Chancellor Olaf Scholz (SPD) called on German companies to invest more in the Ukrainian defense and energy sectors. “If you invest in Ukraine today and in the coming years, you invest in a future member of the European Union,” Scholz said at the German-Ukrainian economic forum in Berlin on Wednesday. “In the defense sector there are some first joint ventures and some first agreements – I think this should continue dynamically,” he added.
“Ukraine will get thru the winter,” the chancellor said, referring to continued Russian attacks on civilian infrastructure such as power plants. the federal government is helping here so that production can continue. But more private investment is needed.
Like Ukrainian Prime Minister Denys Schmyhal, Scholz stressed that the federal government offers more guarantees for exports and investments to the country, in order to protect companies’ business. “ukraine ranks first in the world when it comes to approving investment guarantees,” Scholz said. Shmyhal also offered Ukraine the supplier of essential raw materials and cooperation in the IT sector. The bilateral trade balance of both countries is expected to reach more than twelve billion euros this year.
How does Germany’s investment in Ukraine contribute to European energy security?
Interview: Germany’s Push for Investment in Ukraine’s Defense and Energy Sectors
Editor: Welcome to Time.news.Today, we’re delighted to have with us Dr. Elena Kovalenko, an expert in European economic relations, especially in the context of Ukraine’s ongoing developments. Dr. Kovalenko, Chancellor Olaf Scholz recently urged German companies to increase their investments in Ukraine’s defense and energy sectors. What’s your take on this call to action?
Dr. Kovalenko: Thank you for having me! Chancellor Scholz’s appeal is significant, especially as Ukraine is standing at a crucial juncture. His statement highlights both opportunities and responsibilities for German businesses. Investing in Ukraine not only fosters economic stability but also contributes to securing a future EU member, which can have broader implications for Europe.
Editor: Scholz mentioned that there are already some joint ventures and agreements in the defense sector. Can you elaborate on these initial collaborations and their importance?
Dr. Kovalenko: Certainly! The joint ventures are a promising start, as they set the foundation for deeper cooperation between germany and Ukraine. Collaborative efforts in the defense sector address immediate security needs while concurrently building local capabilities. This is a win-win situation as it boosts Ukraine’s defense industry and opens new markets for German companies.
Editor: The chancellor also noted the ongoing challenges posed by Russian attacks on civilian infrastructure. How does this situation affect investment prospects in Ukraine?
Dr. Kovalenko: The security risks are indeed a pertinent concern for investors. Though, Scholz reassured us that despite these challenges, Ukraine is expected to endure the winter, largely due to federal government support.Investment incentives, such as export guarantees and risk mitigation measures, can help alleviate some apprehensions. As noted by Scholz,Ukraine is a leader in investment guarantees,which creates a more secure surroundings for foreign businesses.
Editor: Speaking of government guarantees, how vital are these for attracting foreign investment to Ukraine?
Dr. Kovalenko: They are absolutely crucial. the guarantees offered by the German federal government not only provide a safety net for investors but also enhance Ukraine’s credibility as a business destination. This gives potential investors the confidence they need to commit resources. The expected bilateral trade balance of over twelve billion euros this year underlines the growing economic partnership between Germany and Ukraine.
Editor: Chancellor Scholz also highlighted Ukraine’s potential as a supplier of essential raw materials and its cooperation in the IT sector.How do you see these sectors evolving in the context of investments?
Dr.Kovalenko: The energy and IT sectors are ripe for investment. Ukraine has a wealth of natural resources and a growing technological talent pool. by investing in these areas, German companies can not only contribute to Ukraine’s economic recovery but also secure their supply chains and access to innovative IT solutions.As global demand for sustainable energy sources rises, Ukraine’s energy sector could play a significant role in European energy security.
Editor: For German companies considering investment in Ukraine, what practical advice would you offer?
Dr. Kovalenko: I would advise businesses to conduct thorough market research and engage with local experts to understand the regulatory landscape. Networking with ukrainian partners is essential, as local knowledge can significantly reduce market entry risks. Additionally, taking advantage of the investment guarantees and aligning projects with Ukraine’s reconstruction efforts can lead to triumphant ventures.
Editor: thank you, Dr. Kovalenko, for sharing your insights on the investment landscape in Ukraine. It’s clear that there are ample opportunities for collaboration, notably in the defense and energy sectors.
Dr. Kovalenko: Thank you for having me. It’s an exciting time for Ukraine,and I hope to see more German businesses stepping forward to contribute to its future.
Editor: that wraps up our discussion for today. We hope our readers found this interview insightful as they consider the implications of investing in Ukraine’s evolving economy.