Yesterday, the Kyiv City Council voted to distribute an additional UAH 246 mln from the Kyiv budget to cover the difference between Kyivenergo’s (KIEN) heat tariffs and heat production costs. Alexander Paraschiy: Including this last tranche, the city of Kyiv is going to compensate UAH 672 mln or 84% of Kyivenergo’s expected total losses from heat supply in 2008. Moreover, the expected increase in heat tariffs for business consumers by 1.4-10.1x could make Kyivenergo’s heat segment breakeven already this year (for first time in the last five years). On the back of the recent change in management at Kyivenergo aimed at increasing the efficiency of the company, we are positive about Kyivenergo’s future financial stability.