The Infrastructure Ministry of Ukraine will use over EUR 50 million of the EUR 500 million loan from Germany to restore transport infrastructure in eastern Ukraine.

The ministry's press service reported that this was discussed at a meeting at the Infrastructure Ministry held on October 2, 2015. Deputy Minister Mykola Snitko and representatives of the Germany's Federal Ministry of Transport and Digital Infrastructure and the German Embassy to Ukraine took part in the meeting.

"The provision of the loan by the German government to restore infrastructure in Donbas is foreseen in the intergovernmental memorandum of understanding. The Infrastructure Ministry plans to buy two mobile traction substations required to restore railway infrastructure on Ukraine-controlled territories in eastern Ukraine. The restoration of railway tracks would allow bringing rolling stock from the region and ship cargos, in particular, coal. Coal is needed to prepare Ukrainian power plants for winter," reads the report.

Ukraine proposed that some of the funds will be used to restore and modernize 2TE116 diesel locomotives. They will be used to ship cargos from the temporarily occupied Donbas. Meeting participants agreed that the detailed calculation of repair works will be handed to Germany. They agreed that the two sides are to control the money spending.

The ministry said that in April 2015 the Ukrainian and German governments signed a memorandum of understanding and agreed the provision of EUR 500 million to restore Donbas.