Kryukiv Wagon starts a joint venture in Belarus

Kryukiv Wagon (UX: KVBZ UK) will contribute USD 1.5 mln in share capital of Gomel Railcar-Repair Plant (Belarus), Interfax reported yesterday. As a result Kryukiv Wagon will own 15% of the JV that will produce mainly passenger railcars. Vitaly Gorovoy: This news is moderately positive for the company as Krykiv Wagon can benefit from the JV only in the long term since currently Belarus has no funds for large orders of passenger railcars. We expect sales of passenger railcars to reach only 6% of 2011E revenues.