US EXIM approves $156M loan for Ukrzaliznytsia to acquire 40 Wabtec diesel locomotives

The Export-Import Bank of the United States (US EXIM) has approved a $156.6 million loan to Ukrzaliznytsia JSC [Ukrainian Railways] to support the potential acquisition of 40 Wabtec diesel locomotives.

The relevant statement was made by Ukrzaliznytsia JSC Management Board Chairman Yevhen Liashchenko at a press briefing, an Ukrinform correspondent reports.

“We have signed an agreement with the United States for Ukrzaliznytsia JSC to obtain a 15-year target-specific loan worth $156 million. We will be able to use these funds to purchase up to 40 diesel locomotives from privately-owned American companies,” Liashchenko told.

In his words, the above agreement is just an initial stage of upgrading the company’s locomotive fleet.

“We have already started talks with the American manufacturer, but we lacked a financial solvency confirmation to make a purchase. Now, we have the agreement in hand. I think the communication process will significantly accelerate, and we will get the first results later,” Liashchenko explained.

According to him, the agreement is notable for the purchase of American-made transport vehicles only. Ukrzaliznytsia JSC has already had experience of operating Wabtec locomotives. Thus, the company will focus on that very manufacturer.

“We have already had a positive experience of operating 30 locomotives made by that company. Today, we have 29 of them left. […] Such transport vehicles are the most efficient in Ukraine’s current conditions,” Liashchenko emphasized.

According to Ukrzaliznytsia’s chief, new diesel locomotives will significantly strengthen the company’s fleet. However, 40 units are not enough to replace the fleet fully.

“Hence, we have ambitious plans to modernize our locomotive fleet,” Liashchenko added.

United States Ambassador to Ukraine Bridget A. Brink noted the importance of signing the above deal. According to her, the United States will contribute to Ukraine’s reconstruction by modernizing the railway locomotive fleet, which needs to be strengthened in view of Russian ongoing attacks. Additionally, it will create new jobs in both countries.

Photo: Wabtec Corporation