Rivne Region (реферат)

Rivne region is situated in the Northwestern part of Ukraine and
occupies an area of 20.1 thousand square kilometres, that is 3.3% of the
total territory of Ukraine. The region borders on Zhytomyr,
Khmelnytskyi, Ternopil, Lviv and Volyn regions of Ukraine as well as on
Gomel and Brest regions of Byelorussia.

In the sense of political division, the region has 16 districts, 4
cities of regional and 6 cities of district subordination.

The population of Rivne region is 1.2 million people, which is 2.3% of
the population of Ukraine.

Favourable geographical position of the region contributed to the
development of road and railway networks and to the developing of its
natural resources.

The region is crossed by the highways Kyiv-Warsaw, Kyiv-Brest, Kyiv-Lviv
and Kyiv-Chernivtsi.

The airport of Rivne is available to receive all kinds of air transport.

There are more than 615 deposits of treasures of the soil located on the
territory of the region, being exploited only 80 of them. Rivne region
gives about a third of all feldspar, 20% of chalk, more than 10% of
kaolin, between 5 and 8% of facing stone and quarry stone extracted in
Ukraine, as well as basalt, raw material for cement manufacture, mineral
waters, etc. Lately the prospective for the development of the deposits
of phosphate and native copper had been developed; there are positive
showings of diamonds and precious stones. The priorities are: the
projects efficient development of more than 100 deposits of facing stone
and quarry stone, basalt, amber and phosphates. 19 of 35 located
deposits of quarry stone are being developed. In the eastern part of the
region there are 8 deposits of facing stone (pink and blue-grey
granites), situated at the depth that makes possible their open working.
It is possible to increase the extract of decorative stones (diorite,
diabases and habroides).

The forestry of the region counts with the area of 853 thousand
hectares, 794 thousand hectares is covered with forests; the total
reserve of timber is 672.1 hectares.

The leading branches of the regional economy are industry and
agriculture. The region is known in Ukraine for the manufacture of
fibreboards, plywood, chemical fertilizers, cement, amber, agricultural,
meat and milk products.

The main directions for the development of the agriculture are growing
cereals, potatoes, processing of sugar beet, long-fibred flax and
livestock breeding. The total area of the agricultural grounds is 916.2
thousand hectares.

The development of the foreign-economic activity is one of the efficient
mechanism for the solving of the tasks for economic and social
development and contribution to restructuring of the economy of the
region its districts and cities, satiation of its market with goods and
services, elevation of paying capacity of the population, introduction
of new technologies and employment of the population.

One of the positive tendencies in the region’s economy for the last four
years has been the increasing of the foreign trade turnover. Just
compare foreign trade turnover of goods and services in 2000 (163
million dollars), 2001 (181 million dollars), 2002 (235 million
dollars), and the five months of 2003 (136,5 million dollars), which is
75% (78 million dollars) more than for the same period of 2002.

During this period the export increased 57%, import 94%, respectively
62,2 million dollars and 74,3 million dollars.

The foreign trade operations with goods are performed with 80 countries
of the world, 10 of them are the countries of CIS and 70 others.

The largest volumes of exportations are directed to Russian Federation,
Poland, Italy, Germany and Byelorussia.

The prevailing exported goods are timber and wares made of it, organic
chemistry compounds, fertilizers, cereals, electric machinery, glass and
glassware.

The largest importations come from Germany, Poland, Russian Federation,
USA, France, the Netherlands and Hungary.

The prevailing imported goods are chemical products, machines and
equipment, paper and cardboard, mineral fuel, oil and oil products,
plastic and plastic ware.

It is to note that there has been a tendency to increase the proportion
of the products with high degree of processing, using latest
technologies, and the decreasing of manufacture of goods made on
commission.

The structure of goods exportation has overcome the period of being raw
appendage of the foreign trade and to a certain degree has achieved the
level of high liquid goods and deep processing.

The efficiency of foreign economic ties is greatly determined by the
structure of exportation and importation which testifies the high level
of economic development, technological progress and exporting and
resource potential of the region.

The bulk the foreign exchange operations has greatly decreased which is
the evidence of the improvement of the economic development, Ukrainian
legislation, transport-storehouse, finance and bank constituents of the
infrastructure of foreign economic ties.

The foreign investments to the economy of the region have reached 52
million dollars, coming the largest foreign investments from the Great
Britain, Russian Federation and Germany.

A special regime of investment activity in road building and civil
engineering with a flexible system of customs facilities, tax
remissions, etc. is to be introduced in the five northern districts of
the region in order to improve the investment appeal the region.

The region is interested in the development of cooperation and
partnership with potential investments in road building, civil
engineering and creating the network of joint ventures for development
modern means of communication, team work for growing and processing
agricultural products according to European technologies, manufacturing
compact agricultural machines, light industry goods and development of
the infrastructure of the cities.

