Connecting Europe Facility: a key EU instrument for infrastructure development
The Connecting Europe Facility (CEF) is one of the European Union’s primary financial instruments for developing trans-European infrastructure in transport, energy, and digital sectors. In transport, CEF provides grant co-financing for projects that strengthen connectivity, remove bottlenecks, and integrate national infrastructure into the Trans-European Transport Network (TEN-T).
Ukraine’s participation in the programme represents a major step toward integration into the European transport system. In 2023, Ukraine and the European Union signed an agreement associating Ukraine with the Connecting Europe Facility programme. This agreement enables Ukrainian public authorities, infrastructure operators, and state-owned enterprises to apply for EU grants to co-finance transport infrastructure projects aligned with TEN-T priorities.
Eligible Ukrainian participants include:
- public authorities;
- state-owned infrastructure operators;
- transport infrastructure managers;
- state-owned and authorised project implementers.
CEF supports projects such as:
- construction of standard European-gauge railway lines (1435 mm);
- modernisation and electrification of railway infrastructure;
- development of cross-border transport connections;
- elimination of bottlenecks in TEN-T corridors;
- development of road infrastructure linked to TEN-T.
JSC "Ukrainian railways" as one of the pioneers of CEF for Ukraine
JSC "Ukrainian railways", Ukraine’s national railway operator, plays a central role in implementing CEF-funded railway projects.
The company participates in CEF calls to support projects aimed at:
- expanding European-gauge railway infrastructure;
- modernising cross-border railway connections;
- increasing capacity and efficiency of TEN-T corridors;
- integrating Ukraine’s railway system into the European rail network.
CEF grant funding enables JSC "Ukrainian railways" to implement strategic infrastructure projects with EU co-financing, significantly reducing financial pressure on Ukraine’s national budget while accelerating integration with European transport systems.
Projects under CEF 2022
In 2022, JSC "Ukrainian railways" secured CEF grant support for several key railway infrastructure projects aimed at improving connectivity with the European Union.
Relocation of the border control point to Mostyska II station
One major project involved relocating border and customs inspection operations from the Polish-Ukrainian state border to Mostyska II station in the Lviv region.
This project achieved measurable operational improvements:
- increased freight train throughput capacity by 2.5 times;
- reduced border crossing time;
- improved logistics efficiency between Ukraine and the EU.
The relocation helped eliminate a major infrastructure bottleneck and strengthened freight transport reliability.
Construction of the Chop – Uzhhorod standard-gauge railway line
Another strategic project supported by CEF involved constructing a new European-gauge railway line between Chop and Uzhhorod.
This project:
- created direct compatibility with the European railway network;
- enabled new international passenger connections to Bratislava, Vienna, and Budapest;
- strengthened Ukraine’s integration into TEN-T transport corridors.
This line represents one of the first major implementations of European-standard railway infrastructure in Ukraine aligned with TEN-T integration objectives.
Projects of JSC "Ukrainian railways" under CEF 2023: expanding European railway corridors
In 2023, JSC "Ukrainian railways" continued its participation in the CEF programme, advancing major infrastructure modernisation projects aligned with TEN-T development.
One of the key projects involves reconstruction and development of railway infrastructure with construction of standard-gauge track and electrification along the corridor:
Lviv – Chernivtsi – Vadul-Siret – State Border
This project will:
- form part of the Baltic Sea – Black Sea – Aegean Sea TEN-T corridor;
- strengthen rail connections with Romania and EU ports;
- expand freight transport capacity;
- support development of international passenger and freight services.
Additionally, electrification of the Chop – Uzhhorod section supports further development of the Rhine – Danube and Mediterranean TEN-T corridors within Ukraine.
These projects represent initial steps in developing full TEN-T railway corridors within Ukrainian territory.
CEF 2024: expansion of euro-gauge infrastructure toward Lviv
In 2024, Ukraine continued its participation in the Connecting Europe Facility programme, securing grant support for expanding European-gauge railway infrastructure toward Lviv.
These projects include:
- construction of new standard-gauge railway sections;
- electrification and modernisation of existing infrastructure;
- removal of bottlenecks at EU border crossings;
- strengthening direct railway connectivity between Ukraine and EU countries.
The expansion of euro-gauge infrastructure will enable seamless rail connectivity between major Ukrainian cities and European destinations, improving both freight and passenger transport efficiency.
Strategic benefits of CEF participation for Ukraine
Ukraine’s participation in the Connecting Europe Facility programme provides significant strategic and economic benefits.
Key outcomes include:
- Integration into the Trans-European Transport Network (TEN-T)
Creating seamless transport connections between Ukraine and EU member states. - Access to EU grant funding
Reducing financial burden on national infrastructure development while accelerating modernisation. - Improved export and logistics capacity
Faster, more efficient transport of goods to European markets. - Reduced transport time and operational costs
Improving competitiveness of Ukrainian industries. - Development of international passenger rail services
Enabling direct passenger connections between Ukrainian and European cities. - Increased investment attractiveness
Modern infrastructure supports private investment and economic development. - Support for Ukraine’s economic recovery and European integration Strengthening Ukraine’s long-term economic and transport resilience.
First CEF Experience: More Than an Infrastructure Project
Ukraine’s first successful grant award under the Connecting Europe Facility (CEF) programme represents more than financial support for specific infrastructure initiatives. It marks an important institutional breakthrough and a new stage in cooperation with the European Union.
CEF is a highly competitive EU instrument with rigorous requirements for project preparation, economic justification, environmental compliance, technical maturity, and alignment with EU policies. Successfully passing this evaluation process demonstrates that Ukrainian projects meet European standards in strategic planning, financial management, procurement practices, and implementation readiness.
In practical terms, the first CEF grant became:
• confirmation of Ukraine’s capacity to operate under EU rules and procedures;
• a signal of trust from EU institutions;
• a concrete step toward integration into the policy framework of the Trans-European Transport Network (TEN-T);
• an example for other public authorities and state-owned companies on how to access direct EU grant funding.
The significance of this experience extends beyond the transport sector. Preparing and implementing CEF projects requires harmonisation of technical standards, environmental safeguards, procurement rules, and governance approaches with EU norms. Each project therefore contributes not only to infrastructure development but also to the gradual incorporation of the EU acquis into Ukraine’s national regulatory and institutional framework.
Participation in CEF is also shaping a new project management culture in Ukraine, built around clear KPIs, transparency, international audit standards, and long-term strategic alignment with European priorities. This strengthens the confidence of international financial institutions and creates a stronger foundation for attracting additional grants and investment in the future.
In a broader perspective, Ukraine’s first CEF experience demonstrates its transformation from a potential beneficiary into an active and reliable partner of the European Union, capable of delivering large-scale infrastructure projects in line with common European strategic objectives.