The Ukrainian Parliament ratified the Framework Agreement between the Government of Ukraine and the Government of the Republic of Korea on the provision of loans through the Economic Development Cooperation Fund (EDCF) in 2024-2029.
The Ukrainian Railways joint-stock company (Ukrzaliznytsia) announced this in a statement, the CFTS portal reports.
This decision paves the way for the final part of the agreements on the financing of projects of key importance for the Ukrainian economy, including the program to expand Ukrzaliznytsia's rolling stock with the purchase of 20 Intercity+ electric trains.
The next steps include approval of the project details and approval at the level of the Ukrainian Cabinet of Ministers, followed by the final signing of the agreement.
"This is a strategic program to expand the Intercity+ fleet, which will allow us to increase train frequency on existing routes and open new high-speed routes. It will enable an additional 6 million passengers per year to travel, which will meet the current demand for daytime high-speed services," said Yevhen Liaschenko, chairman of the board of directors of Ukrzaliznytsia.
According to preliminary agreements, the total cost of the program is estimated at approximately USD 450 million, including the cost of maintenance of the trains for five years. The trains could be delivered within 18–24 months after the agreement is signed.
"Preliminarily, Korean manufacturers have expressed interest in considering partial localization in Ukraine, which is crucial for stimulating the domestic economy," Ukrzaliznytsia added.
The loan terms offered by the Korean Economic Development and Cooperation Fund are favorable, given the criticality of the social aspect of the project (up to 40 years, with repayment of the loan principal beginning only after the first 10 years).
Simultaneously, Ukrzaliznytsia will continue to modernize its existing rolling stock.
