New Areas of Support

• The Sejm has passed an amendment to the Act on Insurance Guaranteed by the State Treasury, which expands the tasks of KUKE.
• The corporation will be able to operate in the areas of security and defense, climate-energy transformation, and in promising foreign markets.
• The new regulations aim to respond to the changing geopolitical conditions following Russia's aggression against Ukraine and the increasing activity of KUKE, among others, in Africa and the Middle East.
• The guarantees of the State Treasury will cover projects from the new areas once the law comes into force.

The lower house has adopted changes to the Act on Insurance Guaranteed by the State Treasury (MRiT: Broader mandate for KUKE to support strategic investments (announcement) – wnp.pl) (Broader mandate for KUKE to support strategic investments – Ministry of Development and Technology). KUKE will gain the ability to operate in three new areas: security and defense, climate-energy transformation, and projects in promising foreign markets. The law will allow it to cover selected undertakings serving the country's security with State Treasury guarantees, provide broader support for investments in energy, and take on part of the risk in extraordinary situations (Sejm supports covering KUKE guarantees for undertakings related to defense, among others – portalsamorzadowy.pl).

Reasons for Changes

The amendment was prepared because the geopolitical conditions changed after Russia's aggression against Ukraine. The second reason is the investment needs in the country's climate-energy transformation. The third is the increasing presence of KUKE in high-risk export markets, including Africa, Ukraine, and the Middle East.

Government Position

Finance and Economy Minister Andrzej Domański indicated that the country's defense, energy supply stability, and the economy's competitiveness are interconnected. In his opinion, the new instruments will allow for more effective mobilization of private capital for investments important for Poland's long-term development. KUKE is also expected to better respond to the needs of entrepreneurs conducting projects that are strategic for the state and the economy.

What’s Next

The amendment still requires coming into force. After this date, the guarantees of the State Treasury will be able to cover projects from the new areas.