Modern economic POTENTIAL OF UKRAINE

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Investment portrait of Dnepropetrovsk region

Statistics

Regional center – Dnepropetrovsk.

Territory – 31.9 ths. sq. km.

Population – 3,491.0 ths. people

Resources

Deposits of manganese ore, iron ore, coal, uranium, titan and zirconium, as well as rutile and ilmenite ores, fire clays, limestone, granite, rags, sand, nickel and talc magnesite ores, dolomite, bauxites, brown coal, gold, and springs of mineral waters constitute the mineral and raw stock potential of the region.

Main industries of production

There are 690 enterprises of regional industrial production. The volume of industrial output sales in current prices of the companies amounted to UAH 31,383.7 mn in the first half of 2004. The region ranks second in Ukraine by volume of industrial production.

The pattern of industrial output sales in the first half of 2005 by main activity is as follows (the share in the sales volume): mining industry (21.4% in aggregate, including 2.9% in mining of power-generating materials, 18.5% in mining of non-power generating materials); processing industry (67.8% in aggregate, including food industry and processing of agricultural produce – 6.6%, light industry – 0.2%, pulp, paper, printing, and publishing industry – 1.0%, chemical and petrochemical industry – 5.8%, in particular 3.7% in chemical and pharmaceutical production, production of rubber and plastic articles – 2.1%, manufacturing of non-metallic mineral articles (construction materials) – 0.9%, metallurgy and metal working – 43.4%, machine building, assembling, and repairing of machinery and equipment – 6.8%, in particular 1.9% in manufacturing of machinery and equipment, 1.1% in production of electric and electronic equipment – 1.1%, and 3.8% in transportation machine building), and generating and distribution of electric energy, heat, water, and gaseous fuel (10.8%).

Volumes of industrial production increased by 8.4% (by 5.0% in Ukraine), particularly due to the expansion of production volumes of prepared coal (by 45.1%), ores and iron concentrates (by 71.4%), TV sets (by 56.9%), fertilizers (by 13.8%), cement (by 6.6%), plastics in primary forms (by 22.9%), and electric energy (by 6.0%).

Early grain crops were harvested by the square exceeding 340 ha in the first half of 2005. Approximately 912.0 ths. tons of grain was threshed and the average crop yield was 28.7 centers per ha. Pursuant to forecasts, it is planned to collect 2.5 mn tons of grain (together with corn) in all categories of the market.

Production of meat in live weight increased by 13.6%, eggs – by 7.4%. Livestock such as cattle, poultry, and pigs gradually stabilized. Cattle stock increased by 34.4 ths. units, pigs – by 18.8 ths. units, sheep and goats – by 18.3 ths. units, and poultry – by 1.5 mn units.

Construction in the region was also being developed. According to financial sources, 168.8 ths. sq. m of the total living area was commissioned. Meanwhile, it is planned to put into operation 368.8 ths. sq. m of housing by the end of the year. Projects for a total amount of UAH 9.7 mn for social infrastructure development were accomplished during the first half of 2005 with resources from the regional budget.

The completion of school construction in rural territories was a primary task of constructing social sphere objects.

The share of profitable companies in the regional economy amounted to 65%, while their revenues constituted UAH 5.8 bn (1.8 times more). According to the results of the first five months of 2005, the positive financial results of the regional economy was UAH 5 bn, exceeding the corresponding period of 2004 level 2.4 times.

Losses of companies herewith diminished by almost one third (from UAH 1.2 bn to UAH 0.8 bn).

The volume of regional turnover remains one of the best in Ukraine. It increased by 27.2% in the first half of 2005 and was UAH 3.5 bn.

The consumer price index since the beginning of the year was 103.5%.

Public confidence in the banking sphere was also raising: individual deposits at regional banks increased by 27% (up to UAH 5.8 bn) in the first six months of 2005.

Foreign economic activities

Foreign trade turnover of commodities and services was USD 4,475.26 mn, including USD 3,128.75 mn in export and USD 1,346.51 mn in import. The positive balance constituted USD 1,782.24 mn. The volume of foreign trade in commodities was USD 4,370.5 mn (export – USD 3,074.7 mn, and import – USD 1,295.8 mn) with a positive balance of USD 1,778.9 mn.

The main trade partners in the region are the Russian Federation, Algeria, Syria, Turkey, Germany, Poland, China, and Egypt in export operations, as well as the Russian Federation, China, Germany, the Republic of Belarus, Gabon, Japan, and France in the import of commodities and raw stock.

The region has significantly increased its foreign trade activities with states of the CIS and Europe in the first half of 2005.

Foreign trade turnover in services reached USD 105.46 mn including USD 54.75 mn in export and USD 50.71 mn in import. The corresponding trade balance amounted to a positive USD 4.04 mn.

Investments

The total volume of foreign investments to the economy of the region as of July 1, 2005 was approximately USD 867.23 mn.

The region is second in Ukraine after the city of Kiev by volume of attracted direct investments.

Investments originated from 64 states, while the largest investments were drawn from the residents of Cyprus, the USA, Austria, Great Britain, the Netherlands, Switzerland, Hungary, Germany, and Sweden.

The volume of direct investments per capita was USD 248.8.

Foreign investments were directed to 673 companies in the region. USD 251.6 mn were invested into industrial enterprises (29%) including USD 81.1 mn (9.4%) to mining industry, USD 168.1 mn (19.4%) to processing industry (in particular, chemical and petrochemical industry received USD 43.7 mn, food industry – USD 25.5 mn, production of non-metallic/construction mineral articles – USD 25.4 mn, pulp and paper industry and printing activities – USD 24.8 mn, metallurgy – USD 21 mn, and machine building – USD 16.4 mn).

The largest volumes of investment were put into the development of non-production companies, including USD 376.5 mn to companies of wholesale and retail trade or 43.4% of the total direct foreign investments to the economy of the region.

Significant capital was invested into companies dealing with real estate, lease of property and equipment, providing of services to legal persons (USD 143 mn, 16.5%), construction organizations (USD 35.2 mn or 4.1%), and transportation and communications companies (USD 19.9% or 2.3%).

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