Ministry of Foreign Affairs of Ukraine

Kyiv 20:25

Chernivtsi Region

Chernivtsi Region is situated on the crossroads throughfares between the Central, Southern and Eastern Europe in the foot-hill of the Carpathian. It is one of the youngest regions of Ukraine. The region was established in August, 1940.

The regional area is 8,1 thousand square km. The region comprises 11 districts, 11 cities, including two cities of regional submission, 8 settlements of urban type and 397 rural settlements. The number of population is 922.8 thousand people (representatives of almost 80 nationalities and ethnic groups).

The region is rich in natural resources. On the territory of Bukovyna they discovered four oil and gas fields (Lopushnyanske, Chornoguzke, Krasnoyilske and Sheremetivske). The Lopushynske oil field is exploited.

The bowels of Bukovyna contain considerable resources of construction materials. In the Dniestr River area in the basin of the Prut River there are the sizeable fields of gypsum and anhydride. The northern and eastern fields of the region are rich in marl and limestone. There is a perspective marble field in the village of Krasnoyilske.

For brick, tile and pottery production they use loam prolific in villages of Vyzhnytsky district. For road construction and facing building walls the foxy and grey sandstone is widely used. The different types of sand are extracted in villages of Zastavnivsky district. There are also the fields of quartzite slates and kitchen salt on the region’s territory.

The mineralogical resources of Chernivtsi Region are deposits of mineral waters of following types as Izhevska, Matssesta, Borjomi and Naftusya as well as mud cure. With the geological structure and specific conditions there are connected practically inexhaustible resources of medical mineral waters with varied chemical composition used for treatment of various diseases. Over 60 resources of mineral waters are known. The industrial bottling of table and medical waters (15 resources) is carried out such as Bukovynska, Brusnytska, Kelmenchaky, Khreshchatyk and others. The water of the Brusnytsky deposit containing sulphuric-hydrogen and soda hydro carbonate and chloride sodium components has the special demand. It determines its medical properties. Based on the mineral springs there are three balneology resorts here: in the villages of Brusnytsya and Shcherbantsi and in Chernivtsi.

There are over 70 rivers on the region’s territory, which belong to the basins of the Danube and Dniestr Rivers.

They call Bukovyna a jewel of Ukraine. The forests are its special riches, being wooden raw and products of non wood plant product. The fir-tree, beech, silver fir and oak are its main wood making breeds. The forest management is conducted on the principles of continuous, non exhausting forest usage, improvement of conditions and increase of productivity of forests.

The economic activity of the region for the last years is marked by the sustainable growth of many indexes. It takes place due to active support of traditional activities.

The powerful industrial complex was formed in Chernivtsi Region comprising enterprises of food industry, machine-building and metal-working, timber and woodworking, chemical and petrochemical, light industry and power engineering. 228 industrial enterprises are functioning in the region and their production volume makes 0,4% of the Ukrainian volume.

In 2003 the production volumes of industrial goods were extended. For January-June, 2003 the industrial enterprises produced the goods to the amount of 354.5 million hryvna that is by 23.6% higher than for the proper period of 2002. By growth rates of industrial production the region took 3rd place among other regions of Ukraine.

The increase of industrial production volume is ensured by the growing production facilities at the enterprises of processing industry providing 80.2% of the general regional output. The production volumes in these enterprises grew by 26.1%. Almost 22% of the products of this industry are manufacturing in sugar and confectionary industry. Following enterprises of this industry bring a substantial contribution to increase of production volume; JSC «Chernivtsimyasopromservis», PE "Kolos", JSC "Rozy Bukovyny", Production Commercial Trading Firm "Bukovynka" JSC, SE "Myaso Bukovyny" and JSC "Novoselyts Poultry Plant".

The important role is played by the light industry. It is represented with following subsections as sewing, textile, knitting, tanning, fur and footwear. 23 enterprises of the light industry cover 18.5% of the general number of industrial-manufacturing staff in the region.

