The German government plans to draw investment from German companies into Ukraine through a new financing tool.
The program’s initial size is set at 45 million euros and will be managed by the state development bank KfW (Kreditanstalt für Wiederaufbau), which financed Germany’s post–World War II reconstruction, Economy Minister Katherina Reiche told reporters in Berlin on Monday, December 15.
She said the initiative, called UkraineConnect, aims to mobilize significant private-sector funds. Interested companies across industries will be able to access low-interest loans for projects in Ukraine.
The new instrument is designed to complement earlier economic support measures, including state guarantees for investment and export credits, as well as aid for the energy sector.
In early December, Germany’s Economy Ministry announced it would provide Ukraine an additional 100 million euros—on top of 60 million euros already pledged this year—to help rebuild energy infrastructure damaged in the war launched by Russia.
At the German-Ukrainian Economic Forum, which also discussed Ukraine’s reconstruction in the event of a peace deal with Russia, officials highlighted plans to deepen cooperation in the defense sector.
Among those attending were Ukrainian President Volodymyr Zelensky and German Chancellor Friedrich Merz.
Founded in 1948, KfW is owned 80% by the Federal Republic of Germany and 20% by the federal states. It is one of the world’s largest development banks. KfW is not profit-driven and does not operate like a commercial bank: it has no retail branches and raises funds mainly by issuing bonds.
KfW’s core mission is to support the economy and society. It provides concessional loans and guarantees for small and medium-sized enterprises, housing, education, innovation and green projects, and it finances international development programs. Through KfW, the government advances its economic, social and climate policies.
