Business news from Ukraine

Business news from Ukraine

Germany plans to allocate another EUR12 bln for military aid to Ukraine

German authorities are planning to allocate another EUR12 billion for military support to Ukraine, Bloomberg reported, citing sources on Wednesday.
The Bundestag budget committee is expected to approve the plans of German Defense Minister Boris Pistorius on Wednesday. Thus, in case of approval of such a step, the total amount of funds, directed by Berlin for military aid to Kiev, will increase up to EUR14.2 billion.
In particular, the amount planned for 2023 will more than double and reach EUR5.4 billion. The rest of the funds – EUR8.8 billion – will be available if necessary in the coming years. The money will not come from the Defense Ministry’s budget or the special EUR100 billion fund for the modernization of the Bundeswehr.
In addition, on Wednesday, the Bundestag budget committee is expected to approve the purchase of 10 self-propelled rapid-fire howitzers from Krauss-Maffei Wegmann GmbH & Co KG worth EUR 185 million; these guns are to replace the howitzers transferred by Germany to Ukraine.

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Nationwide strike could paralyze Germany’s transportation system Monday

German residents were moving more actively around the country on Sunday, many domestic trains were jammed with passengers as people sought to get to their desired destinations before a major strike by transport workers began, Western media reported.
On Monday, March 27, many transport workers, from railroad workers to airport and public transport employees in cities, are expected to take part in a nationwide strike. This strike is expected to halt traffic in the country for a day.
German trade unions have called on thousands of transport workers to take part in the strike and to demand higher wages – to cope with high inflation. Thus, in the trade union Verdi said that they had appealed to go on strike to 120 thousand people and in the EVG union that protects the rights of railway workers in Germany – to 230 thousand people.
The unions are seeking to raise the wages of the transport industry employees by 10-12%, but at the moment, the employers offer a phased increase of 5% and a one-time payment of about EUR2.5 thousand.
Meanwhile, on Sunday, the day before the strike, Munich Airport was already closed, flights were also cancelled or delayed in Germany’s largest airport – Frankfurt am Main Airport.

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Germany to increase support for Ukraine to develop climate policy and protect biodiversity

The total budget of technical assistance projects to be implemented in Ukraine within the framework of the International Climate Initiative will amount to EUR 44.5 million, including both new projects and those planned to be launched before the war or whose work was temporarily suspended with the outbreak of hostilities.
According to the website of the Ministry of Environmental Protection and Natural Resources of Ukraine on Tuesday, such initiatives were discussed in Berlin during the meeting of the Ukrainian delegation headed by Deputy Minister Alexander Krasnolutsky with representatives of the Federal Ministry of Economics and Climate Protection of Germany, the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection of Germany, the German Society for International Cooperation (GIZ) and the Secretariat of the German Institute for International Cooperation.
German projects, in particular, will cover support for Ukraine in implementing the Paris Agreement and adaptation to the consequences of climate change in the Black Sea region, establishing an emissions trading system, forming a low emission policy, preserving forests in the Carpathians, and increasing Ukraine’s ability to overcome the consequences of war and integrate into the EU. In addition, they talked about Ukraine’s accession to the climate club, which is now being formed by the European Union.
In addition, the German government is ready to help Ukraine with the construction of rehabilitation centers for animals affected by war, which are envisaged in the plan for the post-war reconstruction of Ukraine.
According to Krasnolutsky, Ukraine is striving to apply the best practices that exist today in Europe for its reconstruction and development.

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Germany will allocate money to rebuild 12 schools in Ukraine

