Ministry of Foreign Affairs of Ukraine

5, Kyiv 23:25

Kherson Region

Kherson Region was established on March 30, 1944. Its territory is 28.5 thousand square m or 4.7% of the general territory of Ukraine. The number of population is 1150.9 thousand people, including urban – 693.6 thousand people and rural – 457.3 thousand people.

There are 18 administrative districts, 3 cities of regional submission and 658 settlements in the region.

Kherson Region is washed by the Black Sea and Sea of Azov. On the east it borders with Zaporizhzhya Region as well as north-west – Mykolayiv Region, north – Dnipropetrovs'k Region and south – Crimean Autonomous Republic. The state frontier with the length of 458 km passes on the region's territory including 350 km of the Black Sea and 108 km of the Sea of Azov. There are located four check points on the border such as air-port, river port, sea ports of Kherson and Skadovsk.

There are 211 enterprises in the region, where more than 246,7 thousand people are employed. The results of 2003 show positive structural tendencies in the dynamics of economic development of the region.

By comparison with 2002 the gross value added has been increased by 6% in 2003 on the whole, including industrial enterprises – 16%, trade – 27% and transport – on 20,9%. The incomes of population were increased by 4.1% as well as labour payment fund 15.7% and average size of pensions – 15.3%.

The industrial production volume was extended by 16.3% and makes 1677.4 million hryvna in the operating prices so the task of the programme has been overfulfiled by 12.8%. The increase of production volumes from 0.2 up to 80.3% was made by practically all branches of the industry.

10 districts and 3 cities worked with higher than production growth rate as well as following industries such as machine-building (38.3% against forecast 10.5%), oil-refining (17.1% against 1.1%) and power engineering (36.9% against 2%). The chemical and petrochemical, cellulose-paper and printing industries at the planned decline of production actually made the increase by 80.3 and 34.1% respectively.

The enterprises of transport complex executed the all forecast indexes of development in 2003 on the whole. As a result of increase of freight transportation volumes by the enterprises of this industry by almost 2 million tons (or 25.9%) the programme tasks on freight transportation were executed by 139.4%, including goods turnover – 159.8%. The railway transport exceeded the forecast volumes of freight transportation by 1.5 times as well as river – 5 times.

In 2003 the enterprises of communication sphere provided the steady development and implementation of prognosis indexes. The programme on leading of telephone density per 100 inhabitants to the level of 21.5 units has been executed by 100.9% as well as quantity of numbers per 100 families – 100.8%. In 2003 the volumes of communication services were extended by 17.6%, including to the population – 35.8 %. 4 telephone exchanges for 12.3 thousand numbers were put into operation. By the level of communication services Kherson Region takes 9th place in Ukraine.

The enterprises and organizations of housing-communal economy of the region provided services and executed works to the amount of 99.9 million hryvna in 2003. There was allocated money by 1.5 times higher than in 2002 for repair works. The very unfavourable weather-climatic conditions of 2003 conditioned the lowest harvest of cereals in the region that resulted in decreasing of gross production by almost 30%. 447.3 thousand ha of winter crops (more than 70% of sown areas) were died. The volume of losses exceeds 500 million hryvna.

But even at these circumstances in production of vegetables, fruit and water-melon in 2003 there was made the highest indexes for years of independence such as sunflower – 173.2 thousand tones (135% to the programme), vegetables – 437.3 thousand tons (102.1%), potato – 239.4 thousand tons (104.1%), grape – 28.3 thousand tons (102.9%), garden-stuffs and berries – 80.7 thousand tons (2.3 times).

As substantial reserve for overcoming of unfavourable weather factors in the region it is planned to fully involve potential of irrigation in the future. On the irrigated lands the cereals give harvest of 23.6 c/ha as well as vegetables – 150 c/ha, forage root crops – 480 c/ha and maize on silo – 286 c/ha. So, thanks to the drop irrigation the Farm "Tavria" of Kalanchak District got 616 c/ha of vegetables at general average harvest of 60,0 c/ha. In Kherson Region there was irrigated only 250.4 thousand ha (58.9%) from 423.5 thousand ha until now. It is necessary to replace 17% of the facility irrigation network and to renew 33.5% of flushing machines.

