Leadership of the Ministry of Finance discussed new financial instruments to support economic recovery with representatives of the German Government and KfW

A working meeting took place at the Ministry of Finance of Ukraine between Deputy Minister of Finance of Ukraine Olga Zykova and representatives of the German Federal Ministry for Economic Cooperation and Development (BMZ), the Embassy of the Federal Republic of Germany in Ukraine, and the German Development Bank KfW.

The German side was represented by Marie-Lena May, Senior Policy Officer, Ukraine Task Force, Federal Ministry for Economic Cooperation and Development (BMZ); Jens Busma, Head of Cooperation, German Embassy in Kyiv; Lorenz Gessner, ​Director of Kyiv and Chișinău Office, KfW; as well as other representatives of the German government and KfW Development Bank.

During the meeting, the parties focused on the development of Ukrainian-German financial cooperation and new instruments to support Ukraine’s economic recovery. Particular attention was paid to support programs for small and medium-sized enterprises (SMEs), which play an important role in maintaining economic activity and creating jobs during wartime.

The Deputy Minister of Finance expressed gratitude to the Government of Germany for its consistent support for Ukraine since the beginning of the full-scale invasion by russia: “Germany remains one of Ukraine’s key partners. Since February 2022, Ukraine has received EUR 1.6 billion in direct budget support, including EUR 1.3 billion in grants. In addition, within the framework of cooperation with KfW, EUR 84.56 million has been mobilized during this period to restore damaged electricity equipment, rehabilitate water supply and wastewater systems, and provide housing for internally displaced persons.”

The parties also noted Germany’s important role in supporting Ukraine’s energy resilience. The total amount of assistance from the German Government for the energy sector amounts to EUR 311 million, including support for projects implemented by NPC Ukrenergo aimed at the modernization and restoration of energy infrastructure.

During discussions of new initiatives for Ukraine’s economic recovery, the parties also addressed the NDI4Ukraine (NDI4U) initiative. The initiative is aimed at developing Ukraine’s National Development Institution and strengthening its capacity to implement financial programs supporting economic recovery.

The initiative envisages additional liquidity for the state budget, particularly to support social expenditures during wartime and economic instability, while also contributing to the development of strategic sectors of the economy and Ukraine’s integration into the financial standards of the European Union. The project is being implemented within the framework of the Ukraine Investment Framework (UIF) and is currently under review by the European Commission.

It should be recalled that on January 1, 2026, the National Development Institution (NDI) began operating in Ukraine. It is a state financial institution established on the basis of the Business Development Fund. Its key mission is to expand access for micro, small, and medium-sized businesses to concessional financing through partner banks.

Olga Zykova also thanked the German side for implementing the EUR 40.5 million SME Resilience Facility project, signed during the Ukraine Recovery Conference in Rome in 2025. The project aims to improve access to financing for Ukrainian micro, small, and medium-sized enterprises, particularly those located in de-occupied and war-affected regions, through instruments implemented by the National Development Institution. A separate agreement was signed in November 2025, and the NDI is expected to receive the first tranche of EUR 20 million in the near future.

Participants of the meeting also exchanged views on the macroeconomic situation, Ukraine’s external financing needs for 2026–2027, and the coordination of international support to ensure the country’s financial stability during the war.