Brief profile of Kherson Oblast


PRESENTATION OF THE OBLAST

Kherson Oblast is situated on the south of Ukraine. The area of Kherson Oblast is 28, 500 sq. km.

There is more than one million people living in the oblast, and this corresponds to 2.5% of the population of the Ukraine. The administrative centre is the city of Kherson. 61% of the population are urban residents. There are 18 regions, 9 cities, 30 settlements in the oblast.

There are about 15 thousand companies and organizations operating in the region.


NATURAL RESOURCES AND ENVIRONMENT

Bodies of Water: The Dnieper River flows for 250 km across the oblast. The large artificial reservoir, the Kahovskoye, is used for irrigation purposes of the Kherson oblast and Crimea.
Soils: Predominantly black soils and black chestnut soils
Flora: Forest-steppe vegetation.
Fauna: Wild boar, deer, grey hare, fox, wolf, and rodents.
Ecological Issues: There are 70 reserves in the oblast including biosphere reserves in Askania-Nova and Black Sea region. A wide network of health resorts is located along seashores of Azov Sea and Black Sea.
Natural Resources: Salt, building materials are mined here. Natural gas - a small gas field for local needs.

GROSS DOMESTIC PRODUCT

In 1999 GDP amounted to 290 million USD.

EXTERNAL TRADE VOLUME

External trade volume of Kherson Oblast in 1999 was equal to US $306.1 million, including export volume equal to US $183.1 million, and import volume equal to US $123 million. 51.3% of the export and 41.3% of the import volume fall on foreign countries save former Soviet republics. The region steadily maintains positive external trade balance(60.1 million USD).

Among the major export items are: floating docks and ships (51,1% of the total export), cereal crops (15.1%), oil seeds (11.3%), electric engines and mechanical machinery (3.3%), meat and by-products (1.5%), sugar and related products (1.4%), ferrous metals and metal products (5.2%).

Major import items are: oil and oil products (60.8% of the total import), cotton (9.2%), products of chemical industry (6.7%), electrical engines and mechanical machinery (6.3%), ferrous metals and metal products (2.6%).

Kherson Oblast maintains external economic relations with 70 foreign countries. The major trade partners are Russia(export $12.0 million, import $28.7 million), Byelorus (export $1.4 million, import $1.2 million), Kazakhstan (import $18.3 million), Denmark (export $23.8 million, import $0.1 million), Turkey (export $3.8 million, import $0.8 million), Italy (export $2.5 million, import $1.2 million), Israel (export $5.4% million, import $0.2 million), Germany (export $0.8 million, import $9.3 million).

TRANSPORT INFRASTRUCTURE

The geographic situation of the region determined its development as a large transport node: there are sea ports in the cities of Kherson, Skadovsk (Black Sea) and Genichesk (Azov Sea); river ports on the Dnepr river; railway nodes in major cities and settlements of the oblast; all cities and settlements are connected by asphalt roads.

TELECOMMUNICATIONS INFRASTRUCTURE

The oblast has a rather advanced telecommunications infrastructure. The telephone systems provide Ukrainian and international lines with analog and digital exchanges. Cellular telecommunications network and paging communication have been put in operation.

STRUCTURE OF INDUSTRIAL PRODUCTION

The leading place in the region's industrial production belongs to machine building industry. Machine building industry is oriented to production of electric engines, starters, magnetos, electric welding equipment, sea ships of different types, floating docks for ship-repairing, cardan shafts for cars and trucks, corn combines, sunflower and corn reaping-machines, sprinklers, pumping plants, hydromechanical equipment, lock gates, mitre gates, rolling gates, lifters, couplers, power line anchor and transmission towers, valves, electric and solid fuel boilers, gas-stoves, semiconductors, electronic equipment, etc..

High industrial potential is backed by production of own electric power at Nova-Kakhovka hydroelectric power station (approximately 40 billion kW/hrs per annum).

The major products of the petrochemical industry plants are gasoline, diesel oil, furnace oil, mazut, liquefied gas, rubber couplings, muffs, seal rings, grommets, gaskets, air-valves, balls.

Plants of the industry of construction materials cover the needs of the region, as concerns most relevant products. Asbestos, tileboard, cement, bricks, glass, chipping, keramzite, are produced in the region.

Light industry products (wool, yarn, fabrics, knitwear and garments, leather footwear, blankets, fur products) account for 16% of the region's industrial production.

