The German Chancellor announced the beginning of the German-Ukrainian economic partnership, the Minister of Economy called Ukraine a premium partner. What are the priorities for cooperation today?
The war unleashed by Russia on Ukraine is still in full swing, but it is clear: the Ukrainians will win, they will be able to defend their country’s freedom. Therefore, it is now necessary to prepare specific long-term plans for its restoration after the war, in which Germany and German business, in close cooperation with Ukrainian partners, aims to play one of the main roles. This was the main political signal of the 5th German-Ukrainian business forum held on October 24 in Berlin under the motto Rebuild Ukraine (Restore Ukraine).
Investment in Ukraine – investment in the future member of the EU
It was the first event in eight months of Russia’s large-scale invasion – and the most representative forum in its history since 2015: it was attended by the heads of the two governments, more than ten ministers and deputy ministers, heads of departments, top managers of companies. The main organizers are the Federal Association of German Chambers of Commerce and Industry and the Eastern Committee of the German Economy.
“Putin’s war united us,” German Chancellor Olaf Scholz said in his speech and announced the beginning of the German-Ukrainian economic partnership. He noted that about 2,000 German companies are now operating in the Ukrainian market, adding that “some of them are expanding their business even during the war.”
Addressing German business circles, the chancellor emphasized: “Investors in the restoration of Ukraine today will invest in a country – a future member of the EU, which will be part of our legal space and our internal that market.” Strengthening the legal foundations for doing business in Ukraine, the Chancellor also touched on that part of his introduction, where he spoke about the need to further fight corruption.
Government of Ukraine: arms production and other priorities
Prime Minister of Ukraine Denys Shmygal, who arrived in Berlin, expressed confidence that the restoration of his country will be a booster for the EU economy, a catalyst for its development. He ensured that the government in Kyiv took a course towards stimulating private initiative, deregulation of business, and reducing the role of the state in business life.
Among the most promising areas for future cooperation, he named the defense industry, energy (with a particular focus on the gas sector), the IT industry and digitalization, agriculture, as well as development and implementation of environmental technologies within the framework. of the European “green” course, which received the name Green Deal.
The German participants also drew attention to the fact that in the speech of the Ukrainian prime minister, the term Nearshoring was used – it implies the transfer of production sites from Asia to countries located in immediate geographical proximity to customers , in this case close to the EU.
The First Deputy Prime Minister and Minister of Economy of Ukraine Yulia Sviridenko, who connected from Kyiv via video link, illustrated the thesis about the stimulation of private initiative by saying that it is planned to privatize about 800 Ukrainian enterprises. He also emphasized that the development of the defense industry is one of the main priorities of the government.
What areas of cooperation do German entrepreneurs consider promising?
The German side did not focus on the production of weapons, otherwise the organizers put emphasis in almost the same way. The topics of five panel discussions held at the business forum with the participation of representatives of relevant ministries and companies clearly show which areas and sectors of bilateral cooperation they consider the most promising.
Thus, the first discussion focused on new materials and energy efficiency in the restoration of Ukraine in accordance with the principles of sustainable (environmental) development. “The task is not only to restore the destroyed housing and other buildings – it is necessary to build new, environmentally friendly houses, taking into account the future membership of Ukraine in the EU,” said Svenja Schulze, Minister for Economic Cooperation and Development of Germany. .
Other panel discussions discussed the German-Ukrainian energy partnership with a focus on renewable energy; logistics and infrastructure for water, rail and road transportation; agriculture and food industry; cybersecurity and digitalization.
It was mainly about the medium- and long-term, post-war prospects, but the conversation repeatedly turned to the coming winter, which Ukraine enters with an energy infrastructure that was deliberately destroyed by Russia.
In this regard, Germany’s Vice-Chancellor and Minister of Economics Robert Habeck (Robert Habeck) spoke briefly about how he and his ministry staff, together with colleagues from other EU countries, have been looking for generators and transformers for the past few days – and their immediate shipment to Ukraine. Compared to September, the nature of operational tasks to be solved has changed significantly, the minister said.
Soon to Establish an Agency for the Restoration of Ukraine?
As for long-term prospects, he called Ukraine a “premium trade partner” of Germany, which over time – “if the reforms are successful” – could replace Russia, including in sectors such as of energy and chemicals. And to German companies that want to invest in the Ukrainian economy today, Robert Habek reminded that, despite the wartime, the usual state tools for supporting exports, ensuring investments and providing guarantees continue to work in full.
Important information for German investors is the fact that in the near future an organization will appear in Kyiv, designed to coordinate international efforts to restore the war-torn country. Oleksandr Rodnyansky Jr., a professor at the University of Cambridge, an economist, adviser to the President of Ukraine, spoke about it. He was introduced at the forum as the future head of the agency for the restoration of Ukraine.
He clarified that the final decision has not yet been made whether it will be a fund with its own funds or an agency following the example of the one created in Indonesia after the tsunami in 2004, because both forms have their pros and cons. Linked by Alexander Rodnyansky, Jr. the agency benefits from greater transparency in working with foreign sponsors and investors. In any case, German businessmen who followed the Berlin forum from the floor or via the Internet now know to whom they will soon turn in Kyiv for information and help.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.