Chinese bank signs loan deal with Ukraine to upgrade telecommunications network

KIEV - Ukrainian major telecommunications operator Ukrtelecom said on Monday it has signed a deal with China Development Bank, under which it would receive financial support for the upgrade of telecommunications network in Ukraine.

"At the first stage of the long-term partnership, Ukrtelecom expects to receive first export credit amounting $50 million," the Ukrainian company said in a statement on its website.

The loan, due to be repaid by 2022, will be used to carry out the modernization of telecom infrastructure in six largest Ukrainian cities and create a management center of the network in Kiev, the statement said.

China's technology giant Huawei will provide Ukrtelecom with technological support and equipment during the network modernization project, which will be launched in 2016, it said.

Ukrtelecom is the largest telecommunications operator in Ukraine, providing fixed telephony service for about 7.2 million subscribers and Internet access for more than 1.6 million customers.