Kyiv City is located in the center of Eastern Europe and has attractive
geographical location and natural conditions. Kyiv is located on the
both banks of Dnipro river, lowest of inflow of left flow – Desna. North
part of the city is located on Polisskiy lowland, southwestern (right
bank) – on Prydniprivsky highland, south-eastern (left bank) – on
Prydniprovsky lowland. Exceeding of relative highland on right bank is
reached to 100-105 m. Left bank part of Kyiv is melted terrace, weak
shared plain with over heights to 35 m.
Climate in Kyiv is moderate continental, with relative soft winter and
warm summer. Average temperature in January is -6,0°C, -6,1°C and in
July is +19,1°C, +19,2°C. Average annual level of sediment is 600 mm a
year (from 551 to 628 mm). Humidity of wind is 51-52% in May and 94-95%
in December. Number of hours of sunny days is 1843 a year.
Influence of Kyiv and Kanev reservoirs is explained the strengthen of
breeze circulation, changes of wind speed and sum of atmosphere
Area of Kyiv in administrative borders is 83,6 thous. ha (836 sq.km.),
including 33,8 thous. ha are built up or 40%, and including 6,2 thous.
ha are built up by living houses. The industrial objects possess 6
thous. ha of land, public built up – 6,7 thous, ha, streets, squares and
embankments – 5 thous. ha, objects of transport – 2,2 thous. ha.
Forests, green plantation of general usage and reservoirs possess more
than half of the city territory. The basic of green plantation of the
city is a unique water and green diameter with length for 30 km and
width of 1,5-5 km, which includes area of water of Dnipro with islands,
coastal parks and meows parks.
The main water resource of the city is Dnipro. The width of Dnipro is
400-600 m, depth is 6-12 m: on shallow water, the width is 800-1000 m,
the depth is 4-5 m in the boundaries of the city. The freezing-over
lasts from the end of November till the beginning of March. Following
rivers as Lybid, Syrets, Vita (right inflows of Dnipro), Gorenka, Nyvka
(inflow of Irpen) run on the territory of Kyiv. The water objects on the
territory of the city possess about 6,7 thous. ha of area at whole.
Kyiv has rich recreation resources. The city is surrounded by continuous
circle of forests practically. The Coniferous and big-leafs forests are
located on the North, northwest and west (zone of mixed forests), and in
forest-steppe zone – big leafs forests. The considerable natural and
artificial forest parks and parks are located in the boundaries of the
city. The allocation for green plantation is more than 200 sq.m. per
inhabitant of area.
The attractive natural conditions of Kyiv are assisted to establishment
and development of two climatic resorts: Pushcha-Vodytsya and
Koncha-Zaspa (resort of general state significance). 37 sanatoriums and
boarding houses with treatment, houses of rest and besides 27
sanatorium-dispensaries are functioned on the territory of the city.
41 objects of natural-reserve fund, including 14 of state significance
are located on the territory of the city. Among it area Botanic garden
named after Academic Fomin O.V., Central Republic Botanic Garden of NAS
of Ukraine, Syrets dendropark, zoo and parks-monuments of garden and
HISTORY OF KYIV
Kyiv is a historical city with glorious past. It is officially
determinated, that the foundation of the city was more than 1500 years
ago. For this period of time, city lived through upwards and down wards,
Kyiv is a capital of Rus, a state establishment of eastern Slavs and
Russians from Ix till the beginning of XIII century. The fast
development of Kyiv was stopped by Tatar and Mongol piled up, as a
result, the city was destroyed and rubberized in 1240.
The economical rehabilitation of Kyiv was started in XIV century and it
became the heart of Ukrainian nationality formation. The gradual
incorporation of Ukrainian lands to Lithuania State “Great Principality
of Lithuanian” took place. From 1362 Kyiv is under power of Lithuania
and in 1470 Kyiv Principality was re-organized to Province in the
membership of Lithuania State, Kyiv City increased and developed as
economical center of Ukraine.
Kyiv received Magdeburg Law in 1494-1497 and it gave Kyiv an
opportunityto perform self-governing in the city. It was progressive
act, which assisted to all – round social and economical development of
Lithuania united with Poland into Rich Pospolita by Lublana Union in
1596. From this time, Kyiv was under power of Poland. The next one
hundred years were characterized of liberated fighting of Ukrainian
people against Polish Shlyahta. As a result it was announced of Ukraine
as a State and further it unification With Russia (caused of several
Kyiv became the member of Russia in 1654, and from 1708 the city became
the center of Kyiv Guberniya. The further historical period is
characterized by considerable successes of the city in economical
development, that positive reflected on general social and economical
condition of all Russian Empire. Kyiv was a member of Russia till 1917.
