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Ukraine Railways (UZ) Emergency Support



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

10 May 2023



PSD disclosed:

07 Mar 2023

Project Description

A sovereign guaranteed loan of up to EUR 200 million, consisting of EUR 100 million to provide emergency capex financing to the JSC "Ukrainian Railways" (the "Company" or "UZ") and EUR 100 million to provide capital structure support (the "Project"). The loan will facilitate the expansion of the cross-border capacity and improve railway connectivity corridors with EU, address border crossing bottlenecks and mitigate war impact through rehabilitation of the relevant railway sections and other critical infrastructure investments. The EBRD loan is expected to be supported by the G7/EU guarantees of up to 50%.

Project Objectives

The Project will support the Company in addressing immediate critical needs to improve operations and ensure improved connectivity with EU, continue to provide vital services to people and businesses/private sector, maintaine logistics of key Ukrainian exports (including agricultural products) and critical imports. The financing would allow UZ to rehabilitate the key railway corridors on the border with EU and procure the rolling stock  thereby providing a comprehensive solution for the Company to expand capacity on these  rail corridors. 

Transition Impact

ETI score: 70

The Project aims to support the resilience of the Company and its operations as well as to maintain and improve exports and imports logistics by providing emergency financial support to UZ, funding critical investments in the Company's infrastructure, including its vast network, operating fleet and supporting infrastructure (Resilient).  The proposed project will ensure ongoing access to logistic services for people and business in Ukraine critical in the current war environment (Inclusive).   

Client Information


Ukrainian Railways PJSC is a vertically-integrated  railway company fully owned by the Government of Ukraine.

EBRD Finance Summary

EUR 200,000,000.00

Total Project Cost

EUR 200,000,000.00


EBRD is offering financing which is not available in the market due to the ongoing war and high level of risk and uncertainty in Ukraine. The loan is also expected to benefit from the "donor funded" guarantee to be provided by the G7/EU to cover 50% of exposure, where local commercial financiers cannot provide such risk-sharing mechanism. EBRD funding and application of Bank's PPR will ensure wider market outreach, particularly in the current high-risk environment.

Environmental and Social Summary

Categorised B (2019 ESP) and Low-Medium risk. The borrower is an existing Client to the Bank with satisfactory performance and this is a brownfield project that includes rehabilitation of the existing railway sections located in Western Ukraine and procurement of rolling stock.  Potential environmental and social risks will be limited mainly to the construction stage and can be readily identified and addressed though the application of good international practices and standards. Social risks potentially refer to occupational health and safety, and labour issues during the construction phase and in supply chain. All risks are expected to be addressed by the Client through appropriate mitigation measures. Environment and social due diligence (ESDD) will be undertaken by independent E&S consultants as part of the Feasibility study and will review potential E&S impacts related to the existing performance and construction practices and will utilise the ESDD tools developed by ESD for the response to the impacts of war on Ukraine. Where possible the ESDD will explore opportunities how to address war related challenges and enhance E&S management system of the Company through the technical cooperation support and mitigation measures in the E&S action plan. The project is aligned for Paris alignment mitigation and adaptation.

Technical Cooperation and Grant Financing

TC 1: Feasibility Study.

TC 2: Environmental and Social Due Diligence. 

TC 3: Project Implementation Support. The TC will support the Client with preparation of procurement documentation, carrying out the tender and contract implementation. 

Company Contact Information

Volodymyr Shemayev, Director of Office for International Projects
5 J.Giedrozc St, Office 208, Kyiv, 03150 Ukraine

Implementation summary

PSD last updated

07 Mar 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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