The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are each providing a €160 million (£141m) loan to support the expansion of the metro system in Ukraine’s second largest city.

The banks say the Kharkiv Metro will benefit from 3.5 kilometres of new line, two new stations, a modern depot and new trains and carriages.

The upgrade is expected to provide much-needed relief from traffic congestion and slash pollution in residential areas – the city has almost 1.5 million inhabitants and is a major industrial centre.

Francis Malige, EBRD Managing Director for Eastern Europe and the Caucasus, said: “Our objective is to support the development of clean, efficient and modern urban transport in Ukraine.

“By promoting sustainable and clean urban transport as an attractive alternative to car travel, we are bringing a range of environmental and economic benefits as well as saving travel time and reducing carbon emissions.”