European Investment Bank Grants €6.7 Million to Support Ukrainian Railways Amidst War

European Investment Bank Grants €6.7 Million to Support Ukrainian Railways Amidst War

(IN BRIEF) The European Investment Bank (EIB) has signed a €6.7 million EU grant agreement with JSC Ukrainian Railways (Ukrzaliznytsia) to support the railway company during Russia’s war against Ukraine. The grant will address the immediate needs of Ukrzaliznytsia as it plays a crucial role in providing transport services and humanitarian aid during the conflict. Originally intended for railway modernization, the grant has been repurposed to provide urgent emergency support to ensure the continuity of railway operations. The European Commission and European financial institutions continue to support Ukraine in overcoming the challenges posed by the war and aiding in its recovery.

(PRESS RELEASE) LUXEMBOURG, 2-Jun-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union,

The European Investment Bank (EIB) and JSC Ukrainian Railways (Ukrzaliznytsia) have signed a significant EU grant agreement in Kyiv worth €6.7 million to provide vital support to Ukraine’s only railway company amidst Russia’s full-scale war against the country. The grant will address the most urgent needs of Ukrzaliznytsia as it plays a crucial role in keeping the country’s economy and people moving during the brutal ongoing conflict.

Since the onset of the Russian invasion, Ukrzaliznytsia has been instrumental in providing transportation services and facilitating the evacuation of people from regions severely affected by Russian attacks. The railway company has become the primary channel for transporting refugees, humanitarian aid, diplomatic delegations, and food shipments.

Originally allocated for the EIB Ukraine railway modernization project aimed at upgrading and electrifying sections of the country’s railway system, the €6.7 million EU grant has been repurposed in response to the changing needs brought about by the war. Following a decision from the European Commission, the grant will now provide essential emergency support to Ukrzaliznytsia, enabling the continuation of railway operations and the urgent transportation of passengers and humanitarian aid.

Anton Mishyn, member of the Management Board of JSC Ukrainian Railways, said: “The support from our partners for Ukrainian Railways and Ukrainians is more important than ever. We appreciate the European Union’s and the European Investment Bank’s prompt response to our needs. This is crucial to maintain the company’s liquidity, restore enemy-damaged infrastructure and ensure the sustainable operation of the railways. We believe in our joint victory and expect to see a number of new integration infrastructure projects.”

“Rail transport has proved to be crucial in providing an indispensable lifeline for the people of Ukraine, in moving refugees and in transporting goods amid the Russian aggression against Ukraine. We acknowledge the enormous efforts made by Ukrainian Railways to ensure efficient rail operations during this extremely difficult time for the country. Cooperation in the transport sector remains a priority for the European Union, including increased rail connectivity between the EU and Ukraine,” said Chloe Allio, head of the Economic Cooperation, Energy, Infrastructure and Environment section of the EU Delegation to Ukraine.

At the signature ceremony in Kyiv, Rafal Rybacki, head of the EIB division for public sector lending operations in EU neighbouring countries, said: “As the bank of the European Union, the EIB is determined to support the Ukrainian people in their resistance against Russia’s brutal, illegal and unjustified aggression. As an important aspect of this support, we welcome today the signature of a €6.7 million EU grant that will ensure Ukrainian Railways’ continued operations. Its services have become a lifeline for millions of Ukrainians and trains have become more essential than ever. Building on the crucial support from the European Commission, this grant will cover Ukrzaliznytsia’s most urgent needs so that it can keep its life-saving operations running. As this initiative demonstrates, we remain committed and flexible in standing with Ukraine.”

Speaking from Kyiv where the agreement was signed alongside the various partners, Jean-Erik de Zagon, head of the Resident Representation of the European Investment Bank to Ukraine, said: “Ukrzaliznytsia is a vivid example of Ukrainian resilience. Millions of people have been saved from active combat areas thanks to the evacuation trains, and millions of tonnes of goods and medicines have been delivered to those who need them. This €6.7 million EU grant agreement that we have signed today will help Ukrzaliznytsia to continue running, to stay on schedule as much as possible and to carry on doing its important job. Ukraine and the Ukrainian people can count on the support of the EIB in restoring critical infrastructure and building back better.”

The European Commission is closely collaborating with Ukrainian authorities to address the challenges arising from Russia’s military aggression and to aid in Ukraine’s swift recovery. In the face of Russia’s unwarranted and unjustified war of aggression, the European Union, its Member States, and European financial institutions have remained steadfast in their support for Ukraine, adopting a unified Team Europe approach. For further information on the assistance provided thus far, visit the European Commission’s webpage and the EIB’s webpage.

Background information

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.

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SOURCE: European Investment Bank


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