Bill Summary
The "Ukraine War Risk Insurance Act" is a piece of legislation aimed at providing temporary war risk insurance for commercial vessels that are involved in transporting goods to and from Ukraine. It recognizes the strategic importance of this trade for U.S. national defense and economy, especially in light of the ongoing conflict due to Russia's invasion of Ukraine.
Key provisions of the Act include:
1. **Eligibility for Insurance**: For five years following its enactment, vessels owned by citizens of NATO member countries, Ukraine, or other nations deemed eligible by the U.S. Secretary of State can qualify for war risk insurance, even if they do not meet certain existing legal criteria.
2. **Insurance for Ukraine Initiative**: This initiative, established within the Department of State, focuses on enhancing confidence in Ukraine's economic recovery, promoting investment from European allies, and ensuring the safe shipment of essential commodities like grain.
3. **Reporting Requirements**: The Secretary of State is required to report annually for four years on the progress of the initiative and suggest further legislative actions to support its objectives.
4. **Diplomatic Support**: The Act mandates that the Secretary of State collaborate with other federal agencies to provide diplomatic support to countries that back the war risk insurance for Ukraine.
5. **Multilateral Insurance Mechanism**: It directs U.S. representatives to advocate for a multilateral insurance framework at the U.N. Food and Agriculture Organization to safeguard grain shipments from Ukraine.
Overall, the legislation aims to bolster maritime trade with Ukraine, support its economy, and enhance international cooperation in addressing the challenges posed by the conflict.
Possible Impacts
The "Ukraine War Risk Insurance Act" can affect people in various ways:
1. **Economic Stability for Businesses**: By providing war risk insurance for commercial vessels transporting goods to and from Ukraine, the legislation can help stabilize businesses involved in international trade. Companies may feel more secure in shipping their products, knowing they are protected against potential losses due to risks associated with the ongoing conflict. This can lead to increased trade activity, benefiting employees and local economies.
2. **Support for Ukrainian Recovery**: The act aims to bolster confidence in Ukraine's economic recovery and promote closer economic integration with European countries and the U.S. This support can lead to improved job opportunities and economic conditions in Ukraine, which can have a positive impact on Ukrainian citizens, including those displaced by the conflict or those seeking to rebuild their lives.
3. **Enhanced Food Security**: With provisions aimed at ensuring the shipment of grain and other food commodities from Ukraine, the act has the potential to enhance food security in both Ukraine and importing countries. This is particularly crucial given the country’s role as a significant grain exporter. Improved access to food supplies can help stabilize prices and availability, benefiting consumers and reducing hunger in regions dependent on Ukrainian agricultural exports.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3973 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3973
To provide temporary war risk insurance for certain commercial vessels
operating importing goods to, or exporting goods from, Ukraine.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 12, 2025
Mr. Keating (for himself, Mr. Quigley, and Mr. McGovern) introduced the
following bill; which was referred to the Committee on Foreign Affairs,
and in addition to the Committee on Transportation and Infrastructure,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To provide temporary war risk insurance for certain commercial vessels
operating importing goods to, or exporting goods from, Ukraine.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ukraine War Risk Insurance Act''.
SEC. 2. FINDING.
Congress finds that the transportation in the waterborne commerce
importing cargo to, or exporting cargo from, Ukraine is in the interest
of the national defense or national economy of the United States.
SEC. 3. WAR RISK INSURANCE ELIGIBILITY FOR CERTAIN COMMERCIAL VESSELS
OPERATING IN UKRAINE.
(a) Eligibility.--Notwithstanding section 53902 of title 46, United
States Code, for the period beginning on the date of enactment of this
Act, and ending 5 years after such date, a covered vessel shall be
deemed to be eligible for insurance or reinsurance under chapter 539 of
title 46, United States Code, if such vessel is engaged in
transportation in waterborne commerce importing cargo to, or exporting
cargo from, Ukraine.
(b) Expansion of Cargo.--Subparagraphs (B) through (D) of section
53903(a)(3) of title 46, United States Code, shall not apply to cargo
imported or exported to or from Ukraine.
(c) Definitions.--In this section:
(1) Covered vessel.--The term ``covered vessel'' means a
vessel that is owned by a citizen of--
(A) a member country of the North Atlantic Treaty
Organization;
(B) Ukraine; or
(C) any other country the Secretary of State, in
consultation with the Secretary of Transportation,
determines, in the interest of national security, shall
be considered eligible for insurance or reinsurance
under chapter 539 of title 46, United States Code.
(2) Owned by a citizen.--The term ``owned by a citizen''
means ownership by an entity that is considered to be a citizen
of a country in the same manner as an entity is deemed to be a
citizen of the United States under section 50501 of title 46,
United States Code.
SEC. 4. INSURANCE FOR UKRAINE INITIATIVE.
(a) Establishment.--There is established in the Department of State
an entity to be known as the Insurance for Ukraine Initiative.
(b) Objectives.--The objectives of the Insurance for Ukraine
Initiative are the following:
(1) Bolster confidence in Ukraine's eventual economic
recovery from Russia's full-scale invasion through the
provision of war risk insurance.
(2) Encourage European allies and partners to finance and
invest in Ukraine's economic recovery, including through the
provision of war risk insurance.
(3) Promote closer economic integration between Ukraine and
other countries in Europe as well as the United States and
further Ukraine's accession to the European Union.
(4) Coordinate dialogue and fora for extensive outreach
with private sector insurance companies relating to the
provision of war risk insurance to Ukraine.
(5) Work with Ukraine, international organizations, and
Middle Eastern and African allies and partners to ensure the
bountiful and affordable shipment of grain and other food
commodities from Ukraine.
(c) Report.--Not later than 1 year after the date of the enactment
of this Act, and annually thereafter for the following 3 years, the
Secretary of State shall submit to the appropriate congressional
committees a report that includes assessments of--
(1) progress towards the achievement of each of the
objectives set forth in subsection (b); and
(2) legislative proposals that would further the objectives
set forth in subsection (b); and
(d) Definition.--In this section, the term ``appropriate
congressional committees'' means--
(1) the Committee on Foreign Affairs of the House of
Representatives; and
(2) the Committee on Foreign Relations of the Senate.
SEC. 5. DIPLOMATIC AND POLITICAL SUPPORT.
The Secretary of State, in coordination with the heads of other
relevant Federal departments and agencies, shall seek to provide
diplomatic and political support to countries that provide or provide
support for war risk insurance for Ukraine, including by using the
diplomatic and political influence and expertise of the Department of
State to build the capacity of such countries.
SEC. 6. VOICE, VOTE, AND INFLUENCE OF THE UNITED STATES AT THE U.N.
FOOD AND AGRICULTURE ORGANIZATION.
The Secretary of State shall direct the United States
Representative to the Food and Agriculture Organization of the United
Nations to use the voice, vote, and influence of the United States at
such Organization to seek to develop a multilateral insurance mechanism
to protect the shipment of grain and other commodities from Ukraine.
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