Ukraine railway station (Photo EBRD)

UKRAINE: The European Bank for Reconstruction & Development is to provide national railway Ukrzaliznytsya with a €200m sovereign loan to support the upgrading of rail links with the European Union.

The funding will allow UZ to continue to provide vital services, rehabilitate rail corridors to the border and buy rolling stock.

The €100m for emergency capex financing and €100m for working capital support which was announced on June 9 follows €150m of emergency liquidity finance which EBRD provided last year to keep trains running after Russia’s full-scale invasion disrupted sea routes which are important for food supplies.

EBRD is sharing the risks on its Ukraine investments with its donors and shareholders. The loan is to be supported by guarantees of up to 50%, with €60m from the USA and €40m from the Netherlands.

In addition, the project is expected to be financed by an investment grant of up to €10m from bilateral or multilateral donors to cover investment in communications, energy-efficient lighting and step-free access at several major stations.

  • Ukrzaliznytsia and the European Investment Bank signed a €6·7m grant agreement on June 2. This redirects money, originally earmarked for electrification, will support urgent passenger and humanitarian aid transport needs.