This article was the topic of the week in the newsletter of KW 50 in 2025.

Ukraine is evolving into a central player, presenting major opportunities for companies. Ahead of the 8th German-Ukrainian Economic Forum, the main platform for economic cooperation, a closer look at the country's potential is worthwhile.

Trade and Investments

Cooperation between Germany and Ukraine is steadily intensifying. Export credit insurance and investment guarantees facilitate market entry for German businesses and are strongly utilized by local firms. Progress such as expanding the electricity grids and modernizing logistics highlights Ukraine's capabilities. Reforms towards EU alignment add planning security—a crucial factor for investments and long-term partnerships.

Growth Sectors and Innovation Potentials

Ukraine offers promising opportunities in the energy sector, construction, and agriculture. The rebuilding of the destroyed energy infrastructure, coupled with stronger integration into the European power grid, opens up good prospects for long-term collaborations. The need for repairs and installations should be met with modern technology, achieving harmonization with EU standards. Decentralizing energy supply and upgrading buildings with energy-efficient technologies tap into future markets.

At the same time, diversification in agriculture and investments in modern processing technologies strengthen the country's export capabilities. For German SMEs, this means new business fields, partnerships, and opportunities to bring in expertise and technologies—actively contributing to Ukraine's reconstruction and economic transformation.

Security: From Arms Supplies to Industrial Partnerships

In the defense industry, cooperation between Germany and Ukraine has significantly transformed over the past three years. Nowadays, joint ventures are formed between German companies and Ukrainian partners, German enterprises establish production facilities locally, and collaborations in drone defense and air defense open new innovation fields for close bilateral partnerships.

For local companies, this means access to technologies tested under real operational conditions. The differences from 2024 are apparent: back then, discussions focused on battle tanks and anti-aircraft systems. Today, it's about local production, technology development, and long-term industrial partnerships at eye level.

Ukraine as an Ally

Ukraine is on its way to becoming a central partner for Europe—economically and in terms of security policy. German businesses have the chance to actively shape this process—through investments in technology partnerships, local production, and training. Challenges such as the security situation and corruption remain. The German-Ukrainian Chamber of Commerce and Industry and the Reconstruction Competence Center Ukraine of the German Chamber of Commerce and Industry support companies through networking and targeted information in identifying opportunities and minimizing risks.

The Federal Government and many other state actors are already providing support by offering financing and risk mitigation tools for projects. These positive approaches can be further intensified bilaterally and internationally to ensure better financing of projects and investments while implementing European standards.