Ukraine is courting German business despite the war - is the investment worth it?

Ukraine is courting German business despite the war - is the investment worth it?

The article “Ukraine woos German business” reports on the interest of German companies in investment opportunities in Ukraine, even though the country has been at war for over 600 days. The Ukrainian government estimates that the country will need about $750 billion for reconstruction by 2032. The federal government supports German companies with their investments in Ukraine and provides state investment and export guarantees to minimize risks. 280 million euros in investment guarantees have already been awarded and further projects are in progress. The demand for credit insurance for transport through Ukraine is also increasing.

Ukraine promises German companies that invest now a good return after the war. The International Monetary Fund expects growth of two percent in 2023 and 3.2 percent next year. There are great opportunities for German companies in various sectors such as energy, supply industry, agriculture, IT sector and critical raw materials. The German arms industry also has good business opportunities in Ukraine.

The impact of these investments on the Ukrainian economy could be far-reaching. The reconstruction of Ukraine will lead to increasing demand for products and services, which in turn could contribute to a positive development of German exports to Ukraine. In addition, German companies could open up new business opportunities and benefit from the growing Ukrainian economy. This could also lead to Ukraine becoming more closely linked to the EU internal market and the European legal community in the long term.

However, there are also risks associated with investing in Ukraine. The security situation in the east and southeast of the country remains uncertain, while other regions are stable. Companies must therefore carefully weigh the risks and minimize possible damage with the help of security measures and insurance. In addition, the technical support of projects in Ukraine is a challenge due to the travel warnings and restrictions caused by the COVID-19 pandemic. Nevertheless, German companies and the federal government are optimistic and see great opportunities in cooperation with Ukraine.

Source: According to a report by Deutsche Welle