The European Bank for Reconstruction and Development (EBRD) is reallocating a further €98.8 million from an existing loan to Ukrainian rail freight and passenger service provider Ukrzaliznytsya (UZ), after agreeing in June to reallocate a initial loan amount of 50 million euros. The funds will enable UZ to meet critical cash needs, ensuring that vital passenger and freight rail services are available to people and businesses affected by Russia’s war on Ukraine.
The initial loan of 150 million euros to Ukrzaliznytsya was intended for a project to modernize and electrify part of the railway system in Ukraine, which has not been disbursed. After disbursing €50 million to support the company’s liquidity in August, the EBRD will now reallocate €73.3 million from existing unused commitment and €25.5 million from uncommitted funding to extend its emergency cash support.
Despite the impact of the war, Ukrzaliznytsya maintained its cargo and passenger transport operations at reduced capacity. By August, the 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 has further underscored the importance of rail transport in maintaining the logistics of Ukraine’s agricultural exports, a key sector of the national economy.