Ukraine to buy Alstom electric trains for railways: how the deal with France will affect logistics and economy
17 November 19:22
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During the official visit of Ukrainian President Volodymyr Zelenskyy to Paris on Monday, the Ukrainian delegation reached an important agreement with the French engineering company Alstom to supply 55 new electric trains for Ukrzaliznytsia. The head of state announced this at a joint press conference with French President Emmanuel Macron, "Komersant Ukrainian" reports.
The agreement was one of the key results of the leaders’ talks and complemented the package of economic and infrastructure cooperation between the countries. According to Zelenskyy, it is another step in strengthening Ukrainian logistics and updating the railway fleet, the need for which has increased dramatically in the context of a full-scale war.
“Today we have another very important agreement to purchase 55 new electric locomotives from France. This is a contract between our Ukrzaliznytsia and the French Alstom. We congratulate everyone,” Zelensky said, emphasizing the strategic nature of the project.
He also added that Ukraine is ready to expand cooperation with France in the field of transport modernization in the future.
Commenting on the agreement, French President Emmanuel Macron emphasized that Paris supports the development of Ukraine’s critical infrastructure and is ready to help rebuild the country’s transportation system. He welcomed the signing of the agreement between Alstom and Ukrzaliznytsia, calling it an example of a long-term economic partnership.
In addition, according to Oleksiy Kuleba, Vice Prime Minister for Recovery, the agreement is an investment that strengthens economic security and solves a critical problem – the severe depreciation of the locomotive fleet.
It solves a critical problem – an outdated fleet of traction rolling stock with an average age of more than 46 years. Without such an upgrade, the export industry would face a loss of cargo capacity, as the railroad is a key carrier today,” Kuleba emphasized.
New locomotive fleet for Ukraine: how the deal with Alstom will change logistics and exports
The purchase of new electric trains is part of a large-scale modernization of Ukrzaliznytsia’s rolling stock. As of today, a significant portion of the company’s locomotive fleet is worn out, as the average age of electric trains exceeds 40 years. This leads to high repair costs, slower transportation speeds and regular technical failures.
Partnership with Alstom can change the situation. The company is one of the world’s leading manufacturers of locomotives and railway technologies, and its solutions are actively used in the EU, North Africa, and Asia. For Ukraine, this means the opportunity to get modern locomotives capable of operating under the intense load on the railway network, which has increased due to military logistics challenges.
Renewal of the electric locomotive fleet is also critical for the export of Ukrainian products, especially agricultural and metallurgical ones. Given the limited sea routes and dependence on “solidarity logistics corridors,” the railroad actually serves as a main channel for foreign trade.
Economic experts point out that the use of French financial instruments can provide Ukrzaliznytsia with access to loans with acceptable rates in a war economy.
Another important aspect is the potential localization of certain elements of service and maintenance in Ukraine. This will create additional jobs and strengthen the competencies of the domestic machine-building sector.
Ukraine is buying 55 Alstom electric locomotives: what Ukrzaliznytsia says
The national railroad carrier details that the technical condition of the locomotives is currently approaching critical: more than 96% of the machines are worn out, and in 2-3 years, the traction deficit could sharply limit transportation and take up to 10% of freight revenues annually.
The contract with Alstom we are talking about was the result of an international tender organized by the World Bank, in which more than ten manufacturers from Europe and Asia participated. Alstom’s proposal underwent a detailed independent evaluation and was recognized as the best in terms of technical and economic parameters. A study by consultants showed that the cost of dual-system high-power electric locomotives is competitive, and grant support reduces the cost of the project for UZ by 37%. The total contract amount is 473 million euros.
The first locomotive is expected to be delivered in the first quarter of 2027, and the full batch – by 2029. The new 55 electric locomotives will replace approximately 80 outdated machines and will reduce operating costs by more than 30%. The agreement also covers service support, spare parts, and staff training.
Although the production will take place in France, it has been agreed to involve Ukrainian companies in the supply of components as part of the service cycle, from security systems to cable products. A large meeting of manufacturers is planned for 2026 to launch the cooperation, and a modern service center for locomotive maintenance will be set up in Ukraine.
The project is supported by international partners: eUR 173 million is a grant from the World Bank’s URTF, and another EUR 300 million is a concessional loan from the EBRD. The deal was made possible by the government’s support and state guarantees.
France as a strategic partner of Ukraine: details
The Ukrainian-French economic partnership has significantly intensified in recent years. Paris sees an opportunity for French companies to participate in the restoration of Ukraine’s energy, transportation, defense, and construction sectors. The signing of the agreement with Alstom reinforces this trend, demonstrating that despite the war, Ukraine remains an attractive partner for major European manufacturers.
For Ukraine, support from one of the key EU members is important not only in the context of security but also in the area of economic development. The new locomotives may become part of a long-term plan to rebuild the transportation infrastructure and integrate Ukraine into the European transportation space.
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Alstom: the French giant that sets the pace for the global rail market
Alstom is one of the world’s leading railway engineering and transportation technology companies founded in France and headquartered in Saint-Ouen. The company specializes in the development and production of locomotives, electric trains, high-speed trains, trams, subways, as well as signaling, automation and integrated solutions for transport infrastructure management.
Alstom is best known as a manufacturer of TGV high-speed trains, which have been a symbol of French technology and export of transport innovations for decades. The company operates in more than 60 countries and cooperates with national carriers in the EU, Asia, Africa and North America. Alstom’s portfolio covers the full product life cycle, from design and production to maintenance, modernization, and digital solutions for rolling stock.
In 2021, Alstom significantly expanded its capabilities with the acquisition of Bombardier’s transportation division, which allowed the company to strengthen its position in the global market and expand its product line. Today, Alstom is actively investing in green transportation technologies, including hydrogen trains and energy-efficient solutions for urban systems. The company positions itself as a driver of sustainable and innovative development of the global railway infrastructure.
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