State enterprise Ukrainian Railways has signed a $1 billion contract with General Electric Transportation for procuring and localizing locomotives, as President Petro Poroshenko said in a briefing today.
“I have invited General Electric, one of the biggest companies in the world, to enter the investment council to the President of Ukraine. This invitation was accepted with pleasure. We agreed to show how in little time we will develop the contracts of cooperation between Ukrainian Railways and General Electric,” he said.
Poroshenko noted that the Ukrainian Railways have been under-financed for many years which was a big constraining factor in developing the country’s economy.
“A contract for $1 billion was drawn up very fas. It envisages both delivery of locomotives, production with a gradual increase in localization and modernization of present locomotives,” Poroshenko said.
He also noted that at the primary stage, Ukrainian bank structures will be actively involved in the activity, while on the later stage, these will be U.S. banks.
The negotiations with General Electric started on Oct. 3 with the meeting between Ukrainian President Petro Poroshenko and CEO of General Electric Transportation Jamie Miller.