During the meeting between Denis Shmygal and Bruno Le Mer, they signed an agreement for the supply of rails and other goods/services.
The Production Assurance Center branch of Ukrzaliznytsia signed an agreement with the French manufacturer Saarstahl Rail on December 14 to buy rails for 37.6 million euros, or UAH 1.45 billion, as reported by the Prozorro system and Our Money.
A purchase was made for 19,000 tons of R-65 rails, traditionally used by Ukrzaliznytsia, with a hardened rolling surface 25 meters long instead of 50 meters, as in Europe.
The cost is 1980 euros per ton, or 76392 hryvnias, including delivery to Mostiska Lviv region on DAP terms, with Ukrzaliznytsia responsible for the draft payment from Poland to Ukraine.
The rails from the French plant owned by the German metallurgical group Saarstahl were twice as expensive as those from Metinvest-SMC, the monopoly supplier previously. Metinvest-SMC, under Rinat Akhmetov’s ownership, produced them at the Azovstal plant in Mariupol, which is now under Russian army control.
- In fall 2021, Ukrzaliznytsia had ordered them from Metinvest at UAH 33,780/t, or EUR 1,065.
- In 2019, the price was UAH 26,550/t, or EUR 1,002 at the exchange rate.
- In 2018, the price was 29,001 UAH/t, or 938 euros when exchanged.
Global steel prices have doubled since 2018, but these changes did not impact the price of rails from Metinvest.
Bruno Le Mer sold Smygal expensive rails
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Bruno Le Mer gave Shmygal expensive rails
The contract with Saarstahl Rail was signed during the Ukrainian government delegation's visit to Paris, and agreements were made during the meeting between Prime Minister of Ukraine Denys Shmyhal and French Minister of Economy Bruno Le Mer.
- An agreement with the Government of France on the supply of rails for Ukrzaliznytsia manufactured by the French company Saarstahl in the amount of up to 37.6 million euros was made.
- A long-term Roadmap between the Governments of Ukraine and France was created to support the digital industry of Ukraine.
- A Memorandum was signed between Ukravtodor and Matiere on the supply of bridges worth about 25 million euros.
- An Agreement was made for guarantees between the government of Ukraine and the European Bank for Reconstruction and Development to raise a EUR 300 million loan for Ukrenergo for the emergency restoration of power transmission networks. Additionally, a €70 million grant from the Netherlands was secured for the purchase of high-voltage equipment.
France has also signed a bilateral agreement with the EBRD, providing another 100 million euros of assistance for Ukraine.
The Ukrainian side also sent a letter regarding the program of providing state guarantees to the French government through the investment bank Bpifrance Assurance Export for the export of sowing seeds to Ukraine worth approximately 20-25 million euros.
TranslationSkelet.Info
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