Ukraine has recently received a loan from the European Bank for Reconstruction and Development (EBRD) that will enable it purchase new rail cars and replace much of its older rolling stock. The aging fleet of cars has hampered the country’s economic growth, and it will also be a boon in tough economic times.
The State Administration for Railway Transport of Ukraine (UZ) intends to use the EBRD loan to finance the purchase of general purpose freight wagons, which will help to improve the underlying transport infrastructure that supports Ukraine’s economy. With this project, the European Bank has committed almost $240 million to the Ukrainian railways sector through three separate transactions since 1999.
The French government is also providing funding for UZ to operate, maintain and track the new rolling stock. The French are making €350,000 to UZ for this project.
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