As at: 23/02/2024

View of Kyiv

Solidarity with the people in Ukraine Strengthening Ukraine's resilience

Svenja Schulze, Federal Minister for Economic Cooperation and Development
Ukraine is also defending our security. Germany stands firmly by its side. Along with military engagement, civilian engagement is absolutely essential. Ukraine will only be able to defend itself successfully if society is strong enough, if there is a working power supply, if hospitals are functioning and businesses are operating – and, importantly, if teachers are teaching and children have safe spaces. Germany will be actively supporting all these things for as long as it takes.
Svenja Schulze Federal Minister for Economic Cooperation and Development

Jointly cushioning the impacts of war and working on the recovery

Further information

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.

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.

Straight to

The design of Germany's development cooperation

In its work in Ukraine, the BMZ is able to build on long-standing partnerships that started over 30 years ago and on the knowledge that has grown through these partnerships. 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 essential.

At the international level, BMZ State Secretary Jochen Flasbarth represents the German government in the effort for efficient coordination of international assistance geared towards short-term, medium-term and long-term support for Ukraine.

Since the beginning of Russia's invasion of Ukraine in February 2022, the BMZ has made available some 1.3 billion euros to support Ukraine. The projects financed with this money are being implemented mainly through GIZ and KfW Development Bank, and together with the European Union, the United Nations, the World Bank, and aid organisations (as at February 2024).

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

Small and medium-sized enterprises 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 their businesses.

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. This support centres around Ukraine's “5-7-9” programme for the promotion of economic development. The BMZ supports this programme via the Business Development Fund.

The BMZ has also launched private sector development programmes via the Deutsche Investitions- und Entwicklungsgesellschaft (German Investment and Development Company, DEG) in order to boost trade and investment. In addition, it is providing funding, with a view to Ukraine's recovery, for training skilled personnel for key sectors such as energy.

Securing health services and cushioning the impact of war

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. 30 German and 50 Ukrainian hospitals are already taking part in such partnerships (as at February 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, youth facilities and 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.

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. The BMZ and international partners are supporting, among other things, the Ukrainian energy operator, Ukrenergo, in its efforts to repair and modernise the energy system. The purpose of these efforts is to modernise the grid, make it more energy efficient and bring it into line with EU standards. Thanks to international support, it was possible to restore 95 per cent of the destroyed parts of the high-voltage grid before the winter of 2023/24.

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.

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 200 German and Ukrainian partner municipalities.

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 establish 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

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 helping them and other players to create more transparency.

For instance, it is working with the Ukrainian government and non-governmental organisations to develop digital tools for authorities' services for citizens. Efforts are also 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

Ukraine's recovery effort is geared towards a European Ukraine. 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.

Cooperation in action

Other BMZ activities

Cover: Strategy for development cooperation with transformation partners in South-Eastern and Eastern Europe and the Southern Caucasus

Strategy for development cooperation with transformation partners in South-Eastern and Eastern Europe and the Southern Caucasus

File type PDF | Date of status 12/2023 | File size 719 KB, Pages 9 Pages | Accessibility Accessible

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 that neighbour the EU to the East are also plainly feeling the economic impacts 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.

Global impacts of the war

Food security

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.

News

Logo (blue with white writing) "Information | Hilfe | Services" and in yellow " www.germany4ukraine.de"

Support portal for refugees from Ukraine www.germany4ukraine.de External link

Through its internet portal “Germany4Ukraine” the German government is providing secure, up-to-date information in Ukrainian (External link), Russian (External link), English (External link) and German (External link) on entry, registration and staying in Germany for refugees from Ukraine.