Vinnitsa region

Over 2006 industrial enterprises based in the region reached a 6.0% rise in the industrial output volumes as compared to 2005.

By performance of the region’s industrial segment in 2006 almost all types of economic activities showed the upturn in production.

Enterprises of foodstuff industry and agricultural processing, which are the cornerstones in Vinnitsa region, increased industrial production volume by 5.6% versus the respective period of last year. Production volumes boosted in sugar industry – by 52.7%, meat industry – by 30.7%, and dairy production – by 3.3%.

Pulp-and-paper production, publishing, and printing business showed industrial output volumes rising by 34.0% due to 35.4% upturn of volumes in publishing business and a 1.9 times increase in printing segment.

Output volumes in production of construction materials grew versus the respective period of last year by 16.5%. In this period, a 17.5% increase was seen in manufacturing of concrete and gypsum articles, and production of cement and clay tile also added 10.3%.

As compared to 2005, machine building industry showed production rise by 10.6%. Output volumes in generation of electric energy, gas, and water in 2006 grew by 10.0% thanks to higher level of using capacities of energy blocks at Ladyzhinskaya thermoelectric power station (+27.3%).

Thanks to larger exploration of rock quarries – by 29.1% and clay and kaolin production – by 7.0%, production at extractive industry enterprises was up by 18.8%.

Output volumes seen at enterprises of metallurgy and metal working grew by 30.1% versus the respective period of last year. Increase was fixed at enterprises involved in production of metal reservoirs, tanks, and containers – by 32.7%, as well as production of other metal articles – by 46.5%.

Production of wood and timber saw a 44.1% boost of industrial output at the account of higher production volumes in sawing and planning segments – as high as 18.5 times, and production of carpenter and joiner articles – a double rise.

In the course of 2006, production volumes were seen growing in the industrial complexes of 20 districts and regional importance towns – Vinnitsa, Zhmerinka, Ladyzhin, and Khmelnik.

Volyn region

Industrial production rise in the region made 19.2% over 2006. Sales of industrial output amounted to UAH 4.9 bn, per capita figure being equal to UAH 4.7 ths.

In general, gross agricultural production in the region was estimated at UAH 1.9 bn in 2006. Volyn region completely satisfies itself with foodstuffs.

The region-based enterprises showed positive trend of financial recovery. The volumes of accounts payable and receivable diminished. It proves growing business activity of entrepreneurs and businessmen and higher turnover of the capital. By performance in 2006, almost 67% enterprises operated with profit.

Small business felt positive development. In the period under review, it received UAH 520 ths. from the regional budget as financial support (+68% versus previous year). 19 enterprises, which are regarded as small and medium businesses, received USD 22 mn of direct foreign investments.

Today the segment of small entrepreneurship (small companies, physical individual entrepreneurs, and farmers) employ some 25% of able-bodied population (109 ths. people).

Increase of population income and introduction of contemporary technologies in trade encouraged real growth of retail commodity turnover, which added 19.4% throughout 2006.

In 2006, economic sector of the region got USD 159.4 mn of direct foreign investments, which was as high as 8 times up if compared to the forecast indicator for 2006 and 8.1 times more than the actual level of 2005.

Dnepropetrovsk region

Mining-and-metallurgical complex of Dnepropetrovsk region is notable for further augmentation of manufacturing output, as compared to the 2005’s figures. In 2006, regional mining-and-metallurgical enterprises produced 60 mn tons of ore and concentrate, 11.5 mn tons of iron, 12 mn tons of steel, 11.4 mn tons of rolled-metal products, 1.7 mn tons of tubes, 4.9 mn tons of coke, and 0.89 mn tons of ferroalloys.

As compared to 2005, in 2006 regional mining-and-metallurgical enterprises increased the volume of assignments to the state budget, which incremented to UAH 3.75 bn. These enterprises contributed 65.8% to the total volume of tax proceeds from the industrial enterprises of the region. Along with this, the region gave a special heed to power-saving technologies. Taking into account a 10%-increase in the manufacturing output reported by regional mining-and-metallurgical enterprises, their consumption of natural gas dropped by more than 155 mn cu. m. Besides, the region was notable for its attention to reconstruction and technical re-equipment of its mining-and-metallurgical enterprises. To that end, Dnepropetrovsk region spent UAH 2.5 bn. In January 2007, all sectors of its mining-and-metallurgical complex registered distinct augmentation of the manufacturing output.

In 2006, the output of agricultural products reached 101.3%. The value of agricultural products totaled UAH 2.307 bn, which exceeded the 2005’s figures by 15.4%. The largest volume of sales proceeds was obtained in Petrykovka, Nikopol, Dnepropetrovsk, Magdalinovka, and Sinelnikovo districts.

To back the agricultural enterprises of the region, the state budget augmented the volume of allocated funds by 42.5%, as compared to 2005. In 2006, regional farms of all ownership forms gathered 2.635 mn tons of grain. Grain crops productivity totaled 24.8 centners per hectare. Gross yield of sunflower seed equaled 761.5 ths. tons (+24.2% against the 2005’s figures), sugar-beet – 585.2 ths. tons, and soy – 52.4 ths. tons. In 2006, regional enterprises produced almost 184 ths. tons of meat, 474.4 ths. tons of milk, and some 975 mn eggs.

Due to special measures aimed at stabilization and further incrementing of cattle and poultry population, in 2006 the population of pigs grew by 13.5%, sheep and goats – by 14%, and poultry – by 641.2 ths. heads.

In compliance with the program for agricultural development in 2007, gross output of agricultural products should reach UAH 4.3 bn. Besides, the region plans to produce 2.75 mn tons of grain, 480 ths. tons of sugar-beet, 560 ths. tons of sunflower seed, 510 ths. tons of vegetables, 590 ths. tons of potato, and 175 ths. tons of fruit and berries.

Further development of agricultural complex of Dnepropetrovsk region includes the following directions: development of plant growing and cattle breeding, introduction of power-saving technologies to enhance the quality of agricultural products, and development of social infrastructure in rural area.

Donetsk region

Economic potential of the region is represented by more than 800 industrial enterprises, 26 ths. small enterprises, 600 agricultural enterprises, 500 specialized building companies, and 2 ths. farms.

Industry of Donetsk region contributes a lot to Ukrainian economy. The region accounts for one fifth of the basic industrial-and-manufacturing assets of Ukraine, adds more than 20% to the national volume of sold industrial products, and holds the leadership in manufacturing output of many different products. For the most part, the region’s leadership is evident in the fuel-and-energy complex, ferrous metallurgy, chemical industry, and machine-building industry.

As regards the structure of the region’s manufacturing output, it is dominated by ferrous metallurgy and metal-working industry (together accounting for more than 50% of the total), and fuel-and-energy complex (15% of the total).

Power-generating industry of the region is represented by the unified complex of generating networks. Their total installed capacity amounts to almost 10 ths. MW.

The region accounts for almost 50% of coal production in Ukraine, and for more than 74% of coking coal production (including its more valuable grades). Productive capacity of coal-producing enterprises totals 55.0 mn tons of coal per year.

Metallurgical complex of the region embraces 11 metallurgical enterprises, 39 enterprises engaged in production of finished metal ware, and a pipe works. In particular, Donetsk region hosts 8 chemical coking plants, 3 melt-producing enterprises, and 13 refractory plants.

The assortment of metallurgical products primarily includes open-hearth and foundry iron, various rolled-metal products, tubes, wire cable, etc.

