The Cabinet of Ministers, on the initiative of the Ministry for Communities, Territories and Infrastructure Development, has decided to allocate EUR 100 million to Ukrzaliznytsia as part of a new budget program.

This is a loan from the European Investment Bank (EIB). The money was provided in accordance with the Agreement between Ukraine and the EIB on the modernization of the Ukrainian railway signed in 2016. The money will be used for the construction, modernization and repair of railway infrastructure, as well as for the purchase of freight cars and other means of transportation.

Rail transport is currently the main carrier of passengers and cargo in Ukraine. It plays a key role in defense and economic support.

The European Investment Bank is one of the largest lenders to Ukraine. Today, the EIB's portfolio of projects with the Ukrainian public, municipal and business sectors is over EUR 7 billion.

Background

In June 2023, the European Investment Bank and Ukrzaliznytsia signed a EUR 6.7 million EU grant agreement for the urgent needs of rail transport in Ukraine.