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Overview of Khmelnytsky Oblast Area - 20,600 sq. km. Population 1,460,600 GEOGRAPHY Khmelnytsky oblast is located in the south-west of the East European plain in the forest-steppe and mixed-forest zones of Polissya (Woodland). There are over 3,000 rivers and streams flowing across the oblast. The largest rivers are: the Dniester, the South Buh, the Horyn, the Sluch, rthe Zbruch, and the Smotrych. The oblast has 60 reservoirs where the water supply comes up to 153 millilon cubic meters; there are also 1799 ponds. The largest reservoirs are the Dniestrovske and the Schedrivske on the South Buh. The region ranks the 6th among other oblasts of Ukraine for water supply. The climate is moderately continental. The average annual temperatures are: in summer +19° Centigrade, in winter –3° Centigrade. The maximum summer temperature is +36-38° Centigrade, the winter one is -31-35° Centigrade. The average annual precipitation is 510-580 mm. The predominant soils are the gray podzol and black earth. The oblast stretches for 220 km from the north to the south and for 120 km from the east to the west (calculated by the longitude and latitude of the oblast center).

Khmelnytsky oblast borders on the Vinnytsia oblast in the east, on the Ternopil oblast in the west, on the Rivne oblast in the north-east, on the Zhytomyr oblast in the north, and on the Chernivtsi oblast in the south. There is a regional (Podillya) custom house; in Khmelnytsky airport there is a check-point to for crossing the national boundary of Ukraine.

Administratively, the oblast is divided into 20 districts: Bilogirsky, Vinkovetsky, Volochysky, Gorodotsky, Derazhnyansky, Dunayevetsky, Izyaslavsky, Kamyanets –Podildsky, Krasylivsky, Letychivsky, Novoushytsky, Polonsky, Slavutsky, Starokostyantynivsky, Starosyniavsky, Teofipolsky, Khmelnytsky, Chemerovetsky, Shepetivsky, and Yarmolinetsky.

Kamyanets-Podilsky – 108,600 people, Netishyn – 36,700, Slavuta – 37,800, Starokostyantyniv – 36,800, Khmelnytsky – 262,100, and Shepetivka – 50,500.

Khmelnytsky oblast ranks the 12th among oblasts of Ukraine by the number of population. As of January 1, 2000 its population amounted to 1,460,500 and it was composed of:

Urban population - 775,500 (53.1% of the total population of the oblast)

Rural population - 685,100 (46.9% of the total population of the oblast)

Male - 666,000 (45.6% of of the total population of the oblast) Female 794,600 (54.4% of of the total population of the oblast)

The number of retired people - 459,740 (31.5% of of the total population of the oblast)

The average density of population per sq.km - -71 people.

The number of working people in all spheres of economy is 727,900, including:

the people working in economic sectors: 661,300, including

in industry – 112,400

in agriculture – 310,200

in construction – 26,300

Khmelnytsky oblast is located at the meeting-point of large historical-geographic territories: Right-Bank Ukraine (to which it belongs) and Western Ukraine. In a narrower understanding, the oblast's territory belongs to Volyn (northern part, approximately up to the river Sluch) and Podillya (middle and southern parts). In the past, Volyn and Podillya were included into one and the same or different states; the southern and western boundaries of the present-day oblast were state frontiers for a long time.

In pre-war years Khmelnytsky oblast turned from a border into an inland oblast of the country. A narrow strip of the Chernivtsi oblast at the south separates it from Moldova (10 km by a straight line) and Romania (24 km), the Polish border shifted much further (165-240 km).

The oblast has been existing in the present boundaries since 22 September 1937, when the Kamayanets-Podilsky oblast was formed by a resolution of the All-Union Central Executive Committee of the USSR. In May 1941 the oblast center was transferred to the town of Proskuriv, and in January 1954 the oblast as well as its center were given a new name of Khmelnytsky.

It only takes three to four hours to cross the oblast from the north to the south in a car. A diversity of vegetation and wildlife will open to the tourist’s eyes – unique landscapes, reserved territories, rocks, caves, and lakes. The words of the famous Ukrainian poetess Lesya Ukrainka, " Podillya, the beauty of Ukraine!", were no exaggeration.

