Last year, Germany celebrated 20 years of diplomatic relations with Ukraine. Germany was one of the first countries to establish an embassy in Ukraine after the country gained independence in 1992. In the past 20 years, Germany has become one of Ukraine’s most important trade partners and investors. A few of the current collaborations between the two countries:
Germany to Sell Ukraine Natural Gas
One of the many strains on Ukraine’s economy is a controversial and unaffordable natural gas deal with Russia. Ukraine is hoping to reduce costs and diversify its energy sources by making deals with countries throughout the EU. One of those is Germany. In November of last year, the German gas company RWE signed a contract to supply Ukraine with a million cubic meters of gas per day. The cost of the gas being imported from Germany is significantly cheaper, which is a boon to the struggling Ukraine economy.
Joint Combine Harvester Enterprise
German company CLAAS has partnered with a number of Ukrainian firms to produce a line of high-performance harvesters. Ukraine’s fertile soils produce prodigious amounts of grain. However, an equipment shortage means that nearly 5 million tons of grain are lost each year because they are unable to be harvested. The joint venture will put people to work in factories and help Ukraine increase its grain exports.
Germany Invests in Ukraine Biofuels
As we reported earlier this year, Germany has invested in several Ukrainian biofuel projects. Ukraine currently has about 40 pilot projects in the works, including thermal power and biogas endeavors. As one of the top agricultural sources, Ukraine produces great quantities of agricultural waste. Harnessing these for production of biofuels, such as wood pellets made from discarded straw, would cut down waste while helping Ukraine’s energy sector become more self-sustaining.