COMMERCIAL OFFERS

Here is a short review of enterprises and companies of Rivne region that
we believe can be a model of the efficient activity under the conditions
of market economy.

JV “AD-Zoria”

It’s a new enterprise with modern technology for manufacturing glass
package of different shapes and capacity according to European standards
for liqueurs and other beverages. The manufacture of production that is
now exported to Russia, Moldova and Baltic countries, as well as is sent
to the home market, was started in 1998.

The goods produced by the plant were awarded with the highest prise at
the 15th business forum in Kharkiv in 2000.

“Agropererobka” Ltd

The plan has been working since March 1995 and producing the whole range
of high quality dairy products: (milk, cheese, yoghurt, sour cream)
using modern European processing lines.

A stationary mini-dairy was put into service in October 1997.

A tinned food factory was commissioned in 1998 and now it is producing
filling compounds for ice cream and sour milk products, jams, dressings,
ketchups and fruit dough containing 35-40% of dry substance.

In May 2001 “Agreopereerobka” Ltd was awarded with the diploma of the
national contest for high quality of fruit and vegetable fillers.

Production, commercial scientific-technical and innovation firm “Renome”

Main directions of activity:

Computer technologies. Development, sale and maintenance of software

In 1990 the development, supply, repairs and maintenance of
technological programmed complexes, automated workplaces, office
equipment as well as development and adaptation and introduction of
software for all kinds of computers was started. In 1993 “Renome”
created the software for the Administration of Passport Registry and
Migration of the Ministry of Home Affairs of Ukraine and for the
Consular Administration of the Ministry of Foreign Affairs of Ukraine
hat now is used in 19 regions of Ukraine and in more than 75 countries
of the world. After 5 years of work in the field of computer
technologies “Renome” has become an authorized partner of the German
company Fujitsu Siemens, the most powerful manufacturer of computer
technology in Europe.

Complex projects for banks based on the equipment of the firm and
development of software/hardware complexes for the bank systems of
self-service for the population. In 1995 “Renome” became an official
partner of the firm Sidemen’s Nixdorf, Europe’s largest producer the
bank systems of self-service for the population. The firm offers its
services for the supply, installation, linking of the bank equipment of
self-service to the local and international payoff systems.

A specialized service centre for warranty and post-warranty maintenance
of bank equipment of self-service was opened in the central and western
regions.

Construction

A new trend was introduced in 1996, energy-efficient technologies for
building, namely the Dryvit system of heat insulation and decoration of
outer walls of the buildings.

“Renome” is an authorized distributor of the concern “Dryvit” and has
the right to work and form the dealer network in Ukraine. He agreements
on sale were concluded with the firms of Zaporizhia, Donetsk, Ternopil,
Kharkiv, Poltava, Kyiv, Lutsk and Kherson were completed.

In July 2000 an agreement about dealing was signed with the German firm
Caparol, the works for the outside and inside arrangement of the
buildings are in process.

Trade of consumer electronics, Hi-Fi equipment and photographic wares
and construction materials.

In 1994 the photographic centre “Renome” was opened, since 1996 the
Technology trade Centre has been operating, where consumer electronics,
Hi-Fi equipment of the world largest manufacturers is sold. In August of
2000 two new shops were opened to sell consumer electronics, Hi-Fi
equipment? Photographic wares and cell phones.

“ODEK” Ukraina Ltd

“ODEK” Ukraina Ltd is the largest manufacturer of plywood, including
laminated plywood, in Ukraine. The history of the company dates back to
the 80-s of the XIX century when the joint stock company for the
mechanical treatment of timber was organized in Orzhev. Now the plant
has modern equipment of the Finnish company “RAUTE” with the
productivity of 50 000 cubic metres a year. Russian birch used in the
production process is the best raw material for the plywood. Among the
partners of the company there are well-known companies form Germany,
Italy, the Netherlands, Belgium, Austria, Denmark, USA, some countries
of the Northern Africa and Middle East.

“ODEK” offers its clients two kinds of plywood: polished birch plywood
and laminated plywood. The specifications for the plywood produced by
“ODEK” we made up taking into consideration international standards. The
production of the plant was certified at the Institute of Material
Testing of Brandenburg, Germany.

The commonest field where the production is used:

— Construction;

— Confection of concrete forms;

— Construction of typical houses;

— Machine building; bus construction; car building;

— Box manufacturing;

— Furniture factories.

Packing makes it possible to preserve the production during any kind of
transportation.

INVESTMENT OPPORTUNITIES

According to the statistics, the total of the foreign investments
attracted to the economy of the Rivne region achieved by July 1, 2003 52
million USD that is 10% more than a year ago. 73 enterprises residents
of the region take part in the international cooperation.

