Europe Injects €248M Today to Power Ukraine’s Rail Network

European support for Ukrzaliznytsia includes a EUR 44 million European grant. It forms part of wider efforts to strengthen Ukraine’s energy system resilience. This is reported by the railway transport news portal Railway Supply.

The European Bank for Reconstruction and Development, or EBRD, is coordinating support. The European Union and the United Kingdom are coordinating support as well. It focuses on improving Ukraine’s resilience and energy security. The EU provides the grant through the Ukraine Investment Framework. It supports an EBRD loan of EUR 180 million. That loan was signed with Ukrzaliznytsia in December 2024. The additional contribution is intended to significantly amplify the overall financing package. It is also intended to amplify the effect of the existing programme.

The project had already received a parallel grant from the UK government. It was a GBP 20 million grant, equivalent to EUR 24 million. That funding was channelled to the Energy Support Fund for Ukraine. The fund is managed through the Energy Community Secretariat.

European support for Ukrzaliznytsia and energy needs

Together, the EBRD loan and EU and UK funding will finance decentralised gas-fired power generation. The capacity totals up to 200 MW. It will be installed across several Ukrzaliznytsia locations. Also, the project is intended to help cover the energy deficit. It is also intended to secure uninterrupted electricity supply for the population and the economy. Its total value is EUR 248 million. At the same time, the project contributes to stronger resilience in Ukraine’s national energy system.

“Ukrzaliznytsia is actively preparing for the cold season, in a context where energy infrastructure remains a priority target. The company is developing its own gas-fired generation capacity, considered essential for operating during power outages, ensuring passenger and freight transport, and supporting the national energy system,” said Oleksandr Pertsovskyi, Chairman of the Board of Directors of Ukrzaliznytsia.

Ukraine’s energy infrastructure has continued to be affected by intense attacks since 2025. The country has lost more than 10 GW of generation capacity since the war began. In addition, developing new capacity is essential for both the economy and the population. Because large power plants remain vulnerable targets, Ukrainian authorities are relying on decentralised options. Modular gas-fired units are viewed as a more resilient solution. They can increase energy security and reduce exposure to attacks.

EUR 3 million allocated for UZ Academy

From the EU’s EUR 44 million grant, EUR 3 million will fund the UZ Academy. This will be a new internal training structure. The same allocation also covers a centre focused on reintegrating veterans within Ukrzaliznytsia. The academy is expected to help 1,000–1,200 employees each year. They will gain labour-market-relevant skills and qualifications. Also, the programme supports efforts to ease the staff shortage caused by the ongoing conflict.

“The exceptional resilience of the Ukrainian railways since the start of the war has played a vital role in keeping the economy functioning and supporting the population. Investments in decentralized energy production and staff training, through the UZ Academy, aim both to increase immediate operational capacity and to strengthen Ukraine’s infrastructure in the long term, in cooperation with the European Union,” said Arvid Tuerkner, EBRD Director General for Ukraine and Moldova.

“The Ukrainian railway network has supported the country under wartime conditions, maintaining connections between communities and essential freight flows despite constant attacks. The new European support targets energy security, mobility, and human resources to ensure the continuity of transport and the functioning of the country,” noted EU Ambassador to Ukraine Katarína Mathernová.

Railway station accessibility in Kyiv and Lviv

In parallel, the EBRD is also providing a EUR 10 million grant. The grant will improve accessibility at railway stations in Kyiv and Lviv. The funding will cover barrier-free access and energy-efficient lighting. It will also cover improved safety in public spaces. For example, these improvements are intended to benefit passengers with disabilities. These improvements are also intended to benefit parents travelling with young children. Elderly people and passengers with reduced mobility are also covered.

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