The Ukrainian Ministry of Infrastructure, the Ukrainian Railways joint-stock company (Ukrzaliznytsia), Stadler CIS AG (Switzerland), Stadler Rail AG (Switzerland), and Swiss Export Risk Insurance (SERV) signed a memorandum of understanding that defines the basis for cooperation and outlines the mechanism for joint operations on development of the Ukrainian rail transport sector in the presence of President Volodymyr Zelenskyi on August 26.

The Office of the President of Ukraine announced this in a statement, the CFTS portal reports.

"Export financing aimed at developing rail transport in Ukraine, particularly renewal of the train fleet, is being obtained from Switzerland at the government level for the first time in history,” Stadler CIS AG’s CEO Alexander Luft is quoted as saying in the statement. 

According to the statement, the signing of the document paves the way for the Swiss Confederation to provide export financing to Ukraine. Up to EUR 500 million will be provided for development of Ukraine’s rail transport sector.

"The cooperation involves not only purchase of trains, but also the localization of Stadler production through construction of a new plant in Ukraine,” the Office of the President of Ukraine said.

According to Minister of Infrastructure Oleksandr Kubrakov, 30 suburban electric trains produced by Stadler are expected to be purchased for Kyiv and 30 are expected to be purchased for distribution between Kharkiv and Dnipro within the framework of the City Express rail project.

In addition, the memorandum provides for purchase of 20 new regional electric trains and 10 long-distance electric trains from Stadler for renewal of Ukrzaliznytsia's rolling stock.

As reported previously, the presentation of a Stadler Flirt electric train took place in Kyiv on 26 August. Stadler Rail AG’s Board Chairman Peter Spuhler said during the event that his company was interested in maximum localization of production in Ukraine.