H.R. 3973 — Ukraine War Risk Insurance Act

This section states a congressional finding that transportation in 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.

This section deems covered vessels eligible for Federal war risk insurance or reinsurance under chapter 539 of title 46, United States Code (i.e., program providing insurance against war risks when commercial coverage is unavailable), notwithstanding U.S. citizenship requirements of section 53902, if engaged in importing or exporting cargo to or from Ukraine for five years beginning on the date of enactment. The section further waives cargo exclusions under section 53903(a)(3)(B)-(D) (i.e., restrictions on certain commodities, strategic materials, and government cargoes) for Ukraine-related shipments. (Thus, vessels owned by entities deemed citizens of NATO member countries, Ukraine, or other nations designated by the Secretary of State (in consultation with the Secretary of Transportation) for national security—using an ownership test analogous to 46 U.S.C. 50501—may obtain such coverage to support Ukraine trade.)

This section establishes in the Department of State the Insurance for Ukraine Initiative with five objectives: (1) bolstering confidence in Ukraine's economic recovery from Russia's invasion through war risk insurance; (2) encouraging European allies and partners to finance and invest in Ukraine's recovery, including via such insurance; (3) promoting Ukraine's economic integration with Europe and the United States and its European Union accession; (4) coordinating outreach with private sector insurance companies on war risk insurance for Ukraine; and (5) working with Ukraine, international organizations, and Middle Eastern and African partners to facilitate grain and food shipments from Ukraine. The section further requires the Secretary of State to submit to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations, not later than one year after enactment and annually thereafter for the following three years, reports assessing progress toward these objectives and including related legislative proposals.

This section directs the Secretary of State, in coordination with the heads of other relevant federal departments and agencies, to seek to provide diplomatic and political support to countries that provide or support war risk insurance for Ukraine, including by using the Department of State's influence and expertise to build the capacity of such countries.

This section directs the Secretary of State to instruct the U.S. Representative to the Food and Agriculture Organization of the United Nations (FAO) to use the U.S. voice, vote, and influence at the FAO to seek development of a multilateral insurance mechanism to protect shipments of grain and other commodities from Ukraine.