Germany takes steps to support companies in rebuilding Ukraine
German Chancellor Olaf Scholz’s cabinet approved measures to support companies involved in the reconstruction of Ukraine, with a focus on grants and favorable interest rates for Ukrainian firms as well as investment guarantees for their German counterparts, Bloomberg reports.
The government in Berlin is also working with Kyiv on a proposal to create an institution similar to Germany’s state development bank KfW to help with the rebuilding effort, according to a statement Wednesday. The initiative comes ahead of the next Ukraine Recovery Conference in June in Berlin hosted by Scholz and Ukrainian President Volodymyr Zelenskiy.
“Public funds alone will not be sufficient,” the German government said. The focus is therefore “on involving the private sector more in the reconstruction and modernization of Ukraine.”
Governments, business executives and investors are positioning themselves in anticipation of a rebuilding program that the European Investment Bank estimates could require more than $1 trillion of public and private capital.
Scholz’s government said that the measures approved Wednesday are part of an effort to make clear that “a stable, democratic and economically prosperous Ukraine is in the interests of Germany and Europe.”
“Reconstruction aid is always aimed at supporting reforms for Ukraine’s accession to the EU,” it added.
