In the south of Ukraine, in the downstream basin of the South Bug there
is Myikolayiv oblast (district), which occupies territory of more than
24.6 thous. km2, which is 4,1% of the total Ukrainian territory.
In the west, north, and east the oblast borders three other Ukrainian
oblasts: Odessa, Kirovograd and Kherson oblasts. In the south its
territory occupies a few hundred kilometers of the Black sea coast with
marshes. In that place the coast is deeply cut by Dnieper-Bug,
Bug-Berezan and Tyipigul marshes, which create an amazing plexus of
Speaking about the natural conditions, the oblast is located within the
borders of 2 physico-geographical zones: forest-steppe (Kryivoozersk and
western part of Pervomaysk region) and steppe (the rest of the
territory), predominantly within the borders of the Black sea lowland.
85 rivers flow through the territory of the oblast. They belong to the
South Bug and the Dnieper basins. The biggest rivers are the South Bug,
257 km long (on the oblast territory), Ingul 179 km, Ingulets 96 km.
Dnieper-Bug marshes have 63 km of the cost cut, Tyipigul marshes – 60
km, Bug marshes 42 km, Berezan marshes 26 km. On the oblast territory
there are many artificial lakes, which have the total area of the water
surface more than 13 thous.hectares. Rivers and artificial lakes are
used, principally, to irrigate agricultural lands and for fishing.
The climate of the oblast is moderately continental with mild, little
snow winter and hot dry summer. Annual average temperatures are: in
summer: +21.1°C, in winter: -2°C. Average annual rainfall fluctuates
from 330mm. in the south to 450mm in the north. Soils: in the north
ordinary black soil, in the south southern black soil of chestnut and
dark chestnut colors.
More than a hundred big and small nations dwell on the oblast territory.
The majority of the population is made up of Ukrainians more than 75%,
and Russians – 20%. Among other nations one can find Moldavians,
Bulgarians, Greeks. Such a population composition is very favorable for
setting up good relationships with different countries.
As of December 5, 2001 the total population of the oblast was 1,251.5
thous.people, out of which 66% (838 000 residents) are urban residents.
Administratively the oblast has been subdivided by 19 regions. All in
all there are 934 settlements in the oblast, out of which 26 are towns
and 908 villages. Among towns there are 5 towns of the oblast scale:
Yuzhnoukrainsk, Pervomaysk, Voznesensk, Ochakiv and Myikolayiv.
Mineral resources in the oblast are represented by considerable deposits
of construction materials: construction stones more than 627 mln.cub.m.,
granite, which is famous for its wide spectrum of colors and high
decorative qualities 51.3 mln.cub.m; sawed stone 72.3 mln. m3; cement
components 60.7 mln.ton, tile components 48.1 mln. m3; construction sand
123.7 mln. ton. Deposits of limestone 16.4 mln. ton, kaolin 113.6 mln.
ton, road construction materials etc. are also of industrial importance.
Total area of forest covered areas reaches 70 thous. hectares out of
which 38 thous. hectares are pure forests. 1.5% of the oblast territory
is covered by forest. The major tree types are oak, pine, white acacia,
Sea sand beaches are the major natural recreational resources. They
stretch to cover 70 km. Picturesque landscapes of the southern Bug and
numerous artificial lakes, spa water fountains with the prospected
exploitation reserves up to 1 mln. m3 per day, geological reserves of
medicative mud, especially in Tyipigulskiy and Beikushanskiy marshes,
equal to more than 2 mln. m3.
The region is known for its lengthy warm period with the average 24h.
air temperature on the sea coast to be more than 15°C. More than 11
thous.ha of forest are used as recreational site, including 4 thous.ha
of «green» areas around towns.
Economic potential of Myikolayiv oblast is a compositional part of the
Ukrainian economy as a whole. It is represented by powerful multi-branch
industry, developed agricultural-and-industrial complex, well developed
transportation network and developed sea-port economy. The oblast
industrial potential is mostly centered in 5 towns. Their share in total
oblast industrial output is almost 95%.
Myikolaiv is the center for machine-building industry, including
shipbuilding, non-ferrous metallurgy, food and light industries, where
more than 60 big enterprises are functioning with the share in the
oblast industry output of more than 51%. Three sea ports and a river
port are functioning there. They are equipped with modern gntries and
other equipment. Technical capacity of the trading sea port to process
different freights reaches 9 mln.ton annually. Navigation lasts all year
In Yuznoukrainsk there is a nuclear power station, which produces 35% of
the oblast electric power.
Pervomaysk profiles in diesel engines and diesel generation production,
in agricultural machinery production, production of sugar, milk
preservatives and products of sewing industry.
