The European Bank for Reconstruction and Development (EBRD) will lend €200 million to Ukrainian Railways (Ukrzaliznytsya or UZ) to upgrade the country’s railway links with the European Union to its west. This follows €150 of emergency liquidity finance to UZ last year to help Ukraine keep its trains running.

Since Russia’s invasion of Ukraine last February, uncertainty about sea routes that traditionally carry most of the country’s imports and exports – including exports of grain vital for global food security - has prompted improvements to rail, road and river links with other countries.

This sovereign loan – €100 million for emergency finance and €100 million for working capital support – will mitigate the impact of the war by facilitating the expansion of cross-border capacity and improving railway connectivity with the EU. It will allow UZ to continue to provide vital services to people and businesses as well as to rehabilitate key rail corridors on its border with the EU and buy rolling stock.