Ukrainian Railways backs up agreement with EBRD on 300-mln euro loan for purchase of electric locomotives with memorandum

MOSCOW. June 13 (Interfax) - The European Bank for Reconstruction and Development (EBRD) will allocate an additional 300-million-euro loan for the purchase of 80 advanced electric freight locomotives to Ukrainian Railways, Ukrainian media reported, citing the rail company's press service.

The corresponding agreement, which the company announced in late May, was backed up by a memorandum between Ukrainian Railways, the EBRD and the Ministry of Communities, Territories and Infrastructure Development, which was signed in Berlin on the sidelines of the Ukraine Recovery Conference (URC2024).

"The locomotive fleet renewal is a critical and top priority issue for Ukrainian Railways [...]. Obtaining new and high-tech electric locomotives will substantially increase the efficiency of freight transportation," Ukrainian Railways CEO Yevgeny Lyashchenko said.

In late May, the company announced a $190-million grant from the United States via the World Bank's Relief, Recovery, Reconstruction, and Reform Trust Fund as part of the Rebuilding Essential Logistics Infrastructure and Network Connectivity (RELINC) project.

The proposal for the purchase of 80 electric locomotives at a total cost of around $400 million has been published on the EBRD's tender website. The tender requirements stipulate that the winner must create conditions for locomotives' maintenance and guarantee repair in Ukraine along with supplying them.