• EBRD lends Ukrainian Railways €300 million for new electric locomotives
• Support will ensure stable and functioning railway cargo and passenger services
• Investment grant of up to US$ 190 million from the USA, administered by the World Bank

The European Bank for Reconstruction and Development (EBRD) is lending €300 million to Ukrainian Railways to finance the acquisition of electric locomotives.

This follows €200 million in 2023 to upgrade rail links with the European Union and €150 of emergency liquidity finance to Ukrainian Railways in 2022 to help Ukraine keep its trains running.

Despite the impact of Russia’s war on Ukraine since 2022, Ukrainian Railways has managed to maintain its cargo and passenger services in a time of great need. The state-owned national railway operator is one of Ukraine’s largest employers and single contributors to the country’s GDP. The EBRD has been working with the rail company since before the war and has stood firmly by it since the Russian invasion.

The latest EBRD loan will be co-financed by a parallel investment grant of up to US$ 190 million from the United States of America, administered by the World Bank.

The sovereign-guaranteed loan will help Ukrainian Railways renew its operating fleet and maintain its operations. The aim is to ensure stable and uninterrupted railway cargo operations for agricultural exports and critical imports, as well as passenger services, which are vital for people, the economy and the continued functioning of the private sector, as well as for humanitarian efforts.

As well as ensuring transport services for goods and passengers including people with disabilities, Internally displaced people and refugees, the funding will help reduce greenhouse gas emissions, improve energy efficiency and support demobilised workers through a new veterans’ reintegration programme.

Since February 2022 the EBRD has deployed over €5.4 billion in Ukraine, including more than €1.6 billion this year, focusing on energy security, vital infrastructure, food security, trade and the private sector, in addition to key policy reforms. In 2023 the EBRD’s Board of Governors approved a capital increase of €4 billion to support wartime investment at current levels, with more to come for post-war reconstruction.