The breakdown of Russian Empire in 1917 gave an opportunity to Ukraine
to receive independence. Kyiv was a capital of Ukrainian People Republic
fro this non-long period of time (1918-1919).
After finishing of public war and establishment of USSR, Kyiv City
became the capital of Ukrainian SSR. It was written a tragic and
glorious pages in the history of Ukraine during it membership in USSR.
The outstanding specialists of Ukrainian science and culture,
representatives of technical, creative intelligentsia, military leaders
and specialists were disparaged by different reasons. Kyivers were in
this mass at whole.
But at this time due to efforts of Ukrainian people, Ukraine became the
second one after Russia, economically developed republic of USSR, and
Kyiv took the powerful place among prominent cities with developed
economical and social sphere.
During Seconf World War, Kyiv was fully destroyed practically. The hero
defense of Kyiv lasted 72 days in 1941. And the city was liberated on 6
Kyiv was awarded an honoured title of “city-hero” for heroism of city
inhabitants during the war, it strong resistance against enemy and
economical contribution to the victory. It was expressed in Law Of
Ukraine “On capital of Ukraine – city-hero Kyiv”.
Supreme Soviet of Ukraine announced the Declaration on Independence in
1991 and Kyiv became the capital of one of the biggest countries of
Europe – independent Ukraine. The city not only kept, but also improved
those positions, which had in Soviet Union. Kyiv is stayed a center and
symbol of sovereign for Eastern Slavs, an evidence of it historical
identity, that confirmed by numerous historical and architectural and
other monuments irrespectively on reasons. And the city look likes the
same for all Ukrainian society at the present time.
Capital of Ukraine – Kyiv City, on the modern stage of own development,
1. Political; and administrative center of the state, place of location
– residence of the State Head – President of Ukraine;
– Supreme Soviet of Ukraine;
– Cabinet of Ministries of Ukraine;
– Constitutional Court of Ukraine;
– Other central state authorities.
2. Economical center of Ukraine
The powerful economical potential is concentrated in Kyiv, consisted of
multi branch industry, building complex, developed systems of branches
of public economy, transport means, systems of modern connection and the
More than 485 biggest industrial enterprises and thousands of small and
joint ventures, building organizations, transport organizations,
connection and the like are located and worked in Kyiv. The considerable
building potential is formed in the capital: more than 200 contract
building and assembling organizations, numerous number of project and
search enterprises, about one and a half thousands small building
enterprises and cooperatives work. Wide net of local transport is
functioned in Kyiv.
The location on the crossing of numerous transport highways is promoted
to economical development of Kyiv: water, railway, automobile, air. It
passes from west to east (from countries of Western and Central Europe
to Russia, and to Caucuses), and from North to South (from Russia to
Baltic States and Scandinavia to Southwestern Europe). The
transformation of Kyiv into great junction of air transport is on by
rapid tempo for the last time. Airport “Kyiv” (Zhulyany) and closed to
it – largest international airport of the country – Boryspil, are
located in the boundaries of the city.
3. Religious, cultural, historical, scientific and educational center of
A great number of historical, cultural and architectural monuments are
located in Kyiv and carefully saved, rehabilitated and reconstructed by
local authorities. The capital of Ukraine is to full by institutes of
science, education, and, art than other cities of the country.
Kyiv is one of the largest scientific centers in Europe. The following
establishments are located in Kyiv: National Academy of Science and
numerous of it institutes, which has world famous scientific schools,
277 independent scientific and research and 38 independent design
organizations, and also 18 prominent high schools of Ukraine. 457 of
general educational schools.
The capital of Ukraine has a great cultural potential, including 31
museums, 33 theatres, 36 movie theatres, numerous number of constant
working art exhibitions. The most well known museums are National museum
of history of Ukraine, Museum of Ukrainian image form art, Museum of
western and eastern art.
Historical building of the city is about 6 thous, ha. In the central –
historical part of Kyiv 3 state reserves are located: State historical
and architectural reserve “Starodavniy Kyiv”; National reserve “Sofia
Kyivska”; Kyiv and Pechersk national historical and architectural
reserve. Besides, on the territory of the city there are 6 architectural
and 8 archeological reserves. There 3736 monuments of archeology,
history, architecture and town planning, monumental art are under state
protection. Among it: 243 monuments have a status of monument of state
significance, including 51 monuments of international significance bu
4. Location place of diplomatic representatives of foreign states and
international organizations in Ukraine
The embassies and consulates of more than 70 world states are located n
the city, including an honoured consulate. Besides, there are
representatives of several international organizations as UNO, European
Union, IMF, Association of red cross and read half-moon, other numerous
organizations and associations.
