This year’s Ukraine Recovery Conference (URC) took place in Berlin on 11 and 12 June. The results of the Conference can be viewed on the URC website. You will also find information on the website about the alliances to support Ukraine initiated by the BMZ.
(External link)Russia's invasion, which began on 24 February 2022, has caused unspeakable suffering for Ukrainians and disrupted the peaceful order of Europe. Russia's attack has also been an attack on the current world order and on international law. Russia's president has not ruled out that his thirst for power might go further. Ukraine is defending its own territory and also security in Europe.
That is why the German government has made a commitment to support Ukraine on a comprehensive basis and has concluded security assurances with Ukraine. Alongside military engagement, this includes civilian engagement, because Ukraine does not just need weapons, it also needs electricity, a functioning health system, education, and economic capacity. This is vital for Ukraine to remain resilient in war and launch a strong recovery.
Germany is supporting this through its development policy. The Development Ministry (BMZ) is working for
an economically strong Ukraine with transparent government structures,
a strong democratic Ukrainian society that is able to deal with the horrors of war,
and a Ukraine that is part of Europe, with the prospect of EU accession.
In June 2024, Germany and Ukraine jointly hosted the international Ukraine Recovery Conference (URC24) in Berlin. At the conference, German Development Minister Svenja Schulze and representatives of the Ukrainian government jointly launched several alliances: to strengthen micro, small and medium-sized enterprises; to support municipalities and foster municipality networks; to support training for skilled personnel; and to increase the involvement of women and girls in the recovery effort in Ukraine.
This support benefits mainly the people of Ukraine, but also Europe and Germany, because Ukraine is defending our world order and security in Europe. A strengthened Ukraine can welcome returnees home and become a driving force for economic development and a strong trading partner.
For the latest information about the situation in Ukraine since the escalated invasion by Russian troops in violation of international law on 24 February 2022, visit the website of the Federal Foreign Office (External link).
The BMZ can rely on experience and partnerships from about 20 years of development cooperation with Ukraine. Working structures are well-established and efficient, so that cooperation has been working in times of war, too.
The BMZ works both with the Ukrainian government in Kyiv and with municipalities, the private sector and civil society.
In that context, close coordination with European neighbours, international partners (especially among the G7) and within the German government is very important. That is why Germany is an active member of the Ukraine Donor Platform (External link).
Since the beginning of Russia's war of aggression against Ukraine in February 2022, the BMZ has made available some 1.78 billion euros to support Ukraine (as at December 2024). The projects funded from this support are being implemented mainly through GIZ and KfW Development Bank, and together with the European Union, the United Nations, and the World Bank. Municipal partnerships and aid agencies' programmes also play an important role.
What are we doing?
The BMZ and the Ukrainian government have agreed to focus their cooperation on the following priority areas:
Fostering the private sector and boosting employment
Logo: German Platform for the Reconstruction of Ukraine
(External link)Small and medium-sized enterprises (SMEs) are the backbone of Ukraine's economy. They are suffering severely under the impacts of the war, such as the destruction of production sites, inflation, massive declines in sales, and lack of access to finance. Many are at risk of having to close down.
At the 2024 Ukraine Recovery Conference in Berlin, the BMZ and Ukraine joined forces with 12 partner countries and 17 organisations to form the SME Resilience Alliance. Its purpose is to assist the Ukrainian government in implementing its SME strategy and to mobilise contributions to local economic development.
Since early 2022, the BMZ has assisted some 10,000 micro, small and medium-sized enterprises in maintaining their market presence and adapting to the new war setting. Relevant activities range from training for specialists and managers to advice on innovation processes all the way to financial assistance.
And for some time now, the BMZ has been supporting the Business Development Fund (BDF). In 2024, the Ministry provided 40.5 million euros to the Fund. Such support enables the BDF to lend to SMEs that have been impacted heavily by the war, for instance in the agricultural sector. Together with international partners, the BMZ is working to help the BDF evolve into a national development agency modelled on Germany's KfW.
A BMZ-funded programme run by DeutscheInvestitions- und Entwicklungsgesellschaft (German Investment and Development Company – DEG) offers loans to medium-sized European companies that wish to invest in Ukraine and create new jobs there.
In view of the great need for skilled labour for the recovery, the BMZ and the Ukrainian Ministry of Economy launched a Skills Alliance in June 2024. Some 70 partners from civil society, the private sector, governments and international organisations want to jointly strengthen vocational training in Ukraine.
Securing health services and cushioning the impact of war
Medical care in Ukraine
Germany’s support for a stronger healthcare system in mental health and psychosocial support, rehabilitation and eHealth.
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Since early 2022, the BMZ, together with local partners, has restored or expanded more than 110 health facilities and provided medical support for about three million Ukrainians.
This includes psychosocial support for dealing with war trauma. Materials and knowledge are also being shared with hospitals in Ukraine via hospital partnerships. Such partnerships already involve 30 German and 70 Ukrainian hospitals (as at November 2024).
Moreover, the BMZ is assisting internally displaced people in Ukraine, for instance with regard to finding accommodation, receiving vocational training and finding jobs in their new locations. The BMZ also supports the reconstruction and rehabilitation of schools, libraries, preschools, and youth facilities, and the construction of housing.
Supporting energy supply and energy efficiency and municipal reconstruction
An engineer from the Ukrainian transmission system operator Ukrenergo maintains a transformer cooling system at a substation in Ukraine.
An engineer from the Ukrainian transmission system operator Ukrenergo maintains a transformer cooling system at a substation in Ukraine.
