VOLYN OBLAST, UKRAINE

 

 

 

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Geographical Information
 Territory 20,200 sq. km
Population 1,072,000

The Volyn region was created on December 4, 1939 under the Soviet Union. It is situated in the northwestern part of Ukrainian Polesia. It borders on Poland in the west and on Belarus in the north, and in Ukraine on the Rivne region in the east and Lviv region in the south.

The region has a favorable geographical position; it is at the crossing of European trade roads. The roads between Kyiv, Warsaw and Berlin, the Baltic and Black Seas run through Volyn.

The region comprises 3.3% of the territory of Ukraine. It stretches for 187 km from the north to the south, and 163 km from the east to the west.

The region's population is 2.1% of the population of Ukraine where 52% is urban and 48% is rural.

The Volyn region incorporates 4 cities of regional subordination, 7 towns of district subordination, 22 town settlements, 1050 rural settlements (villages), 16 districts and 378 rural councils.

There is great raw mineral material potential in the region, characterized by the availability of coal, turf, chalk, brick tile clay, building sand. There has also been discoveries of natural gas in recent years in the Lokachi district, and development could completely meet the needs of the local population and regional industry for the next 10 years. There are also a number of deposits of native copper in the Ratniv district. There has been a tender opened for investment attraction to explore and develop further raw material resources.

 

In the northern part of the region there are yellow and granular phosphorite rocks which are used as non-standard potassium phosphate limestone fertilizers.

The region possesses reserves of sapropel (over 61 million tons) which is used as a fertilizer. Some kinds of sapropel may be also used in veterinary medicine and for feeding cattle.

There are 9 deposits of carbonate raw materials with reserves of 29,000,000 tons. Natural conditions in Volyn allow for their excavation with low material and technical costs, and a minimum of environmental damage. They also produce lime and carbide.

A deposit of basalt on the border with the Rivne region has been explored.

The Volyn region is unique in its wonderful natural lands. There are 220 lakes, including the largest lake in Ukraine, Svityaz. There are also 130 rivers and 32% of the region is covered with forests. The region has 380 natural preserves. In particular, the Shatsk National Natural Park composes nearly 32,500 hectares and was opened at the end of 1983.

The lakes, rivers, forests, medicinal muds, mineral waters, hunting and fishing all create the infrastructure for a vibrant tourism industry and allow the local population to engage in much rest and recreation.

 

 

 

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Industry
Industrial areas of production are important to the region and major areas are machine building, agriculture, wood-working and construction. Together they compose 85% of all industrial production. Industry in the region reflects the Soviet heritage, where chemical industry, light industry and machine building were created to meet demand for the whole Soviet Union, while independent Ukraine requires only 25-30% of their capacity. The region’s factories produce rolling bearings, coal, temperature gauges, water meters, cattle breeding machines, cars, electric equipment, plastics and footwear.

Industrial enterprises are mainly distributed in the cities of Volodymyr- Volynsky, Kovel, Lutsk, Novovolynsk and in Gorokhiv, Kivertsi, Kovel, Manevychi, Rozhishche districts.

The regional industry has 227 businesses, representing almost all leading branches and employing 62,000 workers.

In 1997 industrial output was 465 million hryvna (UAH). At that time the enterprises of Volyn produced 45% of the total volume of soft roofing materials, 10% of cardboard, 18% of bearings, 3.7% of butter, 3.8% of granulated sugar, 4.4% of meat.

Machine building is specialized to produce agricultural machines, bearings, electromechanical machines, automobiles and engineering instruments.

Many unique, high-quality machine building enterprises are located in Volyn. They include the Lutsky Bearding Plant, Lutsk Electrothermometry (produces temperature meters, water meters, gas pressure regulators), Novovolynsk Osnastka (special technological equipment) and the Lutsk Automobile Plant.

 

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Economic Complex
 Industry (39%) and agriculture (33%) are the greatest contributors to the regional economy.

 

Light industry possesses vital production potential for the regional economy as well. In Lutsk there are many important operations including Voltex (a silk factory), Synthetics (synthetic leather and non woven fabrics) and the Lutsk Footwear Factory.

For example, Lutsk Integrated Works produces cardboard and prepared roofing paper, and now produces cover cardboard to substitute for imports. It is a leader in the building material industry of the region, but to complete a project to expand capacity to 10,000 tons per year, the business will need outside investment.

Food production and processing composes more than 50% of the regional industrial production and essentially influences the direction of industry as a whole. Food products are made by 77 business, or 34% of all businesses in the region.

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Agriculture
Agriculture is specialized for meat and dairy cattle breeding, as well as in production of grain, sugar beets and potatoes. A new variety of winter rye (called Pallada) with a potential yield of 55-60 hundredweight/hectare (c/ha) is being grown in Volyn.

Agriculture is the second largest part of the regional economy. Collective enterprises (431) and private farms (556) cultivate 1,065,900 ha and 9,200 ha of land, respectively, including 687,100 ha and 8,300 ha of arable land. In addition, individuals possess another 140,900 ha of arable land.

The agricultural sector is composed of cattle breeding (52%) and farming (48%). Collective farms make up 32% of production, with individuals and private farms making up the remaining 68%.

The gross yield of grain was 635,500 tons in 1997 or a 17% increase over 1996, with yields of 20.4 hundredweight of grain per one hectare (from 17.1 hundredweight in 1996). The yield of sugar beets was 176 hundredweight per hectare, while potatoes yielded 797,100 tons.

In 1997, 72,100 tons of cattle and poultry meat were produced in the region as well as 592,000 tons of milk and 153.3 million eggs.

 

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Foreign Economic Relations
The region has much experience in international economic cooperation. Economic relations have been established with over 50 countries. Foreign trade turnover is constantly increasing and reached $195,600,000 in 1997. Many agricultural products rank among the most exported commodities from the region. Such commodities include cereals, sugar, meals, meat and meat products, milk products, casein, mixed fodder, raw hide and confections. This is in addition to Volyn’s industrial exports like bearings, low voltage equipment, meters, machines and equipment for cattle breeding, building materials and textile products.

Petroleum products, technological equipment, transportation parts, organic and inorganic chemicals, textiles and non-woven fabrics and their derivative goods compose the majority of imports.

Cross-border cooperation continues to be expanded. This is accomplished through associations like the Euroregion BUG (Belarus, Ukraine and Poland), which promote and favor business agreements and cooperation between organizations in the cross-border area.

 

To increase Volyn’s productive potential and continue its integration into the general European economy, there is a transportation hub and special economic zone called ‘Interport Kovel’ where international freight and cargo can be processed and loaded.

Many measures have been taken to develop the Ukrainian border region, including the construction and maintenance of international roads and the development of transportation infrastructure to support such traffic.

Volyn’s attractiveness for potential foreign investment in areas like industry, manufacturing and agriculture favors the improvement of foreign economic relations.

There are almost 20 industrial enterprises with potential for foreign investment in the Volyn region. For example, Kovelsilmash, Lutsk Automobile Plant, Syntetyka, Electrotermometria, and other enterprises such as in the woodworking industry. A number of these enterprises have executed investment projects (in accordance with international requirements) which have been satisfactorily reviewed by international financial organizations.