Ukraine to subsidize Kryukiv dual voltage trains

Ukraine’s Cabinet of Ministers plans to grant UAH 767 mln (USD 94 mln) to Kryukiv Wagon (KVBZ UK) for the completion of its dual voltage trains, Interfax reported yesterday. The financial support will be provided in 2012-2014.

Roman Dmytrenko: Kryukiv Wagon has completed assembly and commenced testing its first dual voltage train (capable of operating on both AC and DC power lines) at the end of June. Even though Ukrzaliznytsya previously agreed to buy this prototype for USD 20.5 mln (net of VAT), the prospect of further orders remains unclear. The government’s support should help guarantee some future orders for these trains from the state railroad monopoly. This will also allow Kryukiv to continue increasing the share of high value-added passenger rail machinery in its product portfolio.