Ukraine's Finance Ministry and KfW Collaborate on Recovery Tools

During a working meeting on March 11, 2026, officials from Ukraine's Finance Ministry, including Deputy Minister Olga Zikova, met with representatives from Germany's Federal Ministry for Economic Cooperation and Development (BMZ), the German embassy in Ukraine, and KfW to discuss new economic recovery tools. According to the Finance Ministry's press service, the dialogue focused on enhancing Ukrainian-German financial cooperation and the introduction of innovative mechanisms to support Ukraine's economic revival.

Germany has remained a crucial partner for Ukraine since February 2022, providing €1.6 billion in direct budget support, of which €1.3 billion has been in grant form. Additionally, KfW's collaboration has resulted in €84.56 million allocated for the restoration of damaged energy infrastructure, water supply systems, and housing for internally displaced persons.

Zikova emphasized the significance of these contributions, highlighting how they play a pivotal role in rehabilitating key sectors affected by the ongoing conflict. One of the initiatives emerging from this partnership is the National Development Initiative for Ukraine (NDI4Ukraine), aimed at strengthening the National Development Institution of Ukraine.

This project, currently under consideration by the European Commission, seeks to enhance the institution's capacity to execute financial support programs vital for economic recovery. Zikova also acknowledged a separate project, the SME Resilience Facility, valued at €40.5 million, established during the Ukraine Recovery Conference in Rome in 2025.

This initiative focuses on improving access to finance for micro, small, and medium-sized enterprises, particularly those from liberated and war-affected areas, through tools provided by the National Development Institution. Furthermore, an agreement signed in November 2025 allows the National Development Institution to access an initial tranche of €20 million soon, signaling the urgency and commitment to bolster economic recovery initiatives.

Since January 1, 2026, the National Development Institution has been operational, aiming to facilitate preferential financing access for small businesses across Ukraine in collaboration with partner banks.