The region also hosts quite important enterprises that represent non-ferrous metallurgy and enterprises that utilize secondary raw materials.

Products manufactured by metallurgical enterprises contribute 77% to the volume of export supplies from the region.

Machine-building complex of Donetsk region is oriented to production of machines and equipment for metallurgy, coal-mining industry, power engineering, and transport.

Machine-building enterprises fully meet Ukraine’s need for mining equipment, account for almost 100% of Ukrainian-made domestic refrigerators, and 64% of washing machines. More than 50% of products manufactured by local machine-building enterprises are bound for export.

Donetsk region ranks among the leading regions of Ukraine in the output of chemical products. It accounts for one third of the total Ukraine’s production of synthetic ammonia and sulfuric acid, and adds one forth to the chemical fertilizers production. The region exports almost 60% of chemical products manufactured by its enterprises.

The region is notable for extensive transportation system including Donetsk Railway, the longest in Ukraine. The railway accounts for almost 45% of the total pressure that falls on Ukrzaliznitsya, and 15% of the total volume of passenger departures. Mariupol State Commercial Seaport is one of the three largest seaports of Ukraine. Due to the full complex of customs services and high quality of its communications system, the seaport is considered the significant import-and-export center of the region.

Agro-industrial complex ranks among the most significant sectors of regional economy and successfully provides the internal regional market with foodstuffs.

Regional agriculture makes use of some 2 mn ha of agricultural land including 1.6 mn ha of arable land.

In Ukraine, food and food-processing industries of the region contribute a lot to production of white salt (almost 90%), confectionery (18.6%), sparkling wines (18%), and butter (22.6%), and are notable for vast export potential.

Zhitomir region

A distinctive feature of the region’s industrial development in 2006 was ensuring the growth of production volumes in every segment. The positive features also include its focus on production of end consumer goods.

Production volumes in the industry grew by 5.1% versus the previous year. The highest rise was seen in metallurgy and metal working (+34.4%), wood and timber production (+21.7%), as well as pulp and paper industry (+16.3%).

Segments with growth rates higher than average industrial ones were extractive industry (+6.5%), light industry (+7.0%), chemical production (+5.1%), machine building (+5.9%), and there was upturn in production of non-metallic mineral articles (+1.1%).

In 2006, general situation in the region’s agrarian sector was marked with certain growth of animal production along with some hardships in plant cultivation. In particular, plant growing production lost 2.3% at all farms and came to UAH 1,203.3 mn, which was by UAH 27.8 mn less than last year. The indicator fell because of lower production (-9.4%) at individual farms.

Gross animal husbandry production reached UAH 1,002.6 mn, which is by UAH 38.2 mn up versus the previous indicator; performance results went up thanks to higher production by individual farms (+7.0%).

Throughout 2006, the region commissioned 203.042 ths. sq. m of gross housing, which is by 106% more than in 2005.

Passenger transportation also improved performance figures. By and large, passenger carrying services in the region were provided to 82.4 mn people, which was by 14.5% more than last year.

Zakarpatye region

As compared to 2005, the volumes of industrial output increased by 27.2%, which was a 3.5 times rise versus the last year growth (7.7%). Industrial production was seen growing in 11 out of 18 administrative territory units in the region.

High tempos of production growth were accomplished by the following segments of processing industry: machine building (+54.1%), pulp-and-paper and printing business (+28.7%), chemical and petrochemical industry (+18.6%), as well as manufacturing of construction materials (+16.0%). By and large, the upturn in processing industry came to 27.9%, generation and distribution of electrical energy, gas, and water saw a 17.3% rise, whereas mining and extracting industry suffered a 2.0% decline.

The most important industrial output types, production of which did go up in 2006 versus the previous year, embraced meat, animal feed, malt, cereals, chocolate, grape wine, mineral water, fruit and vegetable juice, coats, men’s’ and boys’ trousers and bridges, knitwear, plywood, parquet, as well as detergents and disinfecting agents.

In January-November 2006, gross volume of sold products amounted to UAH 3,823.2 mn in sale prices of enterprises.

Gross agricultural product by all categories of farms in 2006 added 2.2% as compared to 2005 – thanks to plant growing industry (increase by 9.2%).

Animal breeding sector produced 74.2 ths. tons of meat (live weight), 395.0 ths. tons of milk, and 289.0 mn eggs, which in comparison to the previous year make correspondingly 100.7%, 99.8%, and 96.8%. The number of livestock expanded by 0.8%, pigs – by 3.1%, sheep and goats – by 1.8%, and poultry – by 4.5%.

Zaporozhye region

Manufacturing sectors

Results of the region’s social and economic development in 2006 prove stable tendency of growth potential rise in the area.

In 2006, industrial output sales amounted to UAH 38,721.9 mn, which is 8.4% of gross volume for Ukraine. By the volume of industrial output sold, Zaporozhye region ranks the fourth among Ukrainian regions, whereas per capita figure (UAH 18,556.4) puts it second in the country.

If compared to 2005, industrial production grew by 9.5%. This indicator for the region is 1.5 times higher than all-Ukrainian result (6.2%); moreover, the region is a leading industrial region with such a figure.

Positive dynamics in the industry was the most secured with higher output in machine building – by 31.3% (the rise was 7.5% in 2005), food-processing industry – by 19.4% (10.3%), as well as generation and distribution of electric energy – by 6.3% (in 2005 the industry showed a 6.3% decline in production).

For reference: the following companies encourage substantial rise in machine building: CJSC with foreign investments ZAZ – by 56.1% versus 2005 (138,685 cars were engineered), OJSC ZaporozhTransformator (transformer plant) – by 44.1%, OJSC Zaporozhye Electric Locomotive Plant – by 29.9%, CJSC Zaporozhye Cable Plant – by 22.6%, as well as Iskra Scientific and Production Complex – by 19.4%.

Metallurgic industry reestablished positive dynamics in the course of 2006, having shown production increase by 1.7%. In general, production embraced 4.9 mn tons of steel (100.7% versus 2005), 3.9 mn tons of finished steel (100.3%), as well as 556.3 mn tons of ferroalloys (99.0%).

Zaporozhstal Iron & Steel Works showed rise in every type of metal production, the increase of production volumes by Zaporozhye Titanium and Magnesium Works made 9.3%, OJSC Zaporozhye Plant of Metal Structures – 27.4%, and OJSC Zaporozhye Ferroalloys Plant – 7.6%.

The main stabilizing factors for performance of metallurgic enterprises were: increase of world prices for metal products, particular measures aimed to solve the problems in the industry’s development, production upgrade, and increasing quality of products.

Over 2006, energy generating companies based in the region generated 51.3 bn kWh of electrical energy (26.7% in the Ukrainian gross volume), which was by 6.0% more than in 2005. In financial terms, production volume grew by 6.3%, including at Zaporozhye Nuclear Power Plant – by 6.9%.

Production increase tempos in food-processing industry almost doubled versus the respective figure of 2005 and made 19.4%. Increase was mostly backed by higher production of meat and 1 category by-products – by 37.4%, crude oil – by 22.0%, liquid processed milk – by 23.5%, as well as non-alcohol drinks and spirits (production volume by Khortitsa Liquor and Vodka Plant, which contributes 27% to the industry’s sales, almost doubled).

