Kranj/Kiev - Telecoms equipment maker Iskratel and Ukraine's biggest telecommunication company Ukrtelekom, in partnership with two Slovenian banks and the SID development bank, have used the first EUR 3 million of a EUR 12 million project that involves the construction of gigabit optical networks in Ukraine.

The two-year project between Iskratel and Ukrtelekom, financed by two Slovenian banks, aims to expand optic networks in 300 towns in Ukraine.

According to SID Banka, the financial scheme of the project proves that international cooperation can help secure better financial conditions for projects than those offered by commercial banks.

The project is also part of efforts to enable Slovenian companies spread to markets outside the EU under competitive conditions.

"This is the first step of our introducing of optical infrastructure in Ukraine, which aims to increase the number of optical network infrastructure subscribers and related revenue by 60%," said Ukrtelecom CEO Yuriy Kurmaz.

The project includes introducing optical networks to the Ukrainian countryside as well as urban areas using modern telecommunication equipment made in Iskratel's production centres in Slovenia.

"In cooperation with Ukrtelekom and our Slovenian financial partners, the programme of construction of the optical network will bring better opportunities to different regions across Ukraine," added Iskratel CEO Robert Kuzmič.

In 2021, Ukrtelekom built over 13,600 kilometres of new optical networks and expanded the gigabit optical infrastructure in 1,200 towns and villages. The upgraded network enables users to access a full range of digital services in the public and private sectors.

"Encouraging the digital transformation both at the level of individual companies and at the level of public infrastructure in Slovenia and abroad is a key priority of SID Banka," said SID Banka head Damijan Dolinar.