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Modern economic POTENTIAL OF UKRAINE |
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Investment portrait of Donetsk regionIndustryIn 2005, the total volume of industrial production in Donetsk decreased by 7.9%, if compared with wholesale prices in 2004. Prices of industrial output manufacturers in the region in general grew by 1.0% in December 2005 versus the figures of the previous month and by 3.8% against December 2004. Coal industry production volumes diminished by 4.3%. The volume of run-of-mine coal dropped by 8.4% and totaled 36.2 mn tons. The volume of prepared coal decreased by 8.0% and amounted to 28.1 mn tons. Metallurgy and metal processing production volumes diminished by 7.3%. The manufacture of pig iron decreased by 3.1%, and ready-made ferrous metals rolled stock dropped by 1.0%. Pipe and hollow ferrous section production expanded by 22.9%. By-product coke industry production volumes decreased by 19.3%. Coke production fell by 20.7%, down to 9.4 mn. The chemical and petrochemical industry saw production volumes augmented by 8.7%. The production of mineral fertilizers increased by 1.6%, synthetic ammonia – by 9.6%, toilet soap – by 47.7%, and household soap – by 15.4%. The production of polystyrene fell by 9.6%. The machine building, assembling and repairing of machines and equipment sector saw total production volumes decrease by 19.3%. The manufacturing of coal cutters and tunneling machines diminished by 40.6%, electric locomotives – by 65.9%, and railway cars – by 14.0%. The production of storage batteries jumped 1.6 times, drilling machines and bead-road machines – by 31.8%, open refrigerated display counters – by 22.7%, gas stoves – by 26.0%, household fridges – by 12.2%, and washing machines – by 5.3%. The food and food processing industry grew in some areas. The manufacturing of processed liquid milk expanded by 26.1%, sour milk output – by 8.5%, fat cheese – by 42.8%, flour – by 11.7%, cereals – by 100%, and mineral waters – by 22.5%. Pork product production diminished by 39.2%, semi-finished meat articles – by 40.6%, butter – by 5.2%, baked goods – by 4.0%, and vodka and other strong drinks – by 25.9%. The volume of retail commodity turnover of legal entities dealing in the retail trade and restaurant business totaled UAH 7,760.3 mn. It grew by 42.1% in actual prices and by 27.5% in comparable prices against the corresponding period of 2004. The consumer price index for 2005 amounted to 111.9% (113.5% for 2004), including 110.5% (116.0%) for foodstuffs, 102.8% (103.6%) for non-foodstuffs, and 123.9% (112.3%) for services. Agroindustrial complexThe volume of gross agricultural produce increased by 1.3% in all economies if compared with 2004. According to preliminary information, the gross harvest of commercial crops was the following (weight after finishing):
Winter crops for grain and tilled crops were sown over an area of 373.6 ths. ha for the harvest of 2006 (92.8% to the forecast). At the same time, 6.3 ths. tons of mineral fertilizers were applied for winter crops (79.9% to the level of 2004) and 287.1 ths. tons of organic fertilizers (85.4%). Sales of cattle and poultry for slaughter in live weight increased by 3.5%. The production of milk grew by 4.8%, eggs – by 10.0%, and wool – by 1.3%. Cattle stock in all categories except pigs decreased by 11.1% against the figure of early 2005 (including cattle – by 21.0%, sheep and goats – by 4.9%, and poultry – by 3.9%). The number of pigs increased by 8.7%. InvestmentsThe volume of investments to fixed assets (capital investments) reached UAH 5.8 bn over the first 9 months of 2005 (122.2% to the level of corresponding period of 2004). The following objects were commissioned: a wind-powered electric station (2.8 ths. kW), a machine for continuous blank casting (1 mn tons), facilities for the production of casting from non-ferrous materials (3 ths. tons), timber (2.5 ths. units), plates and ceramic tiles (2.4 mn sq. m), mud (60 ths. tons), coal bricks (120 ths. tons of coal processing per year), on processing of meat (1.4 ths. tons), non-refined oil (28.6 ths. tons), milk processing (762 tons); wholesale general warehouses; municipal automated telephone exchanges, trade enterprises, mainlines, etc. Almost 211.9 ths. sq. m of housing, financed from all sources, was commissioned in 2005, which is 2.3% less than over the same period in 2004. Individual investors put into operation more than 90% of the total housing. Local water, heat, and gas supply networks were put into service (correspondingly 4.9 km, 2.6 km, and 27.5 km). The Council on the Issues of Special Economic Zones and the Special Plan of Investment Activities in Donetsk region has approved 186 investment projects for a total value of USD 3.67 bn over 1998-2004. The fulfillment of 66 investment projects worth USD 618.3 mn has been completed, including 45 projects with an aggregate value USD 507.3 mn in 2005. USD 426.8 mn were put into the region in 2005 for approved investment projects including USD 30.1 mn in foreign investments. There were 2,799 new jobs created in the region and 2,375 jobs were preserved. Output and services for a total amount of UAH 16.9 bn were produced and provided under the implementation of investment projects, including UAH 5.1 bn of exports. Financial indicesTaxes, duties, and other mandatory payments for an aggregate amount of UAH 7,819.7 mn were paid to all levels budgets in 2005. It exceeds the figure for 2004 by 1.5 times. In general, results of the region from ordinary business activities before taxation are positive over the first eleven months of 2005, with UAH 10,980.4 mn in profit, which is 6.7% less than for the corresponding period of 2004. Accounts payable and receivable of companies and organizations as of December 1, 2005 correspondingly constituted UAH 57,845.9 mn (25.7% of overdue debt) and UAH 46,249.6 mn (18.3% of overdue debt). Accounts receivable increased by 2.1% versus the situation as of beginning of the year and accounts payable diminished by 4.8%. The average monthly salary of one employee made UAH 961.62 in 2005, which is a 35.2% jump over the figure for 2004, and reached UAH 1,157.95 in December 2005. The state unemployment service registered 203.6 ths. unemployed people in 2005, which is 5.6% less than in 2004. 78.0 ths. unemployed or 38.3% of the total registered individuals found jobs in 2005. The number of registered unemployed people totaled 52.9 ths. as of the end of December 2005, vs. 64.3 ths. people as of January 1, 2005. There were 107,446 new jobs in the region created over 2005. Privatization436 objects were privatized in the region in 2005, including 95 objects of state property and 341 municipal property objects. The privatization of A Class (small privatization) encompassed 382 objects; D class (construction in progress) – 44; G class – 9, and E class – 1. Privatization was mainly accomplished through the purchase of state property by customers. 324 objects were privatized in this way (74.3% of the total number). 84 objects (19.3%) were privatized through the procedure of bids, 21 objects (4.8%) – through the buy-out of leased property, and 7 objects (1.6%) through procedure of a sale contest. It is projected that UAH 27.7 mn will come from the privatization of objects. |