The funds will be directed to the purchase of materials for the restoration of railway corridors from the EU
Ukrainian Railways (UZ) will receive €200 million in financing from the European Bank for Reconstruction and Development (EBRD) as part of the Extraordinary Support for Ukrainian Railways project. It is stated in the message of the railway operator.
The relevant agreements were signed at the end of last week by the Deputy Prime Minister for the Reconstruction of Ukraine and the Minister of Community Development Oleksandr Kubrakov, EBRD director for Eastern Europe and the Caucasus Matteo Patrone, Chairman of the UZ board Evgeny Lyashchenko and a member of the board Anton Mishin.
«Ukrainian Railways once again feels the support of a reliable financial partner. This is already the second project for the financing of UZ, which is being implemented with the EBRD since the beginning of the full-scale invasion. The first project made it possible to support the company’s stability in a difficult period, and the second will primarily be aimed at priority investment projects,» said Yevhen Lyashchenko.
The loan repayment term will be up to 15 years, including a grace period of up to 3 years. €100 million will be used to finance capital investments of the UZ, including the purchase of materials for the restoration of railway corridors from the EU, as well as the renewal of rolling stock. The second part of the amount will be used to finance critical needs aimed at ensuring stable rail freight and passenger transportation. In addition, the project provides a grant of up to €10 million to ensure the inclusiveness of railway stations.
«Despite the consequences of the war, Ukrainian Railways maintained cargo and passenger transportation, albeit with reduced volumes. EBRD cooperates with UZ even before the war and firmly supports the railway company after the invasion of the Russian Federation», it is stated in the notification of the institution.
The EBRD promised to invest €3 billion in Ukraine in 2022-2023, last year the bank invested €1.7 billion and attracted another €200 million through partner financial institutions.
As GMK Center reported earlier, Ukrainian Railways will receive $25 million in financing from the World Bank to repair critical infrastructure and increase freight transportation. For the implementation of the grant, the UZ begins cooperation with the United Nations Office for Project Services – UNOPS.
Also, UZ is planning until the end of the year to register the new foreign carrier/operator that will work in EU countries. In addition, by the end of June 2023, shippers will be offered a complex of forwarding services.