Embassy of Ukraine in the United States of America

, Kyiv 11:59

Vinnytsya Region

Vinnytsya Region created in 1932, is situated in the central part of the Right-Bank Ukraine and occupies 4.5% of its territory (26.5 thousand square km). On the south-western part of the region, down the River Dnestr, the state frontier of Ukraine with the Republic Moldova passes (202 kilometres). There are 17 cities, 30 settlements of urban type, 27 districts and 1467 villages in the region.

Vinnytsya Region is situated in the forest-steppe zone within the limits of the Volyn-Podil and Dnieper sublimity. Here the climate is moderately continental with soft winter and warm moist summer. From the north-west to the southeast the wide valley of the South Buh River is laying. Besides, 230 rivers with the length more than 10 kilometres each flow on the territory of Vinnytsya Region. They belong to the basins of the South Buh, Dnestr and Dnieper.

The region is rich in various minerals. It is iron, apatites, grenades, phlogopites and construction materials (facing stone, sandstones, limestones, sands, hoggin, raw material for production of brick and crashed stone); fluorite, copper, rare earth and radio-active elements (radon mineralization of medical waters from Khmelnyk and Nemyriv known beyond regional boundaries is connected with these elements), kaolin, bauxites, brown coal, peat and others. The bowels of Vinnytsya land are rich in mineral table and drinkable water as Shumylivska, Barchanka, Knyazhna and Regina. There is the prospect for opening of diamonds and gold deposits.

Vinnytsya Region has the multi-branch industrial complex, where the leading place is occupied by food industry, machine-building and metal-working. 478 large and medium enterprises of 13 branches of the industry operate in the region, including the enterprises of food industry make 50.0% of the total number as well as power engineering – 16.7%, machine-building and metal-working – 9%, light – 6.8%. 38 sugar and 14 spirit factories, 28 milk-processing enterprises, 6 meat processing and packing plants and 14 bread-backing plants make the basis of the food industry. The enterprises of the regional processing industry make following contribution to the All-Ukrainian basket as up to 15% of sugar, 20% of alcohol, 13% of meat, 7% of sausages, 8% of animal butter, cheeses, can foods, confectionary and groats. In 2002 the enterprises of food and processing industries produced the commercial products to the amount over 2 billion hryvna and that year they exported the food stuffs to the amount more than USD 120 million, or 54% of the general regional export.

The predominance in the regional industrial structure of food and processing industries testifies to the priority role of agriculture. Actually, Vinnytsya Region is the most Ukrainian producer of agricultural production. The region has a powerful sugar-beet complex and occupies leading positions on gross collection of cereals, potato growing, gardening and stock-raising. More than a half of fixed production assets is concentrated in the agroindustrial complex, besides more than a half (53.6%) of regional resident's lives in the rural locality. In the branch structure of agricultural complex the plant growing makes 61,6% as well as stock-raising – 38.4%.

By result of reformation of agrarian sector of economy in the region on the beginning of 2003 886 agricultural enterprises of market type were created, namely: 530 facilities, 150 private and private-leasing enterprises, 181 agricultural production cooperative societies and 25 other subjects of management activity. Then 1190 farm facilities began to function. They have almost 90 thousand of hectares of agricultural lands. 524 thousand private facilities provide (in comparable prices) 60% of the gross agricultural production, including almost 99% of potato, 90% of vegetables, 56% of fruit and berries, 84% of eggs, 74% of meat and 70% of milk. More than a half million of former members of the collective agricultural farms got the property to the amount of 1546 million hryvna.

The agrarian market infrastructure has been formed in Vinnytsya Region. The Vinnytsya Stock Universal Commodity Exchange, 26 agro-trading houses, 11 credit unions and 30 agricultural servicing societies function here. The receiving-purveying points work in almost all settlements. The service of price monitoring operates; the fairs on sale of agricultural production and auctions of living cattle are conducted; the infrastructure of wholesale markets is developed.

The processes of reformation of agrarian sector of the regional economy and their subsequent deepening, coming of private proprietor are main factors of the effective use of state support here and basis of trust to agrarian sector of commercial banks and investors, as well as basis of growth of production of agricultural goods and food.

