Ukrainian Railways gets 200 million euros from EBRD
Ukrzaliznytsya (UZ) will receive 200 million euros in sovereign loan from the European Bank for Reconstruction and Development (EBRD). As EBRD specified, these funds will be allocated “to upgrade the country’s railway links with the European Union to its west”.
As EBRD mentioned, 100 million euros will be used for emergency finance and 100 million for working capital support. More specifically, the money will go into expanding cross-border capacity on corridors with the European Union and renewing the rolling stock fleet. The 200 million dollar investment will also see the participation of the United States, injecting 60 million euros. The Netherlands. France and the European Union, moreover, will contribute with 40 additional million, as the EBRD claimed.
As UZ mentioned, the repayment period will be up to 15 years, with three years grace period, meaning that the company won’t have to pay back until 2026. The agreements were signed by representatives of UZ, EBRD, and the Ukrainian government. This is not the first deal between Ukrainian Railways and EBRD. In June and in September, the institution granted a total of 150 million euros.