Modern economic POTENTIAL OF UKRAINE

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Investment portrait of Vinnitsa region

Regulatory environment

Investment drawing activities of the regional state administration

1. Under the direction of the head of regional state administration, three councils were created:
   • Council on attracting foreign investments, which includes the leaders of enterprises with foreign investments;
   • Industrial council, which assists in organizing and conducting the region’s industrial policy;
   • Council in pre-court consideration of disputes between investors and local executive authorities.
2. The plan with measures to attract of the investments is developed.
3. The project with strategies for the region’s social-economic development until 2015 is being developed, with priorities for development and direction of attracting investments stated.
4. The program “Priority directions for innovative policy until 2009” is also being developed
5. Information about the best business-projects in the region is placed on the web-site of the regional state administration.
6. The working group was created jointly with the Vinnitsa branch of USPP, which includes the region’s entrepreneurs and scientists in the development of complex projects in separate areas of the region.
7. The conducting of the scientific conferences on issues of innovative developments for the region is planned.
8. Actions for improving the investment image of the region are in the process of development.

Stimuli and prerequisites for attracting investments

1. The creation of a regional agency on issues of attracting investments.
2. The approval of a program for attracting investments and financing organizational measures for its support.
3. Conducting training for new personnel of area state administrations on the problems of investment policy.

Infrastructure

Transport network of general use

Quantity of the highway bridges ? 843 units

Quantity of the overpasses ? 17 units.

Communication of its general use

The population supplied with the basic domestic telephone sets, quantity of units per 100 persons:

• TTS - 15
• STS – 6

The region’s need for power systems This area is almost fully satisfied thanks to the work of the Ladyzhinskaya thermoelectric power station, and to the system of the electricity transmission lines 750 kilowatt, 330, 110, 35, 10, 0.4 kilowatt, and also to the substation 750 kilowatt - the Donbass-Vinnitsa-Western Ukrainian border with Hungary - Albertirsha.

Gas pipelines "Druzhba," "Urengoy-Pomari-Uzhgorod," and "Dashava-Kiev".

The availability of water buildings in towns and areas as for January 1, 2005 (all management bodies and private sector, urban and rural territory)

• Number of water-pipes in Vinnitsa region ? 238.
• The number of separate water-pipes systems ? 51 units.
• The number of the street water-pipes (water fountains, faucets) ? 6,783.
• The quantity of subscribers ? 143,850 units.

Gas supply for towns and villages of region as of January 1, 2005

Quantity of the gas supplies to apartments in the region as of January 1, 2005

Labor market demographic condition

Population

Level of education

Six private schools are working in Vinnitsa region, where 1,048 pupils are studying, 10 schools of general education and 18 specialized boarding-schools (more than 5,000 pupils are studying there), 2 gymnasia, 7 lyceums, and 49 out-of-school educational institutions.

Companies with foreign investments

The total sum in investment projects accompanied in 2005, as of July 1, 2005, is EUR 430 mn, and upon their completion the creation of about 6,000 new job positions is planned.

Among the investors, attracted to the solving of problem issues of the region are the following:

• LLC “TC Russian malt”
• “Martimex-alpha”
• Joint-stock company “Tsersanit”
• Company “Barlinek”
• Belgian enterprise “Frutier groups”
• Russian LLC “Company Transtroynerud”
• The German enterprise “World of machines”

To conduct separate businesses-projects and the develop complex projects, cooperation with a number of consulting companies commenced, including, JV "Technology and investment consulting," "Center of municipal management" (Habitat), and the American company IGVI.

As of July 1, 2005, the total volume of direct foreign investments was USD 74.3 mn. Per one habitant ? USD 43.7.

The biggest investment projects:

• in processing of fruits ? realized by the joint venture “Podolye OBST,” the sum ? EUR 11,462.66 ths., country investor - Austria;
• in home chemistry - realized by the CJSC “Vinnitsabythim” the sum ? USD 4,996.1 ths., country investor - Cyprus;
• in agriculture - realized by the joint venture LLC "Luka" the sum ? EUR 2,511 ths., country investor - Austria;
• in trade - realized by the joint venture "El-tour" the sum ? USD 1,735.8, country investor - Turkey;
• in processing of meat - realized by LLC “Tulchinmyaso” the sum ? USD 2,862, country investor - Latvia.

