South Korea will provide a loan of USD 450 million for the procurement of 20 Intercity+ trains for the Ukrzaliznytsia joint-stock company.
This is stated in the message of Ukrzaliznytsia, the Ukrainian News agency reports.
According to the report, on August 21, the Verkhovna Rada ratified the Framework Agreement between the Government of Ukraine and the Government of the Republic of Korea regarding loans from the Economic Development and Cooperation Fund for 2024-2029.
It is noted that this decision paves the way for the final part of agreements regarding the financing of projects of critical importance for the Ukrainian economy, including the program for expanding the rolling stock of Ukrzaliznytsia - the procurement of 20 electric trains of the Intercity+ class.
The next steps will include the coordination of the details of the project and the agreement at the level of the Cabinet of Ministers and the final signing of the agreement.
"According to preliminary agreements, the total cost of the program will be about USD 450 million, including service maintenance of trains for 5 years, and the delivery of trains is possible within 18-24 months after the signing of the agreement. In addition, Korean manufacturers are also interested in considering options for partial localization in Ukraine, which is important for stimulating the domestic economy. The terms of lending by the Korean Economic Development and Cooperation Fund are preferential, taking into account the criticality of the social component of the project (the total term is up to 40 years, and payments of the loan body will begin only after the first 10 years)," the message says.
As the Ukrainian News agency earlier reported, Ukrzaliznytsia plans to buy 20 Intercity trains for USD 400 million by 2028.
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