Ukraine's state-run railway operator will procure rails from Nippon Steel, using Japanese grant aid for the first time for such a purpose since Russia's invasion, it was learned Tuesday.
Ukrainian Railways will buy about 22,500 metric tons of rails from Nippon Steel from 2024 to 2025, with ¥5.6 billion ($37.8 million) in grant aid set to be provided under the Japan International Cooperation Agency's program, sources said.
The railway operator plans to participate in a conference to be held for Ukrainian economic reconstruction in Tokyo on Feb. 19 and discuss future cooperation with Nippon Steel.
Ukrainian Railways, which has 22,000 kilometers of railway tracks and employs over 200,000 people, has played a vital role in transporting evacuees and relief supplies in the war-torn country.
According to a railway industry source, Ukrainian Railways became unable to procure rails from a steel plant in Mariupol, southern Ukraine, because the factory, the country's sole producer of railway rails, was destroyed and occupied by the Russian military.
The railway operator needs to procure rails from Japan and other countries to repair tracks damaged by Russian military attacks, the source said.
Nippon Steel plans to deliver about 15,000 metric tons of rails in summer and 7,500 metric tons next year.
JICA has so far decided to provide a total of ¥75.5 billion in grant aid for the reconstruction of Ukraine. Of the total, ¥5.6 billion will go to Ukrainian Railways to cover the costs of rails, heavy machinery and transportation.
On Jan. 30, Prime Minister Fumio Kishida said that the conference is an "important opportunity to demonstrate to the world how Japan is contributing to Ukraine."
"Demand related to reconstruction in Ukraine is huge, and there are great expectations for Japanese companies' technology and expertise," he said.