French rails for Ukrzaliznytsia

The VRU considers a bill on the supply of French rails to Ukrzaliznytsia

The Committee on Transport and Infrastructure of the Verkhovna Rada of Ukraine plans to consider a bill on the ratification of the Framework Agreement on financial support for the rail supply project of Ukrzaliznytsia, according to the railway journal Railway Supply, citing Rail.insider.

The Cabinet of Ministers has submitted to the Verkhovna Rada of Ukraine a draft law on the ratification of the framework agreement between the governments of Ukraine and France on financial support for the rail supply project of Ukrzaliznytsia (registration number 0202 dated April 24, 2023).

It is noted that as a result of the military aggression of the Russian Federation, the only manufacturer of railway rails in Ukraine, Azovstal Metallurgical Plant (Mariupol, Donetsk region, Ukraine), was destroyed. Consequently, there is a shortage of materials necessary for the repair of railway tracks.

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“The Framework Agreement provides for the financing of rail procurement through a preferential loan from the government of the French Republic in the amount of 37.6 million euros, which will partially meet the needs of Ukrzaliznytsia in rails for 2023, totaling 18.9 thousand tons (approximately 145 km). The Framework Agreement stipulates 100% financing of the procurement, and Ukrzaliznytsia will reimburse the loan over a period of 35 years, including 14 years at a preferential interest rate of 0.0161% per year,” the statement says.

The Committee on Transport and Infrastructure plans to consider the draft law at its upcoming meeting.

As previously reported, France will assist Ukrzaliznytsia in modernizing its infrastructure and locomotive fleet. In addition, the government has authorized Ukrzaliznytsia to attract funds from France for the acquisition of rails.

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