The latest report by the Eastern Committee of the German Economy (Ost-Ausschuss der Deutschen Wirtschaft), published in December 2025, summarizes key developments in Ukraine linked to a major corruption scandal in the energy sector that triggered a wave of resignations and dismissals. Following the energy minister and the justice minister, presidential adviser Andriy Yermak also lost his position.
Ukraine's economy grew by 0.7 percent in the second quarter of 2025, driven by consumer demand, though at a slower pace than in the first quarter. Growth is expected to accelerate in the second half of the year thanks to the harvest and fiscal spending, despite ongoing threats.
Russia intensified attacks on Ukrainian cities, particularly targeting energy infrastructure, causing severe power supply disruptions even in Kyiv. In response, Germany bolstered its aid to Ukraine, allocating 170 million euros to support energy infrastructure ahead of winter. Chancellor Friedrich Merz emphasized that Russia will not break Ukrainian resilience, and Germany will maintain a high level of assistance, planning to provide Ukraine with 11.5 billion euros in 2026 — three billion more than previously planned. Germany also transferred 32 million euros for the reconstruction of the Ukrenergo power grid and a military package worth over two billion euros, including air defense systems, radars, and ammunition.
Together with the European Union and Norway, Germany launched an expansion of the STEP IN 2 EU program, with nearly 40 million euros earmarked to strengthen the competitiveness of the Ukrainian economy and its integration with the EU's internal market. The program, implemented by GIZ Ukraine, offers advisory services on integration reforms, supports small and medium-sized enterprises, promotes digital transformation, and fosters regional development.
Economics Minister Katherina Reiche visited Kyiv with a business delegation from October 24 to 26, announcing an additional 30 million euros in energy sector support. Russian attacks have destroyed up to 60 percent of gas infrastructure, prompting Germany to accelerate deliveries of transformers and transformer stations and to support the Ukraine Energy Support Fund with 390 million euros. The delegation included defense companies such as Hensoldt, Quantum Systems, and Stark, which plan to expand production in Ukraine, as well as energy corporations like RWE and Eon.
In the area of public-private partnerships (PPPs), Ukraine has introduced reforms making them more attractive to investors. A two-stage approval system has been implemented, along with simplified procedures for projects up to 5.5 million euros, standing committees within ministries, an expanded scope of application, an electronic procurement platform, investor guarantees, and hybrid financing models. These changes promote transparency, risk sharing, and compliance with EU standards, making PPPs a key tool for infrastructure reconstruction.
Investment is concentrated in the defense industry and the energy sector. One example is OKKO, which is building a bioethanol plant and the first industrial energy storage facility, while a 147 MW energy complex is being financed by the EBRD, IFC, and the Black Sea Trade and Development Bank. The European Union has allocated 1.5 billion euros for the EDIP program for 2025–2027, with 300 million for Ukraine, enabling participation in European defense projects. Germany has approved just 50 investment guarantees since February 2022, protecting investments against political risks, including wartime risks, and has extended the application fee waiver until 2027. The European Commission and IFC have provided 100 million euros in guarantees for the Amber-Dragon fund, which invests in transport, logistics, energy, and telecommunications. The Strategic Investment Council has expanded its portfolio of public projects by 42 new initiatives, reaching a value of over 1.1 trillion hryvnias, with a focus on energy (660 billion hryvnias) and transport (387.8 billion hryvnias). The National Bank of Ukraine has adjusted mandatory reserve requirements, excluding frozen funds and long-term loans from IFIs, to encourage banks to raise funds for reconstruction.
German-Ukrainian trade grew by 6.6 percent in the January–September 2025 period, exceeding 9 billion euros, with German exports rising by 14.3 percent to 6.7 billion euros. For German companies, Ukraine has simplified the import of equipment for large investment projects, extending deadlines and eliminating the requirement to declare the country of origin. The agricultural sector offers opportunities in storage infrastructure, livestock farming, and niche crops, with an emphasis on technology and advisory services.