5. Location place of Kyiv Region Council and Kyiv Region State
Administration and it sub-units
In accordance with Article 133 of Constitution of Ukraine, Kyiv City is
an separated administrative unit in the system of administrative and
territorial system of Ukraine, and it means, that city has not own
region, than other all regional centers of Ukraine. At the same time,
Kyiv is place of location of all main structures of Kyiv Region
governing. The mutual relations of local and regional authorities in
Kyiv City are determinated in Article 25 of Law of Ukraine “On capital
of Ukraine – city-hero Kyiv”.
Kyiv is one of leading industrial centres of Ukraine. In city works the
greater 400 large industrial enterprises of different patterns of
ownership (in general – almost 650). Besides some thousand small
enterprises of an industrial structure work in the city.
The industry of Kyiv is a unique industrial complex, which comprises the
enterprises practically of all areas except for the enterprises of an
extractive industry. As an industrial centre, Kyiv has already known by
manufacture of such competitiveness in the world market of production as
planes, sea and river vessel, electronic computer facilities, devices of
high accuracy, radio equipment, dredges, process equipment for many
areas of an industry, chemical and pharmaceutical production, building
materials, cable production and the like for some decades. A unique
behind the characteristics of the enterprise on servicing of military –
industrial complex (MIC). Most known of them are factories: “Arsenal”,
“Bilshovyk”, “Kvant”, named after Antonov, named after Artem placed in
Kyiv. For the enterprises of MIC characteristic, there is a presence of
a significant part of modern equipment, precision machines and
mechanisms, advanced infrastructure and highly skilled staff –
designers, technologists, engineers and workers.
The enterprises of Kyiv City carry out the foreign trade operations with
the partners from more than 160 countries of the world.
The main trading partners on the Euroasian continent are Germany and
Turkey, and on American – United States of America. The main trading
partners are the Russian Federation, Byelorussia, Turkmenistan and
Kyiv City State Administration builds own industrial policy and guides
that at all enterprises, which located in city, the city inhabitants
work, and the local authority should care for well-being of them first
of all. Therefore in a field of sight of local administration there is
an activity of all enterprises, irrespective of their form of ownership.
Proceeding from this concept, Kyiv City State Administration has acted
by the initiator of transfer of all industrial enterprises located on
territory of city, to operation of local authority. According to the
Decision of Government of Ukraine, the enterprises of state form of
ownership is gradually transferred to sphere of operation of KCSA ,
which was in operation of the branch ministries. Already, at the first
stage of work with the help of local authority, the majority of these
enterprises have improved the work.
TRANSPORT AND COMMUNICATIONS
The enterprises of transport and connection have strong important
significance for development of a social and economical complex of city
Such types of transport as air, river, automobile, railway, developed
system of communication, advanced engineering and transport network are
functioned in Kyiv. The air communication of Kyiv is provided with two
international airports: “Boryspil”, located for 30 km from city, which
serves mainly international airlines and connects capital with more than
to 40 capitals of the countries of the world and “Kyiv”, that is on the
municipal property, located in borders of city and serves the
airtransportation on Ukraine mainly. The river of Dnieper, connects of
Kyiv to northern and southern regions of Ukraine and ports of the Black
and Azov seas, with 15 European countries of Danube and Main, and also
with Russia, Poland and Byelorussia. The railway ways connect capital of
Ukraine practically to all capitals of the countries of Western and
Central Europe, Baltic States, large cities of Russia, Byelorussia and
Ukraine. From nine international transport corridors authorised at the
second Pan-European conference, through Kyiv passes three: “Berlin –
Vrotslav – Lviv – Kyiv”, “Helsinki – St.Petersburg – Moscow – Kyiv –
Chishenau – Bucharest – Alexondropolis”, “Triest – Lublana – Budapest –
Kyiv”. One of main transeuropean highways “Milan – Budapest – Lviv –
Kyiv” passes through the capital of Ukraine.
