US Export-Import Bank funds locomotive upgrade for Ukraine’s railways

US Export-Import Bank funds locomotive upgrade for Ukraine’s railways
© Facebok of Євген Кравцов

The $156 million loan will help Ukraine's state rail operator Ukrzaliznytsia upgrade its fleet with 40 modern Wabtec diesel locomotives.

The Export-Import Bank of the United States has approved a long-term loan program to help Ukrzaliznytsia, Ukraine's state-owned railway company, upgrade its traction fleet. This strategic financing package will facilitate the procurement of 40 Wabtec diesel locomotives, marking a significant step forward in modernizing Ukraine's rail infrastructure. The USD 156 million, 15-year loan paves the way for the procurement process to commence between Ukrzaliznytsia and Wabtec.

This financing agreement marks the first time that a Ukrainian state-owned company has received support from the US Eximbank, reflecting both the US government's policy of supporting Ukraine in difficult times and recognition of Ukrzaliznytsia's strategic importance in the region. Ukrzaliznytsia Chairman Yevhen Lyashchenko noted Ukrzaliznytsia's successful track record with Wabtec diesel locomotives, which have already enhanced the company's operational capabilities.

Penny Pritzker, US Special Envoy for Economic Recovery in Ukraine, praised the vital role of the Ukrainian railway in protecting the nation and its citizens and emphasized the well-deserved support for the efforts of the railway's employees. Commenting on the assistance, Alexander Kubrakov, Deputy Prime Minister of Ukraine, highlighted the impact of the investment on logistics and infrastructure and Ukraine's defence capability and resilience.

The US Ambassador to Ukraine, Bridget Brink, emphasized strengthening Ukrainian-American cooperation, saying that the agreement was a beacon of recovery and development in Ukraine despite the ongoing conflict, benefiting both nations by providing Ukraine with essential machinery and encouraging US private sector involvement in Ukraine's reconstruction.

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