Luhans'k Region appeared on the map of Ukraine in 1938 as a result of division of Donetsk Region into two regions as Stalin and Voroshylovograd. Today Luhans’k Region enters the top five highly developed industrial-economic regions of Ukraine. There is concentrated 5.4% of general fixed assets of Ukraine and 4.5% of labour resources in the region.
The area of Luhans’k Region is 26.7 thousand square km. The number of population is 2524.9 thousand people.
The bowels of Luhans’k Region are rich. Its supplies of high-quality anthracites and coke coal are calculated by billion tons. Exactly the history of the Donetsk coal basin began from here: at the beginning of XVII century its first coal deposits were opened there. Soon in basin of the rivers of Bila and Luhan the landowners and peasants obtain fuel for themselves by the open method, and in 1795 in the zone of Lysychansk city the industrial development of coal for the Luhans’k Iron Foundry began for the first time in Donbass.
The extractive industry makes almost one fourth of production volume of industrial goods in the region. The coal enterprises prevail among extractive enterprises. The coal complex of the region comprises 200 enterprises, including 58 mines incorporated in 8 state coal mining holding companies and State Enterprise "Luhans’kvuglebudrestrukturyzatsiya" as well as 22 concentrating factories. The total production capacity of mines makes almost 28 million tons of coal per year as well as concentrating factories – 50 million tons. The measures on realization of the government programme "Ukrainian Coal" are taken. The exploited supplies of anthracite coal will be sufficient for 200 years by calculations of specialists.
Luhans’k Region has another home energy source – the natural gas and its extraction has been recently started. There are only 10 gas condensate deposits here. Five new mining holes were put into operation in 2002 that promoted the extraction of 333,4 million cube m and the extraction growth by comparison with 2001 made 16.0%. This sphere is perspective and attractive for entrepreneurial activity and investing. There are four basic enterprises on production of electric power in Luhans’k Region, which enter the Ukrainian grid such as Luhans’k TPP, LLC "Luhans’k Power Association", SE "Syevyerodonetsk TPP" and SE "Lysychansk TPP". In 2002 they produced 4116 million kW of electric power and 12635.3 thousand Gcal of thermal power.
One fifth part of general volume of industrial products is produced by the oil refining industry, which is represented by the JSC "Lysychansknaftoorgsyntez". In 2002 they produced the commercial products to the amount of 2731.2 million hryvna or 111.7% to the volume of 2001.
The enterprises of chemical and petrochemical industry of the region produced the commercial products to the amount more than 1 billion hryvna in 2002. In particular, the Syevyerodonetsk State Production Enterprise «Association «Azot» produces the wide range of chemical products (almost 70% of branch products) such as synthetic ammonia, ammoniac saltpetre, carbamide, vinegar and adipinic acids, acetylene, methanol, polyethylene tape, plastics wares and chemical detergents in the shallow packing. The products of the enterprise successfully compete on internal and external markets and repeatedly won prizes in the international exhibitions. In the JSC «Barvnyk» the investor (Logrus-Chemical Corporation) executes works on commission of maximal number of workshops pursuant to the plan of enterprise rehabilitation. In 2002 by comparison with 2001 the production volume of commercial goods has been increased twice. The basic products are dyes, pigments, varnishes, plasticizers, betanolor, chemical facilities of plant protection and chemical detergents.
The LLC "Lysychansk Industrial Rubber Plant" produces the conveyor rubber-fabric ribbon, form and non form industrial rubber wares, wedge passes, sleeve and plans in the future to increase the output of the basic products – the conveyor ribbon by 5 times. The measures on decline of unit cost are taken in the enterprise.
The enterprises of metallurgical industry provide almost one fifth part of general commercial products of the industry and the production volumes are annually increased. In 2002 the growth rates of commercial production made 113.8%. The JSC "Alchevsk Iron and Steel Works" is well-known in Ukraine and beyond its boundaries by its products (cast-iron and steel casting, rolling).
The Lutugyn State Scientific-Production Fulling Integrated Works, which annually provides the increase of industrial production volumes is stably functioning. The development of new technology of production of fulling of various standard sizes has been completed.
The JSC "Luhans’k Pipe Plant" extends the range of pipes and organizes production of profile pipes; the production of precision pipes of all standard sizes is planned.
