“The consequences of raising fares 3.5 times, to UAH 30 ($0.74), will be very unpleasant,” Nasonova said. “After July 16, wages will begin to rise sharply, as will the cost of food, drinks and, ultimately, the average bill in food service establishments. Such an increase is the domino piece that will trigger a chain reaction across all sectors.”
Under the new fares, Ukrainians will spend around one-tenth of their salaries on urban transport, Nasonova said.
“Let’s look at it: the average salary in the sector is now UAH 25,000–30,000 ($617–$741) per month. People currently spend moderate amounts on transport — UAH 16–25 ($0.40–$0.62) per day, meaning public transport,” she said. “But after July 16, commuting will cost UAH 60–100 ($1.48–$2.47), depending on how much minibus prices rise. Over a month, that is already UAH 3,000 ($74), or 10%–12% of wages.”
That will inevitably push workers to demand higher wages, Nasonova said.
“Logically, this will not suit anyone, not even public transport workers, because general inflation has not gone anywhere,” she said. “So everyone will want a salary increase of at least 10%–15% to compensate for transport costs. And then we will have a general price increase across all sectors of at least 10%.”
Restaurants and other businesses will have several possible responses to the situation, Nasonova said.
“First, raise prices. Not as sharply as Kyiv public transport, not by 3.5 times, but by the same 10%–15%,” she said.
“Second, create a staff living room directly inside the establishment so people do not have to go back and forth. There are already many cases where staff stay overnight in a restaurant or store — this is a significant saving for everyone. From now on, this is how we will design spaces, with a room for staff accommodation.”
“Third, reduce the number of staff. Remove dishes and drinks, and introduce self-service, self-payment and pickup wherever possible. Every time a waiter enters the dining room, it should be treated like a star walking onto the stage — expensive and significant, not affordable for everyone.”
Kyiv authorities should reverse the decision to raise fares so sharply, Nasonova said.
“The main thing that can be done is for Vitali Klitschko to cancel this senseless and untimely decision,” the Restaurants of Ukraine analytical center director said.
Kyiv plans to update public transport fares, raising the price of a single trip to UAH 30 ($0.74), reports said on May 18.
A petition calling on authorities to halt the fare increase in Kyiv had gathered the required number of signatures as of May 19.