The reformation of agrarian sector is lasting. As of January 1, 2004 412 new agricultural farms functioned in the region. 2922 farms have 182,9 thousand ha of agricultural lands in the region. 145,6 thousand state acts on the right of land private property were issued or 71,1% of the total number of certificate proprietors. The shared lands in Kherson Regions make 1425,4 thousand ha. The average size of the land share is 6,9 ha. 209,3 thousand people obtained the land shares.

In connection with the increase of consumer demand the production of consumer goods has been activated in the region. The analysis confirms the tendency of saving of positive growth rates. So, in 2003 the output of consumer goods has been increased by 9.4% due to the increase of production of food and non food consumer groups of 4.2 and 55.7% respectively. Because of unfavourable weather conditions and increase of excise rate on wines strong it was not succeeded to get the level of the proper period of 2002 on beverage alcohol production (-18.9%).

The share of commodities of public consumption in the general production volume of industrial goods makes 49%. By this index Kherson Region takes 6th place in Ukraine.

The volume of consumer goods sale has been increased by 21%, in particular, agricultural production – 21,4%, including products of stock-raising – 28.6%. And here the sale of products of plant growing has been decreased by 6.4%.

For the last three years the average annual growth rate of retail commodity turnover made 13.2%. This tendency was saved in 2003. The commodity turnover of enterprises of retail trade and restaurant economy made 962.4 million hryvna in 2003 at the increase against the level of 2002 by 24.3%. The annual programme was executed by 130%.

In 2003 the enterprises and organizations of all forms of property due to different sources of financing mastered 435.9 million hryvna of investments in the fixed assets by previous data. By comparison with the proper period of 2002 the volume of investments was extended by 6.3%. The volumes of works, executed by building enterprises, by comparison with 2002 has been increased by 46.6% (140.0 million hryvna against 90,9 million hryvna in 2002).

Due to diversification of production Kherson Region gradually sweeps world markets. The commodity export makes USD 120,0 million and import – USD 62,3 million. The foreign trade operations are conducted with partners from 81 countries of the world. Their structure gets better thus. The production volumes of final consumption as machines, equipment, transport vehicles and devices were extended and make almost one fourth of total volume. It is the real confirmation of competitiveness of products of the regional enterprises and result of the use of measures directed on upgrading products and purposeful marketing activity. The personal interest by products of Kherson Region grows in the world. So, in 2003 first in the history Kherson Region supplied 100 tons of water-melons to Sweden. Besides, in 2004 the contracts on supply of egg-plants and pepper light-green are additionally concluded. The enterprises of vine making industry of the region supply products to Canada, Germany, Israel and Luxemburg. The canning products are exported to Baltic States and Russia, countries of Scandinavia, Europe and America.

For a year there were attracted USD 12,7 million of direct foreign investments in the regional economy and it is by 2 million hryvna higher than in 2002; mainly investments were directed to food industry, agriculture and trade.

The tendency to growth of number of small business entities (103,9% to the programme) has been kept in the region. The funds of small business support were established in Nova Kakhovka and Kherson. In December, 2003 the activity of the Regional Business Support Fund has started in the region. Today the registration chambers are operated in Kherson, Nova Kakhovka and Verhnyorogachyk, Velykooleksandrivka and Velykolepetykha districts. The expansion of taxation base provided the growth of tax incomes. In 2003 the aggregate regional budget by comparison with 2002 got the payments by 24.7% higher. In the state budget of Ukraine the growth made 24.2%. The decline of debt of wage payment made 14.8%. The activation of economic activity, increase of sizes of labour pensions and wages in budget and off-budget spheres positively influenced on the increase of money profits of population. The average monthly wage is expected by 22.9% higher than in 2002.

There are taken purposeful measures on timely payment of pensions. In 2003 the budget of the regional department of the Pension Fund of Ukraine got the personal funds by 104.8% higher than the planned task. By comparison with 2002 the incomes grew by 16.5%. It is consoling fact that in 2003 the death rate went down in the region. The permanent tendency to growth of birth-rate is kept. They infuse with a hope that the number of marriages has significantly increased and the divorce was by 0.3% less than in the previous year. The region has all grounds to take the leading positions.

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