The Ministry for Communities, Territories and Infrastructure Development, Ukrzaliznytsia and the European Bank for Reconstruction and Development (EBRD) are launching the emergency support project for Ukrainian railways. The EUR 200 million project will provide financial assistance for the restoration and modernisation of railway infrastructure and the renewal of rolling stock.

The relevant Guarantee Agreement for the project was signed today, 9 June, by Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine and Minister for Communities, Territories and Infrastructure Development, and Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus.

“In view of the restrictions imposed by the aggressor on the operation of Ukrainian Black Sea ports, the Ministry for Communities, Territories and Infrastructure Development is currently paying special attention to the development of road and rail logistics on the western borders. This primarily means modernising infrastructure and renewing rolling stock.

Thanks to the EBRD’s financial support, we will be able to significantly accelerate this process and ensure the smooth operation of Ukrzaliznytsia in the short and medium term.

I am grateful to our partners at the EBRD, especially Matteo Patrone, Managing Director for Eastern Europe and the Caucasus, for the support the Bank has provided since the first days of the full-scale russian invasion,” commented Oleksandr Kubrakov.

About the project

The budget of the emergency support project for Ukrainian railways is EUR 200 million. The funds will provided by the EBRD under state guarantees.

These funds will be used for:

• procurement of materials to ensure the stable operation of the railway corridors between Ukraine and the EU;
• purchase of locomotives;
• financial support to Ukrzaliznytsia to ensure stable transportation.

The project is scheduled to start in July this year.

Ukrzaliznytsia and the EBRD have been cooperating for 25 years. With the EBRD’s support, Ukrzaliznytsia’s freight car fleet has been renewed and the company has expanded its connection with the EU, including the construction of the Beskydy Tunnel.

Over this period, the parties have implemented projects worth more than EUR 300 million.