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Overview of Lutsk Oblast
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Volyn is an ancient Rus historic region, situated in the basin of the picturesque southern tributaries of the Pripyat and the upper reaches of the Western (Zakhidny) Bug. According to one of the hypotheses, this land was named so after an Eastern Slavic tribe who lived near this river and founded the town of Velyn.
In 981 Prince Volodymyr Svyatoslavovych made the Volyn region a part of the Kyiv state, and in 988 he let Vsevolod, his son, rule over it. It was under his rule that the town of Volodymyr was created which became the capital of the Galytsko-Volynske princedom in the 12th century, after the Kyivska Rus collapse.
In the middle of the 14th century, the Volyn region got under the dominion of the feudal Lithuania. By Lublin Union of 1569, Poland and the Grand Lithuanian princedom were united into one state – Rich Pospolyta which comprised the Volyn region. The tzar’s edict of 1797 created the Volynska province instead of the Volyn region ruled by governor-general.
According to Riga Treaty of 1921, the western parts of the Volyn region passed to Poland. During the 20th century the historic Volyn lands had been under the dominion of Ausria and Hungary, Poland and Germany until they were finally divided among 4 oblasts of Ukraine.
Early in December 1939, the Volyn region became a part of the Ukrainian Soviet Socialist Republic, and since August, 1991 it has been an integral component of the independent Ukrainian state.
It is situated in the northwestern part of the country and borders on the Republic of Poland in the west ( the border length is 135 km), on the Republic of Belarus in the north (the border length is 195 km), on the Lviv and Rivne regions in the south and the east. Its territory is 20,200 sq. km, the population is 1,064,000 people. 554,000 people live in towns and 510,000 – in villages. Among the Volyn region residents, there are 94.3% of Ukrainians, 4.4% of Russians, the rest are Poles, Czechs, Slovaks, Germans, Jews, and representatives of other nationalities.
Lutsk, the center of the region, has the population of 218,000 people. The Volyn region incorporates 4 cities of regional subordination and 7 towns of district subordination, 22 townships, 16 administrative territorial districts, and 1,050 villages.
The biggest share in the general structure of the national economy belongs to industry and agriculture.
The industrial sector comprises 215 enterprises, including 189 of the informal sector, which represent nearly all the leading industries and employ more than 60,000 people.
About 82.5% of the total volume of industrial production falls on machine-building, light, food-processing, woodworking, and construction materials industries. In perticular, the region produces 45% of all soft roofing materials made in Ukraine, 18% of bearings, 10% of cardboard, 4.4% of meat products, 3.8% of sugar, 3.7% of butter.
The main products of the machine-building industry are agricultural machinery, cars, bearings, temperature measuring instruments, water consumption meters, gas pressure regulators, special technological equipment and machinery.
The light industry of the region has a considerable production potential, it comprises 29 enterprises producing staple fabric, staple fiber, synthetic leather, not woven materials, clothes, footwear for men, women and children.
The construction materials industry manufactures soft roofing and linoleum, the chemical industry puts out polyethylene and polypropylene films, thermoplast sheets, tubes and communication channels, etc.
The share of the food processing industry in the industrial production volume is over 45%, and it has a great influence on the work of the whole industry. Its successful development is enabled by the agricultural enterprises’ capacity to supply enough high-quality raw materials, as well as by the availability of both domestic and foreign markets.
Woodworking industry occupies a remarkable place in the industrial structure. Its enterprises work to get timber processed more completely, master production of competitive types of furniture, and increase the export level.
