Modern economic POTENTIAL OF UKRAINE

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Investment portrait of Zhitomir region

Regulatory environment

Investment attracting activities of the regional state administration

1. Currently, a single registration window has been established in every district of the region, activities on creating single permit offices are underway, and some of these structures are already working in few districts.
2. According to the principles of the state regulatory policy, and in compliance with tasks from the President of Ukraine, the administration completely eliminated and adjusted local regulatory acts, which determine the relationship between economic entities and the government.
3. The Zhitomir regional state administration and representatives of entrepreneurial unions signed a Memorandum on cooperation. This document provides for the establishment of a government-business partnership, coordination of efforts aimed at setting up favorable organizational and economic conditions for developing entrepreneurship in priority directions of economic development.
4. The regional state administration and departments of permit services signed a Memorandum on cooperation regarding the issuance of permit documents according to the principle of organizational individuality.
5. The following data was prepared to encourage investments into the region:
   • database of available brick and raw stock tile deposits,
   • list of construction and face rock deposits, which may be used to set up entrepreneurial structures in extracting and rock treating industries;
   • list of the deposits of kaolin suitable for application in porcelain and paper industries;
   • list of available land plots, idle production areas, feed plants and incomplete construction sites, which are offered for sale or lease.

The top priority directions for investments in agriculture are hop and flax growing, as well as animal breeding.

Infrastructure

The region has a 280 km border with the Republic of Belarus. The border has 2 check points – Maidan-Kopischanskiy in Olevskiy district and Vistupovichi in Ovrutskiy district. Besides these, there are check points at railway stations in Ovruch and Korosten, as well as airports the – at Ozernoye settlement of Zhitomir district. The region borders Kiev, Vinnitsa, Khmelnitskiy, and Rivne regions of Ukraine.

Thanks to its geographical location and branch network of highways and railways, the region has good transportation connections to Kiev, Lvov, Uzhgorod, Kharkov, Odessa, Minsk, Moscow, Saint-Petersburg, as well as many countries in Eastern and Central Europe. The distance from Zhitomir to Kiev is 165 km by railway or 131 km by highway.

The region has developed telecommunication infrastructure.

Water supply within the region is ensured by 209 regional enterprises from 587 artesian drill holes and 6 open intakes through 281 water supply lines, which cover almost 3,000 km, daily capacity is 473 ths. cu.m of water. Around 71.5 mn cu. m of water are annually supplied to the network, of which 54.1 mn cu. m (or 75.7%) undergoes cleaning process. The enterprises supply water to 9 cities, 39 settlements and 144 villages.

Demographic situation on the labor market

The region has 23 districts; 5 cities of regional subordination: Zhitomir, Berdichev, Korosten, Malin, and Novograd-Volynskiy; 6 cities of district subordination: Andrushevka, Baranovka, Korostyshev, Radomyshl, Olevsk, and Ovruch; as well as 43 settlements and 1,625 villages.

The region’s population is 1,345.300 ths. people, including 760,200 urban citizens people (57%) and 585,100 inhabitants (43%). Population density (people per 1 sq. km) is 45. The most residents appear in the cities of regional subordination: Zhitomir – 277,900; Berdichev – 84,300; Korosten – 66,300; Novograd-Volynskiy – 56,000; and Malin – 28,000. In regards to the towns of district subordination, they have population as follows: Andrushevka – 9,600; Baranovka – 12,400; Korostyshev – 25,900; Radomyshl – 15,200; Olevsk – 10,500; and Ovruch – 16,900.

The population in the largest districts looks like this: Zhitomirskiy district – 68,300; Ovrutskiy – 65,100; Novograd-Volynskiy – 50,400; while the smallest districts are Naroditskiy with 10,200; Brusilovskiy – 14,300; and Luginskiy – 19,700 people.

The population between the age of 20 and 40 is 371,000 people, 40-60 years old – 348,000.

Out of 1,000 people employed, 400 have higher education, 150 of them – graduate higher education, 600 – general secondary education (of which 510 people completed general secondary education).

Companies with foreign investments

More than 200 enterprises with foreign investments have been set up and are running business in the region. This number keeps growing every month. Zhitomir region has investment partners in 36 countries worldwide.

