The Cabinet of Ministers of Ukraine has wound up negotiations with the American giant GE Transportation. By the end of the year, an agreement on a strategic partnership for the implementation of the 7-year rolling stock renewal program for PJSC Ukrzaliznytsia with the total cost of the project to the tune of around USD 1 billion will be signed. Relevant arrangements were reached during the meeting of the company management with Prime Minister of Ukraine Volodymyr Groysman.

"We are happy to announce we have completed our negotiations and arrived at accord to adjust and ink all the documents by the end of the year. The Government will facilitate this process," the Head of Government noted.

In the active stage of negotiations on this project for the last three months there have been engaged management of PJSC Ukrzaliznytsia with the support of the UkraineInvest Investment Promotion Office. The parties agreed that within the framework of implementation of all arrangements the localization (use of Ukrainian capacities) would increase up to 40%. Meanwhile, it has been agreed that Ukrainian-made products basing on technology and complying with GE standards will be used in other GE Transportation projects in other countries.

Implementation of the first stage of the project stipulates for the supply for the Ukrzaliznytsia in September of 2018, 30 locomotives containing spare parts manufactured and serviced in Ukraine. "This will allow Ukrzaliznytsia to guarantee an issue of deficit of locomotives be solved until the next peak load," said acting Chairman of PJSC Ukrzaliznytsia Board of Yevhen Kravtsov. For their part, GE Transportation confirmed willingness during the entire project operation period to supply technologies throughout Ukraine, to train specialists, and to develop possibilities to access credit resource.

During the negotiations, the parties emphasized that the involvement of world leaders in Ukraine, such as GE Transportation, proves improvement of the business environment in Ukraine and serves a signal for other large market players to start business in our country.