Modern economic POTENTIAL OF UKRAINE

Back to "Investments"

Investment portrait of Kherson region

Kherson region is situated in the steppes of the Dnepr's undercurrent (Southern Ukraine, Prichernomorskaya plain). It is washed by Black sea and Sea of Azov as well as Sivash (so called Rotten Sea) and Kakhovskoe reservoir. There are 19 rivers flowing in Kherson region. The longest ones are Dnepr (178 km) and Ingulets (180 km).

The climate is continentally temperate, dry. Average temperatures during the year are +22.4 °Ñ in the summer and -2.1 °Ñ in the winter. The highest temperature in the summer is +40 °Ñ and lowest in the winter is -31.5 °Ñ. The frost-free period in the region averagely lasts for 179 days during the year. Average rainfall is 300 – 420 mm. The vegetative period lasts for 200 days. The north of the region lies in the southern part of the black earth belt with loess subsoil. The soil changes to dark chestnut and chestnut soil partially with solonetz further to the south. The solonetz and alkali soil are typical for the Black Sea and Sea of Azov coasts.

Kherson region is contiguous with Zaporozhye region in the east, with Nikolayev region in the northern-west, and with AR Crimea along side the Sivash and Perekop isthmus in the south. There is a part of the state's border situated in the region with length 458 km, including 350 km in Black Sea and 108 in Sea of Azov. There are 4 check points – air port, river port and sea ports in Kherson and Skadovsk.

Regulatory environment

Regional state administration together with other local authorities is constantly conducting work with the aim of improving Kherson region's image and informing investors about the prospective investment and innovation projects.

While conducting this work, administration is broadening its international cooperation network. It is regularly keeping in touch with representatives of diplomatic corps, trade missions, international organizations and also companies which are willing to cooperate in the different segments of regional economy.

With the aim of implementing the innovations and investment national policies in the region Regional program for innovations and investment stimulation 2005-2007 was adopted by Kherson regional council in June 2005.

The major goal of the Program is to form an attractive investment environment and improve the investment infrastructure. Achieving this would provide sustainable economic development and improving of living standard in the region. The program also aims at upgrading the coordination between local authorities and local business which should benefit in growth of investments into regional economy. The top priorities of innovations and investment stimulation as well as the mechanism of the policy implementation are all pointed out in the Program.

The priorities were set according to the features of the regional social and economic system, namely the characteristics of agrarian-industrial complex, attractive geographic and climate features, as well as the developed transport infrastructure. All regional priorities were synchronized with innovations and investment national policies. As a result there were a number of priorities pointed out in the Program. These are "Agricultural region", "Full food support", "Development of recreation and tourism complex", "Transport junctions", "Energy supply and energy savings", "Innovation structural changes of the industry" and "Improvement of the living standards".

A special constantly updated web site called "Investments in Kherson region" was developed in Ukrainian, Russian and English. The web site is dedicated to historic and cultural assets of the region, its industrial and tourist potentials. It provides the information on the wide range of regional exhibitions and forums aimed at inviting the national and foreign investors.

Recreation resources and treasures of the soil of Kherson region.

Recreation resources of the region are the embankments and beaches, Ingulets and Dnepr rivers, Kakhovka reservoir and also a good deal of the sun and the warmth.

There is a wide range of different kinds of mineral waters many of which can be used in balneology.

The surface water of lakes and estuaries contain iodine, bromide, boron, and sodium chloride. The minerals from the silt may also be used in balneology. For example, the curing mud of the Golaya Pristan lake in the town of Gopry has a storage of 106,652 cu. m, which is used for medical treatment at the moment. Deep under the water of the lake there is storage of curing mud with capacity of 0.1 – 1.1 meters.

Ustichnoe Lake is situated in Skadovsk district. The capacity of the curing mud is 0.5 meters. The lake is said to have the great mud cure potentials.

Other lakes that contain curing mud are the ones situated on the coast of Sea of Azov. They are Genicheskoe Lake, Salkovo Lake, Liman Lake, Chokrak Lake, etc.

Genicheskoe Lake is situated 10 km to the south of Genichesk on the Arabatskaya Strelka. The extent of the lake is 4.1 km, maximum width is 3 km, and the depth varies from 0.1 m to 0.4 m. The greater part of the lake is covered with layer of halite and mirabilite of white and pink color. Under this layer there is a stratum of a black, glutinous, pliant, glittering mud with a smell of sulphuretted hydrogen. The average density of the mud is no more than 0.2 m, only in the central part of the lake's bottom is reaches 0.6 m. The storage of the mud is 1,623 ths. tons.