The region is working to speed up innovation development. Throughout 2006, 31 industrial companies of the region were involved in innovation activities (8.0% of total number). The most of innovative enterprises were concentrated in machine building – 51.6%, as well as in metallurgy and metal working – 12.9%.

Innovation products accounted for 9.2% in the region’s gross sales of industrial products.

Agriculture

Gross agricultural product volume in 2006 amounted to UAH 2,625.7 mn having risen by 3.2% versus 2005.

By gross yield of grains and leguminous plants (1,762.0 ths. tons), the region ranked eighth in Ukraine, and it was the country’s leader by gross harvest of sunflower seeds (801.0 ths. tons).

Aggregate production by animal husbandry sector added 5.1% versus the respective level of 2005; meanwhile, production of meat was by 6.1% up, of eggs – by 18.3%.

Meat production upturn was fostered by growing number of pigs – by 18.0%.

Ivano-Frankovsk region

The regional industrial production rose by 8.6%, excluding the petrochemical sector.

The extraction industries’ volumes increased by 0.3%. The growth in the extraction of non-power materials made up 35.0%. Crude oil production hardly changed in comparison with 2005. The recovery of pebbles, gravel, macadam, and sand for construction increased.

Oil production was stabilised in the region. Oil and Gas Extractive Department (OGED) Nadvirnanaftogas and OGED Dolynanaftogas contributed to the growth of gas production in the region. They put five oil wells into operation.

Manufacturing industry volumes grew in the following sectors: machine building (18.2%), chemical and petrochemical industries (13.1%), non-metallic mineral production (8.1%), food industry and agricultural produce processing (12.1%), pulp and paper industry and printing (3.2%), wood and wood manufacture (7.9%), and light industry (4.6%).

Chemical and petrochemical industries’ volumes increased at the expense of chemical production (12.9%) and rubber and plastic manufactures (19.4%). The production of synthetic dyestuff rose by 29.9%, ethylene by 16.9%, propylene by 13.5%, and plastic in primary forms by 15.8%.

Commodity production volumes increased at Karpatnaftokhim, ltd. and CJSC Lukor. One of the largest investment projects, worth USD 500 mn, regarding chlorine, sodium hydrate, and suspension PVC production was launched in the region.

In the machine building industry, growth was observed in machines and equipment building by 27.6%, as well as transport equipment by 12.3%.

Wood and wood manufactures’ volumes grew by 7.9%, notably, in carpenter's and cabinet work by 38.6%, wood panelling by 9.1%, plywood by 27.6%, untreated woodchip boards by 3.6%, veneer sheets and others by 0.5%.

Considerable finances were invested into the primary capital of the regional woodworking industry in 2006. The production processes of the regional companies, namely CJSC LK Interplit Nadvirna, Uniplit, ltd., and Serin, ltd. were reconstructed and modernised, which ensured their effective work in future.

In light industry, manufacturing volumes grew in textiles by 3.7% and in leather production by 8.7%. The production of tanned leather without further processing leapt up 16.8%.

In the food industry, growth was observed in the production of prepared fodder for farm animals 2.9 times, fresh and chilled poultry and food by-products by 65,4%, sausages by 22.8%, bakery by 14.7%, and soft drinks by 0.6%.

In the pulp, paper industry and printing, the increase in production was 3.2%. The manufacture of wallpaper grew by 1.6%.

The gross output in agriculture in 2006 was 2.4% more than in 2005. Agricultural enterprises built up their production by 31.7% and the number of agricultural units amounted to 14.6% within the industry structure.

The production of sugar beets increased by 9.0% and the total yield of rape doubled. The production of vegetables and potatoes, 99.0% of which grew in individual farms, was stabilised.

The gross output of livestock grew by 7.3%, notably at agricultural enterprises by 58.3%. The number of pigs at agricultural enterprises grew by 49.3% and poultry by 42.7%, which led to an increase in meat and eggs production.

New production processes were introduced at Kalush Bread-Baking Plant, ltd; ABO-MIX, ltd., producing mixed fodder in Kolomya region; and Stanislav Trading Company's Distillery. Two modern production lines for long loafs and rolls were put into operation in OJSC Ivano-Frankovsk Bread Plant, a new Cheddar cheese department opened at OJSC Ivano-Frankovsk Municipal Dairy Plant, and ZPK YUMAS, ltd. intensified their production of flour.

Kirovograd region

The region’s industrial complex embraces 3 leading industries, in which 260 industrial enterprises operated in 2006.

Within the structure of sales volume of industrial output, works, and services by main activities, mining industry accounts for 5.3%, processing – 74.2%, and generation and distribution of electrical energy, gas, and water – 20.5%.

The region contributes 4.2% to gross agricultural product of the country. Plant cultivation has 75.3% in agricultural gross product, while animal husbandry adds 24.7%.

Agricultural land takes 83% of the region’s territory or 4.9% of agricultural area of Ukraine.

Transportation system covers 884 km of railways (of these, 585 km have been electrified) and 10 highways of length 687.7 km, which link Ukraine to the CIS, as well as Central and Southern Europe.

Aircraft transportation is performed by OJSC "Kirovograd Airlines”. Besides, there are two commercial airlines – URGA and Chaika, which operate in international air routes.

As of January 1, 2007, gross volume of foreign investments into the regional economy amounted to USD 52.1 mn.

Small entrepreneurship in the region includes 5.5 ths. small enterprises, 41.8 ths. entrepreneurs – physical individuals, and 2.6 ths. farms.

Small enterprises in total number of the region’s companies account for 86.5%, and the volume of goods, works, and services provided by them – for 12%.

The largest number of small enterprises function in wholesale and retail trade – 34.2%, industry – 16.7%, real estate operations – 14.7%, and construction segment – 9.0%.

By degree of natural soil fertility, Kirovograd region is the fourth in Ukraine. In 100 points scale of quality, Kirovograd soil is evaluated at 67 points.

The region’s territory has 270 deposits of natural minerals. The mineral raw stock base of the region consists by 15.7% of fuel and energy deposits, by 57.7% – of raw stock for manufacturing of construction materials, and 26.6% of gross deep are ores of ferrous, non-ferrous, and rare metals, as well as reserves of fresh and mineral water.

Almost the entire mineral uranium base of Ukraine is situated in Kirovograd region, which is substantial for long-term provision of nuclear energy enterprises with nuclear fuel.

Golden ore deposits are the basis for gold extractive and processing industries in the region. 10 ore deposits were found, some probes have up to 400 gr of gold per ton of rock.

The distinctive feature of the region is availability of Ukraine’s only deposits of chromite ores (Golovanovskiy district) and shale oil (Alexandrovskiy district).

Geological structure of the region provides almost inexhaustible reserves of natural building stone. These are granite, migmatite, gneiss, quartzite, charnockite, and other crystal shield rocks.

Lugansk region

The industry’s industrial potential is a diversified complex with heavy industry segments leading the way. Fuel and energy sector is the region’s leader. It is mostly composed of mining industry, which is dominated by coal enterprises. In 2006, industrial production in fact reached the rate of 106.2%.

Growth rates among processing industry segments were as follows: foodstuff and agricultural processing – 101.6%, production of nonmetallic mineral articles (construction materials) – 110.5%, as well as metallurgy and metal working – 115.7%.

Generation and distribution of electrical energy, gas, and water showed actual growth rate at 117.4%.

Upturn in chemical and petrochemical industries was seen at 101.7%, in machine building – at 105.7%.