Last years, Kyiv became a key part in development of telecommunication
networks, which should connect Western Europe to the countries of CIS
and Asian continent, and has appeared at the centre of realisation of
the greatest telecommunication projects of Ukraine. Constructed South,
North and West optical and fibre lines of the communication in a complex
with the international projects (ITUR, TEL, TAE, BSFOCS), in last years
within the framework of the projects, provide an exit of Kyiv on digital
telecommunication networks of the countries of CIS and Baltic States,
Europe, Near East, and also in system FLAG (round-the-world optical and
fibre line). In Kyiv there are headquarters and work all greatest
telecommunication companies of Ukraine, the majority from which is the
enterprises with the foreign investments.
Taking into account, that the development of Kyiv provides its
integration with the European countries, the need for development of a
modern communication facility and qualified transport services in one
hour will be increased. And it gives additional opportunities for
realisation of favourable capital investments in the field of transport
and communication. This conclusion proves to be true in particular that
in our city already was realised some large investment projects both
domestic and foreign investors for the last time.
SPHERE OF CIRCULATION
Spheres of circulation, among which greatest share (more than 90%) are
owing to trade and public catering, will play the important role in
formation GDP. So in 1997-98, the fourth part of total regional product
created was formed in capital. Appreciably it was connected to those by
structural changes, which in the middle of 90 years were held in local
economy: reduction of industrial manufacture, flow of the capital to
areas with insignificant term of a circulation (less than one year). The
important meaning has influence of such factor, as achievement of
positive results without the large capital investments.
Kyiv is a centre of science of Ukraine. In city National academy of
sciences of Ukraine and majority of its branch institutes, which have
world well-known scientific schools are located. Among them are the
institutes of electric welding, powder metallurgy, cybernetics,
synthesis of composite materials, laser technology and the like.
Besides, the various branch and departmental research and design
institutes and organisations, and also prominent higher educational
institutions of Ukraine work in Kyiv.
In total in Kyiv, about 380 organisations are engaged in scientific
activity (almost 25% of their quantity in Ukraine). Almost 57% of
scientific organisations of city is concentrated in branch sector of a
science, 36% are owing to academic sector, 5% – to high school, 2% – to
scientific and research subsidiaries of the industrial enterprises.
ENGINEERING AND TRANSPORT INFRASTRUCTURE
Kyiv are a greatest air gate of independent Ukraine. Two international
airports serve the city. The airport “Boryspil”, located for 30 km from
cities serves mainly international airlines. It connects of Kyiv with
more than 40 capitals of the countries of the world. The airport “Kyiv”
is in the municipal property and located in city boundaries. Main
offices of the greatest airlines of Ukraine are also located in Kyiv:
“Airlines of Ukraine”, “International airlines of Ukraine”, “Aerosvit”,
and also considerable part of private passenger and cargo airlines.
The works concerning a modernisation last for several years with the aim
that the airport “Boryspil” answered all international requirements. The
gradual updating of the airport is carried out by own forces with
attraction of the credits of the European bank for reconstruction and
development. Already some years work the modernised main terminal. The
works on creation of an additional flying and landing strip of the
international level are now conducted.
The airport of “Kyiv” specialises, mainly on realisation of internal
The railway roads connect Kyiv practically to all European capitals,
with the majority of large cities of Russia, Byelorussia and with all
large cities of Ukraine. Developed length of railway ways on territory
of city exceeds 400 km. A cargo turnover is provided 9 commodity
stations in Kyiv City. The central railway station is located in city
centre. The structurally railway network, which serves capital, is
included into structure of the Southwest railway. In Kyiv there are
headquarters of the Ukrainian railway company “Ukrzaliznytsya”. A
convenient location of city, its industrial and commercial potential
assist to constant revival of business activity of a railway
transportation, increase of volume of passengers and freight
The river of Dnipro, on which both coasts located Kyiv, is an important
transport junction of Ukraine. It connects Kyiv not only to northern and
southern regions of Ukraine, ports of the Black and Azov seas, but also
with 15 European countries of pools of Danube, Main and Rhine, and also
Russian Federation, Poland and Byelorussia.
In Kyiv, there are river cargo and passenger ports. In capital of
Ukraine, the headquarters of the joint-stock company “Ukrrichfleet”,
greatest Ukrainian company of cargo carriages by water are located. The
company “River walking and excursion agency”, carried out river
passenger transportation, is located in Kyiv.
Kyiv is on a crossroads of automobile ways in East Europe. Routes from
here run which connect city both to the countries of Central and Western
Europe and with Russia, Byelorussia, Armenia, Georgia and other
countries of CIS.
The passenger transportation, including international, are carried out
by the central road service station of city, and also 7 auto stations,
which are in the different parts of Kyiv.
