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The European Bank for Reconstruction and Development (EBRD) has repurposed another €98.8m of an existing loan to Ukrzaliznytsya (UZ), a state-owned Ukrainian railway company, to help meet the latter’s urgent liquidity requirements.
Part of EBRD’s resilience package for Ukraine and neighbouring countries, this funding will enable the firm to continue providing key passenger and cargo transport services for people and businesses impacted due to Russia’s military attack on Ukraine.
The bank granted the original €150m to UZ for a project to overhaul and electrify a part of the country’s railway network. However, it was not disbursed.
Earlier this year, EBRD agreed to repurpose an initial €50m.
Having disbursed this €50m amount last month, EBRD will now repurpose €73.3m of the current undrawn commitment and €25.5m of uncommitted funding.
UZ continues to deliver cargo and passenger transportation services at decreased capacity even amid the invasion.
As of last month, the rail operator helped evacuate over 3.8 million people from affected sites besides offering almost 180,000 tonnes of humanitarian support.
Rail transportation is also playing a key role in the maintenance of Ukraine’s agricultural exports logistics as the Russian blockade resulted in the closure of Ukraine’s ports.
This year, the EBRD committed €1bn in financing to uplift the Ukrainian economy. The associated risks will be shared with partners as well as donors.