photo: Ukrzaliznytsia / Public domain/Ukrainian Railways' Intercity train
Ukraine's Verkhovna Rada has ratified an agreement with South Korea, paving the way for the expansion of Ukrainian Railways' Intercity+ train fleet.
On August 21, the Verkhovna Rada of Ukraine, the country's parliament, ratified the Framework Agreement between the Government of Ukraine and the Government of the Republic of Korea concerning loans from the Economic Development Cooperation Fund (EDCF) for the period 2024-2029. The initiative was supported by 336 members of parliament.
This decision paves the way for the final phase of negotiations on financing critically important projects for the Ukrainian economy, including the program to expand the rolling stock of Ukrainian Railways (Ukrzaliznytsia) through the purchase of 20 Intercity+ electric trains. This program has already received positive evaluations from experts engaged by the Korean Economic Development Cooperation Fund. The next steps will involve finalizing the project details and the agreement at the Cabinet of Ministers level, followed by the official signing of the agreement.
"This is a strategic program to expand the Intercity+ train fleet, which will allow us to increase the frequency of services on existing routes and open new high-speed routes. This will create additional travel opportunities for 6 million passengers annually, addressing the current demand for daytime high-speed travel. We thank the parliamentarians for ratifying the agreement and will continue working with government officials to ensure the successful signing of the agreement," said Yevhen Lyashchenko, Chairman of the Board of Ukrzaliznytsia.
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According to preliminary agreements, the program's total cost will be approximately $450 million, including service maintenance of the trains for five years. The delivery of the trains is expected within 18-24 months after the agreement is signed. Additionally, Korean manufacturers have expressed interest in exploring options for partial localization in Ukraine, which is important for stimulating the domestic economy. The loan terms provided by the Korean Economic Development Cooperation Fund are favorable, given the project's critical social component (with a total term of up to 40 years and principal repayments starting only after the first 10 years).
At the same time, Ukrainian Railways will work on modernizing its existing rolling stock and emphasizing the importance of continuing the state investment program for building new rolling stock for long-distance travel.
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Source: Ukrainian Railways (Ukrzaliznytsia) Press Releases