The complex ramified network of municipal passenger transport functions
in Kyiv. The transportation of the passengers in city is carried out by
underground, tram, trolley bus, bus, microbus and automobile taxi of
different forms of ownership. There are 3 lines of underground function
in Kyiv: Svyatoshyno-Brovarska, Kurenivsko-Chervonoarmiyska and
To the development of underground is raised an attention for the last
years, as to the most perspective, reliable, ecologically friendly kind
of municipal passenger transport. The underground has replenished for 15
km of a underground and 8 stations for eight years. On today, Kyiv
underground has three working lines, which operational length makes
almost 50 km, 40 stations, 57 halls, 105 escalators with length of a
linen almost 17 km. Developed length of a rail track makes almost 140
km, including 103 km – main track. Developed length of tunnels makes
more than 160 km, length of a contact rail – more than 120 km. The
maximal sizes of movement of trains at hour of “peak” loading reach 40
pairs trains per hour.
The construction and put into operation of new site of
“Syretsko-Pecherska” line of underground with length of 2,85 kms, from
station “Lukyanivska” to station “Dorogozhychy” is completed.
It is planned to increase an operational length of lines of underground
up to 100 kms, first of all, at the expense of continuation of existing
lines in directions of housing districts Bilychi, Vynogradar, Teremky
and construction of a new fourth line of the underground from the
airport of “Kyiv” to an housing district Troeshchyna for 2010.
Length of trolleybus lines makes about 325 km, tram track – 285 km.
The enterprises of ground municipal transport served 328 routes,
including the bus routes total – 117 local, 43 suburban, 83 taxi, 16
inter-local and 2 international, also 31 tram and 36 trolleys routes
work in city.
The inventory park of the rolling-stock of the municipal transport
enterprises consists from: 623 trolley buses, 612 tram cars, 564
carriages of underground, 2 carriages of cable car, 1990 buses of
different spaciousness, marks and updating, including 435 microbuses.
Road network of. Kyiv is about 1600 kms of roads, almost 100% from which
have the advanced firm covering. Besides, the road network includes
about 140 bridges and overpasses, 200 underground foot transitions, and
also numerous auxiliary objects. It is planned to put into operation
about 70 underground transitions, thus 40 of them will be developed on
those highways, which reorganisation is supposed by the program of
construction and reconstruction of road and transport objects (the
construction of transitions will conduct in parallel with reconstruction
of all highway) during the next years in Kyiv.
The operation and repair of working road objects is carried out by the
specialised municipal enterprise “Kyivmiskhydroshlyahmit” in Kyiv, which
also acts as a customer on construction and reconstruction of new road
100% of a road network of city is practically illuminated. It is
established over 114 thousand fixtures in streets of city.
The favourable geographical location of the capital of Ukraine assisted
that Kyiv became a key part in development of the international
telecommunication networks, which should connect Western Europe to the
countries of CIS and Asian continent for the last years.
Headquarters of all big telecommunication companies of Ukraine, the
majority from which is the enterprises with the foreign investments are
located in Kyiv. The ministry of the finance of Ukraine and KCSA is put
many efforts for stimulation of development of competition on the basic
segments of the market of telecommunication services of city.
“Ukrtelecom”, OJSC provides the development and operation of local
telephone nets. “UMC”, “Ukrainian radiosystems “, “Bancomzvyazok”,
“DCC”, “Kyivstar” work in the sphere of cellular telephone communication
(NMT and GSM systems), and “Ukrainian paging net”, JV, “RADIOCOM”, JSC
and ” BEEPER PAGING ” work in the sphere of communication.
The active re-structuring of post communication and transformations of
the Ukrainian state post enterprise of communication “Ukrainian poshta”
in joint-stock company with participation of the state will be carried
The provision of city by the electric power, hot water and heat-carrier
for the central heating is carried out mainly by “Kyivenergo”, JSC, the
share of holding is in the municipal property.
General level of electrosupply in city is rather high at whole. In the
current year eventually There was decided a problem of electrosupply of
the central part of city in current year, where it was carried out from
old substations constructed in middle 60 of years for the last time. And
that is why, it was put into operation a new electrical substation, that
has removed problems in power supply of the central part of city with
participation of World Bank.
The provision of city by gas is carried out by the municipal enterprise
It is necessary to implement the new technologies for increase of
quality service the population by gas: assemble of anti corrosion
polyethylene pipes in construction of new underground networks and
modern systems of gas meters in the enterprises and in housing and
municipal sector. Kyiv City State Administration is interested in joint
realisation of the investment projects in this sphere together with the
Water supply and drainage
Provision of Kyiv by drinking water and drainage is carried out by the
municipal enterprise “Kyivvodocanal”. The capital has the ramified
network of the centralised water supply and independent of sources of
drinking water supply, that as a whole provides needs of city for
drinking water. The single length of city water supply networks (without
water carriers and drainage) is about 2700 km, and the single length of
waterpipe, which delivers water in a network of water supply, is about
The retail trade play an important role in development of a social and
economical complex of city.