Voznesensk is profiling in the production of leather, shoes, food and
products of sewing industry and Ochakiv is famous for fish
Agriculture is second in output and first in employment branch in the
oblast economy. 1.3 ha of cultivated land falls on every oblast citizen
and theoretically, every person, occupied in agriculture, has 11 ha of
plowland. These features of Myikolayiv oblast open up great
opportunities for investment in agriculture with the aim to employ
industrial know-how, powerful and highly efficient machinery.
The oblast has substantial export potential. The district enterprises
keep business relationships with partners from 101 countries. In some
years Myikolayiv oblast share in Ukrainian export is 3.6%. Alumina is a
substantial part in the oblast export structure. In addition to alumina
the oblast exports ships, mechanical equipment, leather, vegetation
products, etc. Import structure is primarily made up of bauxite, oil
products, chemical industry products, etc.
The leading oblast profile is ship-building. The biggest enterprises of
this branch are 3 major ship-yards:
State Joint Stock Holding Company «Chornomorskiy shipbuilding Yard»;
State Enterprise «Shipbuilding Yard named after 61 Communards»;
Open Joint Stock Company «Damen Shipyard Ocean».
The major products of these powerful enterprises are tankers,
freighters, container ships, refrigerators, trawlers, ship-hotels,
Ship-building branch has been nominated in Ukraine as the prioritized
one. It has a very big export potential. 13 July 2000 the Ukrainian law
«About Special economic Zone «Myikolayiv» was adopted. The oblast
dwellers hope that implementation of that law will provide for the
A number of companies, which ensure production and installation of
technological equipment on ships, also belong to this branch. Among them
we find JSC «Era», «Crystal», «Equator».
Production amalgamation «Zorya» produces gas-turbine engines of 16MVt
capacity, updated gas transporting units for compressor stations,
reducers for wind power generating units and steel works, foundry and
forging products, welded metal constructions, consumer goods.
Scientific-production amalgamation «Mashproject» designs and produces
multi-profile gas-turbine engines, which are used to equip ships, to
transport natural gas and to generate electric power.
JSC «Pervomayskiy zavod «Dieselmash» produces diesels, diesel-generators
Non-ferrous metallurgy also plays an important role in the oblast
industrial potential. It is represented by one of the biggest in Europe
aluminum producers JSC «Mikolayiv Alumina Plant».
In Myikolayiv there is a single in Ukraine plant to produce asphalt
laying and filtering equipment, «Dormashina». Pervomaysk plant «Fregat»
provides Ukraine with sprinkling machines of the same name.
The oblast also holds a number of electro-technical and electronic
enterprises, which are staffed with highly qualified personnel. These
are the JSCs «Ingul», «Fakon», «Edmma».
Myikolayiv oblast light industry produces up to 8.8% of the total
Ukrainian light industry output. It is represented by big sewing
enterprises, which produce mens, womens and childrens wear. They are:
JSCs «Evis» (Myikolayiv), «Santa-Ukraine» (Pervomaysk), private firm
«Victoria» (Voznesensk); knitted and haberdashery products JSCs «Aura»
The most competitive company in the area of producing natural skin is a
CJSC «Vozko» (Voznesensk). Its share in Ukrainian leather output is
almost 50%. Modern equipment and technologies provide for manufacturing
annually 350 mln.sq.dm of high quality leather. The leather produced by
the company is used by big Italian, Slovakian, Spanish, Canadian and
Russian companies for the upper part of shoes
JSC «Niko» is a footwear producer. This company produces updated
footwear models and is ready for international cooperation. OJSC
«Nikkozh» is busy with producing leather for upper and inner parts of
footwear, and belts.
A chain of enterprises to process the gifts of the sea functions in the
oblast. The biggest company of such type is JSC «Ochakiv Fish Cannery»
with annual capacity of 16 mln. conditional cans. This company products
are of increased demand.
Food industry holds one of the prioritized positions in the oblast. Its
share in the state industrial output is more than 2.2%. Meet processing
industry is based on agricultural products processing capacities, which
help manufacture up to 220 ton of cattle and 27 tons of poultry per
Milk acceptance and processing are carried out by 12 enterprises, out of
which the most powerful are: JSCs «Laktalis Ukraine», «Pervomaysk Milk
Factory», Voznesensk and Bashtan Cheese Plants. Production capacities of
all the companies are calculated to produce every 24 hours 32 tons of
butter, 270 tons of milk products and 96 conditional cans of milk
Production of flour, bread and macaroni products is carried out by the
companies «Elevatorzernoprom», JSC «Nikma» and by 131 bakeries.