One of the main tasks of the regional state administration is commercial development of the deposits of natural gas, phosphorites, basalt and native copper found on the territory of the region, which together with coal, peat, chalk, brick-and-tile clay and building sandstone compose the mineral and raw material resources of the region. The results of the region’s work in the first 6 months of this year show that the production growth tendency has been secured: for the period from January to June the production has grown by 5.3% compared to the same period last year. The chemical, construction materials, light, food, and printing industries have developed most rapidly; the situation in the fuel, woodworking, flour-grinding and mixed fodder industries has improved. The consumer goods production has grown. There are positive changes in agriculture where the land and property relations are steadily reformed. The role of the informal sector in agriculture is growing: now its share in the gross output is 73.8%. Presently there are 504 farms in the region, their land ownership makes 9,000 hectares of arable land. 15 collective farms have been reorganized into 3 private agricultural enterprises, 5 limited liability companies, and 3 agricultural cooperatives. Restructuring of 50 more farms is under way, being nearly completed in 23 of them. Privatization of land plots by citizens who earlier obtained them for use is practically finished.
An important factor of the Volyn economy functioning is activation of investment activities. The attraction of investment, especially foreign one, into the region’s economy, its effective usage let the recipient enterprises accomplish urgent tasks of modernization, technical reequipment, new technologies implementation, mastering new competitive kinds of products, development of exporting potential, and creation of new jobs.
As per 01.07.99 the region has received 195 investments to a total value of USD 47.8 million. During recent years this process has become especially dynamic. While during the period from 1993 to 1996 foreign business circles invested USD 10.8 million in the region, in 1997 the amount invested was USD 13.5 million, in 1998 – USD 17.7 million, and this year – USD 5.9 million.
Most part of the finances (about 70%) was invested into industrial enterprises. The most attractive industries for foreign investors are food-processing, machine-building, woodworking and chemical ones. A considerable amount of foreign funds was spent on the monetary system development.
The region has received investments from 22 countries of the world, the main donors being the Republic of Poland and such countries with highly developed economy as Switzerland, Sweden, the United States of America, Germany, Belgium, and France. Slovakia and Czechia have also made essential investments.
The region takes a set of measures aimed at an active search for and usage of investments. In particular, to solve pressing problems in Novovolynsk, second most important city of Volyn, one of the largest coal-mining centers in the Lviv-Volyn basin where as a result of the shut-down of 6 out of 9 existing mines 6,000 people lost jobs, the budget revenues of all levels declined greatly, and social security expenditures were cut down proposals to create a special investment policy were worked out and reflected in the Decree of the President of Ukraine " About a special investment policy in the
Volyn region" signed on June 29, 1999. The key element of this program is to reanimate the old jobs and create new ones in Novovolynsk through getting domestic and foreign investment on favorable customs, financial, and tax conditions.
In order to use the advantages of the region geographical position most efficiently (the region is located in the crossing of the shortest trade routs connecting the Central Russia with the Central and Southern European countries, the South of the European part of Russia and Central Asian countries with the Central European countries, including chief ports on the Baltic and North Seas), the conception of the special economic zone "Interport-Kovel" is being realized. According to the President of Ukraine’s Decree, dated June 22, 1999, this zone is to be formed on the basis of Kovel railway junction situated 60 km away from the Ukrainian state border with Poland and Belarus. One of the main elements of this conception is to combine multifunctional transport and storage facilities with a wide range of other services including customs and banking services, long-distance communications services, insurance, brokerage, legal, forwarding and agency services, truck drivers servicing, wholesale from a storehouse, car maintenance service. For this purpose all necessary facilities will be placed on the territory of the zone. In future, it is to become a part of the all-European transportation and distribution system, which will be a powerful spur to the development of the external economic activity.
The regional economy development is accompanied with implementation of market relations and acceleration of privatization.
Today 1,494 enterprises, which used to belong to the public sector, have changed the type of ownership. Private business sector is being formed: over 34,000 people (6.4% of all employable people) are employed in 2,412 small businesses, including 204 joint ventures. The activity of these formations resulted in 11% of the regional volume of products and services and 18% of the budget revenues of all levels. The implementation of the long-term and large-scale "Private sector development program" with the financial support of the World Bank will promote acceleration of the small and medium business development.