Universal shops and garments with trade area from 400 up to 2000 sq.m.
prevail in sphere of trade of consumer goods. Supermarkets have begun to
develop with a privatisation in trade, and during last several years
some retail and wholesale supermarkets such as ” Cash and Carry ” have
appeared. All of them are created for capital of the foreign investors.
In particular, three “Billa” supermarkets were put into operation, they
are enterprises with 100% of the foreign investments “Billa-Ukraine”
(investor – Austrian company “Billa”).
The greatest metropolitan enterprises in sphere of trade of non-consumer
goods are the department stores (trade area from 3500 up to 22000
sq.m.). The largest among them are “Ukraine”, “CUS” and “Children’s
world”. Except for them, in city, the network of smaller by area modern
shops for sale of non-consumer goods functions.
There is an absent of brightly expressed shopping center, because the
objects of trade were in regular intervals placed on all territory of
city irrespectively of the majority of cities of Europe and America in
Kyiv. The high level of concentration of establishments of trade objects
in the central street of city – Khreshchatyk is reached for the last
time, but the question of creation of trade area by western standards
remains open, and the investments in this direction are necessary.
The sphere of public catering consists of restaurants, bars, cafe and
The specialised enterprises focused on a large circle of the clients, in
particular, of a fast-food establishment successfully develop. The
example of such development is activity of system of restaurants and
snack-bars “McDonald’s”, “Mister Snack”, “Shvydko”, “McSmak”, “Rostics”
for the last time.
Kiev is a financial centre of Ukraine. There is a well-advanced network
of financial establishments in the city: banks, stock exchanges,
investment funds and insurance companies. The accelerated development of
it began from the moment of a reception by Ukraine of independence. The
financial system of Kyiv serves needs of all state, acting by financial
basis of economic reforms of independent Ukraine today.
The largest national banks – National bank of Ukraine and Ukrainian
export-import bank are located in Kyiv. About 74 commercial banks are
counted in the city. The majority of it with headquarters in Kyiv have
the developed network of subsidiaries and representations on all Ukraine
and define the financial, investment and industrial policy in all
regions of the country.
The headquarters of all banks with 100% of the foreign capital, and also
representation of foreign banks, which have not received yet that the
licenses for activity in Ukraine, are located in Kyiv. Among foreign
banks, which have high-grade branches (classified, as the Ukrainian
banks with 100% of the foreign capital) are “Societe General Ukraine”,
“Credit Lione Ukraine”, “ING Bank Ukraine”,”Credit Swiss First of Boston
(Ukraine)”, “Incombank Ukraine”, “Creditanshtaltd Ukraine”, “Citibank
Ukraine”, “Raiffeisenbank Ukraine”. It activity on territory of Ukraine
strengthens leading positions of Kyiv as financial centre of the state.
There is registered more than 200 insurance companies in Ukraine,
including 50% of which are in Kiev. Besides, Sea and Air bureau, which
are engaged in insurance sea, river and air transportation, are located
in Kyiv. The share of Kyiv insurance companies, which enter in list of
thirty of the first insurance organisations of Ukraine, makes more than
40% of volume of receipts of insurance payments.
The transition of economy of Ukraine to market conditions has caused
burst of demand on various consulting services (legal, audit, and advice
from management, research of the market, expert estimation). Arrival on
Ukraine of the foreign companies, development of foreign trade
activities of the domestic companies have created the market for foreign
consulting firms, both very known, and medium and small. The
considerable quantity of it works in Ukraine. Headquarters of foreign
consulting firms and the majority of Ukrainian firms are located
directly in the capital od state. In particular, the offices of
Pricewaterhouse Coopers, Barents Group LLC, Alliance Consultancy
Limited, Robertson&Blums Corporation, B.C. TOMS&Co Work., Baker&McKenze,
White&Associates work in the capital.
The general area of office centres of the international level is more
than 100 thousand sq.m. at the present time. The majority of modern
office complexes were constructed for capital of the foreign investors.
The foreign partners together constructed some popular business centre
in the city, with local authority in frameworks specially created for
these purpose joint ventures. Among it is Business centre “Europe”, Kyiv
– Donbas, International office and hotel centre.
