Ukraine: EIB Global backs Kyiv’s efforts to modernise its public transport system

• EIB Global and Kyiv City Council have signed an agreement for advisory services to modernise the urban public transport system and invest in metro rolling stock renewal and renovation.
• The proposed advisory services included in the €480 000 technical assistance grant funded by the EIB’s Eastern Partnership Technical Assistance Trust Fund will be crucial for helping to maintain urban transport operations during and after the war, ensuring mobility and the delivery of essential services.
• The agreement will facilitate the future modernisation of Kyiv’s metro fleet and end reliance on Russian-made metro carriages and spare parts.

Building on a longstanding and successful partnership, the European Investment Bank (EIB) and the city of Kyiv signed a new cooperation agreement at the Kyiv Investment Forum 2023 in Brussels today. This agreement provides the city of Kyiv with strategic advisory services for transforming its urban electric transport system and supports the preparation of significant investment to modernise metro rolling stock, thereby ending the current dependence on supply of Russian spare parts and equipment. This new partnership, including both advisory services and preparatory work, will be supported by a €480 000 technical assistance grant from the EIB-managed Eastern Partnership Technical Assistance Trust Fund (EPTATF).

Under the agreement, the EIB will provide advisory services to help the city of Kyiv efficiently manage and monitor the €100 million urban electric transport project signed in December 2021. These services also include guidance on effective procurement processes that comply with EIB standards. Launched in 2023 amid the ongoing war, the project upgrades trolleybuses and metro fleets, crucial for improving the city’s public transport system. Maintaining and enhancing urban transport infrastructure is especially vital in wartime, as it ensures mobility and aids in the delivery of essential services and supplies, contributing to the resilience and functioning of the city under challenging conditions.

A key element of this agreement is the EIB’s support in conducting a feasibility study for Kyiv’s planned modernisation of metro rolling stock, estimated to require €450 million in investment. The study will be instrumental in outlining the project, focusing on modernising or replacing Russian-made metro carriages and components with contemporary, energy-efficient alternatives from global suppliers. It will guide Kyiv in deciding whether to upgrade existing carriages with equipment and key components compliant with the European standards from non-Russian producers, or rather to acquire new replacements. The study is particularly significant given that, before the war, approximately 80% of Kyiv’s metro rolling stock originated from Russian producers, meaning that ending this dependency is a vital strategic objective.

EIB Vice-President Teresa Czerwińska, who is in charge of Bank’s operations in Ukraine, said: “This partnership with Kyiv, built on years of successful cooperation, reaffirms the EIB’s unwavering commitment to the development of Ukraine and its cities. The EIB’s advisory services and financial support are not just investments in infrastructure, but also pivotal contributions to the recovery and resilience of the country. While with the agreement, signed today, we are focused on assisting Kyiv in building a modern urban public transport system, our overall support also extends to many other municipalities across Ukraine, facilitating their progress towards EU integration and enhancing the quality of life for all during these challenging times.”

Kyiv Mayor Vitali Klitschko said: “We are grateful to the European Investment Bank for its steadfast support in our city’s recovery and modernisation efforts. The advisory services provided under this agreement are important for the strategic utilisation of our investments. This expert guidance, financed by European partners, will help us to invest more effectively in updating the public transport system. As a European city, Kyiv strives to completely remove dependence on Russian-manufactured rolling stock, spare parts or maintenance equipment. This partnership with the EIB is a significant step towards achieving that independence, aligning our transport infrastructure with broader European standards.”

The EIB’s continued support for Kyiv and Ukraine

Maintaining commitments that started before the war and remain in place despite its challenges, the EIB is working with the Kyiv authorities on various projects under EIB framework loans. These initiatives have focused on modernising the capital’s transport and road infrastructure, including the acquisition of new trams, buses and funicular carriages, as well as implementing road safety measures in the city.

Since the onset of Russia's war in Ukraine, the EIB Group has allocated €2 billion to address the county’s immediate needs. Furthermore, the “EU for Ukraine” Fund, bolstered by contributions from Member States and guarantees from the European Commission, has garnered €500 million to date. These substantial financial contributions demonstrate the Bank’s steadfast dedication to Ukraine’s recovery and rebuilding efforts, affirming a long-term commitment to stand with Ukraine.

Background information 

EIB Global is the EIB Group’s new specialised arm devoted to increasing the impact of international partnerships and development finance outside the European Union. EIB Global is designed to foster strong, focused partnership within Team Europe and as part of the EU Global Gateway strategy, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world. 

The Eastern Partnership Technical Assistance Trust Fund (EPTATF) was established in 2010 to finance technical assistance operations in Eastern Partnership countries. Priority areas include private sector development, social and economic infrastructure development and climate change mitigation and adaptation. The trust fund also provides support for capacity-building programmes, such as training in beneficiary countries and grants for institutional programmes. EPTATF operations are financed by ten donors, namely Austria, the Czech Republic, France, Germany, Latvia, Lithuania, Poland, Sweden, the United Kingdom and the European Commission.