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Overview of Vinnytsya Oblast GEOGRAFICAL POSITION Territory – 26,500 sq. km Population – 1,815,000 people Vinnytsia oblast was founded in 1932. It occupies 4.5% of the territory of the country. It is situated in the central part of the Right-bank part of Ukraine and it borders on 7 oblasts. The state border between Ukraine and Republic of Moldova runs for 202 km along the Dnister River in the south-eastern part of Vinnytsia oblast. There are 17 cities, 30 urban-type settlements, 27 rayons and 1,466 villages in Vinnytsia oblast. The administrative center of the oblast is the city of Vinnytsia, which is over 630 years old. The city population is about 400,000 people. As of January 1, 2000 the urban population of the region was 881,900 people, while the rural population was 933,400 people. The density of population is 69 people per sq. km. The employable population makes up 56.4%.

About 500 deposits of different types of minerals were thoroughly explored in the territory of the region. A larger number of deposits and signs are at various stages of exploration. A wide range of different types of mineral deposits and the signs of mineralization are explained by the presence of a large number of rock groups of different ages and a long period of their formation.

The so-called Glukhivetsko-Turbivsky kaolin region of explored deposits is one of the unique deposits of competitive minerals. It includes the following deposits: Velykogadomynytsky, Glukhivetsky, Zhezhelivsky, and Turbivsky. The Glukhivetsky deposit has been explored since 1901. In late 1990s about 1,200,000 tons of raw kaolin were mined yearly. Up to 6,000,000 tons of enriched kaolin and about 200,000 tons of enriched quartz sand were produced from the mined raw kaolin. The local ore mining and processing enterprise supplied more than half of paper, porcelain and faience enterprises of the former Soviet Union with enriched kaolin. This enterprise produced wet-treated kaolin of the following types: KN-74, KN-77, KN-80, KS-1 and dry-treated kaolin P-2. Vinnytsia is also known as the location of deposits of secondary kaolin.

Signs of pelikanite, a relatively rare and specific rock, were found in Pogrebyschensky region nearby Talalay, Shyrmivka, Stanylivka and other villages, in Kozyatin and Glukhovets rayons. Besides kaolinite, pelikanite contains the active form of silica, which determines the specific features of the raw material. A possibility of production of low-temperature fast hardening cement from pelikanite was determined. The properties of this cement exceed those of the similar cement obtained from diatomite and tripoli. This cement is used for impregnation of wood, for covering of porous heat-insulating materials, for producing white and colored tile from fine-grained porcelain-like cement.

In Kalynivsky rayon there is the only in Ukraine well-explored Slobidske deposit of technical garnet which is a raw material for abrasive production, filter manufacturing and other applications. Explored mineral resources amount to 673,000 tons with an average mineral content in the rock (granite) of 15-18%. Ivanivske granite deposit is mined in this region nearby Slobidske deposit. Owing to an operational supplementary exploration it was determined that the average garnet content in the deposit amounts to about 27%, while its resources are over 25 million tons.

Granites and other crystal rocks similar to them are spread all over the region. Their resources are practically inexhaustible. These rocks are widely used in production of construction materials.

Grey granitoids of Zhezhelivske deposits are widely used as facing stone. Block stone used to be mined in Gnivanske and Solomyrske granite deposits. It was used for decoration of Moscow metro and Kyiv railway station. Three new decoration stone deposits are explored at present, namely Tyvrivsky, Ivonivetsky and Rakhny-Polivsky deposits.

Tripoli and similar fine high-porous siliceous rocks are widespread in the suburbs of Mohyliv-Podilsky. They are minerals for making filtering powder for treatment of foods such as: sugar syrups, beer, wine, fats, oils, and potable water. Explored tripoli resources of Shlishkovets deposit amount to 1,000,000 cubic meters, of "Slobodska gora" deposit – 456,000 cubic meters, of Nemiysky deposit – 232 cubic meters, and of Nemiysky 2 deposit – 500 cubic meters.

