- €6.7 million EU grant coordinated by the EIB issued to Ukraine to cover the urgent needs of Ukraine’s rail transport company Ukrzaliznytsia.
The European Investment Bank (EIB), the bank of the European Union, and JSC Ukrainian Railways (Ukrzaliznytsia) have signed an EU grant agreement in Kyiv worth €6.7 million to back the company’s activities during Russia’s full-scale war against Ukraine. The EU grant will cover the most urgent needs of Ukraine’s only railway company, which is keeping the country’s economy and people moving amid a brutal second year of war.
Since the start of the Russian invasion, Ukrzaliznytsia has played a pivotal role in providing transport services and evacuating people from the regions most affected by Russian attacks. It has become the main avenue for transporting refugees, humanitarian aid, diplomatic delegations and food shipments.
The €6.7 million EU grant for Ukrzaliznytsia was originally earmarked for the EIB Ukraine railway modernisation project to upgrade and electrify part of the railway system in Ukraine.
With the war, needs have changed. Following a decision from the European Commission, the original grant was repurposed to provide urgent emergency support to Ukrainian Railways so that it can continue its railway operations and support urgent passenger and humanitarian aid transport needs.
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 working closely with the Ukrainian authorities to overcome the challenges created by the Russian military aggression and to support Ukraine’s rapid recovery. Since Russia’s unprovoked and unjustified war of aggression started, the European Union, its Member States and European financial institutions have remained united in their unwavering support for Ukraine, in line with a Team Europe approach. Find out more about the assistance provided so far on the Commission’s webpage and on 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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