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EBRD to provide 200 million euro loan to Ukrainian Railways

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KYIV (Reuters) – The European Bank for Reconstruction and Development (EBRD) will provide a 200-million-euro ($215-million) loan to Ukrainian state railway company Ukrzaliznytsya to help improve links to the European Union, officials said on Friday.

Deputy Prime Minister Oleksandr Kubrakov said he had signed an agreement that would help accelerate the modernisation of railway links and upgrade rolling stock.

“Given the restrictions created by the aggressor for the Ukrainian Black Sea ports’ operation, the ministry pays special attention to the development of road and rail logistics on the western borders,” Kubrakov said in a statement.

Ukraine’s export-led economy shrank by about one-third last year as Russia’s invasion disrupted supply chains and logistics and blocked access to the ports that used to ship most of the country’s imports and exports.

The government and businesses has been trying to reroute trade and keep the economy afloat.

“Despite the impact of the war, Ukrzaliznytsya has maintained cargo and passenger transportation operations if at reduced capacity,” the EBRD said in a statement.

The EBRD has pledged 3 billion euros of investments to Ukraine in 2022 and 2023. It deployed 1.7 billion euro last year and mobilized a further 200 million euro through partner financial institutions.

($1 = 0.9285 euros)

(Reporting by Olena Harmash, Editing by Timothy Heritage)

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