LEGAL MECHANISMS FOR INSURANCE AND PROTECTION OF FOREIGN INVESTMENTS AGAINST WAR RISKS: SYNERGY OF NATIONAL ECONOMIC AND INTERNATIONAL INVESTMENT LAW

Abstract

Introduction. he current state of Ukraine's economy under ongoing armed aggression and preparation for large-scale post-war reconstruction requires fundamentally new approaches to ensuring the security of foreign capital. Reconstruction needs, according to World Bank estimates (RDNA4), reached $524 billion as of early 2025 and are projected to exceed $588 billion by 2026. In this context, war risk insurance (WRI) becomes a basic prerequisite for attracting private investment, as traditional commercial policies contain standard clauses excluding military actions. The viability of investment projects depends on the synergy of national economic law instruments and international guarantee mechanisms.

Purpose. The purpose of the article is a comprehensive analysis of the legal nature and effectiveness of existing investment insurance mechanisms against war risks, the study of novelties in national legislation (Law No. 3497-IX and CMU Resolution No. 1541) and international programs (MIGA, DFC) in 2025–2026, and determining the role of the full protection and security standard in the investor protection system.

Materials and methods. The study is based on an analysis of the Economic Procedural Code of Ukraine, the Law of Ukraine "On the Regime of Foreign Investment", Resolution of the Cabinet of Ministers of Ukraine No. 1541 (2025), and international conventions. The research employs methods of systemic analysis, the comparative-legal method, and the method of theoretical generalization.

Results. The operation of the Export Credit Agency (ECA) of Ukraine, whose mandate since 2024 has been expanded to direct investment insurance, is analyzed. The mechanisms introduced by CMU Resolution No. 1541 of November 28, 2025, which came into force on January 1, 2026, are examined in detail: direct damage compensation (up to UAH 30 million for frontline territories) and insurance premium reimbursement. It is established that international institutions, particularly MIGA through the SURE Trust Fund and DFC through reinsurance facilities, create the necessary market depth. It is proven that the full protection and security (FPS) standard in international law is transforming into a state's obligation to provide the investor with access to effective financial tools for risk minimization.

Discussion. Further research will focus on analyzing Draft Law No. 12372 "On the War Risk Insurance System" and developing a subrogation model for international insurers in Ukraine's economic process.