The economic potential of Volyn described above together with its advantageous geographic position at the crossing of European trade routs create favorable conditions for effective foreign trade, that has recently developed rather dynamically with a steady growth in transactions volumes. While in 1993 the region’s gross external turnover was equal to USD 29 million, during the 6 following years it has become nearly 7 times as big and reached USD 196.1 million in1998.
The geography of the local business interests is quite extensive and covers 52 countries of all the continents. Volyn’s main trade partners are the Russian Federation and the Republic of Belarus situated on the CIS territory.
The share of the European Union countries in the Volyn region external trade volume is steadily growing. The relations with Germany, France, Sweden, Belgium, Denmark, Spain and Italy are gaining momentum.
Economic cooperation with the countries of Eastern and Central Europe, in particular the Czech Republic, Slovakia, and Hungary, is rather dynamic. However, just like in the previous years, Poland remains the undoubted leader in the region – it is the region’s third most important trade partner with the share in the gross external turnover amounting to about 14%.
The Volyn region has considerably expanded trade relations with the USA and Asian countries through establishing cooperative ties with China, Japan, Iran, Israel, and Korea.
Volyn borders on the Republic of Poland and the Republic of Belarus, which conditions particularly close contacts in different areas maintained within the process of interregional and frontier cooperation in the framework of the agreements concluded with several provinces and regions of these countries. In September 1995, in order to facilitate solving common tasks a transborder association "Euroregion "Bug" was established. It incorporates the Volyn region, the Lublin province of Poland, and the Brest region of Belarus.
A special attention in the trilateral relations development is paid to effective economic cooperation; at the same time the joint activities of the local authorities, mass media, youth organizations and other NGOs promote dynamic contacts in the fields of culture, education, sports and tourism.
There are interesting achievements in the area of joint borders development, modernization of their technical equipment and expansion of the network of border crossing sites. Practical action is started to construct the second bridge across the Western Bug near the international frontier post "Yahodyn/Dorogusk".
The issues of environmental protection on the frontier territory are another important sphere of cooperation within the bounds of the Euroregion "Bug". The grave ecological situation, acuteness of the problems of the rational use of nature called forth the need for joint development of 2 programs to be implemented in future. One of them concerns creation of an international biosphere reservation which will incorporate the Shatsky National Nature Park of Ukraine, Polisky National Park and Sobibor landscape park of Poland. The other program is aimed at carrying out a set of nature-saving measures in order to improve the present condition of the Western Bug river.
The issues of strengthening the existing relations and developing new ones with other countries are very important in the area of foreign affairs. Today there are more than a dozen regions of the Russian Federation, Belarus, Poland, Hungary, and Lithania, with which the Volyn region maintains many-sided relations. The range of the interregional activities is rather wide with major focus on the problems of intensification of trade and economic, scientific and technical ties. Environmental protection, healthcare, culture, history, prevention of crime, hydrometeorology, science and education, sports and tourism - these are some of the fields of mutual interest. Thus, today there are vast possibilities for Volyn to become a region of active international interaction. The region has a well-developed scientific and technological base. The regional network of academic and research institutions incorporates 14 institutions of higher education of 1-4 levels of accreditation; 5 specialized sector-oriented design, research and development, and methodologic institutes; 4 branches of sector-oriented design and research and development institutes; 4 sector-oriented design organizations; and a regional scientific and production center of environmental and aerospace monitoring "Polissia". Besides, the agroindustrial sector is supported by the Polissia branch of the Soil Science and Agrochemistry Institute, scientific and production associations "Herbs"(Travy) and "Elite", a scientific and production selection center on beef cattle breeding "Zorya", and an engineering and survey station of agricultural chemization.
The Volyn State University named after Lessia Ukrainka is one of the largest academic institutions in the northwestern Ukraine and has 14 leading scientific schools. In order to optimize the structure and networking of the research divisions a computer informational center is established, the University is connected to the international information network. Every year the University scientists develop about 500 research topics. A number of fundamental and scientific projects on education and pedagogics are ready to be implemented.