The segments, which suffered recession, were light industry – 93.5% as well as production of coke and oil refining products – 89.6%, which negatively influenced commercial manufacturing in general (made 101.7%).

Slowdown of industrial production has been caused by scheduled technological break of one of the region’s most powerful enterprises – CJSC LiNIK – in September-October 2006 for nearly a month and a half. The enterprise contributes impressive 33.0% to gross industrial output by the region. Another negative determinant was lower oil supply by TNK (Tyumen Oil Company) to LiNIK, which first of all was related to poor competitiveness of the products and reduced customs tariff for import of light oil products (Belarus, Romania, Latvia), which have production cost lower than of similar products of the company.

The areas in Lugansk region, which contributed to the highest rise of industrial output, were the towns of Stakhanov (33.4%), Antracit (25.2%), Krasnodon (15.1%), Bryanka (12.8%), Alchevsk (10.6%), as well as Antracit district (81.1%), Svatovskiy district (54.5%), Krasnodon district (31.3%), Popasnyanskiy district (16.6%), Slavianoserbskiy district (14.4%), Kreminskiy district (11.7%), and Perevalskiy district (9.2%).

Meanwhile, downturn of industrial production was seen in the towns of Pervomaysk (by 18.1% down), Kirovsk (14.1%), Lisichansk (11.3%), Rubezhnoye (5.6%), Sverdlovsk (5.4%), Rovenki (2.0%), Krasnyi Luch (0.8%), as well as Stanichno-Luganskiy (50.0%), Novopskovskiy (33.0%), Starobelskiy (27.8%), Markovskiy (22.3%), Novoaydarovskiy (20.6%), Troyitskiy (11.7%), Milovskiy (1.5%), and Lutuginskiy (0.2%) districts.

By results of 2006, the region ranked the third in Ukraine by volumes of industrial output sales, which outran UAH 40 bn, or 8.7% of gross national volume.

No fundamental structural shifts took place in 2006. Similar to previous years, the portion of raw stock products was 90.7%, investment products – 5.4%, and consumer goods and durables – 3.9%.

The region’s agroindustrial complex adds almost 9% to gross product and involves 2 ths. enterprises in production activities.

If compared to 2005, the volume of agricultural production (in comparative prices) over 2006 by all farm categories dropped by 9.7%, including a 14.3% decline by commercial farms and decrease by 6.1% by population-owned farms.

In 2006, sales by commercial farms embraced: grain crops – 500.8 ths. tons, which is by 29.9% less as compared to 2005, sunflower seeds – 231.4 ths. tons (+46.8%), livestock and poultry – 24.1 ths. tons (+20.4%), as well as milk and dairy products – 54 ths. tons (5.3% down versus the indicators of 2005).

901.2 km of gas pipelines were built in the region’s settlements in the period under review, gas was supplied to more than 18,905 houses and apartments. Gas supply system was for the first time installed for 41 settlements. Gasification level throughout a year increased by 1.9% up to 67.8%.

The region-based companies performed construction works in 2006 for the value of UAH 1,424.1 mn, which was 2.8% higher versus 2005.

Their main portion (88.7%) was focused in construction and reconstruction of industrial objects (OJSC Alchevsk Iron & Steel Works, OJSC AlchevskKoks, CJSC Proletariy Plant of Lisichansk, etc).

Nikolayev region

Throughout the year, the region evidenced growing volumes of industrial output versus last year – by 6.4% (Ukraine’s average – 6.2%). For reference: in 2005 increase made 7.1% in the region.

Metallurgy and metal working enterprises expanded production volumes by 3.3% as compared to the last year – thanks to LLC “Nikolayev Alumina Plant” (increase of the plant’s output was exactly the same as the region’s increase in production volumes). By and large, 1,410 ths. tons of alumina were produced in 2006, which was a 45 ths. tons increase versus the previous year.

Industrial production volumes in machine building segment, as well as machinery and equipment repair and mounting went up by 4.6% in 2006.

High concentration of shipbuilding enterprises is a distinctive feature of Nikolayev region. In 2006, shipbuilding companies based in the region expanded production by 12.8%. The upturn mostly resulted from the fact that since January 2006 the companies have launched serial production of “river-sea” type vessels for domestic client – Ukrrechflot navigation company (in general, 9 vessels of the type should be built).

In 2006, industrial production volumes in the energy segment dropped by 11.6% as compared to the corresponding period of the previous year – due Yuzhno-Ukrainskaya (South Ukrainian) Nuclear Power Plant of EnergoAtom National energy JSC (NEJSC), which cut industrial production volume by 13.4% (17,859 mn kWh of electrical energy were produced since the beginning of the year, which was a 13.3% reduction versus 2005). The volumes of generated electrical energy are regulated by the plan, which is set by EnergoAtom NEJSC. The sector fulfilled the plan of electrical energy production for 2006.

Light industry showed production volumes growing by 3.6% versus the previous year and backed by higher output at CJSC VOZKO – by 1.2%, CJSC Alisa – by 61.1%, and CJSC Santa-Ukraine – by 6.7%.

An 18.3% rise in industrial production volumes has been reported by foodstuff and processing industries by results of 2006.

In 2006, agricultural production volumes (in comparative prices of 2000) added 7.6% in comparison to 2005, in particular, plant growing segment showed increase by 10.9%.

Foremost, it was determined by the fact that agricultural producers received 1,950.4 ths. tons of grain in test weight, which is by 11% higher than the indicator of 2005, 496.5 ths. tons of sunflower seeds (+26%), 307.5 ths. tons of sugar beet (double rise), and 277.4 ths. tons of vegetables (+4%).

As regards animal breeding segment (according to preliminary results of 2006), farms of all ownership types increase production of eggs by 13.3 mn eggs (4.2%) versus 2005, and wool – by 20 tons (31.3%). Meanwhile, production of meat dropped by 1.3 ths. tons (2.9%), and milk production was 19.2 ths. tons down (4.4%).

Livestock herd increased by 22.2 ths. heads (12.3%), pigs – by 23.3 ths. heads (16.6%), and sheep – by 9.2 ths. heads (22.4%). Poultry population reduced by 35.7 ths. heads (1.1%).

In 2006, agricultural producers received financial support from the state budget worth total UAH 93.3 mn, which was twice more than in 2005.

Odessa region

In 2006, gross industrial output by the region decreased by 9.3% versus last year. Reduction of production volumes was greatly influenced by temporary ceasing of OJSC LUKOil – Odessa Refinery for reconstruction, though the plant contributes weighty 24.5% to the region’s industrial production volume.

If to exclude the volumes of oil refining production by OJSC LUKOil – Odessa Refinery, industrial output added 6.4%.

The industries that showed production rise were production of non-energy materials (up 3.4 times), production of foodstuffs (+12.0%), metallurgy and metal working (+27.5%), production of other non-metallic mineral articles (+16.2%), pulp-and-paper and printing industry; publishing business (+18.1%), as well as generation and production of electric energy, gas, and water (+7.4%).

Enterprises lowered industrial production volumes in 13 districts and 2 cities. The largest decline was seen in Frunzovskiy (by 79.7%), Velikomikhaylovskiy (-57.7%), Izmailskiy (-47.1%), and Ananyevskiy (by 17.4%) districts, as well as cities of Odessa (-25.3%) and Belgorod-Dnestrovskiy (-3.2%).

The volume of industrial output sales was estimated at UAH 12.1 bn.