Reliable power supplies are vital for a country to maintain its capacity to act in war, provide continuous services to the people, and advance the recovery process. However, Russia keeps carrying out massive attacks on Ukraine's energy infrastructure, destroying power stations and substations.
The BMZ and international partners are assisting the Ukrainian energy operator, Ukrenergo, in repairing damage, purchasing new material and protecting critical infrastructure. The purpose of these efforts is to modernise the grid, make it more energy efficient and bring it into line with EU standards. At the municipal level, the BMZ is supporting the development of decentralised energy supplies on the basis of renewable sources. In order to mitigate the impacts of the destruction of energy infrastructure this winter, the BMZ has mounted a short-term effort to provide combined heat and power systems and other flexible generators for decentralised use.
Germany has also joined forces with the EU to support the rehabilitation and modernisation of Ukraine's water and sanitation system, for instance through a modernised water system for 250,000 people in Chernivtsi. Together with the UN Children's Fund, UNICEF, the BMZ is active in numerous communities to improve water, sanitation and hygiene, reaching over 8 million war-affected children and their families.
In addition, the BMZ is assisting German municipalities, enterprises and civil society organisations in developing their partnerships with counterparts in Ukraine. There is now a large network of over 220 Ukrainian-German municipal partnerships.
Strengthening local self-government and fighting corruption
Germany has been supporting local self-government and decentralisation in Ukraine for many years. It is helping municipalities to build the capacity they need to plan the recovery effort. Anti-corruption plays an important role in this work.
The construction sector is particularly susceptible to corruption. With support from the BMZ, efforts are under way to improve Ukraine's “Prozorro” procurement system and to develop the country's digital tender platform, DREAM (External link) (Digital Restoration Ecosystem for Accountable Management).
As a matter of principle, strict corruption prevention measures are undertaken in all projects, for instance through GIZ and KfW, to make sure that the funding provided will serve the intended purposes.
Building a strong civil society and democracy
Still from the video “NGO 'Power of the Future' helps IDPs integrate into their new community”
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NGO “Power of the Future” helps IDPs integrate into their new community
Ukrainian media centres and media companies as well as regional media workers are providing information for internally displaced persons and taking action against fake news. The BMZ is providing support to these efforts.
It is also engaged in fostering greater transparency by working with the Ukrainian government and non-governmental organisations to develop digital tools for authorities' services for citizens. And efforts are under way to strengthen political foundations so they can continue their work in spite of the war.
Advice on reforms and on Ukraine's accession to the EU
Negotiations with Ukraine on EU accession started on 25 June 2024. This has provided a clear framework for Ukraine's orientation towards Europe.
The BMZ is providing advice to the Ukrainian government on how to reduce structural barriers for the country's economic development and implement the reforms needed for EU accession. This is also helping to eliminate trade barriers for German companies and to strengthen the two countries' economic relations. In all the BMZ's projects, consideration is given to the prospect of EU accession. This means that EU standards are already being introduced and relevant training is being provided to workers.
With the support of the BMZ, entrepreneur S. was able to buy new reusable containers for drinking water and now produces around 30,000 litres of drinking water every day.
The BMZ is also active in other countries in the region that are significantly impacted by Russia's war of aggression against Ukraine.
Moldova
Since the beginning of Russia's war of aggression, the BMZ has also provided increased support to the neighbouring Republic of Moldova. Assistance is being provided, for instance, for the management of the national crisis centre, job placement services, and the hosting of refugees and their integration in local communities. Simultaneously, the BMZ is supporting Moldova in reducing its energy dependence on Russia – including by making more use of renewable energy and by improving energy efficiency.
Georgia and Armenia
Other countries in our eastern neighbourhood are also impacted significantly by the economic consequences of the war. Revenues from exports to Russia have been lost, while food prices are rising. That is why additional support was provided to Georgia in order to help mitigate the social and economic consequences of the war. Bilateral development cooperation with Armenia was resumed.
Russia and Ukraine are major producers of grain. This means that in countries which depend on wheat imports from Ukraine and Russia, there is a threat of hunger. What is more, as a result of the war, food prices – which were already very high – have risen further.
The current food crises are also due in part to structural problems in agricultural and food systems. These problems include vulnerable supply chains and depending on too few suppliers and too few crop varieties. The BMZ is one of the driving forces behind efforts to transform agricultural and food systems to make them economically, environmentally and socially sustainable. Our programmes in the fields of food security, agriculture and rural development are aimed at strengthening local production and local and regional trade. Agricultural and food systems need to become more resilient – that is active crisis prevention.
Increases in energy prices caused by the war have hit developing countries very hard. Their extensive dependence on imported fossil fuels means that many of these countries are vulnerable.
The BMZ is already assisting many partner countries in expanding the use of renewable energies. Initially this is about ensuring that these countries are able to meet their own energy needs.
Being able to produce energy from renewable sources locally is a huge opportunity for poorer countries in particular: renewable energies are a boon to development, enabling countries to have a secure, affordable, climate-friendly and independent energy supply, and creating new jobs.
Development Minister Svenja Schulze (centre) at the launch of the international “Skills Alliance for Ukraine” as part of the Ukraine Reconstruction Conference in Berlin
Press statement by Federal Development Minister Svenja Schulze following the meeting of the Federal Cabinet in which a key principles paper on mobilising the private sector for the reconstruction of Ukraine was adopted
A destroyed ambulance from Ukraine stands in front of the Congress Hall in Leipzig, the venue for the German-Ukrainian municipal partnership conference.
German Development Minister Svenja Schulze and the Ukrainian Deputy Prime Minister for Reconstruction, Oleksandr Kubrakov (right), in front of a destroyed transformer at a substation near Odessa