The factors promoting active tourism development in the region are: natural and climatic conditions (the Carpathian foothills, forest-steppe and woodland zone), a lot of historic and architectural landmarks, and convenient modern transport communications. The natural reserve comprises 279 items: national game reserves, a botanic garden, natural masterpieces, 23 parks – masterpieces of landscape art, and 4 reserve tracts.

It is possible to establish and develop tourists’ routes about the places associated with the historical past of Khmelnytsky oblast.

A particular place in the historical chronicle of Podillya is held by the ancient Kamianets-Podilsky, one of oldest historic towns of Ukraine. Owing to a unique combination of the historical, architectural inheritance and the landscape of the canyon of the river Smotrych the ancient Rus and medieval parts of the town has been declared a state historical-architectural memorial. Architectural monuments of 15th-19th centuries include about 200 buildings and constructions. Formidable defense fortifications of the "Old Town". The fortress and its bridge, combination of cult buildings of various religions produce an inimitable impression.

Taking into account the rich historical-architectural inheritance of the "Old Town", the National Commission of Ukraine for matters of UNESCO in May 1994 recommended to nominate it as a candidate for the register of the world's cultural inheritance.

In the settlement of Medzhybizh is the grave of Baal-Shem Tova, the founder of one of major trends of the Judaic faith, the Khasidism, which is a Mecca for religious pilgrims, khasids.

Also of great interest are other architectural and antique monuments of the oblast, as well as natural exotic places: fortresses in the towns of Letychev and Khotyn, karst grotto "Atlantide", health resort "Sataniv", located in a picturesque place of ancient Medobora hills, "Blue Lakes" in woods near the town of Slavuta, the "Holy Lake" associated with an ancient legend, in woods near the town of Izyaslav, canyons of the Dnister river that flows in the south of the oblast, and "Podilski Tovtry"- the largest national natural park in Ukraine and Europe.

Over 23,000 students annually study at the 9 institutes of the oblast (3^rd –4^th level of accreditation), namely:

• Podillya University of Technology;
• Podillya State Agrarian and Technical Academy;
• Kamyanets-Podilskyi State Pedagogical University;
• The Academy of Frontier Troops of Ukraine named after B. Khmelnytskyi;
• Khmelnytsky Institute of Regional Management and Law;
• Khmelnytsky Private Institute of Business;
• Kamyanets-Podilsky Institute of Military Engineering;
• Khmelnytsky Economics Branch of Odesa Institute of Business and Law; and
• Private Institute of Garments Design and Modeling.

About 11,000 students attend colleges of the 1^st-2^nd levels of accreditation, the oblast has 18 institutions like that.

There are 1090 secondary comprehensive schools in the oblast, where nearly 22,000 teachers work.

Over the recent years, the structure of educational institutions has changed: the number of secondary schools of the 1^st-3^rd levels, i.e. those with profound study of certain subjects, has increased; gymnasiums and lyceums are established, as well as private schools and institutions of higher education.

The people living in the oblast use the services of 1,200 mass and universal libraries with a stock of 15,900,000 copies and 1,900 highly-qualified librarians. In towns and villages there are 1,300 public culture clubs, museums, three theaters and a philharmonic society, movie theaters, and video theaters.

By the present time 260 deposits of mineral resources have been explored, preliminarily or in detail, 100 of which are mostly of a local importance (brick clays, sands, limestone for production of lime, limestone and granites for production of crushed stone and rubble).

State-importance mineral resources include limestone and clays for manufacture of cement, limestone for the sugar industry, kaolin (china clay) for the porcelain-faience industry and production of refractors, gypsum and flint. New mineral resource types - graphite, saponite, glauconite, phosphorites, and facing granites - have also been prospected.

One of the most promising lines of development of the oblast's mineral resource base is a commercial exploring of graphite from deposits found in the north-east of the oblast.

The Burtynske graphite deposit is located in Polonsky and Shepetivsky districts. Ores of the deposit are easily concentrated. The yield of graphite concentrate is 95% and the ash content is low (2.5% to 11%). All kinds and grades of graphite can be produced from ore.

Reserves and inferred resources of graphite ores of the deposit on the whole amount to 350,000,000 tons.