Production capacities of the JSC «Gileya» and «Shelton-Myikolayiv» help
manufacture every 24 hours up to 10 thous. tons of sugar beets. In the
region there is also a company «Sandora», which produces different
beverages, canned juices and light wines. JSC «Nectar» produces such
products range as confectionery goods, mayonnaise, vinegar and
Wines, produced by the JSC «Cobleve» (village Cobleve) and beer,
produced by JSC «Yantar» (Mikolaiv) are well known and won highest marks
among Ukrainian consumers.
Except Myikolayiv liqueur & vodka plant and oblast communal
trade-production company «Frost» all the companies of light and food
industry have been privatized.
GENERAL CHARACTERISTICS OF THE «MYIKOLAYIV FREE ECONOMIC ZONE (FEZ)»
1. FEZ territory
Special economic zone «Myikolayiv» was set up within the limits of land
sites, where Myikolaiv shipyards are located:
state JS holding company «Chornomorsk ship building plant» (the area is
340 ha, including 43 ha of the South Bug water area);
OJSC «Damen Shipyard Ocean» (area is 240 ha, including 30 ha of the
South Bug water area);
state enterprise «Ship building enterprise named after 61 communars»
(area is 160 ha, including 40 ha of the South Bug water area) and the
adjacent territory with the total area of 120 ha, belonging to
Myikolayiv city council.
2. Production capacity
Myikolayiv plants are highly experienced in ship building and have
considerable technological potential. If using this potential, even
without making investments into production capacities, plus the
necessary working capital, it is possible to get annually the output of
400-500 thous. tons of dead weight on the condition of utilizing a
complex cooperation program to build up ships. With the great experience
in high tech production, the plants are able to perform orders of the
Myikolayiv shipyards have a specific feature: availability of two
production lines for making 30 average tonnage ships annually, depending
on the type of the ship. Big tonnage ships are produced with the help of
the method, which stipulates pre-building berth increase of the
constructions up to 500-1500 tons, which considerably decreases the
FEZ «Myikolayiv» has a specific feature: performers on the territory of
FEZ are permitted to use available production capacities and
infrastructure elements of the ship building complex for own needs on
contract conditions, which releases investor from the necessity to build
up new capacities and accelerates deployment of his production.
At investors services there are numerous well-equipped store-houses with
the total area of 264 thous.sq.m., shop premises with the area of 2
thous.sq.m. together with amenity and administrative buildings, equipped
with cranes and rail ways, mooring lines and other means.
The plants territory is staffed with engineer networks in the volume,
sufficient to deploy new types of production capacities for
machine-building and instrument-building profile, agricultural products
and food processing lines without hampering the plants primary
The available power supply network provides for transferring additional
power, necessary for setting new production lines in the volumes of
20-25 MVt even without considering the power supply capacities, which
exist outside the plants.
FEZ territory is located within the limits of one
administrative-territorial unit and is 69 km. away from the Ukrainian
sea border-line. It has a water route to the outside world.
The area, delineated by law for FEZ, is located on the periphery of
residential areas, has a pass to the coast of Bug marshes, has a ship
passage, which is usable for sea ships. All the areas of the zone are
connected between each other by the city and oblast transportation &
3. Benefits, awarded to the subjects of FEZ «Myikolayiv»
According to the Ukrainian law «About Special Economic Zone «Myikolayiv»
Ukrainian legislation will act for the period of its existence (30 ears)
with consideration of the specific features, stipulated by the aforesaid
FEZ «Myikolayiv» subjects are the subjects of entrepreneurial
performance legal entities, who are located on the territory of FEZ and
implement on this territory investment projects in the prioritized
branches of economic performance according to the contract pertaining to
the implementation of that investment project. Those legal entities must
be registered with the office of FEZ management.
All the subjects of FEZ are to have benefits in paying import duty, VAT,
profit tax and land tax.
