Ukrzaliznytsia, Ukraine’s national railway company (UZ), is receiving European support in the form of a EUR 44 million grant as part of efforts to strengthen the resilience of Ukraine’s energy system.
The European Bank for Reconstruction and Development (EBRD), the European Union, and the United Kingdom are coordinating their support to improve Ukraine’s resilience and energy security. The investment grant is provided by the EU through the “Ukraine Investment Framework” and supports an EBRD loan of EUR 180 million, signed in December 2024 for Ukrzaliznytsia. This additional contribution is intended to significantly amplify the financing package and the impact of the existing program.
Previously, the project also benefited from a parallel grant of GBP 20 million (EUR 24 million) from the British government, directed to the Energy Support Fund for Ukraine, administered through the Energy Community Secretariat.
European support provides the energy needed by Ukrainian Railways
The EBRD loan, together with EU and UK funding, will support the installation of up to 200 MW of decentralized gas-fired power generation capacity at multiple Ukrzaliznytsia sites. The aim is to cover the energy deficit and ensure uninterrupted power supply for the population and the economy. The total value of the project amounts to 248 million euros, contributing to the increased resilience of the national energy system.
“Ukrzaliznytsia is actively preparing for the cold season, in a context where energy infrastructure remains a priority target. The company is developing its own gas-fired generation capacity, considered essential for operating during power outages, ensuring passenger and freight transport, and supporting the national energy system,” said Oleksandr Pertsovskyi, Chairman of the Board of Directors of Ukrzaliznytsia.
Ukraine’s energy infrastructure continues to be affected by the intense attacks since 2025. Since the start of the war, the country has lost over 10 GW of generation capacity. In this context, developing new capacity is essential for the economy and the population. Furthermore, large power plants are vulnerable targets, which is why Ukrainian authorities are relying on decentralized solutions. Modular gas-fired units are considered a more resilient solution, increasing energy security and reducing exposure to attacks.
3 million euros for the UZ Academy
Of the 44 million euro grant provided by the European Union, 3 million euros will be allocated to the creation of a new internal training structure—the UZ Academy—as well as to a center dedicated to the reintegration of veterans within Ukrzaliznytsia. Each year, this academy will enable 1,000–1,200 employees to acquire skills and qualifications relevant to the labor market, helping to reduce the labor shortage caused by the ongoing conflict.
“The exceptional resilience of the Ukrainian railways since the start of the war has played a vital role in keeping the economy functioning and supporting the population. Investments in decentralized energy production and staff training, through the UZ Academy, aim both to increase immediate operational capacity and to strengthen Ukraine’s infrastructure in the long term, in cooperation with the European Union,” said Arvid Tuerkner, EBRD Director General for Ukraine and Moldova.
“The Ukrainian railway network has supported the country under wartime conditions, maintaining connections between communities and essential freight flows despite constant attacks. The new European support targets energy security, mobility, and human resources to ensure the continuity of transport and the functioning of the country,” noted EU Ambassador to Ukraine Katarína Mathernová.
In parallel, the EBRD is providing an additional grant of 10 million euros to improve accessibility at railway stations in Kyiv and Lviv. The investment will fund upgrades such as barrier-free access, energy-efficient lighting, and improved safety in public spaces, with direct benefits for people with disabilities, parents with young children, the elderly, and passengers with reduced mobility.
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