German Foreign Minister Frank-Walter Steinmeier Wednesday traveled to Ukraine for bilateral talks with leaders in Kiev. Ahead of the trip, diplomats from both countries had already agreed on boosting cooperation regarding energy efficiency, climate protection and the conservation of natural resources.

"The protection of resources is becoming increasingly important in Ukraine," Michael Mueller, Germany's deputy environment minister, said in a statement. "Using energy sparingly has become a crucial task there, and it's key for effective climate protection. We want to further extend the cooperation regarding pilot projects, consultation, and transfer of know-how."

Germany's Environment Ministry has tabled a number of climate protection initiatives, funding several energy efficiency projects in Ukraine. It is helping to extend local public transport means; it is funding a low-energy housing project to help make construction and city planning in Ukraine more sustainable; and it is giving out micro credits to small and mid-sized companies and private households to modernize their energy supply infrastructure. Eventually, this will reduce electricity and heating costs. Germany funds the projects with more than $10 million, the Environment Ministry said.

More money could come from climate protection mechanisms stipulated in the Kyoto Protocol, which runs until 2012.

Germany is considering financing a climate protection project in or transferring energy efficiency technology to Ukraine. Under the so-called Joint Implementation mechanism, developed countries can offset missing carbon dioxide reductions by helping other industrialized nations drive down their emissions.

But cooperation will go beyond energy: Germany has agreed to help Ukraine create wildlife sanctuaries and national parks and to safeguard the country's domestic land resources as well as plant and animal species. A German-Ukrainian task force will develop ideas and projects, the German Environment Ministry said.

Other joint efforts will help Ukraine inch closer to EU standards when it comes to environmental protection. Germany has experience in aiding potential EU candidates via the so-called Twinning Project, which sends EU delegates from different departments to agencies in partner countries. Funded by Brussels, this program helps set standards and legal procedures for improved environmental protection.

Ukraine is a key transit country for Russian gas imported to the EU; the country's economy is set to shrink by at least 8 percent this year, and observers even fear a state bankruptcy that could affect gas deliveries to Europe by sparking yet another row over prices with neighboring Russia. Ukrainian Prime Minister Yulia Tymoshenko said Tuesday she wants to borrow some $4 billion from European sources to pay for Russian gas -- a measure that is controversial even inside the Ukraine.

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