Press Release from 2024-02-21 / Group, DEG, KfW Development Bank

From emergency aid to reconstruction: KfW remains on Ukraine’s side as one of the largest promotional banks

  • Support of over EUR 1.4 billion
  • Maintaining the electricity supply
  • Assistance to internally displaced persons
  • Rehabilitation of basic infrastructure
  • Supporting the economy, including the private sector

KfW is supporting Ukraine on behalf of the German Federal Government and the EU with more than 40 ongoing projects and a total volume of more than EUR 1.4 billion. Just since the start of the Russian war of aggression two years ago, KfW has committed more than EUR 1.2 billion for Ukraine on behalf of the German Federal Government and the EU. The measures are primarily intended to maintain government functions, provide support for internally displaced persons, rehabilitate and modernise basic infrastructure, for example in the field of energy, and support the economy. KfW’s subsidiary DEG is particularly engaged in the private sector in Ukraine.

“Managing everyday life remains a daily challenge for the people of Ukraine. This makes it all the more important to maintain state functions to the greatest extent possible and to use emergency aid measures to make people’s living conditions tolerable despite the overall situation. At the same time, it is important to exploit the approaches and opportunities for reconstruction and to strengthen the private sector, also with a view to further Ukraine’s alignment with the EU. KfW remains on Ukraine’s side as one of the largest promotional banks,”

said Christiane Laibach, Executive Board Member for International Financing at KfW.

There have been massive Russian attacks on homes, power lines and schools for the past two years. The war is now entering its third year and has left deep marks on Ukraine. At the same time, the Ukrainian state’s revenues are well below pre-war levels. The need for support is therefore high.

With EUR 520 million, one focus of KfW’s support is on the energy sector. Power lines, substations and power plants have repeatedly become the target of Russian attacks, requiring permanent repairs to maintain the electricity supply. Electricity is needed everywhere and is, for example, also a prerequisite for heat supply, for school education or for agricultural activities in Ukraine.

Another important part of the support, with more than EUR 530 million, covers housing programmes and social services for internally displaced persons and host communities. This is done, among other things, through the reconstruction and energy-efficient rehabilitation of existing buildings or by maintaining the continuity of education and childcare services for children and young people.

In addition, KfW is making around EUR 135 million available for basic municipal infrastructure. The commitment includes, for example, the repair and modernisation of health centres, schools and drinking water pipelines to ensure supply security for the local population.

Small and medium-sized enterprises in particular make a decisive contribution to the functioning of everyday life, securing jobs and the production of important goods and services. For example, KfW supports a government economic programme through its long-standing partner, the Business Development Fund (BDF), which provides interest-reduced loans to these companies. This means that farms, bakeries, grocery stores, as well as small logistics companies, for example, can keep running.

KfW subsidiary DEG does not only support German enterprises in their investment projects but has been advising and supporting its customers from the Ukrainian private sector on an ongoing basis since the beginning of the war and is involved in entrepreneurial projects there, particularly in the agricultural, IT and logistics sectors. It also supports initiatives that specifically promote training and financial support for small and micro agricultural entrepreneurs. In cooperation with its Ukrainian partners, DEG has been able to contribute with around EUR 15 million and intensive advice since the beginning of the Russian invasion.

Further information about KfW Development Bank and DEG is available at: and


Portrait Nathalie Cahn