OPIC approves political risk insurance that will foster energy security in Ukraine
Nuclear power is a key source of electricity in Ukraine, but the country’s nuclear energy generating capacity is limited by its capacity to store spent fuel. Last week, at its final meeting of the fiscal year, OPIC’s board approved $250 million in political risk insurance to support the construction of the Energoatom Central Spent Nuclear Fuel Storage Facility in the Chernobyl Exclusion Zone in Ukraine. The storage facility will have the capacity to store 169,000 tons of spent fuel per year, reducing the need to ship it to Russia. It will move Ukraine closer to energy independence.
For OPIC, this latest project advances its ongoing commitment to support development in Ukraine, a U.S. foreign policy priority where the Agency’s portfolio has quadrupled in recent years. New OPIC President and CEO Ray Washburne recently visited Ukraine on his first official overseas trip and met with local government and business leaders to explore additional investment opportunities. OPIC provides financing when it is not available from private lenders, as well as political risk insurance, to help mitigate some of the common risks of investing in developing markets.
See also: Did you know: Since 2014, OPIC has quadrupled its portfolio in Ukraine