About 30 industrial sectors use fluorite concentrate. They are: metallurgy, aluminum, chemical, cement, glass and other industries. Ukraine’s annual demand for fluorite concentrate is 122,000 tons, including that by ferrous metallurgy amounting to 107,000 tons. Launching of a fluorspar enterprise on the basis of the Bakhtinsky fluorite concentrate deposit, which is situated in Murovanokurylovetsky rayon of the obalst, can solve the problem of supplying ferrous metallurgy with fluorite for a long period of time. Bakhtinsky fluorite deposit is now the biggest in Ukraine with its explored ore resources exceeding 10 million tons and predicted resources making up about 100 million tons.

Vinnytsia oblast is noted for deposits of limestone for sugar industry (Studenyanske deposit resources amount to 31,400,000 tons, "Vyla" deposit resources to 26,972,000 tons, and Nemiyske deposit resources to 13,752,000 tons), for lime calcination (explored resources exceed 40 million tons), and for soil oxidation (explored resources exceed 10 million tons).

The region is one of the most important in Ukraine in terms of its resources of limestone and chalkstone for production of awn stone, used for construction of dwelling houses. The biggest deposit of sawn stone in Ukraine is situated in Vinnytsia oblast 10 km from Tomashpil. It is Stinyansky deposit, whose explored resources exceed 50 million tons.

Ceramic brick remains one of the most widespread construction materials. Over 160 brick deposits are explored in this region and 76 are exploited. One of the best Ukrainian deposits of raw materials for brick and tile is Vendychanske. Its clay was once used in a thin and firm dark-red roofing tile production, and in the 1960s it was a raw material for hollow clay blocks sizing 4 bricks. The explored reserves of the deposit exceed 10 million cubic meters.

Deposits of sand and gravel are used by the industry of construction materials. There are altogether 5 explored deposits of sand that are mined, including 1 for silica bricks, 3 for mortar and 1 for ballast.

The curative properties of the underground mineral water of Khmilnitske radon deposit are widely used in the region. Myrhorodska-type mineral waters are discovered (healing table water Bronychanka and Sadkovetska). The oblast has a potential to explore new deposits of healing radon waters.

Moreover, there are about 50 mineral table waters explored, many of which are already used (Regina, Dana, Vina, Shumylivska, Podilska, Caravan, Absolute, and others).

For the first time, bauxites – the aluminium ores - were found in Podillya. The estimated bauxite reserves amount to about 3 million tons.

Geologists discovered deposits of phosphate chalk, apatite, brown coal, titanium-zirconium and some other minerals in the bowels of the region, with their exploration and examination planned.

The industrial potential of the oblast is represented by such enterprises as Ladyzhinska State Regional Power Station, "Crystal" factory in Vinnytsia , Vinnitsa Bearing Factory, Production Enterprise "Khimprom", OJSC "Mohyliv-Podilsky Machine Factory", OJSC "Vinnytsia Tractor Aggregates Factory" and dozens of enterprises of processing and light industries. There are about 400 enterprises functioning in the region.

Vinnytsia oblast accounts for 1.8% of the total industrial production of Ukraine.

The region has a multi-sector industrial complex where the leading sectors are: food industry, machine-building and metalworking.

Over 467 industrial enterprises represent 13 industrial sectors (such as food industry 46.0%, power sector 18.5%, machine-building and metalworking 9.9%, chemicals and petrochemicals 5.1%, etc.) function in the region. New branches like medical and microbiological industry are developing.

118 enterprises are specialized in making products for some subsectors of industry such as electrotechnical industry, tool and machine tool industry, instrument making, industries of bearings, tractors and agricultural engineering (metal-cutting tools, pumps, rolling bearings, water meters, gas and heat meters, electric motors, electric spindles, utility machinery, technological equipment for processing sectors, agricultural machines for plant-growing and cattle-breeding, scales, car lifts, mills, milking equipment, etc.).

Consumer goods production accounts for 4.1% in the total output of Ukraine (as of 1999). They are manufactured by 339 enterprises.

The region specializes in food products. In 1999, in the total goods output the portion of food products was 75.6%, that of consumer goods made 13.2%, and that of light industry goods was 6.9%.

In 1999, Vinnytsia oblast ranked the seventh for production of foods and the thirteenth for production of other goods among the regions of Ukraine.

In terms of the structure of consumer goods production, the greatest output is that of the goods produced by engineering complex, chemical and woodworking industries, such as complex household appliances, compact mechanized equipment for farms, household chemical goods, and furniture.

