France and Ukraine signed a record sale agreement totaling 1.3 billion euros ($1.5 billion) for the purchase of French goods and services, French Minister of Economy Bruno Le Maire said in Kyiv on May 13.
The agreement still needs to be ratified by the parliaments of both countries to finalize the sale, expected in late 2021, but it’s a major boost for both economies.
According to the agreement, French transport Alstom is to supply 130 electric locomotives to Ukraine’s state-owned railway company Ukrzaliznytsia for 880 million euros, boosting both economies.
France is financing 85% of the modernization of the Ukrainian railway fleet, through a 350 million euros French Treasury loan and 400 million euros in loan guarantees.
At the request of Ukraine’s President Volodymyr Zelensky, 35% of the production will take place in Ukraine, securing hundreds of jobs in both countries, Le Maire said, while praising the economic partnership.
The deal is a massive opportunity for Ukraine, Bertrand Barrier, President of the French-Ukrainian Chamber of Commerce, told the Kyiv Post on May 14.
“This agreement will have a huge impact in Ukraine,” he said.
French group Desautel, a European specialist in fire protection, will provide 370 ladder trucks with long ladders to fight fires in highrises — a 300 million euros contract also financed by the French Treasury.
Two large French companies, Vinci and Eiffage-Saint Gobain, will rehabilitate water stations in Kyiv and in eastern Ukraine, close to the frontline, through two transactions totaling 140 million euros.
As a reference, the total agreement is worth roughly the same as the trade between France and Ukraine in 2020, valued at 1.6 billion euros.
For years France has been increasing investments and major industrial contracts in Ukraine in strategic sectors, such as railways, water treatment or civil protection.
160 French companies employ 30,000 people in Ukraine, making France the leading international employer in Ukraine.
