The reports from the Investigation of the industrial development of three
Ukrainian regions (Vinnytsia, Odessa and Zhytomyr)
The Investigation was devoted to the analyses of the industrial development of
the regions, in which the Ukrainian participating Universities are located. It
was conducted in order to understand the current situation of the regions’
developments, the needs and requirements that young specialists should respond.
Thus, we have three reports on the Desk-study from Vinnytsia, Odessa and
Zhytomyr regions.
- Report on the Desk-study conducted
in Vinnytsia region
by Vinnytsia National Technical University
- Report on the Desk-study conducted in Odessa region
by Odessa National Polytechnic University
- Report on the Desk-study conducted in Zhytomyr region
by Institute of Business and Advanced Technologies
1. Report on the Desk-study conducted in Vinnytsia region
by Vinnytsia National Technical University
Vinnytsia region was formed on the 27th of February in 1932. The region is
situated in the Right-bank Ukraine on the South-East of the Prydniprovskyy hills
and on the south-west of the Podillya hills.
It borders on Chernivtsi and Khmelnytskyy regions on the West, on Zhytomyr
region on the North, on Kyiv, Chernivtsi and Kirovohrad regions on the East,
upon Odessa region on the South and to the South-West of Vinnychchyna, along the
river Dniester, the section of 202 kilometers presents the border with the
Republic of Moldova.
The territory of Vinnytsia region is 26, 5 thousand sq. km, that makes up
4,4% of the territory of the modern Ukraine. The administrative territory of the
region consists of 27 districts and the regional centre consists of 3 municipal
districts. There are 27 districts, 17 towns, including 4 cities with republican
and regional subordination, 30 town type villages and 1,467 villages.
The total number of the actual population of the region as of the year 2003
accounted for 1,763.9 thousand people, including 804.7 thousand male or 45.6%,
959,2 female or 54.4%; the urban population makes up 809.1 thousand people or
45.9%, the rural population - 954.8 thousand people or 54.1%.
The peculiarity of the national complement of Vinnytsia region is its
multinationality. According to the refined of the All-Ukrainian Population
Census, the territory of Vinnytsia region houses over 133 nationalities.
The administrative center – Vinnytsia – had been mentioned in historical
sources for the first time in 1363, and in 1795 got the town status in 1795. The
population makes up about 450 thousand people.
The main places of interest are the Museum and Homestead of Mykola Pyrohov,
the literary and memorial museum of M. M. Kotsiubynskyy, Troitskyy cathedral
with its cells.
Vinnytsia is situated in the center of the region with the main auto and
railway lines.
Vinnychchyna is the region of industry and high-mechanized agriculture with
the significant science and manufacturing, mineral and raw materials base.
There are more than 1100 layers and deposits of 30 kinds of different useful
minerals, tens of the peat layers as well as the rare deposits of granite and
kaolin clay, garnet and fluorite. In the region there are some healing sources
of mineral as well as radon water in Khmelnyk. Having such uncounted number of
mineral resources, Vinnychchyna can become the leader of their export to the UIS
counties and on the World market.
The industrial potential of the region is represented by such enterprises as
the Ladyzhyn heat power station, associations "Infrakon", "Mayak", "Krystal",
"Vinnytsya Ballbearing Enterprise", machine-engineerinng plants in Mohyliv-
Podilskyy, Kalynivka and Bar, tens of processing and light industry enterprises.
More than 400 enterprises work in different branches of industry.
Vinnytsya region has 12.7% of the industrial manufacturing potential of
Ukraine, 2% of fixed production assets cost and 2.6% of the industrial output.
More than 800 communal agricultural and inter economy enterprises, 846
private (peasant's) farms and 333 auxiliary and storing farm, 4 research
stations, the scientific and research institute of forages are indulged with the
agrarian production.
Vinnytsia region has 39 sugar mills, 13 distilleries, 2 alcoholic beverage
plants. A quite good base for processing sunflower seeds and groats crops has
been formed. As for the gross sugar and corn production, Vinnychchyna takes the
first place in the country, and shares the first and the second places in
vegetable production with the Autonomous Republic of Crimea, which enables the
region to become the main supplier of these goods to the UIS counties and on the
World market.
