Ratification of the framework agreement will ensure the implementation of the project to upgrade the fleet of electric freight locomotives of Ukrzaliznytsia.

The President of Ukraine Volodymyr Zelensky signed a law ratifying the Framework Agreement between the Cabinet of Ministers and the Government of the French Republic on official support for the renewal of the Ukrzaliznytsia freight electric locomotive fleet № 1607-IX, which was adopted by the Verkhovna Rada on July 1.

This was reported by the railway magazine Railway Supply.

It is noted that the ratification of the framework agreement will ensure the implementation of the project to upgrade the fleet of electric freight locomotives of the joint-stock company “Ukrzaliznytsia” by purchasing 130 freight electric locomotives (80 – two-system, 50 – one-system) for JSC “Ukrzaliznytsia” with with significant localization of production in Ukraine..

The purchase of electric freight locomotives will be carried out at the expense of the state budget and state external borrowings.

Verkhovna Rada ratified the contract for the supply of Alstom electric locomotives

“The French side is providing official support to Ukraine to finance the project. According to the framework agreement, official support is not more than 85% of the total amount of contracts. A Ukrainian company appointed by the Government of Ukraine will have to pay at least 15% of the total amount of the contracts by prepayment in favor of the French supplier. The total amount of official support is 750 million 125 thousand euros. In particular, 350 million euros will be a treasury loan from the Government of the French Republic, and 400 million 125 thousand euros – bank loans guaranteed by Bpifrance Assurance Export (acting on behalf of the Government of the French Republic)”- said in a statement.

The project provides for the purchase of French goods and services in France, as well as the purchase of Ukrainian or foreign goods and services within 50% of the total contract amount.

“The French supplier is responsible for the implementation of contracts, provided that the official support provided for the purchase of Ukrainian goods and services does not exceed 50% of the amount of export contracts,” the OP added.

Related:

Agreement with Alstom: Initial localization set at 35%

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