With the purpose of stimulation of innovation activity directed on
satisfaction of needs not only Ukrainian, but also foreign industry, it
is created six technological parks in the capital of Ukraine:
“Semi-conductor technologies and materials, optical electronics and
touch engineering ” (Kyiv City), “Institute of electric welding named
after E.O. Paton” (Kyiv City). Both technoparks are organised on the
basis of prominent institutes of National Academy of Sciences, which
represented powerful scientific and industrial complexes.
The basic advantage of created technoparks is an opportunity of granting
to the projects, carried out in it, a special regime of investment and
innovation activity. The necessary conditions for granting a
preferential regime is the project, with foremost direction
implementation and also it total cost.
Modern Kyiv is an educational centre of the country. The existing system
of education is more than 1,2 thousand establishments: from a children
gardens to establishments of post-diploma education. More than 750
thousand children, schoolboys and students, and also considerable number
of the practical workers, which raise the qualification, are in
educational establishments of Kyiv.
The system of preschool education in Kyiv countes about 700
establishments. The quantity of general educational establishments in
city exceeds 400 units. The activity from preparation of personnel with
maximum qualification for work in modern conditions of market economy in
Kyiv is carried out by more than 100 higher educational institutions of
I, II, III and IV grades of accreditation, 44 secondary professional
educational institutions, and also by system of improvement of
professional skill of the specialists. All this causes that fact, that
there is a skilled staff, capable works to provide the implementation of
scientific and technical progress (STP) in the economy of city and to
assist the decision of industrial and social tasks, practically of any
Kiev is one of the prominent centres of health care in the country. 100
stationary hospital establishments, about 250 out-patient – policlinic
establishments function in the city. The number of the doctors of all
specialities makes more than 20 thous. persons., or 80 per 10 thousand
population. The significant attention in city is payed to preventive
maintenance of diseases, development of physical culture and sports. 24
stadiums (including National Olympic stadium with 82,5 thous. seats and
Palace of Sports), 25 swimming pools, 486 sports halls, numerous sports
grounds function in Kyiv.
There are advisory polyclinics, female advices, polyclinics at
stationary establishments, dyspansesr, independent polyclinics, dantist
polyclinics in the system of Head Department for health care (HDHC) in
Important attention is payed to work of branches ambulance. Their total
number makes 28 items for the adult and 17 items for children in Kyiv.
Chemist’s network of the city is provided by sufficient assortment and
quantity of medical means for organization of medical process of the
Index out-patient and stationary patients.
INVESTMENT POLICY OF LOCAL AUTHORITIES
The management of investment activity is one of the important functions
of local authorities in the capital of Ukraine. Thus the main task is
stimulation of increase of volumes of investments in priority
directions. The system of priorities reflects the profile, which
achievement or, at least, aspiration to which, will provide to a maximum
extent an integrated approach and constancy of social and economical
development of Kyiv. That is why the priorities with respect to
investments constitute an “answer” to problems of this or that
disproportions (branch, territorial, resource etc.).
The local authorities consider to take appropriate measures in the
following priority directions:
1. Development of the most perspective branches of industrial complex of
Kyiv, among which are light and food industry, manufacture of medicines,
medical preparations and machinebuilding related thereto, aircraft- and
shipbuilding, as well as industry of building materials. The development
of these spheres can be based on the modern technologies of production
of new composite materials, biotechnologies, newest technologies of
physics of low temperatures, technologies of energy saving and energy
supply, nuclear physics, electric welding, space technologies and the
2. Increase of export potential in any kind of economic activities. The
solution of this problem is a separate important direction of modern
investment policy of the city directed at priority and the most
competent development of those subjects of enterprise activity, which
produce competitive products by using modern technologies and need
certain impulses for confident and long-term entrance to the world
market, including the CIS’s market.
3. Development of municipal economy and social sphere. Kyiv needs to
modernize objects and networks of water- and heat supply, water drain,
electric and gas networks, local transport infrastructure,
reconstruction of existing housing fund, increase of volumes of
production and the like.
