NBU, VEB.RF reach an agreement to finance Uzbekistan Railways project
09:31 / 2021-06-07

Delegation of the National Bank for Foreign Economic Activity of Uzbekistan has met with the Deputy Chairman, Board Member of the State Development Corporation VEB.RF Daniil Algulyan at the 24th St. Petersburg International Economic Forum, in Russia.

The parties discussed issues of the current interaction, new growth points and promising projects for joint financing for 2021. The sides reached an agreement on joint financing of a new project of Uzbekistan Railways for the purchase of 7 electric trains and 2 railbuses produced by Demikhovo Machinebuilding Plant and JSC Metrovagonmash.

The project worth 4.8 billion Russian rubles will be financed within the framework of the current program of the Ministry of Industry and Trade of the Russian Federation to subsidize Russian exports.

It is planned to attract structural subdivisions of the Russian Export Center Group (Eximbank of Russia and EXIAR JSC) to finance the project, which will finance 100% of the value of export contracts.

The delivery of trains will create additional conveniences for the population, develop the country’s transport infrastructure, ensure continuous and timely railway communication between nearby regions of the country, in particular the city of Tashkent, Tashkent region and Fergana Valley, as well as create new jobs.

VEB.RF is the main partner of NBU in attracting subsidized financing under the program of the Ministry of Industry and Trade of Russia. 

The parties highlighted the high performance of the past year, during which several loan agreements worth 14.2 million euros and 5.65 billion Russian rubles were signed, respectively, within the framework of projects providing for the supply of five modern main-line electric locomotives, road and communal machinery of Russian production. The main attention was paid to the opening of the first preferential credit line in Russian rubles with the participation of the Eximbank of Russia. 

Five projects in hydropower, heat power, transport and urban infrastructure development were financed for 206 million euros.