German Chancellor Friedrich Merz has announced a new package worth more than €1.3 billion for Ukraine during a visit to Kyiv, combining additional military assistance with support for the country’s damaged energy infrastructure as German-Ukrainian industrial co-operation expands.
Merz visited the Ukrainian capital on Sunday while Russian drone attacks continued against Kyiv.
According to the Ukrainian presidency’s account of the meeting, the package includes more than €1 billion for defence and additional financing for the energy sector ahead of winter. Separate reporting put the energy component at approximately €350 million.
The visit also produced an extensive group of bilateral agreements involving governments and companies.
President Volodymyr Zelenskyy said Ukraine and Germany had concluded 15 agreements and documents, most concerning security co-operation, production, procurement, orders for German industry and joint projects in Ukraine. He put the total value of the agreements reached during the visit at more than €8.5 billion.
A narrower set of industrial agreements reported during the visit was valued at about €6.6 billion and included air-defence, radar and drone projects.
The visit went beyond another transfer of military aid.
Germany and Ukraine are increasingly constructing a defence relationship based on procurement, industrial production and the transfer of Ukrainian battlefield experience to European manufacturers.
At the Ukrainian-German Business Forum, Zelenskyy said the new security package would strengthen Ukraine’s armed forces immediately while industrial agreements were intended to build longer-term production capacity.
The direction corresponds with a wider shift in European support for Ukraine.
Military assistance is increasingly moving away from transfers of existing national stocks towards contracts financing new weapons production. In July, the EU released €3.47 billion for Ukrainian defence procurement, including financing intended for drones, missiles, air defence and combat aircraft requirements.
Kyiv has since asked European partners to accelerate further financing as the demands of the war outpace scheduled disbursements. EU Today reported in September that Ukraine was seeking early access to part of its 2027 EU funding to close a military budget gap.
The German agreements add a bilateral industrial track to that European system.
They also reflect changes on the battlefield.
Russia has continued to expand large-scale drone and missile attacks, increasing the importance of interceptor production, radar coverage and lower-cost methods of destroying unmanned aircraft. Ukraine’s air-defence problem is increasingly an industrial one: inexpensive attack drones cannot sustainably be countered only with scarce and costly surface-to-air missiles.
EU Today has previously examined how Ukraine’s air-defence battle has become an industrial equation, determined as much by production rates and cost ratios as by the technical performance of individual systems.
German-Ukrainian co-operation is increasingly being shaped by that requirement.
Merz has presented continuing support for Ukraine as a direct German and European security interest, rather than assistance based solely on solidarity with Kyiv.
The argument has acquired greater force as German authorities investigate Russian-linked sabotage and hybrid operations on German territory.
In September, investigators reportedly traced the attempted bombing of a Ukrainian cargo aircraft at Leipzig/Halle Airport to a suspected Russian military-intelligence organiser, with EU Today reporting details of the alleged GRU-linked logistics network.
For Berlin, support for Ukraine is now increasingly seen as part of Germany’s own security.
Merz’s visit also carries a domestic political dimension. His government is committing Germany to considerably higher defence expenditure at a time when the CDU has suffered severe electoral setbacks in eastern Germany and voters remain concerned over public finances and economic performance.
Yet Germany’s military and industrial engagement with Ukraine is continuing to expand.
The new package announced in Kyiv is important in itself, particularly as Ukraine prepares for another winter of Russian attacks on its energy infrastructure. The wider development, however, lies in the growing number of defence-production agreements accompanying it.
European governments have spent much of the war debating how to replenish their own weapons stocks while sustaining Ukraine.
The German approach increasingly points towards a different model: Ukrainian operational experience, Ukrainian procurement requirements and European industrial capacity being brought into the same defence-production system.
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