4. Solution of number of ecological and social problems. The plans of
long-term development of Kyiv, as the capital of the independent state,
provide gradual removal of the city’s borders, reconstruction of the
enterprises by changing their basic activity, which pollute the
environment, reduction of toxic emissions in the atmosphere by motor
transport, creation of an effective system of health care of population,
and in first instance, of children. The solution of these tasks demands
significant volumes of investment, however not all funds should come
from the budget. The part of demand can be covered at the expense of
5. Finishing of formation of the international business infrastructure
in the Kyiv City, for organisational and technical maintenance of
circulation of the capital, including foreign investments, and also
goods and services meeting world standards. In order to achieve this
purpose it is necessary to finish the formation of a network of the
rationally located business-centres of classes A and B, to finish large
scaled of hotel network, to create and complete available objects,
several five star hotels, to build modern objects of logistic system, to
provide the accelerated development of telecommunication systems and
Regarding legal aspects, the formation and realization of investment
policy are based on:
– observance of nation-wide rules, which regulate the activity of
investors and power of local authorities concerning the control over
– maximal use of opportunities given by legislation for stimulation of
investments in priority directions;
– use of general powers of local authorities and special powers
stipulated by the Law of Ukraine “Our capital of Ukraine – city-hero of
Kyiv”, for directing and supporting investments in priority directions.
There are two approaches to management of investment activities in the
capital: general (regional macroeconomic) and address. In the first case
the measures are directed to the creation of general favorable
investment climate and formation of positive investment image of capital
of Ukraine. That is why, the general approach provides the improvement
of social and economical conditions for all investors.
The address approach is a direct continuation of strategy of priorities.
It provides active direct participation of local authorities in
realization of certain projects, which have importance for cities within
the social and economical meaning. The cooperation with investors and
their support by the cite can have various forms depending on scale,
branch orientation, relations of the property and land relations and the
like. The minimal scheme of support includes the centralized
coordination of actions of all local bodies of power and their
structural subunits involved in the procedure for approving of
construction projects, registration of various sanctions (licenses)
necessary for conducting this or that economic activity. More complex
schemes of support of the investment project can provide the investor
with municipal guarantees, privileges under local taxes and duties,
including the land fee, and also direct participation in the project by
municipal property, capital or other assets.
All actions of local authority carry program character and directed to
the achievement of basic tasks, which are determined in sphere of
investment activity in the Kyiv City. The investment policy is realized
on the basis of the plans of measures stipulated for short and the
The investment policy of local authority has an open “public” character.
Each interested investor may address to the Kyiv City State
Administration to state the estimation of efficiency of policy, which
will be carried out, and also to submit appropriate offers for its
improvements. Several constantly working mechanisms of “reverse
connection” are stipulated: meetings of the city heads with ambassadors,
trade attache and large investors, which occur on the basis of certain
The investment policy of local authority is general for all investors
irrespective of the country, to which they owing to, their form of
ownership and the like. Restrictions can be possible only in connection
with international obligations of Ukraine.
The investment policy of local authorities does not provide
differentiation in any questions between the internal and external
investors. The national regime works for non-residents, except for
specific issues, too.
BASIC INDEX OF ACTIVITY OF FOREIGN INVESTORS IN THE KYIV CITY
Total sum of foreign investments
In the sphere of investment activities of foreign companies Kyiv leads
among other regions of the country for several years and gets one third
of the total foreign financing of Ukraine.
The leading role and positive dynamics in foreign investment is
explained appreciably by capital status of city, that Kyiv City is a
business, financial centre of the state. Thus, certainly, not all
investments of foreign companies registered in the capital of Ukraine
are directed to creation of new objects on the city’s territory. Despite
of considerable flows of investments passing through the Ukrainian
capital, the city badly needs capital investments practically in all
areas of its economy.
Countries, from which foreign capitals come
With respect to the geographical plan the structure of foreign
investments in economy of the city is characterized by rather stable
data. The list of the biggest countries – investors remains constant
during the last three years. The leaders are such highly developed
countries as the USA, Germany, Great Britain, Benilux countries, and
island countries, which have on their territory offshore zones
(basically – on Cyprus). However, the stability of geographical
structure does not mean its absolute static character. Annually there
are new countries – investors, which make considerable investments.
Types of the investments
During the last years the positive tendencies in the structure of
registered foreign investments under forms of their implementation are
1. The share of foreign investments in the form of property, in
particular of furniture, computers, office equipment and other
non-productive property, continues to be reduced.
2. The share of the investments made in the form of a currency is
3. The share of re-investments grows which testifies satisfactory
financial and economic results of the enterprises with foreign capital
and their desire to further work at the Ukrainian market.
Branch structure of investment
During all years of independence of the state the branch structure of
the investments is characterized by presence of stable group of the most
attractive types of economical activity, by which the basic share of the
foreign investments is directed. Internal trade, finance, industry and
construction are leading branches where foreign investments are
attracted. 70-75% of foreign investments are directed to the city.
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