Ukrzaliznytsia secures $100 million grant and EBRD funding to replace locomotives lost to Russian strikes
Ukrzaliznytsia has reached a principled agreement on grant funding of $100 million through the URTF trust fund under the RELINC project with the International Bank for Reconstruction and Development, within the "Carpathian Eight" framework. The funds are earmarked for purchasing used locomotives on foreign markets. Separately, a principled agreement was reached with the EBRD to direct 130 million euros under UZ Energy for critical needs and energy resilience, with agreements planned for signature by the end of September. Slovakia has also agreed to transfer three electric locomotives to Ukraine.
Key points
- $100 million grant agreed in principle via the URTF trust fund under the RELINC project with the IBRD, within the "Carpathian Eight" framework.
- Funding is planned for the purchase of used locomotives on foreign markets.
- Since the full-scale invasion began, 533 Ukrzaliznytsia locomotives and 75 private industrial locomotives have been damaged.
- Slovakia agreed to transfer three electric locomotives to Ukraine.
- Principled agreement reached with the EBRD to direct 130 million euros under UZ Energy for critical needs and energy resilience; agreements planned for signature by the end of September.
- On September 20, 2026, Russian drones struck a railway infrastructure facility in Vinnytsia Oblast; on September 17, a city elektrichka station in Kyiv and the railway station in Berestyn, Kharkiv Oblast, were damaged or destroyed.
Why it matters
Russian strikes have damaged more than 500 locomotives in Ukrzaliznytsia's own fleet and dozens more in the private sector, eroding the capacity of a railway that serves as both a civilian transport backbone and a military supply line. The $100 million grant, the 130 million euro EBRD package, and Slovakia's direct transfer of three electric locomotives together represent significant financial and operational backing to keep the railway running while longer-term procurement is arranged. Continued attacks on rail facilities in Vinnytsia Oblast, Kyiv, and Kharkiv Oblast show the system remains a direct target.
How Ukrainian sources describe it
Both available sources are Ukrainian — one agency and one media outlet — and frame the story around the scale of Russian-inflicted damage and the financial effort to rebuild the locomotive fleet. Coverage highlights Ukrzaliznytsia management's role in brokering international support and Zelenskyy's announcements of additional contracts for protective systems. Domestic media also foregrounds the broader funding picture, including the EBRD package and Slovakia's locomotive transfer.
Background
Ukrzaliznytsia is Ukraine's state railway company, a critical logistics backbone for both civilian transport and military supply. The IBRD-administered URTF trust fund under the RELINC project is one channel through which international donors finance Ukrainian rail recovery. An additional 130 million euros from the EBRD under UZ Energy is being arranged to address critical needs and energy resilience of the railway, with agreements planned for signature by the end of September.