Deputy Minister of Finance Olga Zykova held an online meeting with the new director of the local office of the KfW in Ukraine and Moldova Lorenz Gessner.

The meeting was also attended by the regional managers for Ukraine of the KfW head office Claudia Meseck and Salvatore Candaluccia.

The parties discussed the preparation and implementation of KfW-supported projects, as well as the conclusion of a new intergovernmental framework agreement for all cooperation instruments.

“We are grateful to the Government of Germany and KfW for the support and crucial contribution to the development of the energy sector, support for the private sector, and infrastructure. The development and conclusion of an intergovernmental framework agreement that will regulate the main issues of cooperation with KfW will simplify the procedure for attracting loans and grants. We are ready to join the process of preparing such an agreement and involve all interested bodies in the work,” Olga Zykova emphasized during the meeting.

As part of the cooperation between the Government of Ukraine and KfW, five investment projects are currently being implemented with a total loan amount of EUR 247 million, of which EUR 96.85 million (39.21%) has been disbursed as of June 1, 2023.

Joint projects:

• NPC Ukrenergo (“Reconstruction of substations in the eastern part of Ukraine”; “Improvement of electricity transmission efficiency” (stages 1 and 2);
• Business Development Fund (“Refinancing of energy efficiency investments of Ukrainian SMEs through the financial sector”);
• Chernivtsi Vodokanal (“Chernivtsi Municipal Water Supply Project, Stage 1”).

At the end of the meeting, Olga Zykova offered to hold another meeting with the delegation of the Ministry of Finance, which will take place in London in the coming days.

Additional information

The Kreditanstalt für Wiederaufbau (KfW) is a state-owned bank of the Government of the Federal Republic of Germany, which is a leader among German banks in promoting economic development in Germany, Europe and the world.

KfW’s business areas include support for small and medium-sized businesses; financing of infrastructure projects (water supply, energy supply) and social projects (education, healthcare, support for IDPs); environmental protection; export and project financing; and refinancing.