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Modern economic POTENTIAL OF UKRAINE |
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Investment portrait of Zaporozhye regionRegulatory environmentZaporozhye region’s image of efficiency is considered as a valuable resource for the further all-round development of the region. This resource consists of several elements that show the competitive advantages of Zaporozhye region as working together. It enables Zaporozhye region to occupy a leading position among other regions of Ukraine in relation to investment drawing. At present Zaporozhye region is an invaluable pearl created by history’s benchmarks – its glorious Cossack past, the giant DneproGES (hydro electric station), and has become one of the main centers for the economic, technological, and intellectual potential of independent Ukraine’s rapid development, as well as hospitality and openness of heart. The natural resources available in the region include more than 20 kinds of mineral resources. Geologists have explored 131 mineral resources’ deposits. The region supplies iron ore, kaolin, fire clay, formation sands, construction, and facing stone to local and foreign markets. The economic potential of the region at present includes more than 380 leading industrial companies. Zaporozhye region is a leading center of local aircraft engine construction, production of transformers and other high-technology output, and these firms have achieved recognition as world-class brands and trademarks for quality and reliability. The metallurgy and power generating sectors make the basis of the region’s industrial potential. The region produces 70% of the general car output, 17% of finished rolled stock, 16.4% of steel, 9.7% of pig iron, 8.9% of coke, and 28.7% of the electric energy (the most powerful in Ukraine), for the whole country. The following companies in Zaporozhye region are metals sector leaders on the region, national, or world levels: OJSC Zaporozhstal (Zaporozhye steel), OJSC Zaporozhye Aluminum Integrated Works, OJSC Dneprospetsstal, and Collective Company Zaporozhye Titanium and Magnesium Integrated Metallurgical Works. Other firms include; OJSC Zaporozkoks (Zaporozhye coke) in the production of coke and petrochemicals; Zaporozhye Nuclear Plant, Zaporozhye Thermal Power Station, OJSC Dneprenergo, and Dneprovskaya Hydro-electric Station in power generation and the distribution of electric energy, gas, heat, and water; and Zaporozhye Car Making Plant, OJSC Motor Sich, Zaporozhtransformator (Zaporozhye Transformer), and Zaporozkran (Zaporozhye crane) in machine building. The agroindustrial complex of the oblast is extremely attractive for investments. Fertile land is the main reason for this, and the total area of the region’s agricultural lands constitutes 2,248.4 ths. ha or 5.4% of arable lands of Ukraine. Qualified staff (24.5% of the region population reside in rural areas, including more than 50% of the able-bodied population), significant capacities of processing industry (more than 545 companies in 8 leading sectors – grain processing, grain crops, bakery, meat processing, dairy, confectionery, oil and fat, and alcohol spirits – successfully operate in the region), and convenient geographical location for exports should also be noted. A number of food and food processing companies which are leaders in their market segments by capacity and production volume, such as the Pologovskiy Oil Extraction Plant, Zaporozhye Oil and Fat integrated works, and Melitopol meat processing plants, etc.) are situated in the region. Such companies as the Slavutych OJSC Zaporozhye beer and soft drinks integrated works, CJSC Zaporozhye soft drinks plant, and Image Holding Subsidiary of JSC Image Holding ApS are vivid examples of profitable investments into the food industry of the region. Investment priorities differ depending on the abilities of companies to secure high and fast investment profitability. Zaporozhye region is very promising in this respect, because significant tourist and recreational potential, as well as favorable natural and climatic conditions are concentrated here, creating highly profitable opportunities in proven directions. The high-quality educational potential of the region including R&D institutes, diversified network of cultural establishments (museums of local lore, fine arts museums, historical and archeological museums, professional theatres, philharmonic society, a symphony orchestra that is considered one of the best in the state, etc.), and religious tolerance and concordance all together make the resource which forms the attractive investment image of Zaporozhye region by the fruitful joining of the economic, educational, and cultural potential of the region. InfrastructureThe transportation infrastructure of the region is well developed. It consists of strategic highways (Borispol-Dnepropetrovsk-Zaporozhye, Kharkov-Simferopol-Sevastopol, and Odessa-Melitopol-Novoazovsk), an extensive network of railway roads, a large navigable waterway (the Dnepr River) and Zaporozhye River Cargo Port, sea gates to the region (Berdyansk Sea Port), Zaporozhye region airport, and an airport at the town of Berdyansk. This diversification allows the efficient combination of local and foreign commodity and resource flows. The total length of roads:
