The European Investment Bank (EIB) has signed a EUR 6.7 million grant agreement to support Ukrainian Railways’ activities during Russia’s war against Ukraine.
The financing is a “prompt response to our needs. This is crucial to maintain the company’s liquidity, restore enemy-damaged infrastructure and ensure the sustainable operation of the railways,” Anton Mishyn, member of the Management Board of Ukrainian Railways, said.
This EU grant was originally earmarked for the EIB Ukraine railway modernisation project to upgrade and electrify part of the railway system in Ukraine but due to the war, the needs have changed. Following a decision from the European Commission, the original grant was repurposed to provide urgent emergency support to Ukrainian Railways so that it can continue its railway operations and support urgent passenger and humanitarian aid transport needs.
The funding will support the most urgent needs of Ukrainian Railways’ activities to keep country’s economy and people moving. Since the start of the Russian invasion, Ukrainian Railways (Ukrzaliznytsia) has played a pivotal role in providing transport services and evacuating people from the regions most affected by Russian attacks. It has become the main avenue for transporting refugees, humanitarian aid, diplomatic delegations and food shipments.
“Rail transport has proved to be crucial in providing an indispensable lifeline for the people of Ukraine, in moving refugees and in transporting goods amid the Russian aggression against Ukraine. We acknowledge the enormous efforts made by Ukrainian Railways to ensure efficient rail operations during this extremely difficult time for the country,” said Chloe Allio, head of the Economic Cooperation, Energy, Infrastructure and Environment section of the EU Delegation to Ukraine.
The European Union is committed to help Ukraine and its recovery providing funding including for transport infrastructure. In June, the European Commission and country’s government signed an agreement under which Ukraine authorities and companies can submit projects for CEF funding. They can apply starting September 2023 when the next CEF call is expected to be launched.
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