The Cabinet of
Ministers of Ukraine has wound up negotiations with the American giant GE
Transportation. By the end of the year, an agreement on a strategic partnership
for the implementation of the 7-year rolling stock renewal program for PJSC Ukrzaliznytsia with the total cost of the project to the
tune of around USD 1 billion will be signed. Relevant arrangements were reached
during the meeting of the company management with Prime Minister of Ukraine Volodymyr Groysman.
happy to announce we have completed our negotiations and arrived at accord to
adjust and ink all the documents by the end of the year. The Government will
facilitate this process," the Head of Government noted.
In the active
stage of negotiations on this project for the last three months there have been engaged management of PJSC Ukrzaliznytsia
with the support of the UkraineInvest Investment
Promotion Office. The parties agreed that within the framework of
implementation of all arrangements the localization (use of Ukrainian
capacities) would increase up to 40%. Meanwhile, it has been agreed that
Ukrainian-made products basing on technology and complying with GE standards
will be used in other GE Transportation projects in other countries.
the first stage of the project stipulates for the supply for the Ukrzaliznytsia in September of 2018, 30 locomotives
containing spare parts manufactured and serviced in Ukraine. "This will
allow Ukrzaliznytsia to guarantee an issue of deficit
of locomotives be solved until the next peak load," said acting Chairman
of PJSC Ukrzaliznytsia Board of Yevhen
Kravtsov. For their part, GE Transportation confirmed
willingness during the entire project operation period to supply technologies
throughout Ukraine, to train specialists, and to develop possibilities to
access credit resource.
During the negotiations,
the parties emphasized that the involvement of world leaders in Ukraine, such
as GE Transportation, proves improvement of the business environment in Ukraine
and serves a signal for other large market players to start business in our