Ukraine secures billion-dollar China railway loan

Ukraine has secured a $950 million loan from China to build a high-speed railway link between Kiev and the capital's main airport and has selected a Chinese company for the project.

Ukrainian President Viktor Yanukovych signed the loan agreement during a visit to China that began on 2 September. It is the first trip to China by a Ukrainian leader.

During the visit "an agreement was ... signed securing China's credit support to a 30-kilometre railway project and construction of auxiliary facilities for an airport in Ukraine's capital, Kiev," according to reports in Chinese media.

A statement from the President's press office said China has made commitments to invest more than 4 billion US dollars in infrastructure projects in Ukraine, many related to preparations for the Euro 2012 Football Championship.

The major investment projects include one billion dollars for the high-speed railway between Kiev and Boryspil airport, the country's main air gateway and $700m for the construction of a steam-gas plant in Crimea. Additionally, China is going to provide Ukraine with an oil off-shore drilling station worth $200m under a leasing agreement.

The construction of the railway line comes in the framework of a previously signed agreement between China National Machinery Industry Complete Engineering Corporation (CMCEC) and the authorities of Kyiv-Boryspil airport. Among other Chinese investors are China Road Bridge Corporation and China Eximbank.

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