Benefits, determined by the Ukrainian legislation:
1. Discharge from paying import duty for raw materials, property,
equipment and completing parts for the period of investment projects
implementation, but not more than for the period of 5 years, when
carrying them into the territory of FEZ for the needs of own production,
related to the implementation of the investment projects (except the
2. Discharge from paying VAT for the period of the investment projects
implementation, but not more than for the period of 5 years, from the
imported property, equipment and completing parts (except the excisable
products) which are to be used by the subjects of FEZ for their own
production needs, related to the implementation of the investment
3. In case of setting a special customs zone on the territory of
shipyards, which is stipulated by Article 9, Ukrainian law «About
special economic zone «Myikolayiv», FEZ subjects, located within the
limits of those special customs zones, are released from paying import
duty and VAT for the products and other items, imported to the special
customs territory from abroad
4. Discharge from paying export duty and VAT by the zero rate for
products and other items (except the excisable items) in case they have
been brought from the Ukrainian customs territory to the special customs
zone for their utilization within FEZ due to production needs
5. Discharge from paying VAT by the zero rate for products, services,
works if they are sold within the FEZ limits in the framework of
6. 3 years release from paying profit tax, generated in FEZ due to
implementation of investment projects, approved by Myikolayiv oblast
7. Profit tax, generated between the 4th and 6th years inclusive from
implementation of the investment projects, approved by the oblast state
administration, is taxed by the 50% rate of the current taxation rate.
8. Discharge from paying profit tax from a part of the profit, generated
by ship-building enterprises, participants of FEZ, if this part of the
profit is directed to develop production capacities within the framework
of the investment project to be implemented during 10 years, beginning
from the 4th year of the project implementation
9. Total discharge from paying land tax for the period of the investment
10. Revenues in foreign currency generated through sales of products,
works and services, produced or rendered within FEZ, are exempt from
In the process of FEZ development these prioritized types of performance
could be specified within the limits of the priorities, indicated by the
Article 6 of the Law on FEZ:
in food processing industry and agricultural products processing;
in house construction, power generation and transport;
in machine and instruments building;
in all types of production performance, related to ship-building.
Agriculture is 2nd by output and 1st by employment industry in the
oblast. The area of agricultural grounds is 2.01 mln.ha, out of which
cultivated grounds make 1.7 mln. ha.
The structure of agricultural production is vegetation-cattle. The major
crops are grains and industrial crops (sun flower, sugar beets),
vegetables, melons and gourds. Gardening and wine growing are also well
Vegetation is well developed and fodder crops hold an important
proportion in it, which is a good foundation for cattle-breeding, having
dairy and meat direction.
In Myikolayiv oblast there is a powerful transportation system, which
includes railway, sea, river, automobile, air and pipeline transport.
Within the oblast limits the exploitation length of railways is 700 km.,
out of which 33.6% are electrified. All the lines mainly provide for
transit shipments. On the oblast territory there are 53 railway
stations, out of which Myikolayiv, Voznesensk, Pervomaysk-on-Bug,
Kolosivka, Snigurivka are the biggest.
Automobile transport plays an important role in inter-city and
inner-oblast transportation. Transport highways of Odesa, Kyiv and
Crimean directions pass through Mykolayiv. They also make a part of such
international through-passages as Euro-Asian and the Black-Sea littoral.
Important high-ways Myikolayiv Odessa Kishinyov, Myikolayiv Simferopol,
Myikoayiv Kirovograd etc. pass through the oblast territory. The length
of roads for public use is 4.7 thous. km, including 4.6 thous. km with
hard cover. The proportion of automobile transport in total volume of
goods and passenger transportation reaches 67% and 90.8%
Exploitation length of trolley lines for public use is 59.1km and tram
lines 73.2 km.
Geographic position of Myikolayiv oblast, availability of navigable
passages all these play an important role to ship goods by the sea and
rivers. Therefore, the port infrastructure and its services are a key
factor of commercial success and economic development of Myikolayiv
Navigation through the canal of Dnipro-Bug marshes is carried out by the
state enterprise «Delta-Lotsman». Its affiliate ensures navigation from
the port «Pivdennyi» (Odessa oblast) to 5 ports of Myikolayiv oblast
through the canal of Dnipro-Bug marshes and to the port in Kherson
through Kherson sea canal. The company controls the system of traffic
regulation, ensures functioning and servicing of the Dnipro-Bug marshes
and Kherson sea canals.
Myikolayiv is a powerful sea port not only in the oblast, but also in
Ukraine, where 3 sea and one river ports are functioning.
Myikolayiv sea trading port is an important transportation center in the
south. The port is connected with the Black sea by Bug-Dnipro marshes
canal of 79 km. length and stretching to Ochakiv. The admissible draught
in fresh water for that canal is 9.5 m., the admissible ship length is
215 m., its width 30 m. Ships with the length of about 187m are towed
along the canal. Navigation goes on all the year round. There are 14
berths in the port with the length of the berth line 3.3 thous. running
meters. They have railway connection, almost all of them are located
closely to storehouses, which shortens considerably time period for
transporting freight between the storehouse and ships, or to the open
concrete sites (about 23 thous. sq. m. of roofed sites and 197.3 thous.
sq. m. of the open sites). All the berths are equipped with load
carrying mechanisms: highly productive gantries with the capacity from 5
to 40 tons, auto and electric loaders from 1.5 to 25 tons, two water
cranes with the capacity of 100 t. and 5 t. The port has modern load
complexes to process loading freights, like grain or ores.
