The US has earmarked $225m for a 75km rail line connecting a future transport hub in Lviv, western Ukraine, to the EU’s Trans-European Network.

The memorandum of understanding was signed by the US Agency for International Development and Ukrainian Railways.

This project will improve Ukraine’s connectivity to Europe, as well as expanding grain exports by as much as 2.5 million tonnes a year, an increase worth $425m.

The building of the dual-gauge line would also allow for goods and passengers to move more easily between Ukraine’s broad gauge track and the EU’s standard gauge. At present, it can take five hours to unload and load trains when freight is being moved between the systems.