War exclusion clause means Ukraine will not receive US$135 million in compensation if Russians blow up Zaporizhzhia Nuclear Power Plant
At the end of June, Energoatom, Ukraine's state-run nuclear power plant operator, signed an agreement with insurance company Persha. The agreement stipulates that Ukraine will receive UAH 5 billion [about US$135 million – ed.] in the event of a nuclear incident at any of the four nuclear power plants in Ukraine. However, the insurance coverage will only come into force after the Zaporizhzhia Nuclear Power Plant (ZNPP) is liberated from the Russian occupiers.
Source: Nashi Hroshi (Our Money) media outlet, referring to information in the Prozorro public procurement system
Details: The agreement covers Ukraine’s four nuclear power plants: Zaporizhzhia, Rivne, Khmelnytskyi and Pivdennoukrainska.
The sum insured under the agreement is 111.49 million IMF SDRs (special drawing rights), equivalent to UAH 5.44 billion at the current exchange rate. The insurance term is one year.
The agreement between Energoatom and the Persha insurance company stipulates the payment of compensation for the death or loss of health of citizens in the event of a nuclear disaster. But it establishes that insurance coverage with respect to the ZNPP will only come into force after:
- the ZNPP is liberated from Russian troops;
- the consequences of the Russians’ presence at the power plant are dealt with;
- international nuclear insurance pools agree to participate in the reinsurance of the risks at ZNPP.
Furthermore, the insurance does not cover cases of nuclear damage resulting from an accident at any Ukrainian nuclear power plant that was caused by combat action, armed conflicts, invasion etc.
Energoatom’s previous insurance agreements also contained such exceptions with respect to war-related causes of nuclear incidents.
Background: The Armed Forces of Ukraine have reported that the Russians may be preparing a provocation in the territory of the occupied ZNPP in the near future.
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