The State Railway Administration (Ukrzaliznytsia) has disclosed the scheme it used to acquire EKr1 high-speed trains from the Kryukov Railcar Building Works. The Ukrainian High-Speed Railway Company (the operator of high-speed trains) leased two EKr1 trains from the Delta Leasing company (a unit of the Delta Bank) for UAH 400 million. Ukrzaliznytsia’s first deputy head Maksym Blank announced this on his Facebook page.

"The cost is UAH 400 million for two. The lease is for five years, the cost is 20% per annum, excluding insurance, and the insurance is 1.18% per annum," Blank wrote.

At the same time, according to him, Oschadbank financed the deal. Blank said that a private company was selected because this state-owned bank does not have its own leasing unit. "Oschadbank does not have a leasing company and a ban on financing of unprofitable companies. The Ukrainian High-Speed Railway Company is a planned unprofitable company,” he said.

The first deputy head of Ukrzaliznytsia did not say why Delta Leasing was selected or whether a tender was organized. According to him, Ukrzaliznytsia will announce the details of the transaction in an official press release.

As the press service of the Kryukov Railcar Building Works reported in April last year, the price of one dual-system, high-speed, nine-car EKr1 electric train is UAH 200 million, including value-added tax (UAH 166.667 million or USD 20.85 million, excluding VAT, at the exchange rate at that time; USD 14.04 million at the exchange rate of 11.87 UAH/USD on June 23, 2014). Meanwhile, Ukraine bought Hyundai trains for USD 29.165 million (excluding VAT). Taking account of the cost of the modular spare parts and documents supplied with them, the 10 Hyundai trains cost USD 30.7 million each.

In March last year, the Cabinet of Ministers ordered purchase of four electric trains from the Kryukov Railcar Building Works by 2015. Two of the four trains have now been built.

The first EKr1 passenger train will embark on its first trip on the Kiev-Lvov route on Tuesday, June 24. In addition, sale of tickets for the Kiev-Odessa route, on which the trains will also be operated, has already begun.