KfW Bankengruppe

06/13/2024 | Press release | Distributed by Public on 06/13/2024 07:15

A KfW for Ukraine

The third Ukraine Reconstruction Conference on 11 and 12 June in Berlin sent out a clear signal of solidarity with Ukraine. At the same time, a whole package of pledges and declarations were signed in favour of Ukraine. KfW Development Bank alone concluded contracts worth a total of around EUR 185 million in the areas of energy, vocational training and municipal infrastructure on behalf of the German Federal Government and the EU.

The most important results from KfW's point of view also include the greater involvement of the private sector in reconstruction and the political commitment to further expand the Business Development Fund (BDF). KfW, which once co-founded the BDF, will support this process and contribute its experience and institutional expertise in addition to financial resources.

Chancellor Scholz pledges further support

More than 3,400 representatives from governments, international organisations, Ukrainian municipalities, civil society and the private sector took part in the reconstruction conference. Chancellor Olaf Scholz gave the opening speech, followed by President Volodymyr Selenskyi. KfW was also present with a delegation, including Christiane Laibach, member of the Executive Board responsible for international financing.

Chancellor Scholz promised to support Ukraine in a reconstruction process that would make it "stronger, freer and more prosperous than before". "Together with partners such as the World Bank, the European Union and the Japanese International Cooperation Agency, we are supporting the Ukrainian Business Development Fund, for example. The German Kreditanstalt für Wiederaufbau is the role model here," said the Chancellor. In the medium to long term, the BDF is to be developed into a fully-fledged national development institution modelled on the KfW, which can play a significant role in reconstruction. The topics of strengthening and rebuilding the energy infrastructure and small and medium-sized enterprises are at the top of the agenda. In his speech, President Selenskyi thanked for the help already provided and asked for further support. In addition to the military component in the form of air defence, Ukraine continues to need assistance in the civilian sector. In the energy sector alone, half of the power generation capacities have been destroyed by Russian attacks since last winter.