The powerful scientific and production sphere is characterized with the
existence of the technical, medical, pedagogical and agricultural Universities
and some Institutes. There are more than 30 educational establishments for the
training of the junior specialists and high-qualified workers, 20 states
scientific and research, design, design and investigation institutes.
2. Report on the Desk-study conducted in Odessa region
by Odessa National Polytechnic University
Industry
Тhe region of Odessa - is an advanced agro industrial region which is playing
a significant role in the development of Ukraine economy, it makes 5,2% of
Ukraine gross national product. The economy of the region rates with a high
degree of diversification and quick rates of development. There are 1 т 85,5
thousands subjects of enterprise activity in the region from them 49,5 thousands
juridical persons and 136 thousands private businessmen. In gross national
product the share of small enterprises of the region makes only 10% that causes
the further active development of this sector. In 2006 the quantity of small
enterprises has increased up to 14 979; there are more than 20% of the working
people included into the sphere of medium and small business of the region.
The most developed industrial productions in the structure of Odessa region
are food-processing industry and light industry, machine industry, metallurgy
and processing of metal, and also chemical and petrochemical branches. In the
regional and international levels, significant role are playing such branches as
meat and milk, sugar, fat-and-oil industries, fruit-and-vegetable,
confectionery, and tobacco. In particular, the region is the national leader of
wine stocks manufacturing (60%) and food concentrates. Such known companies as
joint-stock company "Odessa cognac factory" (Shoostov), joint-stock company
"Odessa wine factory" (Francuzkiy Bylvar); Concern "Overline" in which structure
is entering "the First Odessa brandy-vodka factory" (Myagkov), "the Odessa
champagne factory" (Odessa) and "Izmail wine factory" (Izmail); Joint-Stock
Company "Odessa preserving plant", joint venture "Vitmark-Ukraine", "Odessa fat-
and-oil combine" (Sunny valley), "Baltskiy milk cannery" (Lasuna) are leaders of
our region. The most developed branches in a machinery-producing complex are
machine-tool constructing, ship-repair, motor industry, instrument making and
manufacture of the process equipment for food-processing industry and process
industry. Leading enterprises are: "Odessa cable works", "Holodmash",
"Tochmash", "the Factory of press automatic press forging", the Odessa factory
"Centrolit", "Krayan", "the Odessa factory Micron", "the Odessa factory of beam
drill", "Telecards" and others. These enterprises export are the significant
part of production, carrying out the orders of the CIS countries, Europe, Asia
and the Near East. Such branches as textile, clothing, woolen, tanning, fur,
shoe and knitted are playing the leading role in the structure of the light
industry. The enterprises of chemical and petrochemical branches are developing
mineral fertilizers, paint and varnish products, household chemical goods,
plastic and general mechanical rubber goods. The leader of this branch is Joint-
Stock Company "Odessa port factory". The manufacture of a brick, concrete
designs and mixes, natural wall materials, an artificial stone and modular
elements on a local raw-material base of building materials is increasing volume
every year. The largest enterprises of the region are: Joint-Stock Company
"Odessa cement factory", "Odessa clayite factory", Joint-Stock Company "Factory
of ferro-concrete products", "Factory of ferro-concrete designs". In the first
half of the 2006 year the gain of Odessa region industrial production has made
5,1%. And at the same time the volume of the realized industrial production has
made 4,6 billion UAH. (910,9 million USD) and it is 2,7% of a national
parameter. The share of the manufacturing industry production has made 86,2%,
including: the food-processing industry of 31,42%; mechanical engineering of
33,04%; the chemical and petrochemical industry of 21,15%.