The most investments came from the United Kingdom (31 million dollars),
Russian Federation (11 million dollars), USA (2.4 million dollars) and
Germany (1.4 million dollars). The share of these countries in the whole
of the investments is 88%. 44.5 USD of foreign investments account for
each inhabitant of the region.

As examples of efficient utilization of the foreign investments for the
last years we can mention the most modern in Ukraine and the whole CIS
glassware plant JV “AD-Zoria” that produces goods corresponding to the
European standards. The plan was put into service thanks to the
investments of the European Bank for Reconstruction and Development and
of a Canadian company. The plant supplies exclusive production for a
number of Ukrainian and foreign companies.

It was foreign companies that helped to organize the supply of modern
goods and services from the JV “Rise-Invest”, from “ODEK Ukraina” LTD,
from the firm “VIC-Expo” and Klesiv State Forestry.

Thanks to the 1.2 million dollar investments from Moldova the firm
“Dubnonasinnia” LTD specialized in preparing sugar beet seed is
operating in the region.

An important issue for the region is getting funds for such important
projects as “Introducing modern technologies for manufacture of hard
thermo-insulating mineral basalt wool slabs” (“Komunenergia”),
“Reconstruction of ammonia production on the base of energy saving
technologies” (OJST “Rivneazot”), “ Introduction of manufacture of
energy saving bulbs Prolux-mini in Ukraine” (“Gasotron”, Rivne).

To succeed in solving its socio-economic problems the region is in need
of foreign investments.

According to the concept of the investment program for the steady
development of Rivne region during the period of 2001-2010 (approved by
the Head of the Regional Administration on August 21, 2001, order ? 543)
that comprises 132 projects, the need of the region for the investments
amounts to 112 million USD. The program foresees to create about 7
thousand and to preserve 13 thousand work places.

The meetings of the agents of the economical activity with the
representatives of Ukrainian and international establishments for
innovation, investment and credits were put into practice in order to
contribute to the development of the investments of the region.

The information about the investment projects and business offers of the
enterprises of the region are permanently spread at exhibitions,
business forums, through the Internet and Offices for Trade and Economy
at Ukrainian Embassies. In December 2001 Rivne region was represented at
the exhibition “Industry of Ukraine: investment potential” within the
Second International Forum of Economic Cooperation “Partnership for
consent and development”.

The main factor affecting the process of foreign investment into the
region is the lack of the steady legislative base, technological
backwardness of the most of the enterprises which produce
non-competitive goods, undeveloped regional fund market, undeveloped
system of warranties for returning funds to the investor, lack of
efficient mechanism for the protection of the foreign investors’
interests.

Being the tasks of stimulation of the market of capitals and activation
of non-bank financial establishments (pension funds, insurance and
leasing companies), the system of investment risk insurance, efficient
protection of the foreign investors’ property solved at the governmental
and legislative level, the conditions for business and investment
activity will improve.

DEVELOPMENT OF SMALL AND MIDDLE BUSINESS.

The complex support to the development of small business, development of
the infrastructure for the small business are the foreground task of the
local authorities. This matter is attended by number of bodies, such as
Rivne regional Business Centre, Centre of Regional Development, Rivne
Chamber of Commerce and Industry, Centre of Scientific, Technical and
Economic Information, Rivne branch of the Ukrainian National Fund for
the Support of Farms and 29 social associations of enterprises.

The crediting of small and middle business is effectuated by the state
and commercial banks of the region and at the expense of foreign funds.
For the last year the banks of the region granted 580 million hryvnias
to the agents of small and middle business.

Between June and August of the current year Rivne Regional Business
Centre together with Rivne Regional State Administration, representative
office of the State Committee for Business and with the financial
support of the project “BIZPRO” in Kostopil, Goscha and Radyvyliv
districts and in the city of Rivne held seminars and trainings about
opening business for the unemployed citizens who want to go in for
business.

On June 27, 2002 the meeting of the “round table” took place on the
occasion of conclusion of the project “My business – my success” run by
Volyn Business Association “21st century” and directed to the solving of
the unemployment problem and improvement of the social situation of
women of Rivne region. In the frame of the project women obtained 600
consultations on running business, 145 participants of the project were
involved in the seminars on the foundations of business undertaking. The
project was held within the program “Winrock International” (USA).

In order to energize the development of business in the region the
following foreground tasks were set:

— Implementation of new technological lines based on the complex usage
of local resources;

— Introduction of modern technologies of production, storage and
processing of agricultural products;

— Development of social infrastructure;

— Development of services for tourism (hotels, pensions, rest homes);

— Implementation of modern communication systems and information
technologies;

— Solution of ecological problems of the region;

— Training, retraining and professional development of the staff for
private enterprise.

