HISTORIC AND GEOGRAPHICAL CONTEXT

The Kirovohrad region is situated in the center of Ukraine, in the Dnieper and the Southern Buh interfluve. A marker of the geographical center of Ukraine was put in the Dobrovelychkivka rayon.

The settlement of the region started in the age of paleolith. In the second half of the 15^th century these territories were a part of the lands where the Zaporizhzhya Cossacks appeared. Later, for nearly three centuries these lands were a part of the "Volnist (the Territory) of Zaporizhzhya Army". It was here that the Cossacks worked and fought.

The first battle of the Liberation War of the Ukrainian people of 1648-1654 near Zhovty Vody took place on the territory of the contemporary Kirovorhrad oblast. In mid-1700s an intensive Russian colonization of the Ukrainian lands began. In 1952, New Serbia was founded, and in 1754 the Fortress of St. Elizabeth was founded which later turned into the town of Elisavetgrad (now Kirovohrad) – an uyezd (rayon) central town in Kherson guberniya (province).

The temperate warm climate, the availability of deposits of radon and mineral waters (reserves of about 150,000 cu. m /year), forest areas, meadows, and rivers create favorable conditions for organization of short- and long-term recreation as well as a network of resort-therapeutical establishments.

The oblast’s position in the center of the Ukrainian crystalline massif determines the origin of large deposits of rare metals. The availability of a whole series of ores manifestations: tungsten, copper, molybdenum, apatite, uranium, gold and silver, bismuth, tin, lead, beryllium, antimony, tantalum and niobium, is the characteristic feature of the Kirovohrad metallogenic zone.

The mineral and raw material potential of the region includes above 340 deposits of minerals, 107 of them being developed. These are: brown coal, ore raw materials, raw materials for nuclear power industry (uranium), non-ore minerals.

The main amount of minerals is excavated from open mines which creates favorable conditions for development of the mining sector in the region.

The gold ore deposits, discovered in the recent decades, are the basis for the future creation of gold mining and gold-processing sector in the region. According to geologists’ opinion, the deposits of platinum, diamonds, chrome, tungsten and rare metals may be discovered as well .

GENERAL CHARACTERISTICS

Kirovohrad oblast, along with Dnipropetrovsk and Zaporizhzhya ones, is included into the Prydniprovya economic region and, by the economy structure, is agrarian-industrial.

The structure of the gross output is as follows:

agriculture 36.5%

industry 23.6%

transportation and communications 11.7%

consumer services 8.5%

housing and communal services 6.1%

social and cultural sphere 5.8%

other sectors of material 7.8%

and non-material production

AGRICULTURE

The Kirovohrad region is known since long ago as a region with well-developed agricultural production. The natural-climatic conditions and rich black soils (chernozems) are favorable for growing agricultural crops. A set of organizational, agro-forest-reclamation, hydrotechnical and other measures have been taken with the purpose of rational use of the land resources.

The oblast farming (as of January 1, 2000) includes 492 collective agricultural farms, 12 state farms, 25 interfarm enterprises and 1921 private farms.

Pursuant to the Presidential Decree "On the exigent measures targeted at acceleration of agricultural reforms in the oblast", reforms of collective agricultural enterprises are under way. On the basis of such enterprises, agricultural production cooperatives, agricultural associations, private lease enterprises and farms are established.

Plant-growing, which accounts for 59% of the agricultural production, and cattle-breeding accounting for 41%, occupy the leading position in the branch structure of agricultural gross output.

The total area of agricultural lands is 2,000,000 ha (4.9% of the total area of agricultural lands in Ukraine), including arable lands of 1,800,000 ha (5.3% of such lands in Ukraine).

The winter wheat, barley, maize for grain, leguminous plants, buckwheat and oats are main grain crops grown in the region. The sunflower and sugar beet occupy a significant place among technological cultures. Gardening is characterized by growing apples, pears, plums, cherries and berries. Cattle-breeding is based on livestock, hog and sheep farming.

INDUSTRY

The oblast’s industry embraces 13 leading sectors which include 274 industrial enterprises. In 1999, in the structure of the gross output of industrial production the branches of industry made: food industry 37.0%, machine building and metal working 17.7%, power engineering 14.7%, construction materials 6.1%, fuel industry 4.5%, light industry 2.2%, and non-ferrous metallurgy 0.8%.

In the goods market of Ukraine the region is distinguished by production of sowing machines and grain combines, electric traveling cranes, brown-coal briquettes, nickel, graphite, ozocerite, etc.

Due to the agricultural specialization of the oblast, machine-building is targeted at providing the agriculture and processing industry with the necessary machinery and spare parts.

In order to promote the further development of agricultural machinery-building, a concern "Lan" was established incorporating both scientific and productive potential of the oblast.

There are unique complexes for nickel and graphite extraction and production in the oblast. These are: OJSCs "Pobuzky Ferronickel Plant" and "Zavallivsky Graphite Integrated Works".

The oblast provides 100% of brown coal mining of the state. This sector is represented by the state holding company "Olexandriavugillya".

In compliance with an international agreement, in the town of Dolynska the construction is under way of the Kryvyi Rih mining and processing integrated works of oxidized ores with a yearly capacity of 26,0 million tons of crude iron ore, about 11 million tons of concentrate and 10,0 million tons of rolled briquette.

