Навігатор фінансової підтримки
The Ministry of Finance of Ukraine and KfW development bank signed a Supplemental Grant Agreement worth EUR 780,000.
The signing took place under the project “Strengthening Development Conditions and Financing Recovery in Ukraine” during the Ukraine Recovery Conference 2026 in Gdańsk, Poland.
The project aims to strengthen the institutional capacity of the Ministry of Finance of Ukraine and the National Development Institution (NDI) to effectively attract and utilize recovery financing in line with European standards. The additional grant funding will be directed toward expanding advisory support for the NDI, particularly in preparation for the EU Pillar Assessment and the institution’s further integration into the EU financial instruments framework.
Following the signing of the Supplemental Grant Agreement, the total project financing will amount to approximately EUR 3.5 million. In addition, the implementation period will be extended by one year, until June 30, 2027.
The agreement was signed on behalf of the Government of Ukraine by Minister of Finance of Ukraine Sergii Marchenko, and on behalf of KfW by Senior Vice President Andrea Hauser and Portfolio Manager Ann-Christin Damm.
The National Development Institution is a newly established Ukrainian development institution created on the basis of the Business Development Fund. The Business Development Fund is the legal successor to the German-Ukrainian Fund, which was established in 1996 by KfW (on behalf of the German Government) jointly with the Government of Ukraine and the National Bank of Ukraine.
Over the past years, KfW has supported the NDI not only through credit lines for financing small and medium-sized enterprises on behalf of the German Government and the European Union, but also by accompanying and financing a comprehensive institutional reform process. This transformation is part of the “NDI Vision 2.0”, which foresees, as a second step, enabling the NDI to obtain direct access to EU funding.
The NDI is already benefiting from European Union support. In addition to ongoing EU-funded projects implemented by the institution, KfW, the EU, and the Ministry of Finance of Ukraine are currently preparing a EUR 140 million KfW loan to Ukraine backed by EU guarantees under the NDI4Ukraine program. These funds will allow Ukraine to make a significant capital contribution to the National Development Institution.
The EU Pillar Assessment process includes, among other aspects, an evaluation of internal control systems, accounting and reporting, audit structures, procurement procedures, and compliance mechanisms with EU requirements. It is a key prerequisite for obtaining direct access to EU funds under indirect management.
“Ukraine’s recovery requires not only substantial financial resources but also strong and effective institutions capable of channeling investments into economic and social infrastructure in a transparent and efficient manner. Ukraine also urgently needs to scale up the utilization of EU funds. As recovery efforts intensify, the NDI must fully deliver on its mission as a ‘financial interconnector’ between Ukraine and the EU and, by doing so, contribute to the EU accession process,” emphasized Minister of Finance of Ukraine Sergii Marchenko.
KfW Senior Vice President Andrea Hauser highlighted: “We are pleased to support the transformation of the former German-Ukrainian Fund into a sustainable NDI. The Pillar Assessment of NDI will set an important precedent in Ukraine by enabling a Ukrainian institution to independently meet EU standards for receiving EU funds.”
Chairperson of the Management Board of NDI Andrii Hapon outlined: “The grant will support the institutional development of NDI, the implementation of the EU Pillar Assessment process, and ensure its effective execution in line with applicable EU requirements.”