The European Bank for Reconstruction and Development (EBRD) will allocate €130 million to support the liquidity of Ukrainian Railways (Ukrzaliznytsia).
Ukraine’s Minister for Recovery, Infrastructure and Transport, Mykola Kalashnyk, \this following a meeting with EBRD President Odile Renaud-Basso.
The discussions focused on support for the railway sector, the development of transport corridors, preparations of critical infrastructure for winter, and attracting investment in the port industry.
During the meeting, Ukrzaliznytsia and the EBRD signed amendments to the loan agreement under the UZ Energy project. The agreement allows €130 million from an already approved €180 million loan to be redirected towards supporting the company’s liquidity. Funds previously earmarked for distributed power generation can now also be used for critical repairs, infrastructure restoration, and maintaining passenger and freight transport services.
“Russian attacks force railway workers to restore damaged facilities every day. At the same time, declining freight volumes are reducing the company’s revenues. That is why we are working to ensure that Ukrzaliznytsia gains access to these funds in the first weeks of October,” Kalashnyk stressed.
According to the minister, the project to build 200 MW of gas-fired generation capacity is continuing, including with grant support from the EU and the United Kingdom. Ukrzaliznytsia is carrying out construction work using its own resources, helping to optimise costs and redirect part of the loan financing towards urgent needs.
The parties also discussed the possibility of additional financing to renew the locomotive fleet. Since the beginning of Russia’s full-scale invasion, 550 locomotives have been damaged in Russian attacks, more than 335 of them this year.
“We also discussed the development of international road corridors and investment in roads — projects we are working on together with the Restoration Agency. Particular attention was paid to implementing resilience plans: expanding distributed heat generation, providing backup power supplies, and protecting critical infrastructure,” the minister said.
Another area of cooperation concerns port concessions. Projects are being prepared in Chornomorsk and Odesa, with Ukraine looking to draw on the EBRD’s expertise in their development and in attracting international operators and investors.
