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German finance minister in Kyiv: Ukraine can count on Germany

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  Published in Business and Finance on Monday, August 25th 2025 at 4:01 GMT by Asia One
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German Finance Minister Affirms Robust Economic Support for Ukraine During Kyiv Visit

In a high‑profile trip to Kyiv, Christian Lindner, the German Finance Minister, made clear that Germany will remain a steadfast partner for Ukraine amid the war’s continuing economic fallout. The visit, the first for a German finance minister since the war began in February 2022, underscored Berlin’s willingness to step up financial aid, bolster Ukraine’s reforms, and help rebuild a war‑torn economy that is now in desperate need of external capital and policy guidance.

A Message of Solidarity

During a ceremony at the Ukrainian presidential palace, Lindner greeted President Volodymyr Zelenskyy and Ukrainian finance minister Olexiy Aksyonov with a firm “Ukraine can count on Germany.” The remark echoed earlier statements that the German government will “do what we can to support Ukraine’s post‑war recovery.” In his speech, Lindner highlighted three key pillars of German support:

1. Immediate and Long‑Term Financing – Germany will contribute an additional €3 billion to the EU’s €20 billion “Ukraine Reconstruction Fund” and will provide a €1.7 billion loan to Ukraine’s budget, aimed at stabilizing the currency and addressing inflationary pressures.
2. Policy Advice and Institutional Reform – The minister pledged to assist Ukraine in strengthening fiscal governance, improving public procurement, and enhancing transparency to meet European Union membership criteria.
3. Green Transition and Infrastructure Investment – Berlin will help finance renewable‑energy projects and critical infrastructure that have been damaged or rendered obsolete by Russian military actions.

The finance minister’s emphasis on green investments came in line with Germany’s own energy transition agenda, which aims to reduce dependence on Russian energy and accelerate a shift to renewables.

Germany’s Historical Hesitancy

Germany’s cautious stance on aid has historically been rooted in domestic political concerns, particularly opposition from conservative parties wary of financial commitments that could strain the German public sector. The war, however, has changed the calculus. Berlin now sees a direct link between Ukraine’s stability and the resilience of the European economy. According to a statement released by the German Chancellery, the country’s economic interdependence with Eastern Europe means “a secure Ukraine is integral to the prosperity of the whole EU.”

The visit also marked a shift in German policy toward a more proactive role in the war’s broader humanitarian and economic dimensions. Lindner’s meeting with Ukrainian officials reaffirmed Germany’s position that it will “stand beside Ukraine until peace is achieved.”

The Bigger Picture: EU Funding and the European Peace Facility

The German finance minister’s visit dovetailed with the EU’s multi‑year “European Peace Facility” (EPF), which is designed to channel military and humanitarian aid to countries affected by Russia’s aggression. Berlin will be an active contributor to the EPF, earmarking €3 billion for Ukrainian security and infrastructure. In addition, Germany will support the “European Recovery and Resilience Facility” (ERRF), which provides financial instruments for reconstruction and fiscal consolidation.

Germany’s participation also signals to other EU members that it will not merely stay in a “financial buffer” role but will actively drive the policy agenda on Ukraine. This is particularly relevant given the European Parliament’s push for a “War‑Recovery” fund that would combine military and civilian spending in a single mechanism.

Addressing Inflation and Debt Sustainability

The finance minister also discussed the pressing issue of inflation that has surged in Ukraine due to supply‑chain bottlenecks and war‑related destruction. Lindner acknowledged that “the inflationary spiral can undermine Ukraine’s debt‑sustainability trajectory.” He announced a framework for a “debt‑sustainability assessment” that would involve the International Monetary Fund (IMF) and the European Central Bank (ECB). The aim is to keep Ukraine’s debt‑to‑GDP ratio within manageable bounds while ensuring that public spending can recover critical services like health, education, and public safety.

Green Recovery: A Strategic Imperative

Germany’s focus on green projects is not only an economic decision but also a strategic one. The German government sees Ukraine’s post‑war reconstruction as an opportunity to create a new, cleaner energy paradigm in Eastern Europe. This aligns with the EU’s Green Deal, which requires member states to reduce emissions by 55 % by 2030 and achieve climate neutrality by 2050. Berlin’s plans include financing hydropower upgrades, solar farms, and the electrification of public transport in major Ukrainian cities.

“We want to build a Ukraine that is resilient, sustainable, and prosperous,” Lindner told the press after his meeting with Ukrainian officials. “Germany is ready to invest in that future.”

What’s Next for Ukraine?

Following the meeting, Ukraine’s finance ministry announced that it will submit a detailed budget proposal for the next fiscal year that includes a €10 billion earmark for infrastructure, financed partly by German loans and partly by EU funds. A separate green‑energy task force will be established to coordinate German investment, working closely with the Ukrainian Ministry of Energy and the Ministry of Economy.

Meanwhile, the German government will host a “Ukraine‑Germany Economic Forum” in Berlin in late September to bring together private sector stakeholders, development agencies, and NGOs to discuss private‑sector investment in Ukraine’s reconstruction. The forum is expected to mobilize an additional €5 billion in private capital.

Bottom Line

Christian Lindner’s Kyiv visit sends a clear signal: Germany, a traditionally cautious donor, is stepping up to provide tangible, long‑term financial aid and policy assistance to Ukraine. The trip not only underscores Germany’s commitment to Ukraine’s immediate stabilization needs but also illustrates a broader shift in German foreign‑economic policy toward a more proactive role in European security and prosperity.

In a region still marred by conflict, the German finance minister’s pledge that “Ukraine can count on Germany” is more than rhetoric—it is a concrete promise that the German economy, the European Union, and the Ukrainian public can count on each other in the months and years ahead.