"Ukrzaliznytsia" to redirect €130 million of EBRD loan for repairs and liquidity support

Ukrzaliznytsia will be able to redirect up to €130 million from a previously approved European Bank for Reconstruction and Development loan to support liquidity, repair damaged infrastructure, and ensure passenger and freight transportation.

To this end, Ukrzaliznytsia and the EBRD signed amendments to the loan agreement under the "UZ Energia" project, said Ukraine's Minister of Restoration, Infrastructure and Transport Mykola Kalashnyk. The total loan amount is €180 million.

Initially, this financing was intended primarily for the development of distributed generation. After reviewing the terms, part of the funds is allowed to be used for critical repairs, restoration of damaged facilities, and current needs necessary for the stable operation of the railway.

The EBRD separately confirmed that the agreement unlocks up to €130 million in emergency liquidity support for Ukrzaliznytsia. According to the bank, these funds should help maintain continuity of essential passenger and freight services, support the company's financial resilience, and further its reform program. The EBRD notes that UZ is operating under increasing pressure due to Russian strikes on transport infrastructure and rising operating costs.

Kalashnyk also explained that the railway's financial situation is complicated by the reduction in freight traffic, which decreases the company's revenues. The government expects that Ukrzaliznytsia will be able to access the redirected funds as early as the first weeks of October.

At the same time, UZ's own generation project is not being canceled. The company continues to build up to 200 MW of decentralized gas-fired generating capacity with the support of the EU and the UK. The initial €180 million EBRD loan was signed back in December 2024, and the total cost of the energy project was estimated at €248 million.

According to Kalashnyk, Ukrzaliznytsia is carrying out part of the construction work with its own resources. This made it possible to optimize costs and free up part of the loan resource for more urgent needs.

A separate problem remains the locomotive fleet. Since the beginning of the full-scale invasion, Russian attacks have damaged 550 Ukrzaliznytsia locomotives, with more than 335 of them in 2026 alone. During negotiations with EBRD President Odile Renaud-Basso, the parties also discussed the possibility of additional financing for the replacement and restoration of rolling stock.

In addition to the railway, the meeting also touched upon EBRD involvement in the development of international road corridors, backup power for critical infrastructure, and preparation of port concessions in Chornomorsk and Odesa.

Sources: Mykola Kalashnyk, European Bank for Reconstruction and Development