The foundation, named after the murdered Russian opposition figure Boris Nemtsov, honored Ukrainian President Volodymyr Zelenskyy for his courage in the fight for the country's freedom.
This was announced by the Bonn-based foundation run by Nemtsow's daughter Zhanna Nemtsova on Sunday.
"There is no doubt that Volodymyr Zelenskyy showed incredible courage," Nemtsova told the Kremlin-critical Internet portal "Meduza".
Nemtsov, who was shot dead near the Kremlin in 2015, was also considered a great supporter of independent Ukraine.
It cannot be taken for granted that Zelenskyy stayed in the country after Russia attacked Ukraine.
He bravely defended the country alongside his people, demanded weapons and didn't care about his safety, Nemtsova said.
“Most importantly, nobody expected that from him.
Everyone hadn't really taken Selenskyj seriously," she said.
"Right now the leader of the free world"
"I think Vladimir Putin was amazed, to put it mildly, that Zelenskyy turned out to be a brave person - and is the leader of the free world at the moment," said Nemtsova, who no longer lives in Russia.
Her father was one of the harshest critics of Kremlin boss Putin until he was shot.
Nemtsova also responded to criticism that Zelenskyi had restricted freedoms in Ukraine even before the war.
Much of his politics testifies to his commitment to democratic values, she said.
Above all, unlike other presidents, he did not simply flee to save his own life.
Last year, the currently imprisoned Russian opposition activist Alexej Navalny received the award.
Nemtsova commemorates her father's death every year with her foundation, which was set up in Bonn in 2015, with the award for civil courage.
Nemtsov's murder still raises many questions.
The EU has repeatedly urged Russia to further investigate the case.
In 2017, a court in Moscow sentenced the alleged murderer and four accomplices from the North Caucasus to long prison terms.
The Nemtsow family complained that the masterminds had never really been searched for.