Under the agreement, 1524mm-gauge type 71-931 Vityaz vehicles will be assembled at KTTU's own workshops, which currently carries out overhauls on the operator's fleet of trams and trolleybuses.
Around Roubles 16m ($US 242,000) will be invested in a production line at the workshop and in the first phase of the project, 10% of assembly will be carried out locally increasing to 25%.
The first locally-assembled vehicle is due to be rolled out by the end of the year and KTTU says it hopes to have capacity to assemble 12-24 three-section vehicles per year within two years of starting production. Trams for other Russian cities could also be assembled in Krasnodar in the longer-term.
The signing of the agreement coincided with the start of trial operation with a pre-series Vityaz LRV on Line 5 on April 14. The 75km/h three-section LRV, which is similar to vehicles already in service in St Petersburg, accommodates up to 320 passengers.