EU commits €200 mln to upgrade Lviv-Polish border highway for improved logistics

The European Bank for Reconstruction and Development (EBRD) will direct €182 million to update the road between the western cities of Lviv and Rava-Ruska on the border with Poland.

The funding is drawn from the loan for Ukraine's State Agency for Reconstruction and Development of Infrastructure, Rubryka reports.

What is the problem?

The war in Ukraine disrupted trade logistics through Ukrainian Black Sea ports because of the Russian armed blockade. The export has flown overland routes through Ukraine's western to the EU. The Ukrainian government reviewed the priorities and asked the bank to reallocate the financing to repair the section of the M-09 highway between Lviv and Rava-Ruska.

What is the solution?

This road is the main route between Lviv and Warsaw. Traffic increased significantly after the beginning of the war, so the road needed repair and modernization. 

"There is now an urgent need to improve the condition of the road and make critical road safety improvements, including the installation of barriers to separate traffic and bicycle infrastructure connecting settlements along the road, as well as climate adaptation measures," the statement says.

How does it work?

The EBRD reports that the repair will improve the existing transport connections in Ukraine and between Ukraine and neighboring EU countries and reduce freight logistics costs. Improving the M-09 highway is prioritized to develop alternative transport routes and enhance export-import logistics of critical goods through solidarity lines in response to the war in Ukraine.