Germany to provide EUR 266 mln to Ukraine to support industrial enterprises, energy infrastructure, social housing, vocational education

Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) will additionally allocate EUR 233 million to strengthen energy infrastructure, emergency response, workforce training, and the development of social housing in Ukraine.

As Ukraine’s Minister of Economy, Environment, and Agriculture Oleksiy Sobolev said on Facebook, this is the result of intergovernmental consultations held Tuesday in Berlin.

According to him, Germany will also provide EUR 30 million through development bank KfW to launch a special financing program aimed at supporting Ukrainian industrial enterprises, including through concessional financing mechanisms for the purchase of European industrial equipment.

Sobolev added that he signed a declaration of intent with Minister Reem Alabali-Radovan to support industrial recovery under the "Industrial Ramstein" initiative. He also discussed with her the development of the affordable housing market in Ukraine, particularly to facilitate the return of Ukrainians from abroad, as well as potential German assistance in preparing for the next winter, restoring energy capacity and protecting critical infrastructure.

The Ukrainian minister noted that he also agreed with Minister for Economic Affairs and Energy Katherina Reiche to establish a coordination committee in the field of subsoil use to conduct joint research for the discovery and development of deposits, attract strategic investors to the mineral sector, and modernize geological data (digitalization, systematization, and translation into English). Within this framework, the State Service of Geology and Subsoil of Ukraine and Germany’s Federal Institute for Geosciences and Natural Resources (BGR) signed a memorandum of understanding on the geological exploration of critical minerals. The committee will identify joint projects and coordinate their implementation.

"We also specifically addressed Germany’s assistance in resolving the issue of the CBAM carbon adjustment mechanism, which is already placing a significant burden on our metallurgy sector," Sobolev wrote, without providing further details.

He said that the intergovernmental consultations held in Berlin for the first time will become an annual event, with the next round to be held in Kyiv.