EBRD and EU scale up support for Ukrainian Railways

On 28 April, the European Bank for Reconstruction and Development (EBRD) and the European Union announced further support to Ukraine’s largest strategic enterprise, Ukrainian Railways (Ukrzaliznytsia, or UZ).

Through a €44 million investment grant, the EU – under its Ukraine Investment Framework – is backing the EBRD loan of €180 million, signed in December 2024, to Ukrzaliznytsia. This top-up plays a critical role in significantly scaling up the overall financing package and expanding the impact of the Bank’s existing support.

The EBRD loan will finance the supply and installation of up to 200 MW of decentralised, small-scale, gas-fired power-generation capacity at selected Ukrzaliznytsia sites across Ukraine, helping to address the electricity deficit and ensure an uninterrupted supply of energy to households and businesses. The project costs a total of €248 million.

A total of €3 million of the EU grant funding will contribute to establishing a new in-house UZ Academy training and veterans’ reintegration facility. Each year, the Academy will enable between 1,000 and 1,200 Ukrzaliznytsia employees to acquire market-relevant skills and qualifications, helping to address ongoing labour-market challenges caused by Russia’s continued aggression. 

“Ukraine’s railways have demonstrated extraordinary resilience since the start of the war, serving as a lifeline for the country’s people and economy. By investing in decentralised energy generation as well as in people – through the UZ Academy – we are working with the European Union to strengthen both immediate operational capacity and Ukraine’s long-term recovery,” said Arvid Tuerkner, EBRD Managing Director for Ukraine and Moldova.

Katarína Mathernová, Ambassador of the European Union to Ukraine, said: “With €44 million in EU grants and our support for major EBRD financing, we are investing in energy security, mobility and people. This is about keeping trains running, lights on, and Ukraine moving forward.”

As part of a separate project, the EBRD is also providing a €10 million accessibility grant to support urgent upgrades at major Ukrzaliznytsia railway stations in Kyiv and Lviv. The investment will finance steps‑free access and energy‑efficient lighting, improving safety and accessibility for people with reduced mobility. Enhanced energy-efficient lighting across the network will also improve safety for women in public spaces around stations.

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Press release