EBRD provides €200 million loan to Ukrainian Railways for better links with the EU

EBRD provides €200 million loan to Ukrainian Railways for better links with the EU
© Ľubomír Čech / Railmarket

The European Bank for Reconstruction and Development (EBRD) has announced a loan of €200 million to Ukrainian Railways (Ukrzaliznytsya or UZ).

This funding follows last year's provision of €150 million in emergency liquidity finance, which was crucial in keeping Ukraine's trains operational during a challenging period.

Following Russia's invasion of Ukraine in February of the previous year, the ongoing uncertainty surrounding traditional sea routes for imports and exports, including essential grain shipments vital for global food security, has accelerated the need for significant improvements in rail, road, and river links with other nations.

The EBRD's loan is split into €100 million in emergency finance and €100 million for working capital support. The funding aims to facilitate the expansion of cross-border capacity and enhance railway connectivity with the European Union. These developments will enable UZ to continue providing services, rehabilitate critical rail corridors along the EU border, and invest in rolling stock.

To ensure the success of this endeavour, the EBRD has adopted a risk-sharing approach for its investments in Ukraine, collaborating with donors and shareholders. The loan will be supported by guarantees, with the US contributing €60 million and The Netherlands offering €40 million. Previous financial assistance provided by the EBRD for UZ was backed by guarantees from France and the European Union through its European Fund for Sustainable Development.

Join Our Circle of Insiders: Receive the Weekly Digest That Keeps You Ahead!

Not using RAILVIS Platform yet?

Rent a wagon, sell a locomotive, find a container, convert free capacity to profit. The RAILVIS Platform is the tool you need. It's faster, better organized, and more secure than email or phone calls.

Try RAILVIS Railway Marketplace
RAILVIS screenshot