Kyiv is the center of political, economic, scientific and cultural development of the country and one of the largest cities in Europe. The city has an extremely beneficial location in the center of Europe, between latitude 50.5 South and longitude 30.6 East, on the banks of the Dnipro River, the largest waterway of Ukraine.

The city occupies an area of 827 sq. km. Sixty percent of it are under forest and park zones.

Natural and climatic conditions are typical for a territory situated at the border between Polissya and forest-steppe. The climate is temperately continental. The average temperature ranges from -6.1 C in January and +19.2 C in July. The average precipitation is 600 mm.

The population of the capital of Ukraine is over 2.6 mln or 5.1% of the total population of the country. Population density is more than 3,000 persons per sq. km.

HISTORY AND CULTURE REVIEW

First settlements within the territory of modern Kyiv emerged more than 15 thousand years ago. So, according to a legend, three brothers Kyy, Shchek and Khoryv, and their sister Lybid' founded a town on the steep right bank of the Dnieper and named it Kyiv after the senior brother Kyy. Their names were widely introduced into place names of the city. Officially adopted data of Kyiv foundation is the year of 482.

New history of the city started on 24 August 1991 when the Verkhovna Rada of the Ukrainian Soviet Socialist Republic declared independence of the State, which was confirmed by the all-nation referendum on 1 December 1991 (93% of Ukrainian population cast their votes for sovereignty).

The capital of Ukraine is a modern European city with highly developed industry, as well as production and market infrastructures.

Kyiv is one of the largest scientific centers of Ukraine. The National Academy of Science and most of its institutes whose scientific schools are renowned world-wide are based is the city. More than 200 research institutions, nearly 50 design and engineering institutions, and some 20 leading higher educational institutes operate in the capital.

The capital of Ukraine has great cultural heritage and potential. There are numerous museums, theatres, cinemas, and art galleries in the city. Kyiv has various historical, cultural and architectural sights, some of them being of world significance.

The city has territorial associations of nature-preservation fund, namely: Botanical Gardens named after Academician O.V. Fomin, Central Botanical Gardens of the National Academy of Sciences of Ukraine, Syrets Dendropark, Zoo, and parks demonstrating marvels of landscape architecture.

ADMINISTRATIVE STRUCTURE, GOVERNMENT

In accordance with the administrative structure of Ukraine, Kyiv is regarded as a separate territorial entity. This results from the city's political and economic significance for the state.

The capital is divided into 14 districts: Vatutins'ky, Darnyts'ky, Dniprovs'ky, Zhovtnevy, Zaliznychny, Leningrads'ky, Mins'ky, Moscows'ky, Pechers'ky, Podils'ky, Radyans'ky, Starokyivs'ky, Kharkivs'ky, Shevchenkivs'ky.

The law of Ukraine “About Kyiv, the Capital of Ukraine, a Hero City” ¹401-XIV dated January 15, 1999, granted the city a special status.

Kyiv as the capital of Ukraine is a political and administrative center of the country hosting the residence of the President of Ukraine, the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, central government offices, diplomatic institutions of foreign countries and offices of international organizations operating in Ukraine.

The City territorial community (Hromada) exercises local self-governance in Kyiv directly and through Kyiv City Council, District Councils and its executive bodies.

The head official in the Kyiv city government system is Kyiv City Head elected directly by the City territorial community (Hromada).

Unlike other cities, where executive power is exercised by executive committees of respective councils, the function of local executive authority in Kyiv is performed by Kyiv Municipal Administration represented by District Administrations in each of the districts.

KYIV CITY COUNCIL

Kyiv City Council (Kyiv Rada) exercises self-governance in the capital of Ukraine. It resolves all and any matters of local significance within the limits granted by the Constitution and current legislation of Ukraine. Its activities are regulated by provisions of Section XI of the Constitution of Ukraine and by the laws of Ukraine “About Local Self-Governance in Ukraine” and “About Kyiv, the Capital of Ukraine, a Hero City”. Kyiv Rada is, in particular, authorized to approve social, economic and cultural development programs; approve city budget; and establish local taxes and fees.

KYIV MUNICIPAL ADMINISTRATION

Pursuant to Article 118 of the Constitution of Ukraine, the city executive authority is Kyiv Minicipal Administration. It is controlled by and accountable to Kyiv Rada within the powers granted to it by the latter, as well as to the Cabinet of Ministers of Ukraine as the supreme executive authority of the country. Kyiv Municipal Administration powers are established by Articles 119 and 143 of the Constitution of Ukraine, by the Law of Ukraine “About Local Self-Governance in Ukraine” (in the part regulating activities of the executive body of Kyiv Rada), and by the Presidential Decree “About the Regulation on Local Government” (in the part pertaining to effectuation of government functions).

Kyiv Municipal Administration is an agent of privatization process. Through executive authorities accountable to the Administration, it participates actively and directly in the property reform process in the capital of Ukraine, and works to attract investment resources into the city economy.

CITY ECONOMY

Certain positive political and changes have recently taken place in the economy of Ukraine, including increased production in a number of industries, stabilized capital investment, significantly reduced inflation rate, and growth of retail sales and public catering.

