German Federal Chancellor Friedrich Merz: Together with our international partners, we are developing the Ukrainian Development Fund

“Together with our international partners, we are developing the Ukrainian Development Fund – an instrument based on the principles of the German financial credit system. It was this model that helped rebuild Germany after World War II. This is our Marshall Plan for Ukraine: strong, institutional, effective,” emphasised German Federal Chancellor Friedrich Merz during his speech at the Ukraine Recovery Conference 2025 (URC2025), which is taking place on 10-11 July in Rome.

Mr. Merz noted that Ukraine’s economic recovery requires the private sector to flourish.

According to the chancellor, the German government supports the mobilisation of private resources and investments for Ukraine’s recovery and wants to play a leading role in Ukraine’s reconstruction.

“We understand that the main thing needed for this is peace. Ukraine needs a just peace. Our main political commitment is to continue to increase pressure on Russia in order to reach negotiations. Our country’s support is unwavering. We will not stop!” emphasised Friedrich Merz.

We would like to remind you that the updated mandate of the Business  Development Fund, a key state instrument for supporting small and medium-sized businesses in Ukraine, was recently presented. The transformation of the Fund was initiated at the URC2024 conference in Berlin, where international partners and the Ukrainian government agreed on the need to transform the Fund into a modern development institution — with an expanded mandate, new financing instruments and strategic support from KfW, the European Union and other donors.