It is in Germany’s interest to promote a stable, democratic and economically prosperous Ukraine. The losses and damage caused by the Russian offensive are immense, and reconstruction is not possible using public funds alone. The public and private sector must collaborate closely here. The Federal Government has now adopted a key issues paper on the reconstruction of Ukraine.

Better investment terms

The measures set out in the key issues paper particularly focus on promoting private investment – on the part of German, Ukrainian and international companies, and also involving business organisations, philanthropists and foundations. Drawing on funds totalling some seven billion euros from the EU’s Ukraine Facility, the aim is to improve local investment terms – by providing guarantees to cover risks and subsidies for co-funding, for instance.

“Ukraine needs more than weapons to survive in this war. It’s vital for its economy to be able to keep running, too, and for the country to be able to finance its reconstruction. Favourable financing terms for small and medium-sized Ukrainian companies will be one of the most effective ways of achieving this,” said Federal Minister Svenja Schulze.

One measure the Federal Government will take to improve the conditions for financing in Ukraine is to support the country in establishing a national funding institution for reconstruction. This could be modelled on Germany’s investment and development bank Kreditanstalt für Wiederaufbau (KfW).

Drawn up under the direction of the Federal Ministry for Economic Cooperation and Development and with the participation of the Federal Chancellery, the Federal Foreign Office, the Federal Ministry of Finance, and the Federal Ministry of Economic Affairs and Climate Action, the key issues paper with its 15 measures is a contribution to the Ukraine Recovery Conference due to take place in Berlin from 11 to 12 June and hosted by Federal Chancellor Olaf Scholz and President Volodymyr Zelensky.