KfW Bank urges increased private sector investment in Ukraine for promotion.
The KfW development bank is urging more private sector involvement in Ukraine before attending the International Reconstruction Conference in Berlin. Christiane Laibach, a member of the KfW board, remarked, "Reconstruction in Ukraine will only be successful with the support of international state cooperation and the private sector." In response, KfW has created special financial instruments for businesses interested in investing in Ukraine.
Currently, KfW supports over 60 projects in Ukraine on behalf of the German government and the EU. Since the Russian aggression, the bank has committed an additional 1.4 billion euros to Ukraine. Alongside programs for housing and social infrastructure development, KfW also supports a state economic program that provides loans to companies, such as those in agriculture, baking, food retail, and logistics.
Martin Wansleben, managing director of the German Industry and Trade Chamber (DIHK), stated on Monday that many German companies are already operating in Ukraine under wartime conditions and have even expanded their activities. Critical for these companies are state guarantees for investments addressing political and war risks. However, financial risks in Ukraine make expansion challenging, leading Wansleben to advocate for "reinsurance mechanisms" to offset financial costs. Furthermore, he stressed the necessity for companies to understand the various investment, export guarantee, and insurance options available internationally.
The conference this week in Berlin, hosted alongside Ukraine and involving approximately 2000 participants, aims to provide Ukraine with a long-term outlook. Additionally, it addresses emergency aid during wartime. Its primary purpose is to connect business leaders, socio-political stakeholders, and municipal representatives to foster collaboration.
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The Russian war of aggression against Ukraine has led to additional financial commitments from KfW Bank, totaling 1.4 billion euros. Despite the challenges posed by political and war risks, German companies operating in Ukraine under wartime conditions have expanded their activities, emphasizing the need for state guarantees for investments. KfW, as a development bank, supports various sectors in Ukraine, including agriculture, baking, food retail, and logistics, providing loans to combat these risks.
