**Germany Offers 40.5 Million Euro Grant to Support Ukrainian Businesses**
In a significant move, Germany has pledged a grant worth 40.5 million euros ($47.4 million) to support small and medium-sized Ukrainian businesses. This announcement was made by Ukraine’s Finance Ministry on July 11.
The funding will be provided through the German state development bank KfW, as part of an agreement aimed at strengthening Kyiv’s economic development. The money will be distributed through Ukraine’s Entrepreneurship Development Fund (EDF) and will primarily benefit businesses in areas that have been “de-occupied and war-affected”. On average, each business can expect to receive 250,000 euros.
**Supporting Economic Recovery**
The EDF plans to provide banks with long-term liquidity to enable them to offer favorable loan terms to small and medium-sized businesses. This move is designed to support Ukraine’s economic recovery, which has been severely impacted by the ongoing conflict.
This grant comes on top of other significant financial commitments made by Western allies at the recent Ukraine Recovery Conference. These include a $350 million pledge from the Netherlands to support Ukraine’s reconstruction and economic recovery through 2026, as well as a $200 million commitment from the World Bank over the next five years to prepare Ukrainian projects for large-scale reconstruction.
**Boosting Defense Efforts**
In related news, President Volodymyr Zelensky has announced that Germany is ready to purchase two of three Patriot air defense systems. This move comes amid an increase in Russian attacks on Ukraine. German Chancellor Friedrich Merz also suggested during the conference that Russian assets frozen by the West should not be released until Moscow pays back at least 500 billion euros ($580 billion) in compensation to Ukraine.
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