Reconstruction of Ukraine: Cooperation and Contract Structure between Turkish, German and Austrian Companies

The reconstruction of Ukraine may open up new forms of cooperation for Turkish, German and Austrian companies in areas such as equipment supply, engineering and the delivery of infrastructure projects. The Free Trade Agreement between Türkiye and Ukraine, which entered into force on 1 October 2026, and the tariff reductions applicable from 1 January 2027 make this process all the more relevant for Turkish companies. Companies should therefore assess this potential not only in light of current tenders but also with a view to future needs and new projects.

Key business areas in the reconstruction of Ukraine

The joint assessment published in February 2026 by the Government of Ukraine, the World Bank Group, the European Commission and the United Nations estimates the ten-year reconstruction and recovery needs, as of 31 December 2025, at approximately USD 588 billion. Transport, energy and housing are among the sectors where needs are concentrated. As these needs translate into specific supply, works and services contracts, they create business potential for companies of different sizes.

For example, the general procurement notice published in December 2025 for a water infrastructure project in Krasyliv provided, with a budget of up to EUR 500,000 excluding VAT, for the replacement of pumps and electrical equipment, automated control systems and a solar power installation with battery storage. The example illustrates project needs to which a range of businesses, from pump manufacturers to automation and energy companies, can connect with their own products or services.

Cooperation models between Türkiye, Germany and Austria

For Turkish companies, models such as bidding directly, preparing a joint bid with a German or Austrian company, or supplying equipment and services to the contractor carrying out the project may be considered, depending on the applicable eligibility requirements. This allows existing production capacities and expertise to be matched with project needs at different stages.

For German and Austrian companies, relationships with manufacturers and contractors in Türkiye may in turn broaden supply options and delivery capacity on suitable projects. One example is an arrangement in which one company takes on design and system integration while the other is responsible for manufacturing the equipment or for the works on site.

Cooperation may take the form of a joint bid, a supply or subcontracting relationship, or a joint venture. When allocating tasks, the expertise and qualifications of the parties in the relevant project should be taken into account.

Information sources for projects and tenders in Ukraine

The Ukraine Servicepoint of the Austrian go-international initiative brings together tender and project notices relating to the reconstruction of Ukraine, information on financing and export guarantee instruments, and related events.

In Germany, projects supported by international organisations and the related procurement notices can also be followed through the Ukraine tenders and projects database of Germany Trade & Invest (GTAI). General project notices should be distinguished from open calls for tenders, and the current timetable should always be verified with the original source.

Assessing project participation and contract structure

When choosing a participation model, the project’s source of financing and the tender documents need to be reviewed. Whether a Turkish company can bid directly, participate in a consortium or use equipment manufactured in Türkiye may depend on different conditions. Working with a German or Austrian partner does not mean that these conditions are automatically met. The country and applicant requirements of support programmes also need to be reviewed separately.

When setting up a joint bid or a supply relationship, it is important to clarify in whose name the bid will be submitted, how payments and securities will be arranged, what the delivery obligations are and how responsibility will be shared between the parties. The contract structure should be assessed together with the legal requirements of the country in which the project is carried out.

In practice, the relationship between partners is often established under the time pressure of the tender schedule by a short memorandum of understanding, with the details only discussed after the project has started. Regardless of the law governing the main contract with the employer, however, the consortium, joint venture or supply agreement between the Turkish company and its German or Austrian partner is a separate legal relationship, and the law governing it and the forum for resolving disputes should be agreed from the outset. Since the enforcement of a foreign court judgment in Türkiye requires separate recognition and enforcement proceedings, the dispute resolution mechanism should also be chosen with a view to possible recourse against the Turkish partner’s assets.

The security arrangements require similar care. On projects supported by international financial institutions, bid and performance guarantees may have to be issued by a bank acceptable to the employer, and guarantees issued by Turkish banks are in some cases accepted only with a counter-guarantee from a correspondent bank. The consortium agreement should therefore set out clearly which partner provides the guarantees and in what proportion, how the burden is shared between the partners if they are called, and in what order payments from the employer are passed on to the partners.

Where equipment manufactured in Türkiye is supplied to Ukraine, benefiting from the tariff reductions under the Free Trade Agreement depends on the goods meeting the agreement’s rules of origin and on this being properly documented. Experience shows that in partnerships whose supply chain involves more than one country this point can directly affect the bid price, so responsibility for origin and documentation should also be allocated between the parties from the outset.

GEMS Schindhelm assists companies in setting up supply and cooperation models with a Turkish connection, in drafting and negotiating joint venture and commercial agreements, in investments abroad and in coordinating with legal advisers in the countries concerned.

Author: Müge Şengönül
Author: Gürkan Erdebil