The European Bank for Reconstruction and Development (EBRD), an international financial institution headquartered in the UK, is investing up to $100m in bonds issued by Ukraine Railways.

This move supports further integration of Ukraine’s domestic railway system into international networks.

The bank’s subscription is approximately 17% of the total $600m issue. Invested funds will be used to refurbish priority railway lines, mostly on the Trans-European Transport Networks.

It will facilitate the enhancement of Ukraine Railways’ financial performance and support the company’s investment plans.

Ukraine Railways possesses a total track length of more than 23,000km. It is claimed to be the world’s sixth largest rail passenger transporter and the world’s seventh largest freight transporter.

Two thirds of Ukraine Railways’ lines are equipped with modern management facilities, dispatcher’s centralisation and automatic block system.

Ukraine Railways directly borders and cooperates with railways in Russia, Byelorussia, Moldova, Poland, Romania, Slovakia and Hungary. It carries out works for 40 international railway cross-walks and serves 18 Ukrainian seaports of the Black Sea and Sea of Azov basin.

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The plan for Ukraine Railways’ restructuring provides for the company to be divided into three operators: infrastructure, freight and passenger plus production unit. It is expected to be ready by the end of this year.

The EBRD started operations Ukraine in 1993 and is claimed to be the largest international financial investor in the country.

In Ukraine, the bank has made a cumulative commitment of €13.6bn via 432 projects.