Modern economic POTENTIAL OF UKRAINE

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Investment portrait of Rivne region

Regulatory environment

Executive bodies and local self-government institutions pay primary attention to developing of investment activities by the region’s enterprises.

By now, all 20 districts and towns of regional importance have created single registration centers and permit centers for entrepreneurs upon organization unity principle.

Projects of regulatory acts drafted by the regional state administration in the stated order are published in regional mass media, put at web site of the regional state administration, and submitted for adjusting with representative office of the State Committee for Entrepreneurship in Rivne region. Structural departments of the regional state administration organize discussions of regulatory act drafts, which involve representatives of local self government, territorial branches of ministries and departments, non-government unions of entrepreneurs, scientific institutions, and single entrepreneurial subjects – in order to determine expedience of ratifying the regulatory acts.

“Investment Passport of Rivne Region” has been published to inform investors and business partners about potential development perspectives in the area.

Web-site rivne.de, which contains information on Rivne region for potential investors and business partners from Germany and other European countries, has been developed through cooperation with German partners. A database of vacant lands, idle production spaces and backlogs for sale or rent that could be offered to potential investors is being formed.

As a result of simplification of setting in and conducting of economic activity, reduction of regulatory pressure and fence-mending of partners relationships between municipal administration and entrepreneurs, business in the region has become more active.

Infrastructure

The region is bordering on Zhitomir, Khmelnitskiy, Ternopol, Lvov, and Volyn regions of Ukraine as well as Brest and Gomel regions of Belarus.

The territory of Rivne region is crossed with 4 international transport corridors: Kritskiy No.3 (Krakovets – Lvov – Rivne - Kiev), Kritskiy No.5 (Kosin – Chop – Lvov – Rivne – Serny - Minsk), Europe – Asia (combined with Kritskiy No.3), Baltic Sea – Black Sea (Yagodin – Kovel – Lutsk – Ternopol – ports of the Black Sea).

Air transport of the region is presented by regional municipal enterprise “International Airport Rivne” and open joint-stock company “Universal-Avia Rivne Airline”.

International airport “Rivne” is a compound aeromechanic complex designed for passing, tending and output of aircrafts, providing passenger and freight traffic. It is suitable for aircrafts of all types. In December 2005 Rivne International Airport launched a new regular passenger flight Moscow (Domodedovo) – Rivne – Uzhgorod – Rivne – Moscow (Domodedovo).

Open joint-stock company “Universal-Avia Rivne Airline” provides the transfer of passengers and mail using airplanes L-410 UVP and L-410 UVPE in Ukraine, former Soviet states and foreign countries. It also offers repairs and maintenance of aircrafts.

Taking into consideration that the crossing of important Ukrainian and Pan-European transport lines is situated in Rivne region, the following segments of industry are very prospective and investment demanding: building of highways and roads for general use, railway transport, air transport and passenger motor transport.

Telecommunication infrastructure is well developed in the region. There are 19 enterprises that provide communication service. International telephone connection is provided by the company “Utel”, mobile connection by “Kievstar” and “UMC” is widespread in the area, and high performance internet connection is also provided.

Examples of the companies with foreign investment in the region

Rivne local authorities have constant contacts with partners from 26 foreign countries. Major investors are from Great Britain, Russian Federation, Luxembourg, Switzerland, and the Netherlands.

The most up-to-date glass works factory in the former Soviet countries “Consumers-Glass-Zorya” located in the region is a good example of effective influx of foreign investments. Almost USD 25 mn was invested by partners from Great Britain for building the factory. Taking into consideration growing demand for high quality products of the factory “Consumers-Glass-Zorya” inside and outside of the country, the second line of the factory was set in operation. For building of the second line USD 20 mn of loan capital from the European Bank of Reconstruction and Development was received.

With the coming of strategic investor (American company “AES”) and reforming of “Rivneoblenergo” into open joint-stock company “AES Rivneoblenergo”, no-break power supply for consumers, discipline of payments, and profitable operation of regional power supplying company have come into life.

Funds invested by the Swiss company “Sorbes Limited” into the factory “Swisspan Limited” enabled reconstruction and considerable extension of producing of high quality laminated boards. Considerable investments into the factory “Kamaz-Trans-Service” by English partners enabled replacement of old trucks with the new ones that meet European standards of environmental safety.

Due to investments by partners from Moldova Republic, the factory that produces high quality seeds of sugar-beet “Dubnosemena” has been effectively working for three years. Application of the technologies of seeds processing made this factory leading provider of the product in the domestic market.

