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German, Ukraine finance ministries sign reconstruction declaration

Reuters WORLD
Published June 11,2024

The finance ministries of Ukraine and Germany signed on Tuesday a joint Declaration of Intent to bolster bilateral cooperation to support Ukraine's reconstruction after the war with Russia. "We are not limiting ourselves to the form of support that Ukraine needs to win the war," said German Finance Minister Christian Lindner. "We want to contribute now so that Ukraine can set the course for future growth through its reconstruction."

This is not just about financial resources, but also about building institutional capacities to support private companies in Ukraine and promote investment, Lindner added.

Germany's finance ministry has tasked the KfW Development Bank with assessing the feasibility of a project involving financing consultancy to support Ukraine's finance ministry. The project could also support the Business Development Fund, to make it an independent state financing institution focused on Ukrainian small and medium-sized enterprises (SMEs).

The capacity development project will be financed by the German finance ministry and the KfW will oversee implementation.

The partners expect to sign the underlying agreements by the end of the year from which point it will take effect. The declaration does not constitute a treaty and does not create rights or obligations under international law.