Twenty-one granite deposits with resources of 230-250,000,000 cu. m have been explored in the oblast, it fully meets the oblast's demand of the building raw materials for 100-120 years.

The geological exploration in the northern and central parts of the oblast revealed a number of promising deposits of red and dark-grey granite, diorite, and labradorite with high decorative properties.

Khmelnytsky oblast is the only one in Ukraine and in the former Soviet Union where deposits of saponite clays have been explored, which are the unique natural formations forming quite a province of bentonite raw materials with specific properties.

The resources of saponite deposits in the oblast amount to over 100,000,000 tons. The width of the productive bed is 10-40 m, and of the overlying rocks-5-20 m. The most explored are Varvarivske and Tashkivske saponite clay deposits with resources exceed 60,000,000 tons.

Adamivske and Karachiyivske complex deposits of glauconite sands with resources of about 30,000,000 tons have been explored in the south of the oblast in Vinkovetsky district. A high agrotechnical efficiency of the use of glauconite as a cheap chlorine-free potash-phosphate fertiliser in agriculture has been ascertained.

The oblast has phosphoric deposits, raw material for manufacture of mineral fertilizers. At present, Dzhurdzhiyivske, Maidanske, and Haidamatske deposits and some beds of concretionary phosphorites, whose phosphorous anhydride reserves, according to latest calculations, exceed 190 thousand tons and have not been developed.

Some prospects are associated with the explored ore type, new for the oblast, granular phosphorites, whose inferred resources amount to about 120,000,000 tons.

The oblast has large resources of medicinal and table water. At present, there have been explored and developed Zbruchanske, Zaichykivske, and Makivske springs of a "Naftusya"-type mineral water; Teofipolske of a "Myrgorodska"-type mineral water; Polonske of a radon's mineral water; and 10 deposits of table water. All they have been certified.

A detailed prospecting and approval of resources have been carried out in two springs: Ruchanske with 258 cu. m/day and Zaichykivske -28 cu. m/day. Recent studies have shown that "Naftusia"-type mineral water springs stretch for 1,100 km along the river Zbruch and their total inferred reserves amount to 190 thousand cu. m/day.

The volumes of industrial production (in the prices of 1999) are: total UAH 1609,4 million (1.9% of the volumes of the total industrial output of Ukraine).

The oblast specialization (percentage of the industrial output in the respective sector of the Ukrainian economy):

power industry 3.3

food industry 3.4

machine building and metalworking 1.5

construction materials production 0.5

(percentage of the volumes of the oblast’s industrial output)

-power industry 35.4

- food industry 34.6

- machine building and metalworking 13.9

- construction materials production 9.5

- flour-and-cereals and feed mill industry 2.3

- woodworking and paper and pulp industry 1.1

- glass and china and faience 1.0

- light industry 0.9

- ferrous metallurgy 0.7

An important place among industrial sectors is held by machine-building and metalworking, which employ 44.2% of the total number of industrial workers of the oblast. Enterprises of this sector manufacture machine tools, forging and pressing machines, transformers, farm machinery for plant growing, production equipment for processing sectors of the agricultural-industrial complex, cables, electrical engineering products. The largest enterprises of the oblast include open joint-stock companies (OJSC) "Ukrelektroaparat", "Kation", "Advis", "Termoplastavtomat", production association "Novator", Kamyanets-Podilsky OJSC "Motor", plant "Elektroprylad" and cable works, OJSC "Shepetivsky cultivator works", Volochysky OJSC "Nominal", machine-tool building OJSC "Hover" in Horodok and others.

A leading place is held by the food industry, whose output makes 35.4% of the total oblast's production. It includes such sectors as sugar, bakery, confectionery, macaroni, canned-vegetable, meat and dairy, distillery, brewing, flour-grinding/cereal, tobacco etc., which employ 22.4% of industrial workers of the oblast.

Khmelnytsky oblast is among the most important Ukrainian sugar-making oblasts, 16 sugar factories are functioning in it. The annual output of sand sugar can come up to 600 thousand tons and export deliveries – to 150 thousand tons. The largest sugar factories are in Khmelnytsky, Shgepetovka, Kamianets-Podilsky, Teofipol, Horodok, and Derazhnya.

