The political situation in Donetsk and Luhansk oblasts differs from other regions of Ukraine due to hostilities and proximity to the demarcation line. To attract investors to priority development areas in Donetsk and Luhansk oblasts, the legislator must offer various and effective guarantees for the protection of their rights. Given the socio-economic and political situation in Donetsk and Luhansk oblasts, one of the main guarantees for the protection of investors’ rights should be the insurance of military and political risks.

The purpose of this article is to identify problems that prevent the use in Ukraine of the institution of insurance of military and political risks and to single out the main components of the institute of military-political risks insurance as a guarantee of protection of investors’ rights to TPD in Donetsk and Luhansk oblasts.

Ukraine’s legislation on investment provides investment insurance as one of the types of investment protection guarantees, but no security mechanism of military and political risks does not permit to practice the institution of law. Therefore, it is necessary to create an effective mechanism for insuring military and political risks, taking into account the specifics of the situation in Donetsk and Luhansk regions, which will eliminate the existing gaps in the legislation and provide opportunities to improve the investment climate in Ukraine.

The main components of the institute of military-political risk insurance are: types of military-political risks and entities that have the right to carry out insurance of militarypolitical risks. The legislator must provide insurance against the following military and political risks in the process of investment activities in the TPD in Donetsk and Luhansk regions, that do not depend on the investor and have signs of probability and accidental occurrence: loss of investment and other property of the investor; physical damage to investments and other property of the investor; change in the conditions of investment activity, including the abolition of the preferential regime, which makes it impossible for the investor to fulfill the conditions stipulated by the contract for the implementation of the investment project on the TPD.

According to the legislation of Ukraine, insurance of military and political risks in the TPD of Donetsk and Luhansk regions can be carried out by resident insurers independently or with reinsurance from a non-resident insurer, and branches of non-resident insurers that have received a license to conduct insurance activities in Ukraine.

At the same time, it should be borne in mind that the insurance company that will insure military and political risks must have: an impeccable reputation; financial opportunities; meet the requirements of the legislation of Ukraine. Effective insurers of military and political risks, which have international recognition and experience in this matter, are: Multilateral Investment Guarantee Agency and U.S. International Development Finance Corporation.

REFERENCES

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