One of the perspective industries of regional economy is the machine-building. Beginning from 2000 the production volumes of commercial goods is increased. In 2002 the products to the amount of 848.6 million hryvna (growth rate to 2001 – 122.5%) has been made. The enterprises of the branch in 2002 mastered almost 70 new types of products and introduced 77 new technological processes, including 56 low-waste, non-waste and resource conservation processes; the technical retooling of enterprises has been conducted and the new objects were constructed.
The JSC "Pervomaysk Electromechanics Plant" produced the samples of new conveyor engines with water-cooling system (capacity from 110 to 200 kW), which have high energy mechanic parameters. The new combine engines for new coal combines were developed and manufactured; the samples of engines for cranes were manufactured.
The JSC "Stakhanov Car Building Plant" produced the experimental model of car with the increased volume of body for transportation of fertilizers. The JSC "Luhans’k Plant of Rescue Equipment "Horizon" mastered the mass production of the anesthesia preparation "Analgin"; hose respiratory vehicle, air insulating module vehicle, intended for individual protection of respiratory organs and eyes from action of high-toxic aggressive environment; anesthesia preparation intended for reduction of attacks of asthmatic character.
The enterprises of light industry of the region produced the commercial goods to the amount of 59.8 million hryvna in 2002 that makes 90% to the level of 2001. In 2002 following enterprises worked with positive results such as JSC «Tekstylelastotekhnika», JSC "Lutri Firm", JSC "Stakhanov Sewing Factory", CE "Starobil Sewing Factory" and JSC "Alchevskspetsodyagservis".
In 2002 the SE "Luhans’kleginvest" got 9.84 million hryvna of budgetary money and the development of investment projects on technological reconstruction of seven enterprises of light industry was completed at expense of these facilities; 273 new working places were created and 122 people were employed. On the whole since 1996 the company got 53.54 million hryvna; 1087 new working places were created and 1940 people were employed.
The infrastructure of the regional agrarian market is improved. Since 1998 the agroindustrial stock commodity exchange functions successfully and the agro-trading houses were created in all districts. The growth of agricultural gross production made 6.0% (harvest of cereals – 1024.7 thousand tons, sunflower – 222.2 thousand tons and vegetables -175 thousand ton). There are positive changes in the stock-raising. On January 1, 2003 in all categories of farms the total number of cattle has been increased by 7.2% by comparison with the proper date of 2001 as well as pigs – by 25.6%, sheep and goats – by 11.3%, poultry – 13.1%, but the total number of cows has been decreased by 2.6%.
The increase of total number of cattle and poultry conditioned the growth of production of basic types of stock-raising products. In 2002 firstly for the last six years the increase of production of meat of cattle and poultry made 27.0% in all categories of farms. The production of milk has been increased by 10.1% as well as eggs by 26.6%.
The construction complex of Luhans’k Region is 336 main construction organizations and 37 enterprises of construction industry of different forms of property and 850 enterprises of small business of construction type with the number of workers almost 40 thousand people.
In accordance with the Programme of improvement of water-supply of settlements in Luhans’k Region for 2001-2005, the construction of Molodogvardiysk-Sverdlovsk water-supply system with the length of 34.7 km is carried out.
Due to realization of the Programme of gasification of rural settlements the level of their gasification has been increased from 13.6 to 37.2%. For 2001-2002 almost 500 km of gas networks was built; more than 8 thousand buildings and flats were installed gas. 27 villages of the region were firstly provided with gas supplying. Luhans’k Region has railway communication with 14 regions of Ukraine and 6 regions of Russia as well as motor transport with 6 regions of Ukraine and 5 regions of Russia. The motor transport enterprises executing passenger transportations are practically in all cities and districts of the region. The regional bus fleet makes 1506 units. The substantial price-decline on aviation transportation (by 19.9%) promoted the increase of passenger transportation by air transport (2.5 times) as well as cargo transportation by 9.5%.
Today the region develops the economic potential in close collaboration with many regions of CIS and foreign countries. The trade-economic and humanitarian relations with more than 90 countries of the world are supported.
Luhans’k Region is the land of talented and many-sided gifted persons, which revive spirituality of their glorious land and consequently Ukraine.
An anti-terrorist operation is being conducted on the territory of the separate Luhansk region oblasts as to address the terrorist threat and contaion the territorial integrity of Ukraine.
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