Revitalizing Ukraine’s Rail Links: €50 Million Boost for Cross-Border Connectivity

Revitalizing Ukraine’s Rail Links: €50 Million Boost for Cross-Border Connectivity

(IN BRIEF) Ukraine is set to upgrade its border rail infrastructure with neighboring EU countries, boosting both freight and passenger transport while reinforcing its role as a transport hub. This project includes comprehensive improvements such as track repairs, relocation of wagon inspections, reconstruction of an intermodal terminal, and installation of gantry cranes, supported by a €50 million EIB financing package directed to Ukrainian Railways (Ukrzaliznytsia). Co-financed by the EU Connecting Europe Facility and supported by the EIB’s advisory services, the initiative forms a key part of the EU-Ukraine Solidarity Lanes project, aimed at facilitating cross-border connectivity and trade. The agreement, signed at a high-level meeting with Ukraine’s Ministry for Development of Communities and Territories, builds on previous EIB support provided in 2022, and is reinforced by an EU guarantee under the Ukraine Facility. The funding will modernize critical rail border crossings with Poland, Slovakia, Hungary, and Romania, ensuring improved freight operations and passenger services. Leaders from the EIB, the European Commission, and the Ukrainian government have underscored that this investment is not only essential for economic and infrastructure improvements but also a strong political statement reinforcing Europe’s support for Ukraine and its gradual integration into the EU.

(PRESS RELEASE) LUXEMBOURG, 1-Apr-2025 — /EuropaWire/ — Enhancements at Ukraine’s border crossings with neighboring EU countries are set to improve the flow of goods and passengers while reinforcing Ukraine’s status as a key transport hub. The project, which encompasses track repairs, the relocation of wagon inspections, the rebuilding of an intermodal terminal, and the installation of new gantry cranes, is co-financed by the EU Connecting Europe Facility and bolstered by the advisory expertise of the EIB. In a pivotal agreement, the European Investment Bank (EIB) and the Ukrainian government have committed €50 million in EIB financing to Ukrainian Railways (Ukrzaliznytsia) for upgrading essential rail border points with Poland, Slovakia, Hungary, and Romania.

This initiative is a cornerstone of the EU-Ukraine Solidarity Lanes effort, designed to enhance cross-border connectivity and trade. The agreement, signed by the EIB and Ukraine’s Ministry for Development of Communities and Territories, is secured by an EU guarantee under the Ukraine Facility and is aimed at boosting freight operations while strengthening Ukraine’s trade and transport links with the European Union.

The funding will facilitate modernizing border infrastructure and adjacent railway segments on the Ukrainian side by addressing worn-out tracks, repositioning wagon inspections, reconstructing an intermodal terminal, and installing critical equipment such as cranes. Beyond freight improvements, these upgrades will also benefit passenger services by ensuring safer, faster, and more efficient cross-border travel on upgraded tracks that serve both freight and passenger trains.

This latest financing is part of the EIB’s comprehensive €150 million initiative to modernize Ukraine’s railways. Previously, in 2022, €100 million was allocated under the Ukraine Solidarity Urgent Response to finance emergency repairs and restore crucial rail services, complemented by a €6.7 million EU grant addressing immediate wartime needs. EIB Vice-President Teresa Czerwińska, overseeing the Bank’s Ukraine operations, stated that this support will help eliminate bottlenecks, accelerate the movement of goods, and further integrate Ukraine with the EU.

European Commissioner for Enlargement Marta Kos highlighted that the agreement is not only an economic boost but also a strong political commitment to closer EU-Ukraine ties through improved trade, mobility, and transport links. Ukraine’s Deputy Prime Minister for Restoration and Minister for Development of Communities and Territories, Oleksii Kuleba, emphasized that enhancing the railway infrastructure is vital for sustaining essential services, ensuring smooth goods movement, and unlocking new freight potential, thus drawing Ukraine closer to full EU integration.

Background information  

The EIB in Ukraine

The EIB Group has supported Ukraine’s resilience, economy and recovery efforts since the first days of Russia’s full-scale invasion, with €2.2 billion already disbursed since 2022. The Bank continues to focus on securing Ukraine’s energy supply, restoring damaged infrastructure and maintaining essential public services across the country. Under a guarantee agreement signed with the European Commission, the EIB is set to invest at least €2 billion more in urgent recovery and reconstruction. This funding is part of the European Union’s €50 billion Ukraine Facility for 2024–2027 and is fully aligned with the priorities of the Ukrainian government.

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SOURCE: European Investment Bank