Svenja Schulze, Federal Minister for Economic Cooperation & Development of Germany

Germany leads Europe not only in military support for Ukraine, but it ranks first also in terms of the economic and humanitarian aid it is providing to our country. It is therefore not a coincidence that Berlin will host the Third Ukraine Recovery Conference (URC) on June 11-12.

Both Ukrainian and German governments have been intensively preparing for this forum. This Sping saw several preparatory events, including conferences on "Creating opportunities, building the moment: Ukraine’s transformative urban reconstruction", "Diaspora and the global Ukrainian community - strong partners in the recovery and restoration of Ukraine", and "Towards a skilled workforce for recovery of Ukraine's human capital” among other bilateral gatherings.

On top of that, at the suggestion of Germany’s Federal Minister for Economic Cooperation and Development (BMZ), Svenja Schulze, preparations have been launched for international initiative "Highly-skilled personnel for the recovery and reconstruction of Ukraine" and a document was adopted containing among its key previsions the mobilization of the private sector’s capabilities to facilitate the recovery and reconstruction of Ukraine.

The latter initiative was the first question Ukrinform asked Mrs. Schulze in an interview.

ALMOST NONE OF COMPANIES WITH GERMAN CAPITAL HAVE COMPLETELY CEASED THEIR OPERATIONS IN UKRAINE SINCE THE BREAKOUT OF RUSSIA’S INVASION

- Mrs. Schulze, the federal government has recently adopted a document containing key provisions regarding mobilizing private sector capacities for the purpose of recovery and reconstruction of Ukraine. It covers 15 measures to facilitate Ukraine’s economic recovery and reconstruction. Could you elaborate on that?

- This document is, first of all, a recognition that Germany is firmly on Ukraine’s side.

In addition to armaments, Ukraine also needs in place a society and economy that are capable of surviving the war and recovering. To survive the war and recover, it is crucial that the Ukrainian economy continues working, that businesses produce, provide jobs and contribute to the functioning of the country with their taxes. That is why we as the federal government have agreed to do even more to help mobilize the capabilities of the private sector in Ukraine. It is, in particular, about financial subsidies and reducing interest rates on loans for small and medium-sized businesses in Ukraine. One example is an agricultural company that has received support to enable it to rid its soil of landmines and return to farming as usual.

- It is difficult to convince the private sector to invest in a belligerent country. Motives for solidarity only do not work for many people. What, in your opinion, can be the arguments to convince businesses into investing?

- Despite the currently very difficult situation, Ukraine remains an attractive market for many companies. In a large area of the country production operations are still possible even now. Ukraine is a candidate for EU membership - this is a long-term argument for companies.

It is clear that the private sector needs a favorable investment environment and legal certainty. We are therefore supporting Ukraine on its reform path, especially in view of the EU accession process. Combating and overcoming corruption is particularly important in this respect. Transparency International, in its recently published report, noted progress achieved in Ukrainian municipal councils, despite the fact that Russia's war, which is an act of aggression and a violation of international law, is still in full swing. This is a very positive signal for the economy.

- Do you have any data on how many German companies are now present in Ukraine? How many of them have left?

- I can cite the figures of the German-Ukrainian Chamber of Foreign Trade: as of the beginning of the Russian invasion in 2022, there had been approximately 2,000 companies with German capital operating in the country.

Even after the start of the Russian invasion, almost none of the companies have fully ceased their operations in Ukraine. They "keep their foot in the door" because they know it's worth it.

THE UKRAINE RECONSTRUCTION CONFERENCE SHOULD NOT END WITH PROMISES ONLY

- The Ukraine Recovery Conference (URC) is set to take place in June, and you are among the key organizers. How many attendees are expected?

- We are expecting some 1,500 attendees. One specific aspect is that civil society activists and representatives of local self-government bodies have been invited to attend, along with members of government and business representatives. I am pushing for this especially because it is the citizens, towns and cities, and municipal self-government bodies who are already taking recovery and reconstruction into their own hands, and in a quite tangible way.

- But how are local authorities and civil society able to mobilize financial assistance? What contribution can German municipalities make to this?

