Ukraine will not sign a contract with Alstom without 35% localization  – Shmygal

Alstom

The supply of Alstom locomotives for JSC “Ukrzaliznytsia” is possible only if the French side observes the previously reached agreements on the localization of their production in Ukraine at the level of 35%. This was announced on Friday, September 10, by Prime Minister Denis Shmygal, speaking in the Verkhovna Rada, informs Railway Supply magazine.

According to him, the signed Ukrainian-French intergovernmental agreement is a framework agreement and was signed without observing the previously announced agreements on the localization of production of Alstom locomotives in Ukraine at the level of 35%.

“Of course, there will be no commercial agreements signed on other terms by the profile minister”, the head of government said, answering a question from the Deputy Head of the Verkhovna Rada Committee on Economic Development Dmitry Kisilevsky.

Kisilevsky in his address to the prime minister expressed concern about the intention of the French side to avoid fulfilling the previously reached agreements on the localization of production of Alstom locomotives in Ukraine at the level of 35%.

Zelensky signed a law ratifying the agreement on the supply of French electric locomotives to UZ

As a reminder, on May 13, 2021, Ukraine and France signed an intergovernmental agreement on official support for the renewal of the fleet of freight electric locomotives of Ukrzaliznitsa JSC. The agreement provides for the supply of 130 electric freight locomotives of the Alstom concern.

At the same time, during preliminary negotiations with representatives of Alstom, an agreement was reached, according to which at least 35% of components for these electric locomotives should be produced at Ukrainian railway engineering enterprises.

Electric locomotives produced by KVSZ could cost 15% less than produced by Alstom, – Vladimir Prikhodko

Later, Alstom announced that the first 10 electric locomotives will be fully produced in France and only starting from the 11th electric locomotive, Ukrainian enterprises will be involved in the production chain. In addition, representatives of the concern expressed their intention to achieve a localization level of 35% not due to the production of locomotives itself, but due to their subsequent repair service.

According to Kisilevsky, in this way Alstom is trying to cheat in the issue of localization of locomotives in Ukraine. An attempt to fool your buyer is a dubious beginning of cooperation, stressed the deputy head of the VR committee on economic development.

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