Market structure of Odessa region is presented on the diagram 1
Trade
The trade is one of leading branches of the regions economy it forms 40,8% of
all credit portfolio of the bank system and over 10% of foreign investments. In
the first half of the 2006 year commodity circulation in Odessa region made 5,5
billion UAH (1,1 billion USD), including retail commodity circulation 3,1
billion UAH (612,4 million USD). The growth rate was 20,2% higher than in all
2005 year. Commodity circulation of the region makes 5,76% of the national
commodity circulation. The largest market of industrial goods in the territory
of the CIS, “Seventh kilometer", which is settled down on 69,2 hectares in
Odessa suburb is working in the region of Odessa. Daily the market is visited
with more than 150 000 buyers. The average daily volume of the sales makes about
20 million USD.
The services
In the volumes of the given services both domestic, and foreign consumers,
Odessa region takes the leading position in Ukraine. About 80% of the total
product is the services sector in Odessa. There are 3 674 companies which offer
more than 50 various kinds of services. In the first half of the 2006 year the
volume of the given services has made 4 731,8 million UAH (937 million dollars
of the USA), volume of the paid services - 852,5 million UAH (168,8 million
USD), that makes more than 18% of a national parameter. The Leading positions
are taken by auxiliary transport services, services of mail and communication,
service on transportation of cargoes, services in sphere of operations with the
real estate, rent of property, and also services in sphere of culture,
entertainments and sports. The services of cell and long-distance
telecommunications make the half of the paid service.
The foreign trade activities
Odessa region - is one of the most perspective regions of Ukraine dealing
with the trade of the foreign activities, joint business, formation of free
economic zones. In the volumes of foreign trade the region is one of the five
leading cities of the country and in volumes of export and import of services
also keeps leading position In the first half of the 2006 year the volume of
exported goods has made 361 million USD, and imported goods - 799 million USD
(accordingly 3,86 % and 4,22 % of the national parameters). The volume of export
services made 445 million USD. According to the results of 2005 year the foreign
trade turnover of the region made 4 billion USD - for the first time it is fixed
the negative balance of this trade. The biggest exporters of the region became
the industrial enterprises such as: Odessa port factory, Odessa cognac factory
and "Odessacable".
The countries of Asia and the Europe, and also the states of the CIS (Russia,
Belarus and Georgia) are the basic trading partners of the region. The amount of
the imported goods for the European union is 17,62% and the exported is 20,48%.
In the structure of exported goods, the industrial goods - products chemical,
food, light industry and mechanical engineering are prevailing. Among the
imported goods a leading place is taken by the textile products, food stuffs and
products of the chemical industry. There are two free economic zones which are
giving a preferential mode of the taxation - "Porto-Franko" (in the territory of
Odessa sea trading port) and "Reny" (in the territory of Reny trading port), in
which there are 11 investment projects for a total sum 1 086,6 million USD being
processed.
The transport
The transport – is the leading branch of Odessa region economy almost the
half of the regions total income. More than 12% of the working population are
included in this sector. The services sector makes 26,3% of a total Odessa
product. Odessa agglomeration - is the largest port center of Ukraine with the
developed transport infrastructure and accompanying complex "port" manufactures
in processing import, export and transit raw material. In the first half of the
2006 year the volume of cargo transportation in Odessa region made 16,2 million
tons, the biggest part of transportations is carried out by railroad
transportation (65,4%). In the first half of the 2006 year the volume of
passenger transportations in the region made 114,4 million passengers and was
carried out mainly by motor transport (85%).
The investments
In the beginning of the second half of the 2006 year the total amount of
foreign investments into economy of Odessa region made 697,5 million USD,
including direct investments of 697,5 million USD. In Ukraine our region takes
the third place, which is conceding to the capital and the region of
Dnepropetrovsk. At the end of the year it is planned to involve about 970
millions USD of investments. On 01.07.2006 the amount of the foreign investments
per capita makes 246,7 thousand USD.
There are 715 enterprises with participation of the foreign capital which
total sum makes the amount of 594,9 million USD in the region. The biggest part
of the direct investments (99,7%) concerns the enterprises with a private
pattern of ownership. More than 35% of all investments head to two free regions
economic zones. As a results of the first half of the 2006 year the three
leaders of the total volume of investments into economy of the region include
the Netherlands, Chyprus and the USA. Foreign investments are coming from 68
countries and the part of the European unions investments is 42,7%. The greatest
interest of the foreign investors is represented with enterprises of transport
services, the food-processing industry and trade.