In the agroindustrial complex there is co-operation of private agricultural enterprises with large and medium agroindustrial enterprises, which simultaneously are investors for agricultural producers. In 2002 more than 50 enterprises-investors worked on co-operative bases with 115 agricultural enterprises.

The production of almost all types of agroindustrial products is increased annually. The volumes of its export have been extended also. Now the share of agricultural raw material makes the one third – 33.6% of the total export, including meat – 15% and corn – 7.4%. On the whole the general export of commodities provided by the Vinnytsya enterprises stably exceeds import. The share of foreign trade volumes with the countries of CIS is almost 33.4%. The export volumes in the countries of CIS exceed by 3.5 times the volumes of import from these countries. The foreign trade partners of regional enterprises are on all continents; this is 94 countries or more than a half of countries-members of the UNO. Extending trading markets, the Vinnytsya enterprises firstly formed the trading relations with Andorra, Gibraltar, Iceland, Libya, Mauritania, Namibia, Grenada and Chile.

The realization of state policy in the regional field of export-import is co-ordinated by the Management of External Relations and Foreign Economic Activity of the Vinnytsya Regional State Administration. The Vinnytsya Chamber of Commerce and Industry is non state self-governing organization, which incorporates almost 120 actual members – leading enterprises and firms of the region of different forms of property, which are the subjects of entrepreneurial activity. The Chamber since August, 1996 is the provider of the network Internet assisted in particular to creation of electronic variant of the constantly operating exhibition «Business Vinnytsya Region».

Among exhibited structures there are so called small enterprises in this exhibition. The small business in Vinnytsya Region acquires more social and economic value. Taking into account employed people and those in the small business who are in labour relations with them directly, it is possible to say about more than 117 thousand citizens, and this is almost 14% of total regional population, occupied in all spheres of economic activity. And if in Ukraine for 2002 the number of small enterprises has been increased by 9.7% but in Vinnytsya Region this index made 24.7%.

All these factors create attractive investment environment in the region. The foreign investors from almost 30 countries of the world give advantage to processing industry, in particular food, chemical and light industries. The stimulation of investment activity is one of the strategic priorities of the Vinnytsya Regional State Administration. With this purpose it is foreseen to activate the business, to deepen liberalization of economy, to guarantee the rights of creditors and debtors, subjects of economic activity on property and implementation of contracts, protection of personality and fair court.

Vinnytsya Region has the well-developed transport infrastructure. The row of strategic routes passes through the region’s territory.

The cultural inheritance of the people is highly valued in the region. Under the governmental guard there are almost 3,5 thousand sights. These are unique archaeological sights of Trypillya culture, Nemyriv Scythian town, rock monastery in the village of Busha of Yampil district, museum-farmstead of Mykhaylo Kotsyubynsky in Vinnytsya, memorial farmstead and burial-vault of prominent surgeon, publicman and teacher M. I. Pyrogov. In Brayilov of Zhmerynka district the museum of P. Tchaikovsky has been created as well as in Voronovtsi of Vinnytsya district, in the former palace of inventor of the first aircraft O. Mozhaysky – the museum of history of aviation and cosmonautics.

In the market conditions the historical and cultural property also must provide profit, and the regional authorities understand it. The tourists are served by more than 40 organizations rendering services to the amount of many million hryvna.

The Vinnytsya history is the bright page of Ukrainian history. Exactly here, in Podil, there were formed the regiments by leadership of Bogdan Khmelnytsky and they conducted the national liberation fight. With Vinnytsya land there are linked the names of Ustym Karmelyuk, Oleksandr Suvorov, Ivan Kotlyarevsky, Lesya Ukrayinka, Mark Vovchok, Yaroslav Ivashkevych, Petro Tchaikovsky, Mykola Leontovych, Mykhaylo Grushevsky and Vasyl Stus. Vinnytsya land presented many prominent figures to our culture, science and art. The special place among the cohort of prominent Podil citizens belongs to Mykhaylo Kotsyubynsky, Ukrainian writer and publicman.

The rich historical inheritance of Vinnytsya land, agricultural, educational and cultural potential is the basis of its subsequent bloom.