Agricultural production volumes in 2006 (in comparative prices) added 1.0% versus the results of 2005, including a rise at agricultural enterprises – by 6.6% and at population-owned farms – by 3.5%.

If compared to 2005, plant growing production rose by 0.4%, though population-owned farms lowered the indicators by 8.2%, while agricultural companies increased them by 8.2%.

As of January 1, 2007, cattle stock number lost 7.4%, (including -9.9% for cows), the population of poultry was down by 7.2%, as well as sheep and goats – by 2.5%. At the same time, the number of pigs expanded by 17.2%.

Foodstuff and agricultural industry increased production versus last year in the following way: unfermented fresh cheeses – by 13.5%, liquid processed milk – by 27.7%, cream – by 24.6%, fresh pork – 2.2 times up, meat (including 1 category by-products) – by 20.5%, sausage products – by 20.1%, as well as crude oil – by 48.9%, and cognac – by 9.2%.

However, decline was seen in production of flour – by 20.0%, butter – by 10.8%, powder sugar – by 8.5%, pasta – by 24.1%, as well as vodka and other spirits – by 25.5%.

Gross volumes of meat production (slaughter sales of cattle and poultry in live weight) dropped by 8.5%, production of milk – by 11.8%, of eggs – by 9.5%, and of wool – by 5.2%.

According to preliminary estimates, in 2006, all categories of farms harvested 2.8 mn tons of grain (including corn), which is by 5.2% less than in 2005.

Poltava region

Companies of light, extracting, food, chemical, petrochemical industries, and on manufacturing of other non-metallic mineral articles steadily worked in industry of the region.

Volume of industrial output increased by 6.5% in 2006 against the indices of 2005.

Volumes of industrial production increased at companies of all main kinds of industrial activities, except for companies manufacturing timber and articles, metallurgy and metal working, on chemical production, and production of transportation equipment.

Production volumes expanded by 13.7% in extracting industry. The year 2006 resulted in extraction of 478.7 ths. tons of raw oil (30.5% more than in 2005), 7,495.2 mn cu. m of natural gas (+1.3%), and 740.4 ths. tons of gas condensate (2.3% less).

Production volumes in processing industry increased by 5.6% versus the results of 2005.

Production volumes at the companies of food industry and processing of agricultural produce increased by 16.7%.

Light industry production rose by 5.7%.

Pulp and paper, printing, and publishing output grew over 2006 by 22.8%

Production volumes in the oil refinery industry grew by 2.4% versus 2005, while chemical and petrochemical industries production expanded by 3.0%.

Production volumes of other non-metallic mineral articles increased by 16.2% in 2006.

Production volumes in metallurgy and metal working diminished by 2.1% in 2006, while machine building indices increased by 1.9%.

Transportation complex of the region is loaded with work: freight vehicles of the region carried 28.5 mn tons of freights (9.9% accretion against the results of 2005). Cargo traffic expanded by 12.9%.

Public transportation of the region carried 150.0 mn passengers (by 10.1% more than in 2005).

Average nominal salary of an employee over January-November 2006 1.9 times exceeded minimum of subsistence set by legislation (UAH 505) and amounted to UAH 941.74.

Real wages of employees increased by 15.0% over January-November 2006 if compared with January-November 2005 taking into consideration growth of consumer prices.

Rivne region

Manufacturing sectors

Economic performance of the region in the 11 months of 2006 proves that economic growth tempos are speeding up.

Further increase of industrial production has been supported.

In January-November 2006 industrial enterprises based in the region produced output worth total UAH 4.8 bn, which is 6.7% or UAH 306.1 mn higher than in the respective period of 2005.

13 out of 20 districts of the region boosted production volumes. The largest contributors to general growth of the region’s industry are the town of Rivne, as well as Rivnenskiy, Kostopolskiy, Radivilovskiy, and Dubenskiy districts.

Following the forecasts, outpacing production growth tempos are evidenced in mining and extracting industry, wood processing, machine building, metallurgy and metal working, as well as chemical industry.

Region-based enterprises keep on updating of production, implementing of progressive technologies, and commissioning of new types of competitive products.

In particular, RivneAzot OJSC (Rivne Nitrogen Plant) is running measures of technical refit and upgrade of production. In the 11 months of 2006 the enterprise used UAH 27.4 mn of investments.

In the first half of 2006, SwissPan Limited LLC launched chipboard production line with capacity of 160 ths. cu.m.

This year Consumers-Steklo-Zarya CJSC finished construction of glass container workshop No.3, which has daily capacity of 350 tons of glass containers and project cost of UAH 150 mn. It helped create 240 new jobs. Annual production output should grow by UAH 200 mn.

Backed by the foreign bank loan, Rokitnovskiy Glass Plant OJSC is involved in building of new glass container workshop with annual capacity of 200 mn bottles.

Gazotron-Luxe LLC has put on stream state-of-art automated line, which manufactures compact energy saving luminescent lamps Lummax.

CJSC Agroresource commissioned new production block for 110 jobs, started production of some new types of energy saving boilers, and in general some UAH 9.5 mn were received for development of production.

Production modernization and commissioning of new articles’ manufacturing are in process at Rivne Plant of High Voltage Equipment OJSC.

Enterprises of light and food processing industries are renewing and expanding their production range. OJSC Rivne Factory of Non-sawn Materials installed equipped for Befama large cloth manufacturing.

Agriculture

The region undertakes measures to improve the efficiency of agricultural production.

Investments in agricultural sector over 2006 amounted to UAH 61.6 mn, which was 1.8 times up versus 2005. Besides, UAH 160 mn more were received as loans, which showed a UAH 3.4 mn rise as compared to last year.

The state support to agriculture was estimated at UAH 36.1 mn (1.4 times up versus 2005 volume).

As a result, this year 16 idle animal breeding houses restarted operations, of which 14 are involved in pig breeding, 1 – poultry breeding, and 1 – milk producing unit.

Agricultural works were performed timely and in correspondence with technological requirements, as well the region improved pedigree breeding works in animal breeding industry.

Throughout January-November 2006, gross agricultural production volume by all categories of farms did go up by 3.7% as compared to the corresponding period of 2005, while the growth figure was forecast at 4.9% over the year.

A rise was seen in production of meat (live weight) – by 3.9% (forecast for 2006 – 4%) and eggs – by 0.3% (forecast figure of 0.6%). The herd of cattle stock expanded by 0.8%, number of pigs – by 11.9%, poultry – by 8.7%, as well as sheep and goats – by 10.2%.

Sumy region

Over 2006 the volume of industrial growth was 104% y/y.

The volume of agricultural produce from farms of all categories was UAH 2,010.6 mn in 2006. In contrast to 2005, the gross output dropped by 3.8%.

The livestock of pigs increased by 6.1%, sheep and goats - by 7.2% in farms of all categories in 2006 y/y.

In 2006 5.3 mn tonnes of cargo were transported by all types of vehicles including private automobiles, which was 109.7% of the 2005 figure. Turnover of goods increased by 13.3% and totalled 13.3 bn tons / km. Passenger traffic in the region amounted to 146.3 mn people, which was 3.9% more y/y. Passenger turnover grew by 2.4% and totalled 4,521.9 mn passengers / km.

In January – November 2006, telecommunication agencies provided services worth UAH 336.3 mn, including services to the population – UAH 137.2 mn (40.8%). Growth in the total volume of services was 111.4%, services provided to the population – 109.3% in comparison to 2005.

