Behind the scenes of Alstom’s contract in Ukrainian

Behind the scenes of Alstom’s contract in Ukrainian
Alstom CIO, Henri Poupart-Lafarge (L), French Economy Minister Bruno Le Maire (C) and French Transports Minister Elisabeth Borne (3R) visit the site of French train maker Alstom in Belfort on October 26, 2017. (Photo by SEBASTIEN BOZON / AFP)

From left to right, the pdg of Alstom, henri Poupart-Lafarge, bruno the mayor, minister of the economy, and elisabeth terminal, then minister of transport, on October 26, 2017, visiting Alstom’s site in belfort. Sebastien bozon / afpunder the golden ceilings of the kiev train station, the exhibition rail show of the Ukrainian railway was installed in October 2019. a red stand dominates others by its dimensions: the number one global train, the Chinese manufacturer crrc. Opposite, the loggia of the french Alstom seems to stand on its ergots in front of its competitor.

It summarizes the iron arm of the moment opposing the two industrialists for the gain of a mega-contrat on dozens of cargo locomotives. The market is considerable, since Ukraine has a fleet of 3,500 locomotives, which specialists agree that 90% are now obsolete. At the end of the game: hundreds of millions of euros in turnover, work for national factories and a symbolic industrial victory on the East-European field.

The contract covers 130 electric locomotives, for an amount880 million eurosNineteen months later, it is finally the france that swells the bet. If ratified by the Ukrainian parliament, it provides for the purchase of 130 electric locomotives by the Ukrainian railways to the French Alstom group, for a total of 880 million euros, located at 35% in the Ukrainian Railway, and which could reach 2.4 billion if Ukraine adds maintenance over forty years. The world has been able to have access to some of the backstages of the French political-industrial lobby which led to the arbitration of May 13.

It will involve, alongside Alstom, three ministries (economy, transport, foreign affairs), as well as the Elysée. In 2019, the French position is still fragilebut let’s return to October 2019. On the ranks, Europeans such as the German Siemens and the Czech Skoda, but who will mainly be used by Ukrainians as hares in the negotiation.

The opponent number one, it is the cradle Chinese, with its ability to break the prices. “Our whole strategy will consist of torpedoing the Chinese offer,” summarizes a source close to the French Ministry of the Economy.