The European Bank for Reconstruction and Development (EBRD) and the European Union (EU), along with support from the United Kingdom, are providing expanded financial assistance to Ukrainian Railways (Ukrzaliznytsia) to strengthen Ukraine’s energy security, transport resilience, and critical infrastructure during the ongoing war. The support package includes a €44 million EU investment grant under the Ukraine Investment Framework, which scales up an existing €180 million EBRD loan signed in December 2024.
The financing will support the installation of up to 200 MW of decentralised, small-scale gas-fired power generation at railway sites across Ukraine. This is intended to address electricity shortages caused by repeated attacks on Ukraine’s energy infrastructure and to ensure uninterrupted energy supply for both households and businesses. The total project cost amounts to €248 million and is designed to enhance the resilience of the national energy system.
Ukraine’s energy sector has suffered significant damage due to ongoing conflict, with more than 10 GW of generation capacity lost since the full-scale invasion began. In response, the project focuses on decentralised energy systems, which are less vulnerable to missile and drone attacks compared to large power plants. This approach is aimed at improving energy security and maintaining essential services even during blackouts.
Part of the EU grant, around €3 million, will also support the creation of a new Ukrzaliznytsia Academy and a veterans’ reintegration facility. The initiative will provide annual training and upskilling opportunities for 1,000 to 1,200 railway employees, helping address labour shortages and strengthen workforce capacity during wartime conditions.
In addition, the EBRD is providing a separate €10 million accessibility grant to upgrade major railway stations in Kyiv and Lviv. These improvements will focus on step-free access, energy-efficient lighting, and safer infrastructure, particularly benefiting people with disabilities, older passengers, families with children, and other vulnerable groups.
Officials from the EBRD, EU, and Ukrainian Railways emphasized that the railway system has played a critical role in maintaining mobility, transporting goods, and supporting the population throughout the war, despite being a frequent target of attacks. They highlighted that ongoing investments are essential not only for immediate operational stability but also for Ukraine’s long-term recovery and resilience.
The project also aligns with broader efforts to modernize Ukraine’s energy system and transition toward renewable energy in the future. The installed gas-based generation capacity is expected to later complement renewable sources like solar and wind by providing backup flexibility. Overall, the initiative reinforces Ukraine’s energy independence, transport stability, and institutional capacity during a period of sustained crisis.
