October 12, 2026
Ukraine is set to receive funding of up to EUR 130 million from the European Bank for Reconstruction and Development (EBRD), intended to support the operations of the state-owned railway company Ukrzaliznytsia.
The funds will be used to maintain passenger and freight transport, repair infrastructure damaged by Russian attacks, and strengthen the financial stability of the rail operator.
The agreement was signed during a visit to Ukraine by EBRD President Odile Renaud-Basso and allows for the reallocation of EUR 130 million from a previously approved loan totalling EUR 180 million, as part of the ‘UZ Energy’ project being implemented by Ukrzaliznytsia.
Initially, the funding was intended for the development of decentralised energy production capacity. Following the amendment to the agreement, a significant portion of the funds will also be able to be used to meet the railway company’s urgent needs.
Russian attacks are putting pressure on the railway infrastructure
Ukrzaliznytsia is facing rising operational costs, as Russian attacks are causing damage to transport infrastructure and the reduction in the volume of goods transported is affecting the company’s revenue.
According to information published by the railway operator, Russia has damaged 550 locomotives since the start of the full-scale invasion, of which over 335 this year alone. Replacing and repairing rolling stock is therefore one of the company’s priorities.
The authorities and EBRD representatives are seeking to ensure that the funds become available as quickly as possible, to enable essential transport services to continue and urgent repairs to be carried out.
Attack on Berestîn railway station in the Kharkiv region (Ukraine).
The EBRD President emphasised that the intensification of Russian attacks is also aimed at undermining the Ukrainian economy’s ability to function. “It is clear that Russia’s war against Ukraine has entered a new phase,” said Odile Renaud-Basso.
She warned that attacks on businesses and economic infrastructure are jeopardising business operations and supply chains.
“In these increasingly difficult times, ensuring the conditions for businesses to continue operating, protect their supply chains and keep investing has never been more important,” the EBRD President stated.
Energy project continues, with European support
Alongside the liquidity funding, Ukrzaliznytsia is continuing its project to build gas-fired power generation capacity with a total output of 200 MW.
The project is supported by grants from the European Union and the United Kingdom. Construction work is being carried out by the company using its own resources, which allows it to optimise expenditure and channel part of the loan towards urgent needs.
The EBRD’s support forms part of a broader effort to keep the Ukrainian economy functioning, against the backdrop of attacks on energy, logistics and transport infrastructure.
During her visit, Odile Renaud-Basso held meetings with Ukrainian President Volodymyr Zelenskyy, members of the government and representatives of the business community. The EBRD also signed a EUR 150 million loan agreement for the renewal of the Kyiv metro’s rolling stock, with the support of the Spanish government.
Since the start of the full-scale Russian invasion in 2022, the EBRD has allocated approximately EUR 11 billion to Ukraine, including a record EUR 2.9 billion in 2025.
The Bank remains committed to supporting the Ukrainian economy, with a focus on essential infrastructure, energy security and the resilience of businesses in the face of the war’s effects.