There are 1,093 state function highways among all roads. There are 92 railway stations, 63 carriers, and 2 airports (in Zaporozhye and Berdyansk) in the region. A large navigable waterway, the Dnepr River, crosses the region from the north to the south, and plays an important role in the region transportation system. Zaporozhye River Cargo Port specializes in the processing of industrial, including metallurgical, freights and treats a large part of the freight flow on the river. Berdyansk sea trade port located on the Azov Sea represents the sea gate to Zaporozhye region. Terminals and other equipment allow it to accept and store all types of freights except for fuels, as well as serve all types of ships, including ocean and river ships. All modern types of telecommunications are developed in the region. An extensive telephone network is present in the region. Digital telephone exchanges have been introduced. At present all settlements with more than 8 ths. residents have Internet communication. EWSD and 5ESS exchanges, which were commissioned over the last years, secure reliable and high-quality long-distance and local telephone communication. Zaporozhye region tops the list of Ukrainian regions by level of telephone installation per capita. Services of mobile (cellular) communications provided by leading operators Kievstar, UMC, DCC, Golden Telecom, and Astelit are actively developing in the region. Examples of companies with foreign investments in the regionNo image created to attract foreign investments can be considered complete without pointing to specific examples of actual programs, including developed local infrastructure, previous successful business projects, etc. Zaporozhye region has achieved certain successes and is among leading regions in this respect. Specifically, according to preliminary information, the aggregate volume of foreign investments to the regions as of January 1, 2006 amounted to USD 579.16 mn including USD 563.35 mn of direct investments and USD 15.81 mn of portfolio investments. The volume of direct foreign investments per capita constitutes USD 301.29 (one of the highest amounts in Ukraine). The following companies operate the most successfully in Zaporozhye region among companies with foreign capital (more than 260 companies):
Uniqueness of the oblast (natural resources, climatic conditions, etc.)Zaporozhye region has a beneficial economic and geographical position. It is located in southeastern part of Ukraine and borders on Kherson, Dnepropetrovsk, and Donetsk regions. The southern borders of the region are washed by the Azov Sea. Its coastline on the borders of the region exceeds 300 km. The territory of the region is 27.2 ths. sq. km (4.5% of Ukraine’s area). The region stretches for 208 km from north into south and for 235 km from east to west. The distance between Zaporozhye and Kiev, the capital city of Ukraine, is 715 km by railway and 618 km by highway. Geographically the region is divided into three natural and agricultural zones: steppe (50.8%), arid steppe (34.8%), and dry steppe (14.4%). The natural and climatic conditions of the region make it possible to grow almost all crops with high yield. The region’s climate is moderate continental with a clearly defined dry season. Average summer temperatures reach 22 oC and winter temperature amount to –4.5 oC. There are 225 sunny days in the region on average, with precipitation constituting 448 mm. These climatic conditions are integral to the fullest development of agriculture, resorts, and tourism. Prairie landscape is peculiar to the region. Black earth prevails in soil composition. Mineral resources are rich and various. There are significant reserves of iron and manganese ores, as well as granites. The share of the region in aggregate reserves of Ukraine mineral resources are as follows: pegmatite – 88.06%, apatite – 63.42%, manganese ore – 69.1%, secondary kaolin – 22.9%, and fire clay – 8.6%. 109 rivers cross the territory of the region, including the Dnepr, the third largest river of Europe. It is an important transportation waterway for Ukraine. The Dnepr River supplies region industries with water through a number of reservoirs. The population of the region as of January 1, 2005 amounts to 1,877.2 ths. people (4% of the total Ukrainian population, 9th place). More than 42.0% of its population (847.8 ths. people) live in the city of Zaporozhye, which is an important industrial center and holds a key place in the social and economic development of the region. |