The enterprises of the region invested into the economy of the foreign states
36 million USD thus of 98,3% is invested in the enterprises of a sailing
charter. The state enterprises make 98,4% of the region’s investors. Odessa -is
the first city in the CIS territories, which received the rating of
international agency Fitch. At the end of July, 2006 long-term ratings in
foreign and national currency at a level "B +" and a short-term rating "B", the
forecast on ratings is "Stable" was awarded to Odessa. Such achievements of the
city, as diversify and dynamically developing economy, in particular sector of
services, and also positive balance of the budget current balance of the city
were marked.
The tourism
The region of Odessa is one of the most perspective recreational areas of the
seaside type. In the long term perspective tourist business can bring an income
of not less, than sea transport complex. The center of tourism and the rest of
the region is Odessa - for foreign tourists it is the second most popular city
(after Kiev). Such resorts as the region of Belgorod-Dnestrovsk and the region
of Kominternovo can also enjoy the big popularity. The natural-climatic
conditions and presence of significant recreational resources are promoting the
development of an extensive network of sanatoria, rest houses, boarding houses,
sanatoria-dispensaries, children's improving establishments. Besides the sea
beaches, which extension is more than 175 km, there are six estuaries in the
region, two of which - Kujalnick and Shabolat - are wide known for their dirt
resorts.
Every year the region of Odessa accepts over one million tourists and people
who are having a rest both from Ukraine, and from the countries of near and far
abroad. Today each fourth visitors of the region – is the foreigner, and this
parameter is increasing every year. There are 173 tourist agencies in the region
which are offering about 150 various routes and programs of the rest. Individual
tourism is also actively developing.
Construction
The region of Odessa is one of the five leaders of Ukraine on the volumes of
construction. There are 1 403 building organizations in which more than 30
thousand persons take part. In the first half of the 2006 year the 571 buildings
with the total area of 185,4 thousand sq. M (5,81% of a national parameter) has
been put into exploitation.
Building of apartment houses is the most active in developing branch of the
region and is attractive to investments. 23% of a total volume of investments
have been directed to this branch in the first half of the 2006 year. Among
building companies which are offering apartments econom-and the business classes
the leading are: "Progress-build", "the New House", "Stikon", "Source", "DSK",
"Stroytehsnab", "Building-group", "Coast-group", "Intostroj" and "Zlatograd".
Such building companies, as "Progress-build" and investment group "GROWTH" are
working in the market of elite apartments. The high interest to the region have
Russian and Turkish building companies.
The analysis showed that the Odessa region is included into the three most
dynamic regions of Ukraine, considering this the need for economists and
financiers is constantly increasing. Given that modern information technology is
used in all areas of industry, commerce and transport enterprises and in sphere
of services, special importance acquires information security and data
protection. Therefore training of experts-economists should include training in
this area. The given objective will allow the achievement of the project
realization and implementation of its results in all the region's universities.
To ensure the quality of project implementation, it is necessary to carry out
repeated control questioning of target groups of the project approximately in
October 2008. Final terms of carrying out of questioning will be approved by
experts at the meeting in Solerno.
3. Report on the Desk-study conducted in Zhytomyr region
by Institute of Business and Advanced Technologies
Industry at Zhytomyr region
Zhytomyr region is an agrarian-industrial region. Unfortunately,
after disintegration of the Soviet Union, most of big
engineering plants, located in Zhytomyr region, was closed. It
was the reason why Zhytomyr region has a high-level of
unemployment.
1. Agricultural production
Agriculture gives the 30% of gross domestic product.
In total amount of production of agricultural goods the plant-
grower production prevails (62%).
At stock-raising branch production of milk and meat prevails
(43% and 38% accordingly).
There are more than 200 hop- and flax-production units which
provides 74% and 23% of all-Ukrainian production of this crops.
2. Industrial production


In addition, there are large supplies of valuable minerals, many
of them are unique: topazs, quartzities and semiprecious stones.
Zhytomyr region is main Ukrainian supplier of titan ore and
titan concentrate.
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