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Ukraine ratified the agreement with France to finance the production of 130 locomotives

Ukraine ratified the agreement with France to finance the production of 130 locomotives
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The French train producer Alstom welcomes the ratification by the Ukrainian Parliament of an intergovernmental agreement between France and Ukraine on financing the supply of 130 heavy-duty electric locomotives for Ukrzaliznytsia (Ukrainian national railways).


According to the press service of Alstom, this step will allow the French company with its production plant in Milan (Italy), to begin supplying locomotives to the Ukrainian market, which will also provide for 35% localisation associated with the production and maintenance of electric locomotives. Alstom has already established a manufacturing facility in Ukraine.

“The next important step is the signing of commercial agreements in the second half of 2021,” the French company said.

In May 2021, after several years of negotiations, Ukraine and France signed an intergovernmental agreement on financing the supply by Alstom of 130 heavy-duty electric locomotives for Ukrzaliznytsia. The contract value is estimated at around Euro 900 million. This agreement was ratified by the Verkhovna Rada of Ukraine on July 1, 2021.

Ukrzaliznytsia has a serious lack of electric freight locomotives. Its existing fleet is extremely outdated. Therefore, the French company and other manufacturers can look forward to other deals with the Ukrainian Railway. According to Ukrainian railways' plan, they intend to purchase at least 50 freight electric locomotives by 2025 and 265 units by 2033.


Alstom is one of the world leaders, along with the German group Siemens and the Canadian one Bombardier, in the production of power equipment and railway transport. It operates in more than 70 countries and employs about 70,000 people.


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