Ukraine railway station (Photo: EBRD)

UKRAINE: The European Bank for Reconstruction & Development is repurposing a further €98·8m of an existing loan to Ukrzaliznytsya, enabling the national railway to address critical liquidity needs and to ensure that passenger and freight services are available for people and business affected by the Russian war.

EBRD said Ukrzaliznytsya had evacuated more than 3·8 million people from areas affected by military hostilities and delivered around 180 000 tonnes of humanitarian aid by August, while the Russian blockade of Ukraine’s ports further highlighted the importance of rail for maintaining agricultural exports which are needed to maintain global food security.

The original €150m loan for upgrading and electrification of the Dolynska – Mykolaiv – Kolosivka line was not disbursed, and following the Russian invasion EBRD repurposed an initial €50m to support Ukrzaliznytsya ’s liquidity in August, supported by the EU’s European Fund for Sustainable Development. Ukrzaliznytsya CEO Oleksandr Kamyshin said this would be the first step in a ‘new Marshall Plan for the reconstruction of Ukraine’.

On September 1 EBRD announced that it would now repurpose €73·3m of the existing undrawn commitment and €25·5m of uncommitted financing to extend its emergency liquidity support.

The loan will remain sovereign guaranteed, and the €98·8m now being repurposed is expected to be supported by up to 50% guarantee coverage from a G7 donor.