EBRD boosts Ukrainian railways with €480m loans

The European Bank for Reconstruction and Development (EBRD) is providing substantial financial support to Ukrainian Railways (Ukrzaliznytsia, or UZ), with two major loans totalling €480 million aimed at enhancing railway operations and addressing Ukraine’s energy challenges.

A €300 million loan will fund the acquisition of electric locomotives to renew the railway operating fleet, ensuring stable cargo operations for agricultural exports, critical imports, and vital passenger services. The loan is backed by a US$190 million grant from the United States, administered by the World Bank.

Additionally, the EBRD is extending a €180 million loan to install small-scale gas-fired power generators across UZ sites. This initiative, co-financed by grants from the UK (£10 million) and an international donor (€56 million), will provide 270 MW of decentralised energy capacity to mitigate power shortages caused by Russian attacks on Ukraine’s energy infrastructure.

These investments are part of the EBRD’s broader commitment to Ukraine, which has surpassed €5.4 billion since February 2022. The funds aim to bolster energy security, infrastructure, and private sector resilience during wartime and lay the groundwork for post-war reconstruction.

Ukrainian Railways, one of the country’s largest employers and GDP contributors, has remained a critical lifeline for passenger and cargo services amid the ongoing conflict.

The projects will also enhance energy efficiency, reduce greenhouse gas emissions, and support workers through reintegration programmes for veterans.

Attribution: EBRD

Subediting: M. S. Salama