Salkovo Lake is situated 14 km to the northern-west of Genichesk. The brine of the lake contains a great deal of mineral salts. The bottom of the lake is covered with the crust of salts under which there is a layer of a black, glutinous, pliant mud with a strong smell of sulphuretted hydrogen. Due to the high concentration of the salt the mud layer contains crystals gypsum and halite. The lake needs to be filled with water from Sivash. Otherwise it will be impossible to use the mud of the lake for medical treatment.

The prior calculations showed that mud deposits total 501.3 ths. cu. m, which can be recommended for the mud curing institutions.

Liman Lake is situated 12 km to the east of Genichesk in Frunze village. The maximum depth of the lake is 0.4 m. The bottom of the lake is formed by brimstone, glutinous and pliant clay, on the top of which there is a layer of a black, fine-dispersed mud with a strong smell of sulphuretted hydrogen. The capacity of the mud is 0.1 – 0.8 m.

Chokrak Lake is situated in the outskirts of Strelkovoe village (on the Arabatskaya Strelka). The bottom of the lake is covered with a layer of brine on the depth of 0.45 m. Under the brine there is a thin layer of loamy soil (3 cm), further down there is a black, oily mud with a smell of sulphuretted hydrogen sulphuretted hydrogen. The capacity of the mud is 0.15 – 0.2 m. The storage of that mud is not calculated yet.

The eastern Sivash was analyzed by the Institute of balneology in the region of Genichesk. Numerous channels, harbors and bays of Sivash contain dark-grey and black pliant mud with a smell of sulphuretted hydrogen and a mixture of organic remains. The capacity of the mud is over 0.2 m. The mud is covered with a layer of water. The maximum depth is about 1.0 – 1.2 m.

In addition to the mud there is also storage of mineral water in the region.

There is a storage of the chloride-natrium mineral water of the upper sarmat period limestone in the Kherson city area. This water is similar to "Narzan" mineral water. The depth of the drilling hole is 85 m; the discharge is up to 200 cu. m/kg.

Another mineral water source of Genichesk area is situated in Petrovka village. Its mineralization is close to Berezovskaya mineral water. There are also thermal water resources found in Genichesk area. A balneology institution could be founded on the base of it. The discharge of the drilling hole is 150-200 cu. m per day.

Prisivashye area belongs to the territories with high thermal regime. The water here contains a lot of iodine (29 mg/l), bromine (79 mg/l) as well as boron and it can be successfully used in balneology. In Arabatskaya Strelka there are thermal waters with a temperature reaching 55 ?Ñ at the discharge (in the area of Strelkovoe village).

There are also a number of unique natural reserves in the region sponsored by state. They are Askania and Chernomorsyi natural reserves.

Treasures of the soil

The territory of Kherson district has quite complex geological structure. The reason for this is either the presence or the absence of the certain minerals on the certain territories.

Kherson region is situated in the Prichernomorskaya cavity, with the layer of quaternary palaeogene.

The quaternary layers are full of the sand that is used as ballast filler for concrete and mortar; pebbles that are used for building roads as well as clay and loamy soil storage which is widely used in brick and tile production.

The widest spread mineral is a limestone of the different periods, technical and chemical characteristics.

Stone building materials of the region are represented only by carbonates – limestones of the pontic, meotic and sarmat layers of Neogene.

Those layers are coming to the surface of the original ground in Dnepr and Ingulets rivers' valleys as well as in the gullies of their confluents.

The total storage is:

  1. The sawn stone – 18,773 ths. cu. m.
  2. The limestone for lime slaking – 50,416 ths. cu. m.
  3. The limestone for rubble and crushed stone – 1,754 ths. cu. m.

Construction sands. There are numerous developed pools of sands belonging to the sarmat and quaternary periods. Sands of the sarmat period lay on the depth of 10 m with the capacity up to 10 m.

The sands of the quaternary period are represented by the following types of deposits: superficial, forming the terraces of rivers, beaches and the banks of the estuaries as well as Black Sea and Sea of Azov coasts; atmogenic, dunes that are mostly developed in the southern part of the region, on the left side of Dnepr.

The developed pools of the sand are useful for the mortar and sand cement production.

The total storage is:

  1. Yellow sands and the sands for silicate goods – 131,424 ths. cu. m.
  2. Sands for masonry and plaster mortar – 442 ths. cu. m.

There is one deposit of ballast raw materials and special road-oil sand for concrete production and one deposit of cement raw materials.

Raw materials for brick and tile production. Excluding deltas of the rivers and dunes of so called Oleshkovskie sands, the whole territory of the region is covered with loamy soil of the quaternary period that is used for brick production.

