EU finance ministers to discuss Ukraine reform plans, sources say

Apart from financial support via EU funds, the German government wants to help companies and private actors in the reconstruction of Ukraine with 15 measures the economy minister presented on Wednesday. These measures include subsidies and interest rate reductions for small and medium-sized enterprises in Ukraine, as well as investment guarantees for German companies investing in the country.

EU finance ministers will discuss this week reform plans and an investment agenda submitted by Ukraine as it seeks to secure funding, sources in the German finance ministry said on Wednesday. The ministry sources, speaking on condition of anonymity, said they welcomed Ukraine's ambitious approach, which identifies 15 key areas and 69 plans for reform.

They did not give further detail of the plans that they said the finance ministers will discuss at a meeting in Luxembourg. The European Union's Ukraine Facility has a total budget of 50 billion euros ($54.29 billion) for the period from 2024 to 2027.

Financial support in the form of grants, which make up one third of the facility, and loans, the remaining two thirds, are to be provided based on the implementation of reforms in Ukraine. Apart from financial support via EU funds, the German government wants to help companies and private actors in the reconstruction of Ukraine with 15 measures the economy minister presented on Wednesday.

These measures include subsidies and interest rate reductions for small and medium-sized enterprises in Ukraine, as well as investment guarantees for German companies investing in the country. "Public funds alone will not be sufficient for reconstruction," Economy Minister Robert Habeck said. "The German government is therefore focusing on involving the private sector more in the reconstruction and modernisation of Ukraine."

The German development ministry is also working with the Ukrainian government on creating an institution for economic reconstruction modelled on the KfW state lender, which was set up in 1948 to help rebuild Germany's post-war economy. ($1 = 0.9210 euros)

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