TRANSPORTATION AND COMMUNICATIONS

The oblast is favorably located geographically and has a developed transportation network.

The Kirovohrad region is crossed by main railroads for transportation in the Donbas-Carpathians direction linking the important industrial and agricultural regions of the South with the South-West and the Center of Ukraine. The transport network includes 926 km of railways. The network density is 38 km per 1000 sq. km. The Kirovohrad region has 10 highways 728.7 km long in convenient directions, which link Ukraine with the countries of the CIS and Central and Southern Europe. The motor roads density is 308.5 km per 1000 sq. km.

The Kirovohrad airport corresponds to the 3rd category of ICAO. Transportation by air is performed by the state air carrier "Ukrainian Airlines". There are two commercial air carriers: "URGA" and "Chaika", working on international air lines.

Public communications services are rendered by the regional enterprise of communications "Kirovohradtelecom" having 12 offices and 10 departments as well as the regional enterprise of mail communications "Kirovohradposhta".

The Kirovohrad inhabitants were among the first telephone subscribers in Ukraine who could communicate with the whole world. Automatic trunk-exchange 5 ESS ("Utel") for long-distance calls was put in operation in 1994. A new kind of communications services - cellular or mobile telephone communications - was introduced in May 1996.

FOREIGN ECONOMIC RELATIONS

The foreign trade turnover for 1999 was USD 68,700,000.

Exports USD 45,200,000,

Imports USD 23,500,000;

Balance USD 21,700,000.

The exports structure priorities were as follows:

products of plant-growing (including cereals 28.8%) 36.2%

machines, mechanisms, equipment 17.9%,

clothes and textile goods 8.2%,

base metals and goods made of them 6.6%

livestock and meat and dairy products 5.8%

The largest export deliveries were to Russia Federation (24.1%), Belarus (15.2%), Turkey (7.4%), and Hungary (6.8%).

The imports structure priorities were as follows:

mineral fuel, oil and its products 31.4%

textile and textile goods 18.9%

machines, mechanisms and equipment 13.3%

products of chemical industry 10.1%

The main partner countries importing goods were: Russia Federation (29.1%), Austria (15.5%), the USA (11.9%), Germany (6.5%), Belarus (6.5%), Switzerland (5.8%).

FOREIGN INVESTMENT

As of January 1, 2000, the amount of foreign investment to the oblast's economy for the whole period of investment had made USD 16,700,000. In 1999 it increased almost by USD 1,300 000.

The basic forms of investments are: movable property and real estate (54.9%), securities (27.4%), and foreign currency contributions (17.7%). Foreign countries beyond the CIS account for 94.5% of the total sum of investments, while former Soviet states account for 5.5%.

Agricultural enterprises make 27.8% of the total volume of investments, trade, 24.4%, machine building and metal working, 19,9%, transport, 10.5%, non-ferrous metallurgy, 6.3%, all of them being The priority objects for investments are: enterprises of internal trade, where USD 4,800,000 (28.6% of the total amount of foreign investments) have been invested, and agricultural enterprises (26%).

The largest investments were made by investors from: the USA (27% of the total amount of foreign investments), Israel (18%), Greece (9.7%) and Italy (6.5%).

CULTURE

Kirovohrad oblast has its glorious cultural traditions. I. Tobilevich, the founder of Ukrainian realist theatre, was born and worked there; the great actors M. Kropivnitsky, M. Sadovsky, M. Zankovetska lived and worked there as well. Well-known writers D. Bedny, I. Mykytenko, V. Vynnychenko, Yu. Yanovsky, scientist D. Chyzhevsky, composers G. Neihaus and Yu. Meitus, famous artists A. Osmyorkin and V. Fedorov, famous Ukrainian drama figures I. Maryanenko and G.Yura were born here as well.

Kirovohrad oblast is reach in folk art.

The oblast’s pride is the "Zoryany" theater of folk music, song and dance of the oblast’s philharmonic society, children’s exemplary choreographic ensemble "Prolisok" of the Kirovohrad school of arts, distinguished amateur dance ensemble "Yatran", Kirovohrad municipal choir and many others.

The annual festival of professional and amateur drama "Veresnevi Samotsvity" ("September Gems") which is traditionally held on the premises of the memorial museum of Ivan Karpenko-Karyi (Tobilevich) – the "Nadiya" farm – is a real feast of the national culture.

SPORTS

The people living in the oblast can use the services of 24 stadiums, 516 gyms, 10 swimming-pools, etc. There are 40 sports schools for children and youth, a school of advanced sports skills, an oblast center of sports for handicapped people "Invasport".

Sportsmen from Kirovohrad and the oblast are increasingly successful both in Ukraine and abroad. Every year Kirovohrad sportsmen are among the champions and prize-winners of world and European championships and competitions; in Kirovohrad there are masters of sports of the international level. Twenty-four sportsmen from the oblast are in the core national Olympic team, while 50 people are candidates to or members of its reserve. Eleven Kirovohrad sportsmen will participate in the Olympics 2000 in Sydney, and two sportsmen from the oblast will take part in the para-Olympic games.

Four teams (soccer, baseball, handball, and grass hockey/men) are on the Higher National League.

In the oblast there are schools of Oriental combat arts. In Kirovohrad the headquarters of the Traditional Karate-Do of Ukraine is based which is headed by V.Savchenko titled as Distinguished Coach of Ukraine.