UKRAINE: The European Bank for Reconstruction & Development is lending €300m to finance the acquisition of electric locomotives by national railway Ukrzaliznytsia.
The latest EBRD loan announced on December 18 will be co-financed by a parallel grant of up to US$190m from the USA, administered by the World Bank.
The sovereign-guaranteed loan will help Ukrzaliznytsia renew its fleet to ensure the uninterrupted transport of agricultural exports and critical imports, as well as passenger services.
It follows €200m in loans agreed by EBRD in 2023 to enhance rail links with the European Union, and €150m of emergency liquidity finance provided in 2022 to help keep the trains running following Russia’s full-scale invasion.
As well as ensuring transport services for goods and passengers, EBRD said the funding will help reduce greenhouse gas emissions, improve energy efficiency and support demobilised workers through a veterans’ reintegration programme.
Ukrzaliznytsia has reached out to Eurobond holders with a request to postpone US$83m of coupon payments due in January and July 2025 until 2026. It said freight traffic fell in H2 2024, and is expected to fall further, while inflation has accelerated sharply and the cost of electricity, diesel and consumables has increased.