The light industry of the oblast is developing on the basis of processing local raw materials (leather) and those brought from outside (wool, cotton, textile, leather). It includes such sectors as garment, textile, footwear, knitwear, and haberdashery. The largest enterprises are OJSC "Vzuteks", OJSC Shkirgalantereya ("Leather Haberdashery"), and closed joint-stock company " Khmelnytsklehprom" in Khmelnytsky, clothes factory in Dunaevtsi, and garment factory "Horyn" in Volochysk.

The forest and woodworking industry manufactures furniture, containers, building materials, paper and board. The largest furniture factories are in Khmelnytsky, Iziaslav, and Petychev. Products of joint-stock companies "Slavutsko-Iolianska Paper Factory" and "Poninkivsky Integrated Board and Paper Works" enjoy a great demand.

Of great importance for the progress of the oblast's economy is the power industry. Khmelnytsky nuclear power plant in the town of Netishyn is connected with the power grids of Ukraine and Central European countries.

There are also enterprises that manufacture domestic-chemistry goods ("Lotos" works in Slavuta), musical instruments ("Oktava" factory in Iziaslav), tableware, medical instruments, recreational and other consumer goods.

The number of agricultural enterprises 702

The number of farms 576

The farmland area (of all producers including subsidiary farms) is 1534,300 ha, or 3.7% of the farmland of Ukraine, including:

Arable lands 1238,600 ha – 3.8% of the arable land of Ukraine

Pastures 122,700 ha

Hayfields 134,300 ha

The volume of agricultural production of all farm categories (in comparative prices of 1996) is UAH 1080,1 million (4.4% of the general volume of agricultural output of Ukraine).

Plant-growing 56% (UAH 604,9 million)

Cattle-breeding 44% (UAH 475,2 million)

• growing cereals and industrial crops, with winter wheat and sugar beets being the predominant crops;
• potato-growing and gardening (grain and kernel fruit and berries).

• breeding meat and milk livestock;
• hog farming
• poultry farming.

The largest sown areas in the oblast are occupied by cereal crops (43.3%) and among them is winter wheat. Barley, peas, oats, buckwheat and corn are also being cultivated. The oblast is among the most important sugar-beet growing producers, it's grown on about 10% of all sown area.

An important sector of the plant growing is potato growing. Essential oil-bearing plants are grown in Letychivsky, Derazhniansky, and Khmelnytsky districts, and chicory-in Slavutskyi and Starokostyantynivsky districts.

Natural conditions are favourable for development of the vegetable growing, but sown lands for vegetable growing are small so far. Over 40% of sown lands are occupied by forage crops (perennial grasses, corn for silage, peas, vetch, fodder beets, alfalfa, turnips).

Podillya is a land of gardening. Main fruit crops include apples, pears, apricots, cherry, merry, and Persian walnuts. The largest concentration of the gardens is in the Dnisterside (Vinkovetsky, Dunayevetsky, Novoushytsky, Kamyanets-Podilsky districts).

The cattle breeding in the oblast is based on a field fodder production, natural pastures, food industry wastes, and manufacture of combined fodder. The most important sectors are beef and dairy cattle husbandry and pig breeding. Poultry, sheep, and rabbit breeding, apiculture and fish farming are developed as well.

Khmelnytsky oblast has a well developed transport network. It has an important location at transport ways connecting main industrial regions of Ukraine (metropolitan area, Kharkiv, Dniproside, Donbas) and Russia as well as Black Sea ports with Western Ukraine oblasts and countries of Central and East Europe.

A railway and a number of motor roads leading to Belarus, Baltic countries, Moldova, and South-Eastern Europe countries cross the oblast from the north to the south.

The main means of freight and passenger transportation both within the oblast and to other oblasts of the country is the railway. The oblast is located in the zone of activity of the south-western railway and has 40 railway stations. The largest railway junctions in the oblast are the Shepetovka and Hrechany (near Khmelnytsky) stations.

The oblast centre has a convenient railway communication with European capitals - Moscow, Prague, Bratislava, Warsaw, Budapest, and Belgrade.

An electrified Zhmerynka-Khmelnytsky sector has been put in operation.

The city of Khmelnytsky has an airport whose concrete runway is 2,200 meters long, which meets requirements of an international airport. A checkpoint for crossing the state border of Ukraine is functioning in the airport.