In 2006, construction companies did work estimated at UAH 392.1 mn, which was 2.1% more than in 2005.

During 2006, developers put into operation 143.5 ths. sq. m of total housing area in the oblast, which was 100% y/y growth.

In January – December 2006, the total volume of consumer goods amounted UAH 4,809.2 mn, which was 18.9% more than in 2005. Retail turnover of legal enterprises increased by 12.7% and amounted to UAH 2,128.3 mn; restaurant turnover grew by 5.7% and totalled UAH 156 mn.

In 2006, 7,781 small businesses run by private individuals and 1,235 legal entities were registered in the region.

Ternopol region

The annual industrial output in 2006 was UAH 2,394.5 mn, which was 18.3% more than in 2005. Extraction industries grew 26.0% and manufacturing industries - 18.8%.

The increase was observed in the food industry (+23.9%), printing (+27.9%), chemical and petrochemical industries (+3.1%), construction materials (+13.7%), metallurgy and metal working (+2.6%), machine building (+8.5%), and power generation and distribution (+4.8%).

The leading sectors of the food industry demonstrated significant growth. Enterprises in the meat sector added 52.5% to their production, flour and groats - 32.7%, alcohol - 14.5%, bread and bakery - 10.8%, and sugar - 26.1%.

In January – December 2006, production of some segments of consumer goods increased in comparison with 2005 as follows: sausages (tripled), manufactured liquid milk (+26.8%), flour (+26.8%), groats (+4.5%), granulated beet sugar (+25.4%), spirits (+1.8%), alcohol (+12.3%), mineral water (+2.4%), soft drinks (+4.0%), and linens (+58.8%). At the same time, output of first-class meat and by-products dropped by 3.7%, butter – 22.7%, fat cheeses - 43.9%, bakery - 4.7%, shoes - 29.4%, and furniture - 8.4% among others.

In January – December 2006, farms of all categories produced 62.2 ths. tons of meat in live weight, which was 2.2% less y/y, 469.7 ths. tons of milk (-3.2% y/y), and 384.6 mn eggs (+32.2% y/y).

Over 2006 farms increased milk yield per cow by 25 kg.

As of December 1, according to the preliminary total, farms of all categories gathered (thrashed) grain crops and leguminous plants from an area of 407.6 ths. ha. The croppage was 905.3 ths. tons and productivity was 22.2 centners / ha. Industrial sugar beets were gathered from an area of 73.9 ths. ha, with a productivity of 301 centners / ha, which was 31 centners / ha more than in 2005. Potatoes were gathered from an area of 57.9 ths. ha, with a productivity of 139 centners / ha (+22 centners / ha y/y). Vegetables were gathered from an area of 9.0 ths. ha, with a productivity of 159 centners / ha (+15 centners / ha y/y).

Over 2006, construction and reconstruction companies on their own did work for UAH 460.1 mn, which was 4.5% more versus results of 2005.

Kharkov region

In December 2006, the region’s industrial enterprises boosted the manufacturing output by 5.88% (to UAH 2,005.3 mn in comparative prices), as compared to 2005. The sales volume of industrial products (including works and services) reached UAH 23,716.6 mn (in current prices) and added 5.1% to the total value of Ukrainian-made products sold.

In December 2006, the manufacturing output registered by industrial enterprises grew by 1.55% against the figures reported in November 2006.

The greatest augmentation of production volumes characterized such region’s industries as mining of non-power-generating materials (103.45%); food industry and processing of agricultural products (111.51%); light industry (112.95%); production of wood and articles made of wood (149.07%); pulp-and-paper industry and printing industry; publishing (116.17%); production of other non-metallic mineral materials including construction materials and glasswork (123.88%); metallurgy and metalworking (118.38%); other industries (100.26%); as well as production and distribution of electric power, gas, and water (109.80%).

In 2006, agricultural enterprises increased meat production by 13.8% while egg production grew by 35.0%.

According to statistical data, as of 01.01.2007 the region’s farms of all ownership types gathered 1,716 mn tons of grain crops and leguminous plants (including corn), crop capacity totaled 20.2 centners per ha. Production of grain maize totaled 207.2 ths. tons (in weight after processing), crop capacity reached 27.8 centners per hectare.

Besides, the region produced 1.6 mn tons of sugar beet (in set-off weight), which exceeded the 2005’s figures by 44.0%, and 376.5 ths. tons of sunflower seed (+25.3%, as compared to 2005).

The area under winter crops sowed in 2006 totaled 422.1 ths. ha (+9.0%, as compared to 2005). Hitherto, winter crops came up on the whole sown area and 98% of the crops grow in good and satisfactory conditions.

Kherson region

In 2006, enterprises involved in the industry managed to shorten the lag versus the previous year: industrial production index withheld positive growth tendency: first quarter – 61.3%; second quarter – 69.3%; 9 months – 73.4%; year – 81.2%, which is by 5.2% higher against the corresponding figure suggested by the program of social and economic development of the region for 2006. Not taking into account performance of OJSC Kherson Oil Refining Complex, the region’s industrial production added 12.2%.

The following sectors showed rise in the output: mining industry – 1.9 times up, foodstuff processing industry – by 19.2%, pulp-and-paper as well as printing industry and publishing business – by 33.7% more, chemical and petrochemical production – by 12.2%, machine building, repair and mounting of machinery and equipment – by 4.4%, production of other non-metallic mineral articles (construction materials, construction articles) – by 28.1%.

The most influence upon the region’s positive industrial performance was exerted by higher production volumes at the regional leaders: branch of CJSC AT Cargill (8.1 times up as compared to 2005), OJSC Kherson Shipbuilding Plant (+33.6%), branch of OJSC Mironovskiy Plant for Cereal and Mixed Fodder Production (+18.8%), CJSC Plant of Large Electrical Machinery (+26.1%), CJSC Rodich Dairy Plant (+19.6%), LLC Anto-Rus Kherson Auto Assembling Plant (2.8 times up), LLC Korabel (2.7 times up), and other.

In 2006, sales of industrial products (works, services) in producers’ sale prices amounted to UAH 3,377.1 mn, which makes 114.5% if compared to the respective period of 2005.

Agroindustrial sector of the region involves 508 agricultural enterprises, 2,695 farms, and 132.7 ths. individual peasant farms.

The volumes of financial support to agricultural enterprises increased versus the previous year by 78.4% coming up to UAH 92.6 mn. It helped expand the area of gardens and vineyards by 760 hectares.

The region formed the resources of food grain in the volume of 157.1 ths. tons, which makes 100.8% of the demand.

In the period under review, agricultural producers based in the region received 1,474.1 ths. tons of grain and leguminous crops in reprocessing weight, 352.0 ths. tons of sunflower seeds, as well as 621.6 ths. tons of vegetable crops, which makes 95.8%, 122.0%, and 118.2% respectively versus the previous year.

Production of meat (live weight) added 4.7% and production of eggs was 4.2% up. Increase in meat production was encouraged by 16 districts and 2 towns.

Khmelnitskiy region

Industrial production over 2006 increased by 13.0% versus the previous year (increase in 2005 made 18.6%). Meanwhile, the Ukrainian average for industrial growth was close to 6.2%.

15 districts out of 20 and all towns of district submission showed rise of industrial output volumes.

Production volumes in mining industry grew by 17.1%.

