“In today’s world, exporting without prepayment or insurance isn’t bravery – it’s wishful thinking.” — from the experience of Ukrainian exporters who lost hundreds of thousands of euros due to non-payment
A Wave of Non-Payments: New Reality for Ukrainian Exporters
In 2024–2025, an increasing number of Ukrainian exporters are facing problematic contracts. One furniture manufacturer selling to the EU shared:
“We currently have over €300,000 frozen in unpaid contracts with Germany and Switzerland. The buyers received the goods, then declared bankruptcy.”
This is not an isolated case. According to NAZOVNI – the official platform for Ukrainian export promotion and economic diplomacy — a wave of non-payments has affected other sectors as well. There have been similar issues in trade with Japan, Austria, and the Baltic countries. In many cases, international buyers use the geopolitical situation to their advantage — receiving Ukrainian goods without prepayment and then avoiding payment or delaying it indefinitely.
What’s the Solution? Insure Your Export Contract
Ukraine’s Export Credit Agency (ECA) is a state-owned institution that provides risk protection for exporters. In 2024, ECA became a member of the Berne Union – the global association of export credit and investment insurance providers.
What Risks Does ECA Cover?
Contract default (bankruptcy, fraud, or payment delays)
Refusal to pay after delivery
War and political risks (for investment-related contracts)
ECA doesn’t just cover losses – it also assesses the reliability of your buyer before the contract is signed.
ECA evaluates the risk and issues an insurance agreement
You deliver goods or services according to the contract
If the buyer fails to pay – ECA compensates the insured amount
Depending on the deal and destination country, ECA covers up to 90–95% of your loss.
What Does It Cost?
Developed countries (e.g., EU, Japan, Canada) — approx. 1% of the contract value
Medium-risk countries (e.g., Turkey, India) — 2–3%
High-risk markets (e.g., many African countries) — 3.5% or more
Compared to the risk of losing tens or hundreds of thousands of euros, these are modest and manageable costs.
When Is Insurance a Must?
When you’re shipping without prepayment
When the buyer is new or from a high-risk country
When shipping large volumes
When you lack legal instruments to recover unpaid debts abroad
Who’s Already Using It?
According to ECA:
268 contracts insured
Over UAH 21.8 billion in supported export volume
UAH 2.55 billion in bank loans issued with ECA insurance as collateral
Final Word
Prepayment isn’t the only way to protect your export. With ECA insurance you can:
Offer deferred payment terms safely
Enter new markets with confidence
Get financing from Ukrainian banks — even without collateral
“Better to spend 1% and secure the deal than to lose everything after delivery.”
And if the issue has already occurred — don’t delay. We can recommend trusted legal experts who specialize in recovering unpaid export debts across the EU, particularly in Germany, Switzerland, Austria, and the Baltics. Prompt legal action significantly improves your chances of recovery.
Contact the Oakhunt team for help with export contract, ECA insurance, export market research, and buyer verification — or if you’re already facing non-payment issues.
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