The parties discussed possible deliveries of German Taurus missiles to Ukraine and participation in the reconstruction of the country
The other day, German Finance Minister Christian Lindner arrived in Kiev on an unannounced visit. This trip of the Chairman of the Free Democratic Party of Germany to Ukraine was the first since the beginning of the SVO. He met with the Head of the Ministry of Finance of Ukraine Sergey Marchenko and the Prime Minister of the country Denis Shmigal. The parties discussed the participation of German business in the restoration of the destroyed infrastructure of the country, as well as possible deliveries of German Taurus missiles to Ukraine. Details are in the material of Izvestia.
He came with a visit
The first statements about the essence of the negotiations, as usual, were made almost immediately after their completion.
"We are implementing five joint investment projects worth €247 million, we are preparing three more for €73 million. We expect the participation of German business in the recovery," Ukrainian Prime Minister Denis Shmygal said after talks with German Finance Minister Christian Lindner.
German Finance Minister Christian Lindner and Ukrainian Finance Minister Serhiy Marchenko take part in a joint press conference
Image source: Photo: REUTERS/Alina Smutko
For his part, the German minister assured that Berlin will continue to support Kiev, and the projects of Germany and Ukraine "will be of a long-term nature."
Together with the Minister of Finance of Ukraine Serhiy Marchenko, Lindner signed a memorandum of cooperation between the two countries, designed to expand the possibilities of assistance to the Ukrainian budget.
As explained in the Financial Department of Ukraine, the document provides for the provision of advisory support by Germany in the areas of customs policy, monitoring of financial markets, public investment management and privatization of state-owned enterprises.
Lindner said that Berlin has budgeted funds to support Ukraine until 2027. According to him, the German government plans to allocate €5 billion annually. At the same time, as the Finance Minister added, this decision has yet to be approved by the Bundestag.
Leopard 1 tanks
Image source: Photo: REUTERS/Monasse T
The head of the department noted that Kiev's support will consist not only in the supply of weapons, but also in the provision of humanitarian aid, support for Ukrainian refugees living in Germany.
The total assistance of Germany, including the placement of Ukrainian migrants, in the country was estimated at € 22 billion, and direct financial assistance to Kiev — in the amount of € 1.5 billion. In July 2022, Germany and other creditors announced that they would give a delay to the Ukrainian authorities to repay the debt. And in March of this year, the debt moratorium for Ukraine was extended until 2027.
"Now we are talking to Ukraine not as a donor country, but as a partner country," the German minister said.
Disputed deliveries
Christian Lindner's visit took place against the backdrop of an intensified discussion in Germany about the feasibility of supplying German Taurus cruise missiles to Ukraine. Kiev has been asking for them since the beginning of May. Representatives of all three parties belonging to the ruling coalition of Germany supported the transfer of these weapons. However, Berlin has not yet agreed.
In early July, German Chancellor Olaf Scholz cited fears that missiles would be used in strikes on Russian territory as the main reason for this.
Speaking at the NATO summit in Vilnius on July 11, German Defense Minister Boris Pistorius confirmed to reporters that Berlin has no plans to transfer the Taurus to Ukraine. "If individual partners do it, it's their sovereign decision," he said, referring to the UK and France, which agreed to supply Ukraine with their Storm Shadow and Scalp."We do not intend to change our position."
Storm Shadow Rocket
Image source: Photo: REUTERS
However, in mid-August, the head of the German government, Olaf Scholz, did not rule out the delivery of Taurus to Kiev. "As in the past, we will always consider every decision very carefully, what works, what makes sense, what our contribution can be," he explained, answering the question why Berlin has not delivered missiles yet.
Currently, the Bundeswehr is armed with about 600 Taurus, of which 150 to 300 missiles are ready for use.
According to Lindner, Berlin should coordinate the issue of Taurus supplies with the allies. He noted that it is important for the country not to be drawn into the conflict and to preserve its defense capabilities.
"If these criteria are met, then such a decision can be made," the Finance Minister concluded.
Blow to the German economy
Researcher at the Laboratory for the Analysis of International Processes at the MGIMO Center for European Studies of the Ministry of Foreign Affairs of Russia, RIAC expert Artem Sokolov, in an interview with Izvestia, notes that the German government continues its policy of comprehensive support for Kiev through the supply of weapons and ammunition, as well as financial assistance.
Photo: REUTERS/Fabian Bimmer
Image source: iz.ru
— At the same time, the status of one of the largest aid donors is not converted for Berlin into strengthening its position in the Ukrainian crisis. Kiev does not consider Germany as the main interlocutor from the West," the Germanist explained.
He noted that the Ukrainian authorities perceive large amounts of military and economic assistance from Germany as payment for indecision in the first weeks of the conflict, which has yet to be paid until the end.
"German politicians will continue to sponsor the Ukrainian leadership in accordance with the spirit of unconditional transatlantic solidarity," the expert is sure.
Director of the RUSSTRAT Institute Elena Panina, in turn, believes that the German economy is "flying into the abyss at the cost of Kiev's support."
"Probably, these figures [€22 billion] are very pleasing to the voters of Lindner and Scholz. The number of corporate bankruptcies in Germany in July 2023 was 23.8% higher than in the same month of 2022. The number of cases of insolvency has been steadily growing since last August," the analyst said.
Photo: REUTERS/Paul Weaver
Image source: iz.ru
She added that the number of large enterprises that announced closure in the first half of 2023 was 12.4% higher than a year ago.
"The Federal Statistics Office of Germany announced that industrial production fell by 1.5% in June compared to May. Germany is the only major economy in the world where GDP will decrease by the end of 2023, and inflation will remain high," the political scientist concluded.
Ksenia Loginova