Transformers, turbines and gas storage: Ukraine and Germany sign €155m+ energy deals

Energy alongside defence

During Chancellor Friedrich Merz’s visit to Kyiv on 4 October, a Ukrainian-German business forum took place. Its main themes, according to First Deputy Prime Minister and Energy Minister Denys Shmyhal, were defence and energy. In total, 15 documents worth €8.5 billion were signed at the forum, and the portfolio of energy agreements alone exceeds €155 million, Shmyhal said on Telegram, as reported by Ukrinform.

“Today Ukraine urgently needs energy equipment to restore damaged facilities, strengthen energy security and prepare for winter: transformers, turbines, generators, high-voltage equipment, cables and other critical components,” the minister explained.

Who signed what

Energy Ministry and Siemens Energy. The two sides will cooperate on restoring, modernising and strengthening the resilience of the power system. According to Shmyhal, the possible use of 12 Siemens Energy gas turbine units for distributed generation is being worked out — smaller power sources spread across the country that are harder to knock out with a single strike.

Ukrenergo, 50Hertz and Amprion. Ukraine’s transmission system operator agreed with two German grid operators to speed up access to critical electrical equipment. The partners will help find production capacity and the nearest available “slots” at international manufacturers of transformers, cables and switchgear. This matters because global waiting lists for large transformers are long, and transformers are frequent targets of Russian attacks.

Naftogaz and Siemens Energy. Cooperation will cover three areas:

• energy security and infrastructure protection — security audits, crisis management, cyber defence, rapid recovery;
• modernisation of underground gas storage — the supply of five gas turbine compressor units is being considered;
• technical cooperation on power generation based on Siemens Energy solutions and automated control systems.

Money for the winter

Shmyhal highlighted Germany’s announcement of €250 million for Ukraine’s Energy Support Fund: “This is an important contribution for us to prepare for the next winter amid Russian attacks.” Earlier, DW, citing government sources, reported that about €350 million from the new German package was intended for repairing and rebuilding destroyed power plants.

The minister also met German Economy and Energy Minister Katherina Reiche. They discussed joint energy support projects, liquefied natural gas supplies and the restoration of the shelter at the Chornobyl nuclear power plant.

Not only energy

At the same forum, the Defence Ministry signed memoranda with Diehl Defence (IRIS-T missiles and systems, artillery shells), HENSOLDT (radars) and Quantum Systems (interceptors for jet-powered drones). Private companies from both countries also signed cooperation documents, including Quantum Systems and Fire Point, ARX Robotics and Roboneers, and Helsing and Culver Aerospace.

Taxes and post-war business

The same day, the German government submitted to the Bundestag a bill approving a new agreement with Ukraine on avoiding double taxation of income. The agreement was signed in Paris on 19 May 2026; it is to replace the 1995 treaty and, for the first time, provides for arbitration in certain tax disputes. It needs a Bundestag vote and Bundesrat consent to take effect. At the forum, Zelensky said that after the war Ukraine “very much looks forward to the presence of German business” — in cooperation with Ukrainian companies.

Why it matters

The heating season is starting under strikes on the energy sector. The agreements do not deliver instant megawatts, but they shorten the path from need to equipment: German grid operators help “find” scarce transformers, and gas turbine units can strengthen decentralised generation. Shmyhal stressed that the goal is a modern, resilient power system fully integrated with the EU — not just patching up damage.