EDC continues support for Ukraine by leveraging export credits and investment insurance

Export Development Canada (EDC) has maintained uninterrupted support for Ukraine, working with other export credit agencies (ECAs) and multilateral institutions to bolster trade and investment in Ukraine.

Canada and Ukraine have enjoyed close bilateral relations since Canada became the first Western nation to recognise Ukraine’s independence on 2 December 1991. Since then, Canada-Ukraine ties have only strengthened and solidified through the Canada-Ukraine Free Trade Agreement (CUFTA), which entered into force in 2017 and was modernised in 2023. These relations are made even stronger by friendly people-to-people ties, which are rooted in the Ukrainian Canadian community of more than a million people. Given these close historic ties between Ukraine and Canada, EDC’s response to the illegal Russian invasion has been to keep Ukraine’s commercial borders open and trade channels flowing.

Following Russia’s full-scale, illegal invasion in February 2022, EDC’s support for Ukraine has remained uninterrupted, and we are actively engaged with various stakeholders to understand how to best leverage and mobilise export credits to support continued trade and investment between Canada and Ukraine. We have been coordinating with the Canadian business community, including the Canada-Ukraine Chamber of Commerce, who have shared with us the risks and challenges they are looking to EDC to mitigate. We have continuous dialogue with Ukrainian officials to understand the sectors of greatest need in the country. We have convened with other ECAs to find ways to collaborate and amplify our impact in Ukraine, and with multilateral institutions including the Multilateral Investment Guarantee Agency (MIGA), European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB).

We have received a clear and consistent message: there remains a need for large sums both in the short term, while the conflict persists, and in the long term, to support the Ukrainian economy and the rebuilding and reconstruction of the country. There is vast export and investment potential to be supported in Ukraine which will only be fully realised through collaborative efforts with other export credit agencies (ECAs), multilateral partners, and international banks, to strengthen Ukraine’s ability to access capital in the years to come.

Stepping in with solutions for Ukraine trade

At the start of the war, EDC was one of very few ECAs that remained open to support short-term (ST) and medium- to long-term (MLT) business. EDC continues to be open for both ST and MLT business on a restricted basis to support Canada-Ukraine trade and investment across our suite of knowledge, insurance, and financing solutions. Our goal is to keep trade channels open and flowing during the conflict, including by covering war-related risks through our credit risk insurance, financing, and guarantee products.

EDC has continued to provide uninterrupted support, including to more than seventy Canadian exporters and more than seventy Ukrainian buyers. We provide 100 percent coverage for Canadian banks supporting Canadian companies looking to export to Ukraine and 100 percent coverage to international banks extending buyer financing to Ukrainian companies, in support of Canadian exports or investments. We continue to see a growing pipeline from various sectors. EDC supports ST and MLT transactions on our own balance sheet instead of relying entirely on a national account, as is the predominant practice. We have stretched our credit risk appetite through a dedicated Ukraine risk envelope to enable faster, greater flow of business transactions across EDC’s suite of solutions.

Supporting Ukrainians in Canada and abroad

On the non-financial side, we sponsored and participated in the Ukraine Rebuild and Recovery conferences held in Canada and abroad. We also sponsored the Canada-Ukraine Chamber of Commerce’s online tool, which helps Canadian companies identify opportunities in Ukraine. These actions highlight our proactive approach and willingness to take on more risk, to ensure continuous and reliable support to Ukraine at a time when the country needs it the most.

EDC has partnered with other ECAs and multilateral institutions to share information and risk-share, because we realise we cannot do this alone. We continue working alongside G7 ECA peers with whom we have jointly expressed support for Ukraine. We also continue seeking opportunities to collaborate with international partners, having regular discussions with EBRD, MIGA, the International Finance Corporation (IFC), and the Development Finance Corporation (DFC).EDC recognises that the Russian invasion of Ukraine has affected not only business and trade flows, but most importantly the lives of all Ukrainians. Strengthening and improving the communities in which we live and do business is a core value of EDC. As such EDC has pledged its support for Ukraine’s growing community in Canada with the 2023 launch of the Ukraine Empowerment Scholarship. This scholarship is for post-secondary students who have received a Canada-Ukraine Authorisation for Emergency Travel and/or Expedited Family Sponsorship for Ukrainians to relocate to Canada.

Remaining steadfast partners

Looking ahead at the challenges Ukraine must overcome, ECAs will play a vital role. There is immense opportunity for ECAs to work together by sharing information and collaborating on de-risking solutions to address the needs expressed by the business and investment communities. ECAs can also attract private sources of capital through their ability to extend guarantee coverage for exports. The Berne Union is a critical forum in which ECAs can actively engage with one another and with multilateral and private financial institutions. EDC looks forward to engaging with our peers at the Berne Union to continue leveraging export credits to support Ukraine.

EDC remains fully engaged in facilitating Ukrainian commerce and trade and strengthening Canadian-Ukrainian bilateral ties. We are committed to continuing to work closely with like-minded ECAs, financial institutions, and other global partners to join Canada’s ongoing efforts to support Ukraine.

EDC VP for Public Affairs & International Relations, Leah Gilbert Morris with Zenon Potoczny President of the Canada-Ukraine Chamber of Commerce (CUCC) (left) and Olha Mandyuk, Executive Director of CUCC (far right) at the Rebuild Ukraine Conference in Toronto, Canada hosted by the Canada-Ukraine Chamber of Commerce in November 2023.

EDC SVP, International Markets, Communications & Public Affairs, Todd Winterhalt as part of a panel discussion at the Rebuild Ukraine Conference held in Toronto in November 2023.