Processing industry increased output volumes by 12.7%. Increase was seen at machine building enterprises – by 15.2%, including in production of electrical and electronic equipment – by 22.9%, machinery and equipment – by 1.9%; metallurgy and metal working – by 13.9%; foodstuff and agricultural processing industries – by 13.5%; production of other non-metallic mineral articles (construction materials, construction articles) – by 8.7%; chemical and petrochemical industries – by 7.3%, including production of rubber and plastic articles – by 7.3%, chemical production – by 6.8%; wood and timber production – by 5.3%; as well as production of leather and leather footwear – by 2.6%.

The volumes of generated and distributed electric energy, gas, and water went up by 14.4%. Production included 14.6 bn kWh of electric energy, which was a tenth rise versus 2005.

Transportation enterprises carried 4,900.9 ths. tons of cargo – a 9.8% upturn if compared to 2005. Cargo turnover amounted to 934.0 mn t-km having expanded by 40.4% due to freighting performed by individual entrepreneurs. Services of passenger transportation were provided to 112.1 mn passengers (+4.8%), and passenger works were performed in the volume of 1,150.2 mn pas. km – a slight 0.3% reduction versus previous year. Besides, municipal electrical transport carried 65.9 mn passengers, which outran the volumes of 2005 transportation by 10.6%.

Construction enterprises of all ownership forms performed construction works worth total UAH 568.4 mn, which is by 16.5% more than in 2005.

Retail turnover (including retail commodity turnover among retail enterprises, estimates for commodity sales volumes at market places and by individual entrepreneurs) totaled UAH 5,345.4 mn, which suggests increase by 23.7% versus last year volumes.

In January-November 2006 services sold to population were evaluated at UAH 315.7 mn (38.5% of total volume), which in comparative prices is by 18.4% higher than in January-November 2005.

Pre-tax financial performance from regular business activities (balance) of the region-based enterprises and organizations (besides to small, agricultural business, and budget institutions) in January-November 2006 amounted to UAH 209.9 mn in net profit. 67.9% of enterprises were operating with profit.

The volume of agricultural production by all categories of farms in comparative prices increased versus 2005 by 1.5%, including at population-owned farms – by 3.4%, while commercial farms reduced production volumes by 2.7%. In 2005, the volumes of production lost 12.5%.

Gross volume of plant growing production added 1.1%. According to preliminary data, in 2006 gross yield of grain crops amounted to 937.8 ths. tons (in reprocessing weight).

Gross crop of sugar beet (factory one) increased by 41.0% (from 1,040.6 ths. tons to 1,467.1 ths. tons). At the same time, crop yield rose by 25.6 centners (9.2%) coming to 303.5 centners per hectare.

Potato production was 1,152.8 ths. tons – an upturn by 17.8% if compared to 2005. Increase of potato production resulted from its growing crop capacity by 27.4 centners per hectare.

Population-owned farms in 2006 harvested 99% of total potato yield, 96% – of vegetables, 24% – of grain, 17% – of sugar beet (factory one), and 6% – of sunflower.

Animal husbandry production by all categories of farms added 2.1%. The volumes of meat production (versus 2005) shrank by 1.1 ths. tons (1.6%), milk production – by 33.5 ths. tons (4.6%), while production of eggs and wool increased by correspondingly 25.7 mn eggs (+13.3%) and 1 ton (+9.1%).

Milk yield per cow at commercial farms (estimated for average stock) added 120 kg (4.1%) having reached 3,062 kg.

Cherkassy region

Industry

In 2006, regional economy maintained positive tendencies in manufacturing industrial output, the volumes of which grew by 3.7% y/y (in comparative prices).

The output of the food industry and processed agricultural produce increased by 6.1%, machine building by 26.9%, light industry by 5%, wood processing and wood manufacture by 8.2%, metallurgy and metal working by 35.7%, and non-metallic mineral materials by 39.7%.

The food produce grew in its main segments including fresh pork, poultry, tinned pork, meat convenience foods, smoked fish and filleted fish, salted herring, margarine, and similar produce, processed liquid milk, non-fermented fresh cheese, sour milk produce, ice cream, flour, groats, prepared pet food, cakes, sweet biscuits and wafers, and granulated sugar.

The machine building enterprises increased the manufacture of buses, lorries, caravans and semi-caravans, conveyers and grain elevators, agricultural loading equipment, equipment for washing, filling, corking, packing and wrapping bottles or other containers. They also manufactured poultry farming equipment, hatchers and brooders, machines and devices for sugar production, machines and devices for the extraction and preparation of adiposes, vegetable fats and oils.

Generation and distribution of electric power, gas and water increased by 1% over the 2005 figure. However, in 2006 the oblast’s power production was 1,557 bn kWh, which was 4.9% less y/y. The heat and power supply dropped by 10.1%.

A decline was observed in the production volumes of the chemical and petrochemical industries, which dropped by 10.7%.

The enterprises in the pulp and paper industry, printing and publishing shortened their production by 2.2%, and in particular the pulp and paper industry decreased by 3.2%, whereas printing grew by 37.9%.

In 2006, industrial enterprises sold their production, works, and services for a total of UAH 8,389.7 mn.

Agriculture

In 2006, gross agricultural produce grew by 3.6% y/y in farms of all forms, which amounted to 3,608.9 UAH mn; agricultural enterprises grew by 13%.

In 2006 all categories of farms sold by 10.6% more cattle and poultry in live weight for meat processing, and by 15% more eggs.

Productivity of cows grew by 244 kg and amounted to 3,936 kg.

At present, over 20 agricultural co-operative societies and communal enterprises operate in the region.

Network shops, specialised shops, machine and tractor stations and other service businesses are being developed in the region. There are also about 50 credit unions, 86 wholesale grocery and wholesale fruit and vegetable market places, 831 storage centres of enterprises in the processing and food industries, and commercial entities engaged in agricultural produce procurement.

The Agroindustrial Complex Commodity Exchange functions in the central regions of Ukraine. Sixteen agrotrading houses provide services in the preparation of contracts for trading agricultural produce and provisions for state and regional needs, as well as registering foreign commercial contracts.

During 2006, 48 trading sessions were held and 692 trade contracts were signed at the Agroindustrial Complex Commodity Exchange in the central region. The signed contracts were worth total of UAH 129.1 mn. 613 of them were intra-consortium agreements worth UAH 89.6 mn, 57 inter-consortium agreements worth UAH 35.7 mn, and 22 import agreements worth UAH 3.8 mn.

Chernigov region

The region’s industrial production is represented by 257 enterprises including 241 enterprises that belong to processing industry, 9 enterprises engaged in generation and distribution of electric power, gas fuel, heat and water, and 7 enterprises that represent mining industry.

In 2006, the output of industrial products augmented by 3%, as compared to the 2005’s figures.

Processing industry contributes the most to the volume of industrial production accounting for 86.4% of the total. The region’s processing sector embraces such industries as food industry and processing of agricultural products (52.0% of the region’s total), light industry (5.8%), pulp-and-paper and printing industry, and publishing (7.5%), chemical industry and production of plastic articles (8.1%), machine-building industry, machine and equipment repairs and assembling (5.7%) and some others. 10% of the region’s industrial output are brought in by mining industry, and 3.8% of the total come from production and distribution of electric power, gas fuel and water.

In 2006, processing industry reported a 3.4% incrementing in the volume of manufacturing output.

As regards meat industry, sausages production augmented by 1.5%, production of fresh and cooled beef and veal went up by 6.4% while production of finished products and canned meat (beef and veal) grew 3.3 times.

