Ukraine and South Korea: Agreement on the Purchase of 20 Intercity+ Trains for Ukrzaliznytsia

On August 21, the Verkhovna Rada of Ukraine ratified a framework agreement between the Ukrainian government and the Republic of Korea, this is reported by the railway transport news portal Railway Supply.

This document, which involves the provision of loans from the Economic Development and Cooperation Fund for the period from 2024 to 2029, will serve as a basis for financing significant projects, including the purchase of 20 Intercity+ class electric trains for Ukrzaliznytsia.

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The agreement will allow for the expansion of the train fleet and the improvement of passenger transportation services.

According to information from JSC “Ukrzaliznytsia,” the approval was granted by experts commissioned by the Korean Economic Development and Cooperation Fund.

The process of coordinating project details with the Cabinet of Ministers of Ukraine and signing the final documents will now commence.

The expansion of the Intercity+ train fleet is strategically important for the Ukrainian railway infrastructure.

The new trains will enable an increase in the number of high-speed routes and improve the frequency of services on existing lines.

This, in turn, will create additional opportunities for 6 million passengers annually, meeting the growing demand for daytime high-speed rail services.

The Chairman of the Board of JSC “Ukrzaliznytsia,” Yevhen Liaschenko, expressed gratitude to the parliament for ratifying the agreement and emphasized the importance of further steps to successfully complete the deal.

Preliminary estimates suggest that the total cost of the program will be approximately $450 million.

This amount includes not only the purchase of the trains but also their maintenance over a five-year period.

Train deliveries could begin within 18-24 months after the agreement is signed.

Moreover, Korean manufacturers have expressed a willingness to consider the possibility of partial localization of production in Ukraine, which could contribute to the development of local industry and job creation.

The lending terms proposed by the Korean Economic Development and Cooperation Fund are very favorable for Ukraine.

The loan term is up to 40 years, with principal repayments starting only after 10 years. This helps reduce the financial burden on the Ukrainian economy and ensures the efficient use of the funds received.

In addition to purchasing new trains, Ukrzaliznytsia also plans to modernize its existing rolling stock.

The company emphasizes the importance of continuing the state investment program aimed at upgrading railway infrastructure and improving the quality of long-distance passenger transportation services.

Thus, the ratification of the agreement with South Korea opens up new prospects for the development of Ukraine’s railway sector, allowing for the modernization of the transportation system and enhancement of service quality.

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