- The URC does not aim to be a "conference of promises", but, rather, to contribute to various dimensions of the reconstruction effort. It is both the economy and the people who are supposed to do the reconstruction.  So at the conference we are going to talk about health care or psychosocial support and how we can train professionals to do the recovery work. For this purpose, I am preparing the "SkillsAlliance for Ukraine" initiative to train qualified workers.

Local self-government bodies are playing a crucial role in reconstruction. Because they know what exactly is missing on the ground. That is where partnerships between European and Ukrainian communities can be helpful in quite practical ways. There have been over 200 German-Ukrainian partnerships established as of this day.

ALL POSSIBLE RESOURCES ARE NEEDED FOR THE PURPOSES OF UKRAINIAN RECONSTRUCTION

- I understand that this is beyond the competence of the ministry you are heading , but may I ask your personal opinion on to what extent is it realistic to use the frozen Russian assets to help Ukraine recover?

- In my opinion, it is important that as much resources as possible are accumulated for various needs in support of Ukraine.

Within the EU framework we have agreed to use the interest income generated from the "immovable", which is to say frozen Russian assets for the benefit of Ukraine. I believe that this is a very appropriate decision, on which basis we can proceed with our work.

- You, at BMZ have launched the Platform for the Reconstruction of Ukraine to better present Germany’s various support programs and open up opportunities for joining it. The purpose of the platform is to get  people acquainted with each other and to bring together the actors involved in reconstruction projects. Does this platform work?

- The Platform for the Reconstruction of Ukraine came as an initiative of the entire federal government. It is targeted at civil society, the private sector, science and research communities and municipalities in Germany that are willing to take part in the reconstruction of Ukraine or are already doing so. Based on this Platform, Germany's contribution to the reconstruction of Ukraine is growing thanks to the exchange of knowledge, the use of synergies and the joining of efforts. It is generating a great interest. More than 600 organizations have become registered and are sharing ideas.

THE GERMAN GOVERNMENT HAS ALREADY SPENT 32 BILLION EUROS ON COMPREHENSIVE AID PACKAGES

- BMZ, often joined with the Federal Ministry for Foreign Affairs has provided a lot of assistance to help Ukraine with recovery. Could you provide the figures of what has been delivered since February 24, 2022 and  to which regions?

- The federal government has been able to provide Ukraine with approximately 32 billion euros worth of aid since the beginning of Russian invasion in 2022 - in the form of civilian support, direct payments or armaments.

Around €1.3 billion of this has come from the BMZ. We are investing BMZ funds in the reconstruction of territorial communities, economic development and in providing housing for internally displaced persons.

We are also assisting businesses in training highly qualified personnel and strengthening energy supply security, for it is critical infrastructure that regularly comes under Russian attacks. Russia must not be allowed to succeed in this.

It is also important for me that due account should be taken of the prospect of joining the EU in all of its aspects: whatever we are doing now, we do everything with a long-term perspective in mind- for a free European Ukraine.

- Your ministry, as part of cooperation with Ukraine in the field of health care, has provided healthcare support to more than three million Ukrainians after the start of the full-scale Russian invasion, as was reported a few months ago. Could you elaborate?

- Hospitals, medical care and healthcare practitioners have a vital role to play amid war, but no less important is providing psycho-social care to war-traumatized persons. Therefore, we are very active in this domain.

We have outfitted mobile clinics and healthcare facilities, particularly with diagnostic and laboratory equipment, and created rehabilitation centers. We are collaborating with the Ukrainian Social Investment Fund (USIF).

We also have 18 German-Ukrainian partnerships established between clinics, thus allowing Ukrainian hospitals and healthcare organizations to receive financial support and benefit from education, training and knowledge transfer.

- In January of last year, you visited Ukraine, Odesa. How did this trip affect you and do you want to visit Ukraine again someday?

- I will definitely go to Ukraine again, because nothing can replace the impression of visiting a country in person.

I remember especially well two things from my trip to Odessa. The first is the schoolchildren who went to the basement shelter during air raid alert and continued their classes there. It was so common and everyday, but I thought: nowhere should children grow up with such a threat nearby.

The second is a power substation that I’d visited. It was attacked by Russia several times, but the Ukrainians always rebuilt it. This perseverance amazes me.

Russia finds out again and again that it can destroy power plants, but not the power of Ukrainians.

Interviewed by Olha Tanasiychuk, Berlin

Photo: via Author and BMZ