The region’s fish industry was notable for increased production of salted herring (1.4 times), dried and salted fish (1.3 times, and with the exception of filleted fish), smoked fish including filleted fish (+26.2%), and finished fish products and canned fish (+17.4%).

Enterprises engaged in industrial processing of vegetables and fruit augmented the output of natural canned vegetables (2.2. times) and boosted the output of vegetables, fruit and canned vinegar-pickled mushrooms (+25%).

Grain-processing and starch–producing enterprises increased the output of rye flour (+15.1%), wheat flour (+33%), corn meal (1.4 times), and wheat groats (1.5 times).

Production volumes reported by enterprises that represent light industry grew by 0.4%, as compared to 2005.

In 2006, the region’s chemical industry registered a 25% augmentation of the output, which was primarily stipulated by increased production of chemical products (+29.8%). At the same time, the output of rubber and plastic products dropped by 3.7%. As compared to 2005, the year 2006 saw the incremented production of primary plastic articles, synthetic fiber, washing and cleaning agents, plastic carboys and bottles, and similar products.

The same year, enterprises engaged in production of other non-metallic mineral materials boosted the manufacturing output by 20.8%. Production of precast elements for residential construction and civil engineering increased by 29%, concrete mix – by 16.8%, and ceramic non-refractory bricks – by 0.2%.

In 2006, production volumes reported by metallurgical and metal working enterprises went up 1.5 times. Production of boilers for central heating systems grew by 44.3%. The same upward tendency characterized the output of reservoirs and cisterns, and interchangeable components of hand tools.

As compared to 2005, the region’s manufacturing output increased by 13%. In particular, such tendency was backed by enterprises that represented transport machine-building (+25%), production of electric and electronic equipment (+9.8%), and production of machines and equipment (+0.5%). The region also featured the incremented production of vacuum pumps (+50%), casting forms and casting patterns (1.4 times), medical furniture (1.9 times), buses (2 times), and piston-like displacement pumps (2.1 times).

Commercial value of products sold by industrial enterprises of the region in January-November 2006 exceeded UAH 6 bn. 79.8% of the mentioned sum were contributed by the region’s processing industry. In particular, food industry and processing of agricultural products added 41.2%, pulp-and-paper industry and printing industry made up 7.3%, and light industry contributed 7.2% to the total. The share of enterprises engaged in generation and distribution of electric power, gas, heat and water totaled 10.5%, and the share of mining industry was equal to 9.7%.

The volume of products sold by mining and processing enterprises included products whose production was backed by investments (6.2%), raw materials (49.6%), and consumer and durable goods (44.2%).

Chernovtsy region

In 2006, the region’s industrial enterprises boosted the manufacturing output by 7.7% (to UAH 1,533.5 mn in comparative prices), against the results of 2005.

Production volumes reported by the region’s processing industry increased by 7.5%. Augmentation of manufacturing output was registered at the enterprises that represent printing industry and pulp-and-paper industry (+24.3%), enterprises engaged in production of other non-metallic mineral materials (+22.9%), metallurgical and metal-working enterprises (+18.0%), chemical and petrochemical enterprises (+16.8%), enterprises representing food industry and processing of agricultural products (+16.4%), manufacturing enterprises representing other sectors of the industry (+12.6%), and machine-building enterprises and enterprises engaged in repairing and assembling of machines and equipment (+2.7%).

Light industry of the region curtailed the volume of manufacturing output by 17.0%. The same downward tendency characterized the output of wood, and articles made of wood (-12.9% with the exception of furniture).

Production volumes reported by the region’s mining industry increased by 1.0%.

As regards geographic distribution, the manufacturing output was augmented by enterprises located in 6 districts of the region, namely Kytsman (+75.0%), Kelmentsy (+62.7%), Zastavna (+35.3%), Storozhynets (+21.3%), Khotyn (+20.2%), and Putyla (+3.5%) districts.

At the same time, production volumes featured a downward tendency in Glyboka (-12.8%), Novoselytsya (-8.9%), Ghertsaev (-2.8%), Vyzhnitsya (-2.0%), and Sokyryany (-1.7%) districts.

In 2006, gross production of the region’s agricultural enterprises increased by 0.6% (to UAH 1,290.7 mn in comparative prices of 2000), which slightly outpaced the all-Ukrainian figure (+0.4%).

Gross crop production in all categories of regional farms dropped by 2.3%. For the most part, such curtailment was stipulated by decreased production volumes at the region’s agricultural enterprises (-28.9%).

Agricultural producers of the region gathered 372.6 ths. tons of grain (in reprocessing weight), which worsened the 2005’s figures by 12.7%. In particular, agricultural enterprises curtailed grain production by 33.7%, and private households – by 1.7%. This decline followed the curtailment of the area under grain crops by 16.3%.

Wheat production went down by 31.5%, production of barley, oats, rye and buckwheat dropped by 22.2% while production of sugar beet and sunflower seed decreased by 12.3% and 24.9% correspondingly.

Curtailment of agricultural production primarily resulted from the disparity in prices for industrial and agricultural products, which stipulated the absence of circulating assets needed to increase the area under crop belonging to agricultural enterprises of the region.

In 2006, regional enterprises of all ownership forms produced 56.3 ths. tons of meat in live weight (109.4%, as compared to 2005), 360.8 ths. tons of milk (98.1%), 257.5 mn eggs (105.6%), and 132.7 tons of wool (103.1%).

A 1.9% curtailment of milk production was stipulated by decreased cow population (-2.3%) and dropped prices on the market for milk raw stock. During 2006, the purchasing prices for milk narrowed by 20-25%, as compared to 2005. At the same time, prices for fuel and animal protectants significantly grew. Due to such augmentation, a lot of agricultural enterprises (including enterprises with quite stable milk output) found themselves in critical financial situation.

In 2006, all categories of regional farms augmented their cattle and poultry population against the 2005’s figures including pigs (+11.7%), sheep and goats (+0.3%), and poultry (+15.4%).

City of Kiev

Industry of the capital city exceeded last year production volumes in 2006. The volume of sold industrial output amounted to UAH 23,837.7 mn in 2006 that is by 10.5% more than over the corresponding period of 2005.

More than half of sold output fell for food industry, machine building, as well as generation and distribution of electric energy, gas, and water.

In 2006, 165 companies or 31.3% of the total industrial enterprises of the city were involved in innovation activities. The aim of activities was mostly creation and implementation of new or essentially improved output and technological processes.

Companies of pulp, paper, and printing business (37.0%), chemical and petrochemical industry (35.3%, machine building (15.9%), and timber and wood articles’ industry (14.0%) featuring innovation output had the largest share in the gross volume of sold industrial output.

More than 210 companies (40.0%) were dealing with implementations of innovations in industry. It allowed to pile up volumes of new technological processes’ implementation, increase the number of new types of output, as well as expand the number of companies, which certified own quality system in accordance with ISO 9001-2001 state standard (growth from 156 to 166 companies).

Development of entrepreneurship, having an essential influence for structural reform in economy, is one of the decisive factors of social and economic growth in the capital city of Ukraine. It also promotes rational use of all resources and increase of budget revenues.

Retail trade turnover (retail turnover of companies dealing with retail trade, estimated data on sales volumes at market places and by individual entrepreneurs) made UAH 31,186 mn in 2006 that is by 37.2% more than volumes over January-December 2005.