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Modern economic POTENTIAL OF UKRAINE |
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Investment portrait of Chernigov regionSocial and economic characteristicsChernigov region is situated in the northern part of Ukraine in the Polesye region, and is covered with forest and steppe natural zones. It is a unique economic and geographical location bordering on two states – Russia (199 km of Ukraine’s border) and Belarus (227 km of Ukraine’s border) and is close to the capital city of Ukraine, Kiev. Its location on the borders gave rise to a multinational population, which consists of more than 90 nationalities and with Ukrainians constituting the majority. Chernigov region boasts a well-developed agricultural and weighty industrial potential. Woolen fabric, wallpaper, chemical fiber and threads, cord fabric, fibrous casing, fire engines, equipment for agroindustrial and oil extracting industries – this is only a list of goods with Chernigov-made trademarks well-known both in Ukraine and beyond its borders. More than one third of all-Ukrainian linen, as well as a significant portion of its potatoes, grain, milk, and meat is produced in the region. Access to a promising sales market, professional employees, weighty industrial potential, and riches of the land are the main advantages which secure the investment attractiveness of the region. Ancient Chernigov is famous, with a lot of eminent historical and architectural monuments from the XI-XII and XVII-XIX centuries. More than 200 of them are of world-importance. Meanwhile, people are the core value of Chernigov Oblast. Their fatigueless hard-working hands preserve the past, shape the present, and render the future. The territory of the region is 31.9 ths. sq. km (5.3% of the territory of Ukraine) with its administrative center in the city of Chernigov. The region consists of administrative and territorial units over 22 districts and 3 towns within the region’s administration (Chernigov, Nezhin, and Priluki). The population consists of 1,225.2 ths. people with the density of the population amounting to 38.4 people per sq. km. As to mineral resources, there are significant reserves of peat, brick and tile raw stock, phosphorite, and bischofite. Pattern of regional economy by industries
Industry makes up 43.6% of the region’s economic pattern, while agriculture amounts to 30.6%, trade and services – 13.5%, and construction and social sphere – correspondingly 7.8% and 4.5%. AgricultureApproximately 40% of the total employed population works in agriculture. The territory of the region is divided into two zones – Polesye (forest zone) and the forest and steppe. Polesye occupies two-thirds of the territory. Ploughed land makes 64% of the total agricultural lands with 29.8% as hayfields and grasslands, and 5.0% left fallow. Pattern of agricultural lands
Financial, monetary and credit sphere Market infrastructure has been formed in the region in the process of reforming and privatization. The following are the main establishments of the system:
TourismAncient Chernigov region is famous with a lot of eminent historical and architectural monuments of XI-XII and XVII-XIX centuries. More than 200 of them are of world importance. It is a reminder of extraordinary role of the Chernigov principality in the formation of Kievan Rus as the first Slavic state. Favorable climatic conditions, a diversity of flora and fauna, and the presence of more than 600 natural reserves make the territory of the region attractive both for short and long-term visits. Foreign economic relationsForeign economic activities are conducted with 89 countries of the world. European states (Germany, Poland, France, and Lithuania), the CIS (Russia, Belarus), Turkey in Asia, Malawi in Africa, Brazil and the USA in Americas, and Australia in Australia and Oceania are among the main partners of the region. Pattern of Chernigov region export
Investments to the economy of the regionThe total foreign capital in the region economy exceeds USD 100 mn. The share of foreign capital that was invested into Chernigov region is small in the context of the total volume of direct foreign investments to Ukraine, making 1.1% of the volume. Investments were put into 53 companies in the region (more than USD 80 per capita). Five countries are the main investors in the oblast: Germany (USD 42.4 mn), Great Britain (USD 24.7 mn), Belgium (USD 14.4 mn), Turkey (USD 2.9 mn), and British Virgin Islands (USD 2.9 mn). These investments are approximately 92.5% of the aggregate direct foreign investments in the region. The most capital was put into the towns of Priluki (USD 43 mn) and Chernigov (USD 42.9 mn). Insignificant investments were put into companies in Nezhin, Bakhmach, Bobrovitsa, Kozelets, Koryukovka, Menskiy, Repkinskiy, and Chernigov districts. Companies in the food industry and for processing agricultural produce remained the most attractive for investments in the region. USD 65.1 mn (69%) of the total investments was directed to this sector. USD 19.5 mn (20.7%) was invested into companies in the construction industry, USD 3.9 mn was put into agriculture, and USD 5.2 mn was directed to the wholesale trade and mediation in trade. The following companies are the largest enterprises with foreign investments:
The main investment needs of the region’s economy first of all relate to upgrading production in the processing industry and light industry, the creation of capacities with the newest technologies to process agricultural produce, potato, vegetables, pasta, oil, mineral water, heated construction structures, and the development of the tourism and recreation industry. First of all, though, there are enterprises in the meat processing industry, a number of sugar plants, implementation of new technologies of flax fiber processing on the basis of its cottonizing, packages production to satisfy the demands of the region’s producers, and technical upgrades to certain products. Large deposits of chalk, bischofite, as well as recreational resources are practically not involved in business activities. The services sector, specifically tourism, is very promising for investments. |