The German federal government is allocating 5 million euros to support a project to repair war-damaged schools in Ukraine, the United Nations Development Program (UNDP) in Ukraine reports.
“The UNDP-coordinated project will promote sustainability and green recovery through the repair and modernization of damaged educational institutions in war-affected territories as part of the UNDP Resilience and Recovery Programme. The first sites where repairs will be funded were selected from a list of 74 schools located in 12 cities that are in urgent need of repair work. The list was compiled by the Ministry of Education of Ukraine”, – stated in the message.
The financial contribution of the German government will be distributed among 12 schools in five regions – Zaporizhzhia, Mykolayiv, Rivne, Sumy and Chernihiv. Thus, more than 3 thousand students will be able to resume their education.
In the course of repair work, the Eurocode 8 standard, which applies to the design and construction of structures and other construction work in seismic areas, will be applied. There will also be a unified approach to the repair and modernization of existing buildings. The use of hazardous building materials (e.g., asbestos, sealants containing persistent organic pollutants) will be prohibited, the use of environmentally friendly furniture and equipment will be encouraged (e.g., LED lights instead of fluorescent lamps containing mercury). In addition, a key part of the initial design task and part of the requirements for the selection of the design team and developers will be the criteria of architectural accessibility.
“The UNDP team has already begun inspecting each building and assessing specific rehabilitation needs. The accelerated procurement procedure will allow identifying a group of companies to carry out repairs that will be carried out in full compliance with national legislation and Eurocode 8 standards, while respecting Build Back Better principles,” said UNDP Resident Representative in Ukraine Jaco Silje, noting that institutions that have suffered minor or partial damage will be repaired and modernized.
German Ambassador to Ukraine Anka Feldhusen said it is important to invest in Ukraine’s future and in the sustainability of its children and teachers.
“Eventually these children will live in this great country and rebuild it for the better. But they need schools to teach them and teachers to show them the way. We also need to make sure that school buildings are safe places to learn in terms of environmental standards,” she stressed.

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Germany joins international project to restore Ukrainian cities

Germany has joined an international project to restore Ukrainian cities #UN4Kharkiv-Mykolaiv and allocated EUR5 million.
As it was informed, the UN Economic Commission for Europe (UNECE) has created working groups #UN4Kharkiv and #UN4Mykolaiv and invited international architects to help these cities develop future master plans. The British architect Norman Foster Foundation helps Kharkiv, while the global design and architectural company One Works (Italy) coordinates the work in Nikolaev.
It became known about the German side joining the projects during the online meeting of the working groups, which was attended by representatives of the Ministry of Community Development, Territories and Infrastructure of Ukraine, UNECE, the Federal Ministry of Economic Cooperation and Development of Germany, local governments of Mykolaiv and Kharkiv and other international organizations.
“Since the beginning of Russia’s full-scale aggression, we have been sending the most necessary aid to Ukraine. And at the same time we are thinking about how to support you in rebuilding after the end of the war, because it is necessary to prepare for this now. I personally received a task from the German Federal Chancellor Olaf Scholz to represent our country in this work,” said State Secretary of the Federal Ministry for Economic Cooperation and Development Jochen Flasbart.
He recalled that the G7 countries met last December, during which the member states expressed their understanding that Ukraine needed comprehensive assistance.
Flasbat said that the German Federal Ministry for Economic Cooperation and Development will provide the international project #UN4Kharkiv-Mykolaiv with financial support of EUR5 million.
“We are giving the “green light” and preparing funds so that these projects can be successfully implemented. We hope that the terrible war will end as soon as possible, and we will start rebuilding Ukraine,” Jochen Flasbarth makes plans for the future.

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Germany approves delivery of 187 Leopard 1 tanks to Ukraine

The German government has approved the supply of Leopard 1 main battle tanks to Ukraine. A total of 88 tanks from the Rheinmetall Group and 99 tanks from Flensburger Fahrzeugbau Gesellschaft have been approved for export, Business Insider reported.
It is noted that the official figures will be released on Tuesday.
At the same time, the publication’s sources in the German government say, funding for tank repairs has not yet been secured. It should be definitively clarified only in the next few weeks.
In addition, the first tanks are not expected to be delivered until the middle of this year. The exact number of them has not yet been established, insiders say, it also depends on funding. It is also unclear whether all 187 Leopard 1s will eventually be combat-ready, or whether many of the tanks will have to be used as spare parts depots.
Furthermore, private conversations within the government also point out that the military and strategic significance of tank delivery is not so much in the vehicles themselves, but in the change in the ammunition used. The Leopard tanks use the NATO standard 105mm caliber, which means a much better supply of ammunition for Ukraine, as it cannot produce ammunition for its old Soviet tanks itself. In the long run, this could increase the resilience of the Ukrainian army.

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