The most powerful enterprises with foreign investments, whose output is bound for exports, are:

• Ferroplast-Ukraine,
• Griffin Investments,
• InterAgroBud,
• Eurogold Industries Ltd, and
• RIF-1.

Thanks to foreign investments, stable performance is also attributed to Zhitomirskiye Lakomstva (Sweets) and “AgroTeploMash” companies. Products of these enterprises enjoy superior demand.

Companies, which started active production in 2004, were LLC Elezium Plast in Korosten and LLC Olympic Kraska (Paint) in Noviye Belokorovichi (Olevskiy district). Production activities were also launched by Premdor-Ukraine subsidiary enterprise in Berdichev and LLC VO Tekhna in Novograd-Volynskiy.

Typical features of the region

The region has 221 rivers of total length 5,366 km. All rivers belong to the Dnepr river basin. The largest rivers in the regional borders are Teterev – 247 km, Sluch – 194 km, Irpen – 174 km, and Irsha – 136 km. Zhitomir region also boasts many lakes, the largest of which are Chernoye, Kupye, Ozeryanskoye, Ochen, Dedovo, and Pribilovetskoye – all located in the Ubort river basin.

The region is located on the central part of the Eastern European plain on the north of right bank Ukraine. The region’s area covers 29,900 km, which constitutes 4.9% of the territory of Ukraine. By its size, the region is among the largest in Ukraine – following only four regions: Odessa, Dnepropetrovsk, Chernigov and Kharkov regions. Zhitomir region stretches from east to west by 170 km, and from north to south – by 230 km. It spreads over two natural zones, in particular, northern part in Polesye zone (woods) and southern – in mixed wood and steppe zone. The northern part of the region boasts the Slovechansko-Ovrtuskiy ridge established of pre-kemberian quartzite. Its highest point reaches 316 meters above the sea.

The climate is moderate continental – with warm humid summers and soft cloudy winters. Average temperature in the summer is +18.5 Ñ and in winter -5.5 Ñ. Average precipitation is 753 mm.

The region is rich in natural resources. Mineral and raw stock potential of the region includes facing stone, marble, gems, raw stock for metallurgy and construction industry, lime stone, brown coal and peat. The region has explored deposits of alkali kaolin – the volume of which allowed for extraction makes up to 0.5 mn tons of concentrate each year.

There are also reserves of construction sands, pyrophilite slates, ceramic clays, and some other types of mineral construction raw stock. The region has huge reserves (86% of gross volume in Ukraine) of decorative facing stone (labradorit, granite, and gabbro).

Deposits of marble, which have extremely beautiful patterns and good polishing properties, are good prospects. This is a wonderful raw stock for manufacturing facing tile, chicken grit, tar dolomites for metallurgy, various fluxes, as well as mineral fertilizers.

Colored semi-precious stones are produced in the region namely, beryl, topaz, quartz, which is further processed and added to jewelry. Piezoelectric quartz crystal, an essential element in contemporary electronics, has wide applications in the industry. The region also has a deposit of high-quality pyrophyllite.

Zhitomir region satisfies the demands of Ukraine and some foreign countries for titanium concentrate. There also are rare-earth elements – vanadium, scandium, hafnium, and thorium, which meet notable demand on the world market. Most of titano-ferrite deposits have apatites. Deposits of this raw stock contribute 85% to all deposits explored in Ukraine.

Quartzite deposits are unique as they makes up 89% of all-Ukrainian reserves. The material is applied in the refractory production for blast furnace lining and production of ferroalloys.

The region ranks second in Ukraine by timber reserves. Forests cover almost one third of the region’s area. The dominant species is coniferous trees, which are 60% by total volume. Aggregate timber reserve is some 200 mn cu. m. Average general growth is 2.7 mn per annum.

The animal kingdom of the region is various. Forests are populated with moose, deer, wild saws, goats, foxes, rabbits, squirrels, martens and beavers. There are wild ducks, geese, woodcocks, hazel hens, pheasants, and great geese. The region’s waters have pickerels, bass, somas, crucian carp, and other fish.

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