Kyiv raises fees for public transportation

Effective yesterday, the Kyiv City Administration increased the fares for road and subway public transportation by 3-4 times: ground-based and subway rates increased from UAH 0.5 to UAH 2.0 per trip. Inna Perepelytsya: We believe the fee increase will help the Kyiv Metropoliten, in particular, to finance its expansion plans. At the end of 2007, it announced intentions to purchase 635 subway cars by 2012. Among traded companies that could benefit are Kryukiv Wagon (KVBZ), which got regulatory permission this summer to produce subway cars and escalators for the Kyiv subway system. We estimate that KVBZ could get up to USD 100 mln in orders over the next three years from Kyiv Metropoliten.