The pipeline transport is represented by gas pipelines crossing the oblast: "Soyuz" (Orenburg-western border of Ukraine), Urengoi-Uzhgorod, and Dashava-Kyiv.

Telecommunications in the oblast are being further developed. The Kyiv-West fiber-optical cable has been laid across the oblast, "UTEL" international communications system is actively expanding the zone of its activity and mobile telephone communication network is developing.

The period of formation of market relations in the oblast is characterized by intensification of the foreign economic activity. Export and import volumes have grown in recent years, and the oblast's balance of trade is positive. Khmelnytsky oblast has established relations with partners in 60 countries of the world, and this list has been extending. Considerable turnovers have taken place with the Russian Federation (44.5%), Germany (15.4%), Belarus (5.3%), and India (4.8%).

The foreign trade turnover last year was USD 144,4 million, with the exports amounting to USD 89,6 million, and the imports coming up to USD 54,8 million. The foreign trade positive balance came up to USD 34,8 million (in 1998, - USD 23,5 million). The share of barter transactions in foreign trade turnover has decreased.

Enterprises of all rayons and towns of oblast subordination traded in foreign markets. Over 1/3 of export is live animals and products of cattle breeding. Also exported are machinery and equipment, food industry products, farm products, paper products and construction materials.

Main items of imports are transportation facilities and spare parts for them, electrical equipment, TV and radio devices, mineral products, plastics and rubber.

Among the enterprises increasing sales with European countries a Kamyanets-Podilsky OJSC "Adams" is to be singled out. 90% of its products (concentrated apple juice) are exported to Germany, England and Austria. A Khmelnytsky production enterprise "Novator" has increased its production volumes by 1.5 as a result of establishing joint production with enterprises from Russia, Germany and Italy. Kamyanets-Podilsky collective clothes enterprise has established cooperation for making clothes with an Italian company "FILOTRANO Garment Industry".

The oblast’s enterprises have received investment from 25 countries. The largest amounts of foreign investments came from Germany (33.4% of the total volume), Cyprus (14.84%), the USA (16.96%), and Belarus (11.86%) Over a half of the funds were received in the process of establishing joint ventures with foreign partners. The purpose of attracting investment is creation of new jobs, expansion of production, market saturation with goods and services. At present, 58 enterprises of the oblast work using foreign investment (37 among them are goods-producing ones).

Over 5 thousand small enterprises and cooperatives are currently operable in the oblast. Their main sphere of activity is trade and public catering (64% of the total number of operable enterprises), 14% enterprises of the total number of those in the industry are operable, 11% of those in construction, 7.3% of those rendering services to the public.

Three business-centers and a business-incubator based at the Podillya University of Technology are operating in the oblast for providing consulting services to entrepreneurs. Coopertion is under way with international organization rendering financial, technical, and methodological and consulting assistance.

Khmelnitsly oblast was selected one of the three Ukarinian oblasts to implement the World Bank’s project "Private Sector Development" in. Within the framework of the program TACIS EDUK the project "Re-training and placement support to former officers" is being implemented in the oblast; at the Podillya University of Technology a Regional Center for re-training and placement of former servicemen was established, along with a business-incubator and a training firm.

Khmelnitsky takes an active part in the sister-city program and in the work of the Ukrainian Cities’ Association.

The oblast's economy needs long-term relations with the strategic investor. Many enterprises of various forms of ownership interested in obtaining direct investments are searching for co-operation in order to obtain advanced technologies and management experience, to increase the farm crops and harvesting.

1. agriculture;
2. food and food-processing industry
3. construction materials industry
4. light industry
5. mineral and raw materials processing.

• acceleration of economic transformation processes;
• implementation of programs for efficient use of natural resources and environmental protection;
• creation of favorable conditions for functioning of information advertising agencies, commodity and raw material exchanges, banks with a facilitated procedure of foreign currency transactions;
• providing coordination and exchange of information with world agricultural exchanges and other structures whom it may concern;
• creation of conditions for agrotourism development;
• joint business activity development, intensification of business contacts;
• reconstruction of main highways with a view to develop their main characteristics to fit international standards;
• expansion of the network of the already existing and construction of new facilities of road and transportation infrastructure.