Ukraine and Germany expand economic partnership, focusing on investment, joint production and technology

Ukraine counts on deepening its economic partnership with Germany, from supporting the resilience of the Ukrainian economy during the war to implementing joint investment projects, localizing production and cooperating on technology. This was stated by Minister of Economy and Environment of Ukraine Oleksandr Kravchenko during a roundtable with representatives of German and Ukrainian companies. The event took place as part of the visit of Federal Chancellor of Germany Friedrich Merz to Ukraine, with the participation of President of Ukraine Volodymyr Zelenskyy.

"Germany's support is critically important for Ukraine's resilience today. At the same time, in the long term I see far greater potential in our partnership: to make it a source of strength and competitiveness for both our countries. We have already begun to realize this potential in energy and defense, but there are many more opportunities. We want more joint ventures, joint research and development, localized production and mutually beneficial investment projects," said Oleksandr Kravchenko.

Germany is among Ukraine's three largest trading partners. Imports from Germany are expected to exceed EUR 6 billion this year. German businesses have not only maintained their presence in Ukraine throughout the full-scale war but continue to invest in new production and infrastructure projects.

One of the instruments supporting new investment is UkraineConnect, launched by the German government and implemented by DEG. The program provides German and European companies with concessional financing for projects in Ukraine and for expanding their presence on the Ukrainian market.

The parties paid particular attention to protecting businesses from war risks. Amid constant Russian attacks, insurance and compensation for losses are critically important for sustaining economic activity, attracting new investment and developing joint production. Ukraine is establishing a national war-risk insurance mechanism, under which the state will cover the first tier of losses in order to attract private insurers and reinsurers. Ukraine is counting on Germany's support in the form of international guarantees and reinsurance.

According to the Minister, Ukraine sees significant potential for scaling up bilateral production and technology cooperation. Besides energy and the defense industry, considerable potential lies in the production of construction materials and equipment for reconstruction, the chemical industry and agricultural machinery.

Ukraine is interested in establishing more joint ventures, developing joint R&D projects, localizing production and attracting German technology and capital.

"Our Government is currently working on an economic strategy for the next 15 years. We want Germany to be an active partner in this process: in shaping flagship projects, bringing in technology and standards, and mobilizing investment. For German businesses, this means early access to a market that is growing, rebuilding and moving toward the European Union," the Minister emphasized.

Oleksandr Kravchenko stressed that supporting the Ukrainian economy today is an investment in the country's resilience. The work of Ukrainian enterprises and the preservation of economic activity reduce the need for external support to finance the budget deficit. Preserved jobs and the stable operation of critical infrastructure help Ukrainians stay and work in Ukraine.

The Minister thanked German partners for their consistent support of Ukraine and stressed the importance of further deepening economic partnership between the countries, from supporting resilience today to joint investment, production and technology projects in the long term.