impact on the company and individuals looking to leave and enter the country.
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