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The German government will push forward the reconstruction of Ukraine.
A 15-point plan has been prepared for this. According to an announcement by the Ministry of Development, "it is about mobilizing the private sector for the reconstruction of Ukraine" . In Berlin and the Ukrainian capital, Kiev, talks have been underway for weeks about an upcoming reconstruction conference scheduled for June 11 and 12.
There were also such conferences in London and Lugano, but German government circles say that in these conferences only aid to the Ukrainian economy was discussed, while in Berlin it will be about "four dimensions of reconstruction".
In addition to the economy, discussions on the qualified labor force and its education, the EU membership process and the strengthening of municipalities and municipalities in Ukraine will also play a role in the proceedings of the conference.
The need for the reconstruction of Ukraine reaches the figure of 400 billion dollars
The German Ministry of Development since the revolution in Maidan has strengthened the aid at the municipal level for Ukraine. "We want to strengthen what exists," the ministry's spokeswoman told DW. This is aimed at a time when Russia is still hitting Ukrainian infrastructure with missiles and drone strikes on the eastern front. The International Monetary Fund estimates the costs of the reconstruction of Ukraine at about 400 billion dollars.
In order for private companies to invest in Ukraine, in those parts of the country that are less threatened by Russia, there is an opportunity for companies to apply for state guarantees. This is made possible by the "investment guarantee" program of the Ministry of Development, which works like insurance. For Ukraine, this instrument for securing German investments abroad also applies in case of war.
Which means: if a Russian bomb happens to destroy a certain factory or new investment, Germany is responsible for most of the destroyed infrastructure, if the investment is categorized as protected.
Protective umbrella for more than 22 investment projects
The Ministry of Economy in Berlin has approved 53 requests for investment protection within the investment guarantee project. Most were investments in Ukraine, 22 investments worth 54.8 million euros, says the report of the agency "investionsgarantien.de, commissioned by the ministry.
Among the investments receiving German protection in Ukraine is the further expansion of the new factory for construction materials by the German company Fixit near the city of Lviv. Together with the subsidiary "Kreisel", the manufacturer of construction materials has been producing in Eastern Europe for many years.
Since before Russia's attack in 2022, this company had started production with the construction of a new factory near Lviv. When Russia invaded Ukraine, the construction was stopped. The approval of the investment insurance allowed the works to continue again.
"We are confident that we can start this year with trial work," says the company's executive director for the eastern region, "Region Ost", Michael Kraus. "We need to rebuild Ukraine. It's a beautiful country with very friendly people."
But the war also put the German manager in front of the big challenge. German machine manufacturers did not send their assemblers to Russia-attacked Ukraine. And his Ukrainian employees, manager Kraus could not send them to the producers so quickly. Young men were not allowed to leave Ukraine because they might be called up for war.
In the end, three of his employees were able to specialize in Poland and Germany, in order to put the machines to work in the new factory. In the company's second factory, Fixit in Ukraine, 60 people are expected to be employed.
For their education, Fixit plans to set up a qualification academy with its subsidiary "Kreisel" in Ukraine. This project will also be supported by the German government with a soft loan from the German Bank for Reconstruction, KfW./ DW
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