INDUSTRY

Approximately 20% of the employed population of Kyiv work for the city's industrial enterprises. The leading industrial sectors of Kyiv include machine building and metalworking; food processing, medical industry, chemical and petrochemical industry, power engineering, and construction materials industry. Altogether, they employ over 70% of those employed by the city industry.

Kyiv has a number of enterprises of the former military industrial complex (MIC), whose operational parameters are unique. The most well-known of them are “Arsenal”, “Bil'shovyk”, “Kvant”, and Aviation Plant named by Antonov. MIC enterprises are distinguished with a significant part of modern equipment, precision machines and mechanisms, developed infrastructure and high-skilled personnel – designers, process engineers and workers.

The industrial complex of the city has powerful export potential. The largest share in commodity export structure belongs to food, chemical, and machine building products.

FINANCIAL INSTITUTIONS

The largest banks of the country are based in Kyiv, including the National Bank of Ukraine, the Ukrainian Export-Import Bank, and more than half of the 30 largest commercial banks of Ukraine.

Practically all foreign banks, which obtained licences for activities in Ukraine, have their representative offices and affiliates in Ukraine. These include: Joint-Stock Commercial Bank “Societe Generale Ukraine”, “Credit Lyonnais Ukraine”, Joint-Stock Bank “ING Bank Ukraine”, Joint-Stock Bank “Credit Swiss First Boston Ukraine”, Joint-Stock Commercial Bank “Creditanstalt Austria Bank”. Their activities in Ukraine enhance leading positions of Kyiv as the financial centre of the country.

A significant number of investment funds and companies working actively in the field of state property privatization are registered in Kyiv.

About 40% of all the insurance companies registered in Ukraine are based in Kyiv. In addition, Marine and Aviation Bureau, dealing with insurance of marine, river and aviation transport, is situated in the city.

RETAIL TRADE AND SERVICE SECTOR

Retail distribution network in Kyiv comprises almost 2,400 retail outlets with the overall floor space of 451,000 sq. m, and 1,400 kiosks.

Trade in foodstuffs is performed by self-service department stores and grocery stores, with floor space ranging from 400 to 2,000 sq. m. When privatization in the trade sector began, supermarkets started appearing. Besides, a considerable number of small food stores, with floor space under 200 sq. m, are functioning. The public catering sector includes restaurants, bars, cafes and canteens. In the city, there are more than 1,100 public catering enterprises for a total of 111,000 seats.

The largest enterprises in the non-food trade sector of the capital are department stores (floor space from 3,500 to 22,000 sq. m). Among them, of highest significance are “Ukraine”, “TSUM” and “Dytiachy Svit" (Children's World). Apart from these, the city has a network of smaller modern stores selling non-food products.

Unlike most European and American cities, Kyiv doesn't have a pronounced trade area, since trading facilities have been evenly distributed throughout the city. Some 65 clothing and food markets function in Kyiv, competing successfully with retail trade enterprises. Up to 50% of food are bought at such markets. New forms of trade services, after the pattern of western trading centers, are just at their incipient stage. Thus, in the mid-1997, the first trading center of “Cash & Carry” service system opened in Kyiv. At present, several stores of the kind work in Kyiv.

There are more than 100 hotels in Kyiv, but most of them were built under outdated projects. Engineering infrastructure, amenities in the rooms, the range of services provided, and working conditions have been far behind the standards of developed countries for a long time. However, hotel operations in the city have recently been essentially modernized and renewed. Before 1996, all large hotels in Kyiv were state-owned. Their privatization was launched in 1997 and is still under way. The largest hotels that have changed their ownership form are “Kyivska Rus” and “Bratislava-Desna” hotel complexes, and “Tourist” and “Slavutych” hotels (over 800 rooms).

The overall space of quality office premises in Kyiv exceeds 80,000 sq. m. The largest are “Kyiv-Donbas” (7,300 sq. m), “Europe Business Center” (5,100 sq. m), “Baroque Center” (3,500 sq. m), International Office-Hotel Center (9,300 sq. m), “Eastern Horizon” (16,000 sq. m), and “Kyiv-Plaza” (7,600 sq. m).

TRANSPORT AND COMMUNICATIONS

The city is served by two international airports, “Boryspil'” and “Kyiv”. “Boryspil” Airport is located at a distance of 30 km from the city and mainly serves international airlines. It links Kyiv with more than 40 capitals of the world. “Kyiv” Airport, being municipal property, is within the city borders and used mainly for air transportation within Ukraine. The largest airlines of Ukraine, “Ukraine Airlines” and “Ukraine International”, are based in Kyiv. In addition, there are several relatively small private passenger and freight airlines.

Kyiv stands on both banks of the river of Dnieper, an important waterway of Ukraine. The Dnieper links Kyiv with northern and southern regions of Ukraine, ports on the Black Sea and the Sea of Azov, as well as with 15 European countries of the Danube and Main basins, as well as with Russia, Poland, and Belarus. Kyiv has freight and passenger river ports. Headquarters of JSC “Ukrrichfolt”, the largest Ukrainian company in water transport, is located here. “RPEA” Company provides river transportation services in the city.