Characteristic features of region:

Volyn-Podol height. Climate is moderate-continental, relatively soft winter, warm damp summer. Rivers and reservoirs: Yuzhnyi Bug, Dnestr, the reservoir of the Ladyzhinskaya thermoelectric power station. The length of highways of national and regional importance is 8,899.6 km. Borders: 202 km. The region borders the Republic of Moldova, and also 7 regions of Ukraine: Zhitomir, Kiev, Kirovograd, Odessa, Khmelnitskiy, Cherkassy and Chernovtsy.

The region is located in the forest-steppe zone. 204 rivers, crossing the territory of region, have total length of more than 10 km. They belong to the basin of Yuzhnyi Bug, Dnestr, and Dnepr. Geographically Vinnitsa region is located between the 48° 04 min. and 49° 53 min. of northern latitude and 27° 20 min. and 30° 01 min. eastern longitude.

The climate is moderate-continental, with relatively soft winters, warm damp summers. Average yearly temperature: summer ? +18.6* Ñ, +20.5* Ñ, winter ? -4 *Ñ, -6 *Ñ. Yearly quantity of precipitation ? 520-590 mm, out of them ? about 80% fall in the warm period.

Geologic-raw material resources

Vinnitsa region is an area with a rich mineral-raw materials base. It has 1,159 deposits with displays of 30 types of various minerals, tens of peat deposits, and also unique beds of granite, kaolin, pomegranate and fluorite. Curative sources of mineral water, in particular with a high content of radon are developed and operate in Khmelnik.

The region has the largest world deposit of competitive mineral raw materials - kaolin (800 mn tons). The range of its application is very wide: paper, ceramic (porcelain, glazed pottery), electrical engineering (insulators), heat-resistant, aluminum, textile, cable, rubber-technical, chemical, soap, perfume industry; production of pencils and mineral paints.

Unique decorative characteristics of Vinnitsa granites allow for the production of plates, window-sills, monuments, etc.

Three deposits of granites (supplies of 10 mn cu. m) are prospected and are in the process of development, trial mining was conducted on 8 deposits. The enterprises have been provided with granite for more than 100 years.

The only deposit in Europe of pomegranates was prospected in region (until now it was still not developed). The only deposit in Ukraine of fluorites is presently at the stage of geological prospecting and technological tests. According to preliminary estimations its reserve is 100 mn tons and the forecast is for 220 mn tons. About 30 branches of industry use fluorite concentrates (metallurgical, aluminum, chemical, cement, glass productions, etc.). Metallurgical and other branches of Ukrainian industry annually use 122 ths. tons of fluorite concentrates, which are brought from Mongolia, China, Thailand (for the total sum of USD 20 mn).

Vinnitsa region is the only place in Ukraine, with large reserves of pelicanit (39 deposits with the prognosis resources about 170 mn tons).

Brown coal from Vinnitsa region corresponds in quality to products of well-known coal mines of Dneprodonbass and is suitable for energy purposes and processing through the methods of semi-coking and hydrogenation. Three preliminary deposits were prospected with reserves of 50 mn tons and three others are still in the process of prospecting.

Sand and gravel are widely used in the industry for building materials. Five sand mines have been developed, silicate brick – 1, build solutions – 3, ballast – 1.

In Vinnitsa region, sources of curative mineral water from the Khmelnitskiy radon deposit are used. In addition, 21 sources of table water are prospected, 10 of them received passports, in 5 deposits bottling is done (“Regina,” “Princess,” “Shumilovskaya,” “Podolskaya,” “Rosyanaya”). Mineral waters of the “Mirgorodskaya” type were discovered. This supposedly exists on deposits of radon that are still not prospected.

For the first time Podolye bauxites were found (ore, used for production of aluminum). According to geologists’ estimations, the resources of bauxites are about 3 mn tons.

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