A bullet train drives in Liuzhou City, south China's Guangxi Zhuang Autonomous Region, July 14, 2017. (Xinhua/Li Xin)

KIEV, Feb. 23 (Xinhua) -- The state-run Ukrainian Railways on Friday signed a framework agreement on the partnership with U.S. company General Electric (GE), the Ukrainian government said.

The agreement worth about 1 billion U.S. dollars envisages that the two companies will jointly upgrade the rolling stock of the Ukrainian Railways, the government said in a statement.

Under the deal, Ukrainian Railways and GE plan to produce up to 225 new diesel locomotives and modernize 75 outdated locomotives within the next 15 years.

About 40 percent of the vehicles' components will be produced in Ukraine.

At the first stage of the partnership, in 2018-2019, Ukrainian Railways will get 30 locomotives of Evolution type from the GE.

While commenting on the deal, Ukrainian Prime Minister Volodymyr Groysman described it as an "unprecedented agreement" for the Ukrainian economy.

"It will provide a significant impetus for the development of Ukrainian transport infrastructure and domestic machine building," Groysman said.

According to the Ukrainian government, in the long-term, the partnership between Ukrainian Railways and GE would help modernize Ukraine's industrial infrastructure, enhance energy security and boost Ukraine's exports and transit capabilities.