Sec. 301. Consortium to support increased private investment in Ukraine
405 words·~2 min read·
/bill/114/hr/5094/ih/section-301·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Congress finds the following: Private investment in Ukraine is essential for Ukraine’s long-term economic recovery, employment, and fiscal stability. Private investment in Ukraine requires the availability of insurance to protect investors against loss due to armed conflict, political violence, expropriation, and other risks that constitute an obstacle to private investment. It is in the United States national security interest to seek to establish an international consortium, with other national governments, multilateral organizations, and investors and insurers, to increase the availability of insurance to support increased private investment in Ukraine.
An international consortium would be an effective mechanism to spread the risk against loss among a broad group of governmental and private insurers. The Secretary of State, after consultation with the Government of Ukraine, shall seek to establish an international consortium to support increased private investment in Ukraine and to provide for participation by the Government of the United States in such consortium. The consortium established pursuant to subsection
(b)should be composed of the following members: The Government of the United States, to include the Overseas Private Investment Corporation. The national governments of other interested countries. Appropriate multilateral organizations. Private insurance companies and other appropriate private sector entities. The consortium established pursuant to subsection
(b)should issue insurance, upon such terms and conditions as the consortium may determine, to protect investors against the risk of loss of private investments in Ukraine. The consortium should— ensure that members of the consortium share in issuing insurance and are liable for payments of claims by investors in proportion to each member’s agreed-upon share; at a minimum, ensure that members of the consortium provide insurance against the risk of loss due to armed conflict, political violence, and expropriation in Ukraine; provide reinsurance to entities that have issued or underwritten insurance to investors in Ukraine against the risk of loss; and establish a procedure for processing, negotiating, and settling claims for losses incurred and should utilize, to the maximum extent possible, the resources of the members of the consortium to carry out such functions. Upon the request of the Secretary of State, the Overseas Private Investment Corporation should— assist the Secretary of State in securing membership of private insurance companies and other appropriate private sector entities in the consortium; participate in underwriting insurance consistent with the statutory provisions applicable to the Corporation; and provide staff with relevant expertise to assist in establishing and administering the consortium, on a reimbursable basis.