The dune sand is used for silicate brick production.

There are deposits of loamy soil used for clay tile production. In that deposit one may find pure loamy soil as well as loamy soil in furnace with combustible admixtures or foxy clay.

The balanced storage of the brick and tile raw materials in the region totals 18,974 ths. cu. m.

Manganese ores. Osokorivskoe deposit of manganese is located in the north-western part of the region.

Selected part of it is a stripe 20 km long and 6.5 km wide. It covers the territory of 130 sq. km. Average power of the ore is 1.2 m. The depth of the deposit is 70.8 – 130.3 m.

Approximate supplies of selected part are 312 mn tones.

Deposits of ilmenite and zirconium are located on the Dzharilgach Isle, separated from the northern shore of Black sea by Dzharilgach channel and separately on the contiguous continental sections.

Industrial deposits: zirconium – A+B+C1 – 7,307.1 tons, ilmenite – A+B+C1 – 31,440.1 tons.

Oil and burning gases. There are no industrial deposits in the area, but there are some favorable structures and signs of oil and gas in the region contiguous to the Azov sea, where complex geophysical researches took place.

Showings of gas and hydro chemical factors near well-known Priazovskiy gas-containing region prove the high prospective of gas-contains on the territory of Prichernomorskaya hollow. The deposit of gas is discovered in the area of Strelkovoe village, where the estimated supply is 800 mn cu. m.

Fuel resources of the region are rather poor and there are no geologic presuppositions for any extension. There are 3 deposits of peat in the area (Kardashinka village in Golopristanskiy region) with the capacity of 21.23 ths. tons.

Chemical raw materials. The source of raw materials of modern iodide industry is based on groundwater. Today none of the deposits of iodide water on the territory of Ukraine are developed due to the lack of auspicious conditions for evacuation of discharged water.

Severo-Sivashskoe deposit of iodide water is discovered in the region. The evacuation of the water of industrial iodide production is possible through the northern and the last reservoir of the lake Sivash. Annual quantity of discharged water would form only 2-4% of total quantity of water in these reservoirs. That would have minimal effect on hydrologic and hydro chemical conditions of the lake Sivash and would not effect functioning factories of complex processing of brines. Moreover, 375 ths. tons of natrium chlorine and 1.2 ths. tons of bromine would fall into the lake annually.

Feasibility calculation shows that exploitation of the deposit is estimated to be profitable. It could supply the source of raw materials for a iodide factory with annual production of 450 tons of iodide.

The lake Sivash is one of the largest "leach" lakes, containing natrium chloride, magnesium chloride, calcium chloride, bromine chloride, and other components. The supplies of the salts of the lake are pretty big (200 mn tons). These are nearly inexhaustible, because of the permanent refill from the waters of Azov sea.

The concentration of the salts in the water of Sivash is annually 12-15% of the whole area of water and in some parts it reaches 24-25%. Such concentration is caused by the sun radiation under conditions of southern region and is 5 times as much as the concentration in Azov sea, as well as 8-15 times as in the Black sea. It has a great importance for developing the economy of the country and is a powerful source of raw materials for chemical and metallurgic industry.

The examples of the companies with foreign investment in the region

As of January 1, 2006 direct investment to 122 regional enterprises grew by 28.4% comparing to the last year and came to USD 90.4 mn.

During 2005 foreign business directly invested USD 17.5 mn into the economy of the region, including the money on deposits (USD 11.5 mn – 65.7% of total payments), movables and real estate (USD 5.1 mn – 28.8%), and reinvested incomes (USD 0.9 mn – 5.5%).

Kherson region is a great agricultural area of Ukraine and it has become really attractive for the foreign investors during the last years. One of the vivid examples of the companies with foreign investments is "Chumak". The company is well known not only in Ukraine, but also outside the country for its high quality canned goods, numerous kinds of ketchup and mayonnaise. The company's production is meeting quality requirements and standards of the European Union. The victories at the different international quality competitions is a wonderful illustration for this.

Another example of successful combination of European experience and capital and Kherson's natural and human resources is Ukrainian-German joint venture called "Fleming+Vendeln Ukraine". The company started with exporting the grain-crops. After some time the company has changed its strategy and besides to trade operations began to grow and process grain crops.

The other prominent enterprises of the region are LLC "Mechanical plant", LLC "Agricultural", "Vedantic environmentally clean farm Maharishi", LLC "Agroinvest", LLC "Khersones", etc.

Back to "Investments"


 
© UkrDZI, 2006