Thanks to the intergovernmental agreements between Ukraine and France, Ukrzaliznytsia will be able to receive rails from a European manufacturer in 2023 on unprecedented terms. The first 14 years, their use will be virtually free, and the cost of the loan for 35 years will be 0.0161% per annum. Adjusted for inflation, the maximum present value will be 930 euros, and if the inflation rate in the euro area remains at the level of 2022 (about 10%), the present value of the rail could be 240 euros. This was reported in the press service of the Ukrainian monopolist.
“Ukrzaliznytsia will receive about 20,000 tons of rail from the leading European manufacturer, Saarstahl Rail SAS, in 2023. Its production and delivery will be fully financed by the government of France on the best terms of crediting railway transport in the history of independent Ukraine,” the company’s press service noted.
Ukrzaliznytsia added that the final cost of deliveries will be determined by one of two ways - according to a formula that takes into account fluctuations in the cost of steel components: scrap metal, electricity, iron ore, coking coal or at a fixed maximum price of 1950 euros per ton. The method of determining the price is chosen by the buyer, depending on which price is lower at the time of delivery.
Today, the cost of a ton, formed according to the formula, is 1,725 euros per ton.
“The agreement allows save a significant amount of the company's working capital needed this year to restore infrastructure, ensure the stable operation of passenger and freight lines, upgrade rolling stock and return communication with the de-occupied territories of Ukraine," Ukrzaliznytsia concluded.
