International support for Ukraine demonstrated through major rail contract

• France’s Alstom Transport to supply new locomotives for Ukrainian Railways
• Agreement marked in ceremony attended by French President Macron and visiting Ukrainian President Zelenskyy
• Deal underpinned by €300 million EBRD financing and US$190 million URTF investment grant, administered by World Bank 

The Presidents of France and Ukraine attended a Paris ceremony on Monday to mark the award of a major contract to supply electric locomotives by Ukrainian Railways (UZ) to France’s Alstom Transport. The project is co-financed by the European Bank for Reconstruction and Development (EBRD) with a €300 million loan and supported by an investment grant of up to US$190 million from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF), administered by the World Bank. 

UZ’s heroism and resilience has been critical since the start of Russia’s war on Ukraine in 2022. Despite immense challenges, the state-owned operator has kept trains running for agricultural exports, humanitarian aid and millions of passengers, including internally displaced people and refugees. The EBRD has been working with the rail company, one of Ukraine’s largest employers and single largest contributor to the country’s GDP, since before the war and has stood firmly by it since the Russian invasion.

Monday’s landmark ceremony at France’s presidential palace was a marker of continuing international support for Ukraine as it prepares for its fourth winter of war. It was witnessed by French President Emmanuel Macron and visiting Ukrainian President Volodymyr Zelenskyy as well as representatives of the EBRD and the World Bank Group.

The contract was awarded to Alstom Transport through a competitive tender, and the EBRD has already disbursed an advance payment of approximately €120 million to accelerate delivery. The EBRD’s sovereign-guaranteed loan, combined with the URTF grant support, will enable UZ to renew its fleet and maintain essential cargo and passenger services during wartime. 

“We are proud to be moving forward with this project, which underscores the importance of continued support to Ukrainian Railways, the vital backbone of the Ukrainian economy and society,” said EBRD Managing Director, Sustainable Infrastructure Group, Harry Boyd-Carpenter. 

EBRD lending for new locomotives follows €200 million in 2023 to upgrade rail links with the European Union and €150 of emergency liquidity finance to Ukrainian Railways in 2022 to help Ukraine keep its trains running.

In 2024, in response to devastating Russian attacks on Ukraine’s power generation system, the Bank lent UZ €180 million to install small-scale generators at sites around the country, providing up to 270 MW of capacity at selected UZ sites to help address Ukraine’s electricity deficit. 

Beyond ensuring transport continuity, the latest investment will reduce greenhouse gas emissions and improve energy efficiency, support accessibility for people with disabilities and vulnerable groups and launch a veterans’ reintegration programme for demobilised workers. 

Since February 2022, the EBRD has deployed over €8.5 billion in Ukraine, including around €2.4 billion so far this year, focussing on energy security, infrastructure, food supply, trade and private sector resilience. In 2023, the EBRD’s Board of Governors approved a €4 billion capital increase to sustain wartime investment and prepare for post-war reconstruction.