The European Bank for Reconstruction and Development (EBRD) and the Government of France are joining efforts to help Ukraine’s railway services and energy supply.
France is providing a guarantee worth EUR 49.4 million to support an EBRD loan of EUR 150 million to Ukraine’s railway company, Ukrzaliznytsya (UZ). This will help finance critical operating expenses to ensure stable rail freight and passenger transport, as well as evacuation and humanitarian aid services in the war-torn country.
The French guarantee complements another guarantee for UZ provided by the European Union through its European Fund for Sustainable Development (EFSD).
The EBRD has been working with UZ since before the war and has stood firmly by the rail company since Russia’s invasion. In addition to liquidity financing, the bank is currently working closely with UZ on a new sovereign guaranteed loan of up to EUR 200 million to cover critical capital expenditure needed to improve railway connectivity with the European Union.
In parallel, France is providing a EUR 50 million guarantee to facilitate an EBRD loan of EUR 300 million to Ukrainian state-owned gas company Naftogaz. The financing will help Naftogaz purchase gas and guarantee supply to Ukrainian customers and produce electricity over the winter and beyond.
“Naftogaz and Ukrzaliznytsya’s infrastructures, which are covering the whole Ukrainian territory, constitute a backbone of the Ukrainian economy at wartime. Energy and railways are not only providing essential services to the population, they are key components of the Ukrainian economic resilience,” French Minister of Economy and Finance Bruno Le Maire said.
In October, on a visit to Kyiv, EBRD President Renaud-Basso told Ukrainian President Volodymyr Zelenskyy of the bank’s determination to support Ukraine while it defends itself against Russia’s aggression. She pledged that the EBRD would commit up to EUR 3 billion over the course of 2022-23 to shore up Ukraine’s businesses and keep the economy functioning.