The Cabinet of Ministers of Ukraine is initiating an appeal to the government of the Republic of Korea for a preferential loan to purchase twenty high-speed electric trains manufactured in Korea. The new rolling stock is planned to be used for interregional and international passenger transportation by Ukrzaliznytsia.
This is reported by Business • Media
Loan Conditions and Project Details
In 2024, the Verkhovna Rada has already ratified a framework agreement between Ukraine and South Korea, which provides for the possibility of obtaining loans from the Economic Development and Cooperation Fund of Korea (EDCF) totaling up to $2.1 billion for the period from 2024 to 2029. Part of these funds is planned to be allocated for the purchase of Intercity+ class electric trains for Ukrzaliznytsia.
The total cost of the project, including the maintenance of the trains over five years, is estimated at approximately $450 million. Deliveries of the new trains could begin within 18-24 months after the signing of the relevant agreement.
The preferential terms of the loan from EDCF provide for a maximum repayment period of up to 40 years. The repayment of the principal amount of the loan will start only after the first 10 years.
Investments in Production Modernization
In addition to cooperation with EDCF, within the framework of the partnership with the Howard Buffett Fund, Ukrzaliznytsia has already signed contracts worth nearly $6 million for the purchase of modern industrial equipment. This equipment is necessary for the production of critical components that were previously imported from abroad.
Last year, the Verkhovna Rada ratified a framework agreement between Ukraine and South Korea, which provides for loans from the Korean Economic Development and Cooperation Fund (EDCF) for 2024-2029 totaling up to $2.1 billion. Part of the loan funds was planned to be allocated for the purchase of Intercity+ class electric trains for Ukrzaliznytsia. The total cost of the project will be about $450 million, including the maintenance of the trains over five years, and the delivery of the trains is possible within 18-24 months after the signing of the agreement.