The Chernivtsi Joint-Stock Company "Trembita" is one of the power enterprises in the light industry. This is a one of the leaders in man's and woman's garment production. Among priorities of development of this public corporation there is modernization, automated manufacturing, course on excellent quality of products and permanent range updating for satisfaction of the most demanding tastes of customers. The substantial efforts for the industry are made by such enterprises as JV "Konftrem", JSC "Rozma", Production Commercial Trading Firm "Accent" LLC and JV "Suzirya".

The significance increase was made by the enterprises of machine-building, repair and assembling of machines and equipment, food industry and processing of agricultural products, metallurgy and metalworking, production of wood and wood wares. The LLC "Chernivtsi Machine-Building Plant" is the most powerful machine-building enterprise in the region. The enterprise manufactures the unique equipment for processing, transportation, storage and synthesis of oil, gas and condensate as well as equipment for power engineering and large-scale chemistry objects.

The most substantial increase of production volumes in 2002 was made by the enterprises of metallurgy and metalworking, which provides 7.4% of the regional industrial production volume.

Constantly extending the assortment and mastering new types of products the LLC "ARGO" annually increases the industrial production volumes and its share makes 56.3% in the section.

The production volumes of commodities of public consumption are extended that testifies to strengthening of social orientation of production. By growth rates the region takes 5th place among other regions of Ukraine. The production growth of commodities of public consumption is ensured by the increase of production of food and non food consumer goods of 33 and 17.3% respectively.

The tendency to the increase of volumes of production sale and reduction of level of barter deals is kept. The volume of the shipped products for January-May, 2003 made 328.7 million hryvna or 112.6% to the production volume of the proper period.

The activity in the field of agroindustrial complex of the region for January-June, 2003 was directed in providing implementation of tasks of agricultural production development in the region and reformation of agrarian sector. The land reform is completed. Almost 190 thousand citizens became the proprietors of land shares in the region and one third of them got the state acts on the right of land property.

The leading place among industries of agriculture is occupied by the plant growing providing 56% of the agricultural production volume. The production of corn, potato and beets is the basic directions of plant growing development.

The growth rates of stock raising gross production are kept; the total number of cattle grows. For January-June, 2003 in the facilities of all forms of property there was produced 22.7 thousand tones of meat (in living weight), milk – 165.9 thousand tones, eggs – 146.1 million items and wool – 133 tons. The production of meat has been increased by 2.5% as well as eggs – 10.1%.

The regional market of food by all basic types of food stuffs, except for corn, is supersaturated, therefore for all categories of facilities there is important to create infrastructure network on processing of agricultural raw material and network of servicing enterprises.

There are positive changes in the construction complex. It comprises 113 contract building-assembling organizations including 16,8% of the state form of property. In 2002 the enterprises and organizations-builders of all forms of property at expense of financing sources put into service the fixed assets with the actual cost of 186.3 million hryvna.

The bus rout network has been formed in the region and now it is able to satisfy the growing demands of population in passenger transportation.

The main foreign economic activity indicators continue to grow. The regional foreign trade turnover for January-May, 2003 makes USD 47.9 million that is by 27.1% higher than for the proper period of 2002. The export volumes were extended by 11.4% as well as import – 1.5 times and made USD 25.6 and USD 22.3 million respectively. The export and import operations of the regional business structures with the foreign countries are prevailing in external contacts. The main trading partners from this group of countries are Germany, Italy, Bulgaria and Poland.

The regional investment attractiveness became better for the last time. In 2002 the foreign investors invested USD 3.5 million of direct investments in the regional economy that is by 1.9 times higher than in 2001.

One of priority industries of economy of this land is tourism. The geological and geomorphological formations of Northern Bukovyna have the large cognitive and aesthetical value. The residents of Bukovyna love and can act as host. They are sincerely interested in that the circle of their friends becomes wider.

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