Kyiv is situated at the crossing of railways connecting the capital of Ukraine with all European capitals, as well as with major cities of Russia, Belarus and Ukraine. There are 9 freight railway stations. Headquarters of “Ukrzaliznytsya” Ukrainian Railway Company is also in Kyiv. Convenient location of the city and its industrial and commercial potential are conducive to gradual reanimation of railway business and increase in transportation volumes.

The municipal transport network includes 56 km of underground lines, 287 km of tram tracks, 330 km of trolleybus and 1,350 km of bus lines. On average, municipal transport carries over 800 million passengers per year.

The road network of Kyiv is 1,564 km; 95% of these have improved hard covering. Development of road network was lagging behind the rates of increase of transport vehicles and traffic intensity in the city during the recent years. However, in last time efforts of Kyiv Municipal State Administration resulted in repairs of the largest roadways, squares and bridges of the city. It is planned to further reconstruction of roadway network of Kyiv.

Beneficial geographical location of the city made Kyiv an important link in development of telecommunication network in the recent years; such networks will connect Western Europe with CIS countries and with countries of Asia continent; Kyiv found itself in the focus of implementation of the largest telecommunication projects of Ukraine. Fiber-optic communication lines, built within the recent two years, in complex with international projects (ITUR, TEL, TAE, BSFOCS) provide Kyiv with an opportunity to be connected to digital telecommunication networks of CIS, Baltic, Europe, Near East countries, as well as to FLAG system (Global Fiber-Optic Line).

All largest telecommunication companies of Ukraine have their headquarters and operate in Kyiv; most of these companies are enterprises with foreign investments. Ministry of Finance of Ukraine and Kyiv Municipal State Administration promote development of competition on basic telecommunication markets of the city.

LABOUR RESOURCES

High-skilled employees are concentrated in the capital: specialists, engineers, technicians and workers who are capable of mastering any contemporary technologies. Total number of specialists, who carry out scientific-technical works, is some 48,000; they include almost 3,000 Doctors of Science and over 10,000 Candidates of Science. Besides, over 12,500 scientific-pedagogic employees participate in scientific-technical works a par with their pedagogic activities. They include 1,400 Doctors of Science and 5,700 Candidates of Science.

CITY ECOLOGY CONDITIONS

According to experts' conclusions, ecology conditions in Kyiv are stable and meet the existing in Ukraine and in the world standards. Ecological policy of the city is aimed at optimal amalgamation of regulatory administrative and economic methods to achieve optimal ecological-economic effects in conditions of market reconstruction of the national economy.

Financing of city ecological policy is an important field for foreign investments involvement. In accordance with scales and city developments rates it has great need in efficient technologies rising and new capacities for recycled resources utilization. It is necessary to involve investments to implement modern equipment and technologies for garbage utilization, to save energy in the system of as industrial complex, so public utilities.

CITY INVESTMENT POLICY

Paying a lot of attention to involvement of foreign investments to city economy, Kyiv Municipal State Administration builds its activities in the investment field on the principles of formation and strengthening of city contacts with the abroad. Kyiv has economic relationships with 132 countries of the world. Principal trade partners of city enterprises remain Russian and CIS countries, where over 50% of the products, exported by the city enterprises, are directed. Business contacts with European countries are under development as well. The most part of imported products comes from European countries (Germany, Great Britain, Italy, Austria, Ireland, Cyprus etc.).

Kyiv Municipal Administration understands that a further development of Kyiv as the financial and administrative center of Ukraine requires involvement of additional means of native and foreign investors to finance and implement large-scale projects, aimed at development of production and of business infrastructure in the city. In connection with the above, a Land Privatization Program was elaborated and approved by local power authorities, where practically all principal organizational-legal aspects of transferring land into ownership were resolved. Land surveying and certification of city land plots have been carried out – data bank includes over 40,000 land plots with total area of 2,300 ha. Procedures for monetary evaluation of land plots are developed and approved; these will form a basis for assessment and effectuation of proprietary transactions with land plots. The city has elaborated and approved simplified procedures for transfer of the land into ownership and use. Unlike the most part of Ukrainian territory, the right to transfer land plots in Kyiv is conferred to Kyiv Municipal Administration, which significantly accelerates settlement of matters of legal execution of private property ownership for land plots in the capital.

Kyiv already has a sufficient experience of work with foreign investors; city economy uses invested capitals of such well-known companies as Siemens, Otis, Procter & Gamble, Daewoo, Knauf, SC Johnson, MC Donald's, Reemstma Group, Austrian Airlines, Tetra Pak.. Famous consulting companies operate in Kyiv: Arthur Andersen, Baker McKenzie, Ernst & Young and a number of others. Kyiv Municipal Administration co-operates actively with the largest international investment banks, including Chase Manhattan, CS First Boston, Goldman Sachs, ING Barings, Investment Bank Austria, J.P. Morgan, Salomon Brothers Inc., West Merchant Bank.