REGIONAL COOPERATION

One of the foreground tasks in the sphere of cooperation for the region
is the development of direct ties with trade partners at the level of
regions, which will contribute to the widening of the cooperation and
increasing of goods turnover.

Up to date Rivne Regional Administration concluded a number of
agreements at the interregional level, among them the agreement about
trade and economic cooperation between Rivne region of Ukraine and
Warmino-Mazurske Province of Poland.

This agreement foresees the contribution to the establishment of joint
ventures, trade firms, commercial centres, evaluation of the possible
investment projects, establishing the system of direct currency and
financial clearing-off.

According to the prospective tasks determined at the third
Polish-Ukrainian forum held in Poland and in pursuance of the agreements
reached at the meeting of the governors of the Polish provinces and
heads of the Ukrainian Regional Administrations and agreements between
the delegations of Rivne State Administration and Warnino-Mazurske
province a regional commission was appointed to prepare the program for
the realization of the articles of the signed agreement which will be
sent to the executive structures of Warmino-Mazurske province to be
coordinated.

The student exchange takes place between the universities of Rivne and
Varmino-Masurske province the Days of Polish Culture are held, the
cooperation in the field of tourism is developed, the contacts between
the agents of the economic activity has been established in the agro
industrial field, in the processing, chemical and food industry.

In order to activate the work of the agents of economic activity a visit
of an official delegation of Rivne region has been planned to Poland in
the frame of the program of interregional and international cooperation
to sign the agreed documents about the further development of the
cooperation.

The Protocol of Intentions about the cooperation was signed with a
number of cities of Warmino-Mazurske province of Poland was signed
during he Second Forum of Partner cities of Ukraine and Poland.

Poland is one of the most important economic partners of the region. For
the last years the increase of the foreign trade turnover between Rivne
region and Poland (compare 9.1 million dollars in 2000 with 11 million
dollars in 2001 and 31.7 million dollars in 2002). According to the
taxation authorities there are 23 Ukrainian-Polish Joint Ventures. The
foreign trade ties with Poland are maintained by about 70 firms of
different forms of property.

A number of agreements with Orenburg, Briansk, Rostov and Astrakhan
regions of Russia were signed in the frame of Ukrainian-Russian
cooperation; an official delegation of the heads of Trade and Economy
mission and the Consular office of Russian Federation visited Rivne. We
have trade and economic ties developing at the level of interregional
cooperation with Murmansk, Nizhniy Novgorod and Novgorod regions of
Russian Federation. There are 41 enterprises with the share of Russian
capital registered in Rivne region. The amount of Russian Federation
investments into he province’s economy comes to 11.1 million dollars.

The analysis of the dynamics of foreign trade with Russia proves the
stability of economic ties between the enterprises of the region and
those of Russian Federation.

The statistics for the last 3 years show that Russian Federation
maintains the position of one of main trade partners of Rivne region.

The actual situation of trade was discussed during the meeting of
representatives of business circles, enterprises and agents of economic
activity of Rivne region with the Trade Representative of the Embassy of
the Russian Federation in Ukraine. The Parties exchanged business-like
suggestions. The Russian Party announced the agreement about the
creation of Ukrainian-Russian Investment Centre and its regional
representative office in Rivne and about assembling specialized trucks
“GAZEL” on production and technical facilities of the region.

In pursuance of the resolutions of the mixed Ukrainian-Russian
commission for the activation of trade and economic cooperation, the
base of electronic addresses of business institutions and enterprises of
Rivne region interested in bilateral cooperation was made up.

In the network of bilateral long-term economic cooperation between
Ukraine and Byelorussia for 1999-2008 and in pursuance of measures
foreseen by the Program, the governing body analysed the situation of
foreign trade operations between the region and Byelorussia.

Traditional goods of local producers prevail within the structure of
foreign trade operations with Byelorussia: stone, crushed stone,
chemical fertilizers, raw basalt, Portland cement, polished chipboard,
agricultural and industrial products.

Three Ukrainian-Byelorussian joint ventures operate in the region. There
were no Byelorussian investments into the economy of the region.

Commercial and Economic Representation of the Embassy of Ukraine in
Byelorussia presented suggestions of the Chief Administration for
Agriculture and Foodstuff about establishment of mutually beneficial
economic ties between the producers and consumers of agricultural
products.

The Byelorussian Party has not yet confirmed their willingness to sign
the prepared projects of Agreement about trade, cultural, scientific and
technical cooperation between Brest and Rivne regions.

The Administration has constantly taken organizational measures to
involve the enterprises and firms of the region in the specialized
forums, exhibitions and seminars taking place in Byelorussia.

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