The Lutsk State Technical University has a great scientific experience. The latest model of flax-harvesting combine was developed there and underwent field-testing. The university specialists conduct research and experiments, which will result in the creation of more than 20 new kinds of machinery and technologies.
Private academic institutions have confirmed their accreditation – e.g. the Volyn Institute of Economics and Management, the Lutsk Biotechnological Institute, which prepare specialists in economics, law, business and commerce.
The Volyn region is the land full of ancient legends, monuments which remind us about our forefathers’ struggle and courage, the land of powerful Volyn-Galychyna princedom, the land of deep forests, blue lakes, groves, valleys, slow and rapid rivers. Its towns and villages with ancient history are happy to invite guests.
Significant recreational resources – temperate-continental climate, varying landscape, forests, a dense net of rivers, a great number of lakes (220 big and small ones), including the biggest – Lake Svityaz, resources for therapeutic mud-baths, mineral springs, phytocuring reserves – favor tourism and recreation all year round. Water in karst lakes is fresh, saturated with oxygen, clean and often has a healing effect.
The forest resources take up 695,000 hectares or 27.7% of the whole area of Volyn. Local forests are rich in mushrooms, berries, medicinal herbs, birds and animals and can satisfy various demands for recreation, treatment, health improvement, and general education. There are the Shatsky National nature park, regional landscape park "Stokhid-Prypyat ", 16 national nature reserves, 10 monuments of landscape architecture, over 300 nature-conserving protected parks. The fauna is represented by elks, red deer, roes, wild boars, badgers, foxes, martens, otters, wolves, gray hares, musquashes, pole-cats. Different kinds of birds, such as heath-cocks, capercailyes, hazel-grouses, gray quails and waterfowls are found there.
To preserve the region’s nature resources which are of high scientific and cognitive value and considerable potential for health improvement and recreation, they are developing a special investment policy for the Shatsky National nature park aimed at the creation of the best conditions to attract foreign investments and technologies for the reconstruction and modernization of the existing medicinal infrastructure, strengthening of its financial and technical basis, construction of new facilities ( rest-centers, holiday-homes, tourist centers, etc.) on the basis of the rational use of nature with the minimum negative impact on the environment.
Guests of Volyn have vast possibilities to get acquainted with its history and culture from ancient times till nowadays. On the tourist itineraries and routes they will see many unexpected, unknown, exceptional and fascinating things. To learn about great historical and cultural heritage, they should visit "Kosaks’ tombs" museum, telling about cossaks' feat and heroism in the combat near the town of Berestechko in 1651 under Bohdan Khmelnitsky’s leadership, Lessia Ukrainka, well-known poetess’ memorial estate in Kolodyazhne village of the Kovel district, "Old Grange" museum - the former estate of Igor Stravinsky in the town of Ustylug, the place where the famous composer created several music works – "The Fire Bird", "The Rite of Spring" and others, a memorial complex in Zaturka village created to honour the memory of Vyacheslav Lypynsky - Ukrainian historian, politologist and publicist, an out-door museum in Rokyn village, with its exposition devoted to the history of agriculture and wood architecture, the museum of local lore, history and economy, Volyn icons museum.
There are over 150 architectural monuments, including Zagorivsky monastery (16th cent.), Lutsk castle (14th cent.), Polish Roman-Catholic Cathedral (16th cent.), the Assumption cathedral in the town of Volodymyr-Volynsky, which is a unique monument of the Kyiv Rus period, built in 1152-1160, Svyatogorivsky monastery (15th cent.), Vasylivska church (14-15th cent.) - a stone rotunda, a bellfry (17th cent.) and palaces (16- 18th cent.) in the village of Olyka, etc.
Every year the region holds festivals "Christmas Mystery", "Berehynya", "Polissia Summer and Folklore", "Oberih", "Waves of the Svityaz", expositions of handicraft works.
The doors of Volyn are wide open for those who want to establish business cooperation and learn its history, culture, traditions, way of life, get unforgettable experience on its vast territories.