Sea port «Oktyabrsk» is a specialized port, one of the most advanced in
Ukraine. This port is suitable to service ships of «Ro-Ro» type,
container ships, ferries. It is equipped with lifting cranes of 40 tons
capacity, auto and electric loaders with the capacity of 1.5 t — 25 t.
There are 7 deep water berths with the total length of 1.9km. It is
navigable all year round, but in winter only certified ice-breakers can
Dnipro-Bug sea port is situated at a distance of nearly 14 miles from
Myikolayiv on the left bank of the Southrn Bug. This is the only port in
Ukraine, which is profiling in unloading bauxite and coal. Annually the
total volume of loading-unloading operations reaches approximately 6
mln. ton. The port has 5 berths, the depth of which is 10 meters. There
are 12 small ships in the port to perform support operations, like
navigation and mooring.
Myikolayiv river port is situated on the bank of the Southern Bug, not
far from Myikolayiv sea trading port. The river port occupies 185 thous.
sq.m. of the water area of the river South Bug with the berth length 800
running meters. Modern mechanical equipment provides for carrying out
works with export-import loads. The port can process up to 6 mln. tons
of loads. There are 7 load berths, to which rail ways are provided. It
also has 46.6 thous.sq.m. of equipped store-houses. All the load berths
have updated equipment: 13 lifting cranes (with the capacity 5-40 tons);
auto loaders (capacity 1.5 25 tons); stationery equipment to load sand
and granulated loads. The port also carries out passenger trafficking on
the local lines and can receive tourist-excursion ships, which make
river cruises by the Dnieper, Dunay and to the Crimean ports.
International airport «Myikolayiv» belongs to the largest and
technically well equipped airports in the south of Ukraine. It has
modern airstrip, and it is equipped with radio-technical, lighting and
Pipeline transport annually carries 2.1 mln. tons of ammonia through the
oblast territory. The length of the ammonia lines is 444 km.
EDUCATION AND SCIENCE
There are 487 permanent kindergartens and 583 comprehensive primary
schools, including 7 lyceums and 5 gymnasiums.
The system of vocational training is represented by 28 educational
About 21655 students get their higher education in 13 higher educational
establishments of 3rd and 4th level of certification. Annually nearly 7
thous. specialists graduate from higher educational establishments.
At present 25 higher educational establishments are functioning in the
oblast, including 3 universities:
Ukrainian state sea technical university;
Myikolayiv state pedagogic universtity;
Myikolayiv state agricultural academy.
There are 8 affiliates and faculties of the National university
«Kievo-Mogyilyanska Academia», Kyiv Slovyansk university, Law institute
of Odessa state university, Kyiv state institute of culture, etc.
630 candidates of science, 61 doctors of science, out of which 14 people
has the rank of academicians, 2 Corresponding members, 19 professors,
are carrying out scientific research.
There are 3 professional theaters in the oblast: Russian drama theater,
Ukrainian theater of music drama & comedy, oblast philharmonic society,
577 cultural establishments of a club type, about 150 cinema projectors
and 552 libraries, where there are about 10.4 mln. books and magazines.
Education of artists is carried out by Kyiv state institute of culture
and 49 music and art schools.
Natural-climatic conditions, considerable recreational resources of the
oblast provide for the further development of sanatorium and resort
branch. The region is characterized by a long warm period with the
average air temperature on the sea coast to be more than + 15deg.C.
There are about 120 territories and AONB places, regional landscape
parks in the oblast «Kinburnska kosa» and «Granitno-stepove Pobuzhya»,
part of theBlack sea conservation, nearly 19 parks, etc.
Myikolayiv zoo is considered to be one of the most picturesque in
Ukraine. It was founded more than 100 years ago. There are nearly 2,500
animals there of 350 kinds. Myikolayiv zoo, which is part of European
association of zoos and aquariums, take an active part in 14
international programs to protect rare fauna reps.
Among oblast major natural recreational resources there are:
sea sand beaches with the total length of more than 70 km;
picturesque landscapes of the South Bug banks and numerous artificial
spa fountains with the tested exploitation reserves of more than 1
reserves of medicative mud, specially in Tyipigulskiy and Beikushskiy
11 thous ha of forest are used as a recreational area, including 4
thous. ha of «green areas» around cities.
Resort establishments are located primarily in the resort zones, village
Kobleve, towns Ochakiv and Myikolayiv on the Black sea coast and its