The Cabinet of Ministers of Ukraine plans to officially request the government of the Republic of Korea to provide a preferential loan for the purchase of 20 new high-speed electric trains manufactured in Korea. These trains are intended to enhance the quality of interregional and international passenger transportation by the national railway operator, Ukrzaliznytsia.
This is reported by Finway
Details of Cooperation with South Korea
In 2024, the Verkhovna Rada ratified a framework agreement between Ukraine and South Korea, which allows for the attraction of loans from the Economic Development and Cooperation Fund of South Korea (EDCF) for the period of 2024-2029. The total amount of financing is up to 2.1 billion US dollars. Part of these funds will be allocated for the purchase of Intercity+ class high-speed electric trains for the passenger transportation needs of Ukrzaliznytsia.
The cost of the project for purchasing the trains is estimated at approximately 450 million dollars. This amount covers not only the supply of rolling stock but also the maintenance of the trains for five years. After the agreement is signed, it is expected that the delivery of the new trains will take between 18 to 24 months.
The terms of preferential lending from EDCF provide for a total repayment period of up to 40 years, with the repayment of the principal starting after the first 10 years.
Additional Investments in Production
As part of the cooperation with the Howard Buffett Fund, Ukrzaliznytsia has signed contracts worth nearly 6 million dollars. These funds will be used to purchase modern industrial equipment necessary for the production of critical components that were previously imported from abroad. This will strengthen production autonomy and reduce dependence on imports.