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France Provides Financial Support for Ukrzaliznytsia Rail Supply Project

France Provides Financial Support for Ukrzaliznytsia Rail Supply Project
photo: Archive RAILTARGET/France Provides Financial Support for Ukrzaliznytsia Rail Supply Project
01 / 06 / 2023

The Verkhovna Rada of Ukraine has secured a framework agreement with the French government to provide Ukraine with financial assistance for the Ukrzaliznytsia (Ukrainian Railways) rail supply project. The terms of the agreement provide for a loan of up to EUR 37.6 million, thus covering 100% of the project.

The project, in particular, includes the production of rails and their supply to Ukrainian Railways, with the Ukrainian side having to purchase goods worth at least 70% of the specified amount.

According to the agreement, Ukraine will receive a loan for 35 years, including a 14-year grace period with an interest rate of 0.0161% per annum. Ukraine is obliged to repay the loan every six months for 21 years, starting payments 14.5 years after the disbursement, which must be made by the end of 2027.

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