The state-run enterprise for material and technical provisions at the railways, Ukrzaliznychpostach, has selected public joint-stock company VTB Bank (Kyiv) to open an unsecured irrevocable confirmed documentary letter of credit worth $50 million with a deferred payment option, according to a report in the Visnyk Derzhavnykh Zakupivel state procurement bulletin.

The report says that the agreement was accepted on May 20, 2013 and the final agreement is to be signed by June 19, 2013.

The cost of the agreement is $14.76 million (value added tax is included). The terms of the provision of the letter of credit are from the third quarter of 2013 to the third quarter of 2016.

VTB Bank (formerly Bank Mriya) was founded in 1992. Its largest shareholder on April 1, 2013 was Bank VTB (Russia, 99.9737%).

Ukrzaliznychpostach was founded in 1992. It is the largest supplier of special railway products and general-purpose products for the railways.