There is an expanding practice among the enterprises of the light industry to sign agreements with the foreign firms for production of goods from raw materials taken on commission. Cooperation with firms from Germany, USA, Slovakia, Czech Republic, Hungary and other countries has been established. In 1999 Vinnytsia joint-stock company "Podillya", OJSC "Khmelnitska clothes factory "Lileya", Vinnytsia OJSC "Volodarka", OJSC "Tulchinska clothes factory" and others produced the goods from raw materials taken on commission.

Electric power stations located in this region can produce 10523.4 million kilowatt of electric power yearly. At present they are not operating to their full capacity. In 1996, the region produced 3,548 million kilowatt of electric power, while its consumption was 5,041 million kilowatt.

There are 39 sugar mills and 13 distilleries in Vinnytsia oblast. A factory has been built to process sunflower seeds and grains was built there.

The total area of agricultural land used by all categories of land owners and users amounts to 1,960,500 hectares, which includes 1,694,000 hectares of arable land and 51,200 hectares of land with perennial plants.

There are 815 new formations in the region (as of April 11, 2000). They include 450 limited liability companies, 235 cooperative farms, 94 privately owned and leased enterprises, 32 farm enterprises, and 4 others.

The major specialization of the agricultural enterprises of all forms of property is growing cereals and sugar beet, as well as meat and milk production. In the general structure of the crops, winter wheat makes up 22.7%, barley 11.3%, sugar beet 6.5%.

In 1999, this region produced 6.1% of grain, 13.0% of sugar beet, 7.6% of fruit, 6.0% of meat in live weight, 5.1% of milk, and 4.1% of eggs of the total amount produced in Ukraine.

TRANSPORT AND COMMUNICATIONS

3 gas-man pipelines pass through the region. These are Urengoy-Pomary-Uzhgorod, "Soyuz", Dashava-Kyiv. 3,299.8 km of gas-distribution networks are used. 209.2 km of new gas networks were put into operation during 1999.

INTERNATIONAL ECONOMIC RELATIONS

In 1999 enterprises of the oblast had external operations with partners from 78 countries. External trade totaled USD 303.2 million for that period, including USD 175.6 million of exports and USD 127.6 million of imports that created a net balance of USD 48 million.

External trade with CIS countries and Baltic States makes 35.8% of the total amount of trade. The largest importers were Russia Federation with 39.1%, Belarus 3.9%, Belgium 22.8%, Germany 11.9%, USA 2.9%.

Alive animals and products of cattle-breeding (meat and variety meat account for 21.8% of this) give 23% of total exports. Textiles and textile goods account for 14.5%. Compared to 1996, the share of foodstuff, cattle-breeding and miscellaneous goods in total exports increased, while the share of stone, gypsum, cement, glass, fat, animal and vegetable oil products decreased.

In 1999, the imports from the former Soviet states to the oblast were 16.8% off all imported goods, while those from other foreign countries were 83.2%. The largest imports were from Ghana (30.5%), Germany (12.4%), Brazil (12.1%) and Russia Federation (10.4%).

In 1999, miscellaneous goods accounted for 33.2% of total imports. Textiles and textile goods made up 17%, foods 14%.

The share of barter operations was 2.9% of total exports and amounted to USD 5.07 million. Barter exports to CIS countries composed 83.9% and to other countries 16.1%.

Foreign investments (including the entered ones) from 1992 to 1 Apr 2000 amounted to about USD 28.2 million.

The registered investment analysis shows that the region enjoyed the peak of foreign investors’ interest in 1994 – 1995, with investment amounting at that time to USD 10.6 million.

Lately, the practice has been for foreign investments to be made through in the form of equipment and other property. In 1994-1995, equipment and other property accounted for 87.6%, in 1996 for 53.4%, in 1997 for 84.5%, in 1998 for 56.2% and in 1999 for as much as 97.6% of total entered investments.

The total amount of direct foreign investment actually made into the oblast’s enterprises from the beginning of the investment process and by April 1, 2000 is about USD 14 million. The largest investments were made by non-residents from Austria (18.8% of the total amount of investment), Spain (14.6%), the USA (9.9%), the Netherlands (8.5%), Luxembourg (7.1%), Germany (6.6%), Poland (5.7%), and Canada (4.5%).