Germany and Ukraine: Bilateral relations

01.06.2021 - Article

Germany is very keen to see a stable, democratic and economically flourishing Ukraine which is why the German Government has provided the country with such a high level of support. Since 2014, Germany has provided Ukraine with a total of more than 1.8 billion euro. Projects run, for example, by political foundations, associations and NGOs, supplement government efforts.

Within the framework of bilateral development cooperation, around 757.5 million euro have been pledged since 2014. The projects are mainly implemented by GIZ, PTB and KfW. Cooperation focuses here on good governance (democracy, civil society, public administration, decentralisation), as well as on energy efficiency and sustainable economic development. Support is granted to municipalities which have taken in a large number of internally displaced persons (for example by creating housing and social infrastructure, maintaining water supplies, strengthening disaster prevention).

Germany is one of the largest bilateral donors of humanitarian assistance (around 150 million euro since 2014). This assistance has been used for demining, the removal of other explosive remnants and other purposes.

In August 2020, a declaration of intent was signed to establish a German-Ukrainian Energy Partnership thus creating a central platform for energy policy dialogue between the two countries. The Energy Partnership ties together the various activities of the German Government which is supporting a number of bilateral projects in Ukraine.

Furthermore, a loan guarantee scheme to the tune of 500 million euro launched by the Federal Government in 2014 is being used, for example, for Ukraine’s deposit guarantee fund and to modernise substations.

As part of our support as Ukraine embarks on the path of reform, Germany is also supporting the programme to expand cooperation with civil society in Eastern Partnership countries and Russia. Between 2014 and 2020, support to the tune of more than 94 million euro was granted and in 2021, more than 19 million euro has been earmarked for further projects. With 27 million euro for bilateral and 14 million euro for regional projects, Ukraine is the main focus of these activities. Also in 2021, almost half of the over 200 projects involve Ukraine.

Beacon projects here include those to set up an independent public-service broadcaster and to strengthen youth exchange.

Key support measures funded by the German Government are pooled in a Ukraine Action Plan. Several federal ministries and implementing organisations, as well as business and civil society, are involved in its implementation. The Federal Foreign Office is in charge of coordinating the plan. The Action Plan contains both short-term measures to alleviate acute hardship, as well as medium and long-term projects and programmes designed to solve structural problems in Ukraine.

Germany is one of Ukraine’s most important trading and investment partners. It is the second largest supplier of Ukrainian imports and a key market for Ukrainian Exports.

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