EBRD repurposes extra funds to boost Ukrainian rail company
The European Bank for Reconstruction and Development (EBRD) is repurposing a further €98.8 million of an existing loan to Ukraine’s state railway cargo and passenger transportation provider Ukrzaliznytsya (UZ), after agreeing in June to repurpose an initial €50 million of the loan. The funds will allow UZ to address critical liquidity needs, ensuring vital railway passenger and cargo transport services are available for people and business affected by Russia’s war on Ukraine.
The original €150 million loan to Ukrzaliznytsya was for a project to upgrade and electrify a part of the railway system in Ukraine, which was not disbursed. Having disbursed €50 million to support the company’s liquidity in August, the EBRD will now repurpose €73.3 million of the existing undrawn commitment and €25.5 million uncommitted financing to extend its emergency liquidity support.
Despite the impact of the war, Ukrzaliznytsya has maintained cargo and passenger transportation operations if at reduced capacity. As of August, UZ had evacuated more than 3.8 million people from areas affected by military hostilities and delivered around 180,000 tonnes of humanitarian aid.
The closure of Ukrainian ports due to a Russian naval blockade further highlighted the importance of rail transportation for maintaining Ukraine’s agricultural exports logistics, a key sector of the national economy.
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