Main characteristics of the region (natural resources, climatic conditions, etc.)

Rivne region was founded in 1939. It is located in the north-western part of Ukraine. The territory covers 20,052 sq. km (3.1% of the total territory of the country). Areal extent from west to the east is 130 km, from north to the south – 210 km. It borders Zhitomir, Khmelnitskiy, Ternopol, Lvov, and Volyn regions of Ukraine and Brest and Gomel regions of Belarus.

Rivne region is divided into three parts: Polesye, Volynskoe plateau, and Maloe Polesye. Location of Rivne area on the border of East European platform and Carpathian geosynclinal belt determined massive and polysemantic geographic processes that caused heterogeneity of the tectonic structure and forming of rather compound complex of geologic deposits in the most of the area.

Climate is moderate continental: mild winter with frequent thaws; warm, often rainy, summer. Average annual precipitation is 600-700 mm. Winter comes at the end of November. Stable snow cover forms in the last days of December – first decade of January. Summer lasts from the end of May till September. It is the period of the highest temperatures of the air and soil, the highest level of precipitation, ripening and bletting of crop. Clear, fresh weather sets in the beginning of September.

The territory of Rivne covers several natural regions and is located on the ecotone between Central and Eastern Europe. Flora of the region is rather rich and consists of nearly 1,600 species of higher plants. Many of them are presented in many places of the globe but some of the species are very rare and have a small natural habitat.

The region belongs to the East European province of European Broad-leaved-forests zone by the type of growth. Forests cover major territories (more then 30% of total territory), 10% are covered by the meadows and 7-8% - by the bogs. In Polesye pine and pine-oaken forests are most widely distributed. Mainly deciduous forest is located on Volynskoe plateau and oaken-piny forests are spread in Maloe Polesye.

Rivne area is rich in surface water. There are 171 rivers with length exceeding 10 km, more then 500 lakes, and 31 water reservoirs. Rivers of the area belong to the Pripyat’ river basin. The largest of them are – Goryn’, Stir, and the tributary of the Goryn’ Sluch. Main direction of the river flow – from South to the North – is caused by major lowering of the territories from Volynskoe plateau to the Polesye lowland. The largest lakes are: Nobel (4.7 sq. km) and Beloe (4.5 sq. km). Nobel lake is located in the flood-lands of Pripyat’. Its maximum depth is 11.9 m. There is a number of small lakes in the flood-lands of Goryn’, Stir, and Veselukha.

More than 600 deposits of variable minerals have been discovered in Rivne region: building and facing stone, chalk, kaolin, basalt, feldspar raw materials, cement raw materials, big amount of peat, sand, brick and tile materials, mineral and sweet water, etc. Some of the deposits are being under exploitation.

Lately there have been found commercial deposits of phosphate raw materials and native copper.

Rivne region is the only place in Ukraine with two developed deposits of rare stone amber.

To the far east of the region, there are 8 deposits of facing stone with the bank of 16.5 mn sq. m on the depth that is suitable for openworking. Pink and light-blue granites of Klesivskoe and Osmolinskoe fields have practical significance. The fields are now being developed and could be used for producing slabs, monuments, statues, etc. Development of the granites could be expanded. Also it is possible to increase the development of decorative stones: diorites, diabases and gabroids.

Output of basalt in Ivano-Dolinskiy deposit is also used in architectures and buildings. The region has 6 deposits of basalt that are used for rubble and road-stone. 4 of them are being under exploitation with the range of manual mining of 800 ths. sq. m.

World practice based on domestic researches provides more rational use of basalt as a raw material for producing high quality heat-insulating materials, stone casting. Goods made of basalt fiber are durable, thermo and acid resistant, and have a low specific gravity. Production of light weighted thermo- soundproofing components for ships and aircrafts using basalt fiber is set and developed in the region. There are 6 deposits of phosphorites less than 20 m deep. Experimental-industrial development of Milyatinskiy deposit was started in the second half of year 2000.

Rivne region is capable of creating a mineral-raw material base of national level in 3-4 years in case of significant investment.

The most prospective directions of mineral-raw material base developing of the region are: complex use of basalts, strengthening of amber mining, open-working of phosphorites, mining of raw materials for building, and developing of mineral water.

Administrative and territorial division of the region consists of 16 districts and 10 towns. The population of the region is 1.2 mn people, which is 2.3% of the population of Ukraine. The density of population is 59 people per sq. km. The structure of population is 52.5% of countrymen and 47.5% of urban population. There are 339.5 ths. people aged between 20 and 40 and 297.1 ths. people between 40-60.

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