There is a great number of highly developed food industry plants in the Kherson oblast: wineries, canneries, grain mills, confectionary plants, fish processing plants, milk processing factories, meat processing plants.

STRUCTURE OF AGRICULTURAL PRODUCTION

The agricultural sector occupies an important place in the economy of the oblast producing about 30% of GNP. Over 38% of the people live in rural regions.
The total area of agricultural land is 2.1 million hectares, including 1.97 million hectares of arable land. The area of irrigated land is 27%.

Over 264 non-state agricultural enterprises, 37 state-farms, 43 agricultural joint-stock associations, 32 scientific-reseach organizations and institutions, 34 subsidiary agricultural enterprises, and 3188 private farm households are located in the region. Included in these farms are 18 specialized beef producing farms, 30 pig breeding farms, 43 sheep breeding farms, 11 egg farms, and 10 poultry farms. An average size of agricultural enterprise is 4.4 thousand hectars and agricultural farm - 34 hectars.

Kherson oblast is a large producer of agricultural products, mainly grain. The average annual production of grain is 3 million tonnes. Grains ( winter grain, barley, corn, millet) occupy 53% of the ploughland. There is also significant rice production on irrigated land in southern regions of the oblast.

Gardening (22 thousand hectars) and viticulture(18 thousand hectars) bring solid incomes to farmers. Widely known in CIS brands of wine and brandy are produced in the oblast.

The republic has rather developed poultry manufacturing as well as cattle (900 thousand heads), pig(1 million heads), and sheep-breeding(1 million heads).

An average annual volume of agricultural production during the last three years has amounted to: (thousand tonnes)

Type of produce Produced in total Including public sector % of public sector
Grains 2145 2039 95
Sunflower seeds 103 98 95
Potatoes 248 17 7
Vegetables 287 181 63
Melons and gourds 64 54 84
Fruits 56 27 48
Grape 51 49 96
Livestock 166 112 67
Milk 591 450 76
Eggs (million of pcs) 269 155 58
Wool (tonnes) 3118 2605 84


EDUCATION

Within the region, there are 661 nursery schools and kindergartens, 566 primary and secondary schools, 29 vocational schools, 21 higher education institutions, and 4 music schools. The region also has 4 state universities; the Kherson State Technical University, the Kherson Pedagogical University, the Ship-Building University, and the Kherson Agricultural University.

Three research institutions are also located in the region: Ukraine Research Institute of Irrigated Farming, Ukraine Research Institute of Animal-Husbandry, and Agricultural Biotechnological Research Center.

PRIVATIZATION

Ukraine enacted three major pieces of legislation on privatization in March of 1992, covering large scale privatization, the privatization of small-scale enterprises and privatization through privatization certificates. These measures were supplemented by the State Privatization Program for 1992, the State Privatization Program for 1994 (the "1994 Program"), and more recently the March 19, 1996 Presidential Decree "On the Goals and Specifics of the Privatization of State Assets in 1996" (the "1996 Presidential Decree"). In addition, a law on the lease of the property of state enterprises and organizations was originally adopted in April of 1992 which provided workers with rights to lease (and subsequently to buy out) the assets of state enterprises on favorable terms. The Lease Law was amended and restated in March 1995.

As a result of privatization, the private sector of the oblast economy employs three fourth of all those working in the sphere of material production. Out of nearly 7 thousand of registered enterprises, 70% are companies of new forms of ownership: joint stock companies, partnerships, sole traders, etc.

FOREIGN INVESTORS' ACTIVITY

16 foreign investments in the amount of 5587,4 thousand USD were made in the economy of the Kherson Oblast in 1998.

Investments were made in the following industries:
Industry Volume of investment (thousand USD) % of investments Foreign investor
Construction of gas pipeline 2037,1 43 Russia
Flour-grinding industry 444.9 11 Turkey, Russia
Agricultural produce processing 1724,6 37 Sweden
Trade 348 7 Canada, Austria, Germany, UK, USA, Bulgaria
Services 100 2 Czechia


INVESTMENT PROJECTS

The Oblast's Administration Data Base includes about 100 projects for investments. The most prospective are the following directions:
  • the reconstruction of enterprises of the machine-building complex aimed at increasing of the competitiveness of manufactured products or the production of new goods;
  • the reconstruction of chemical and oil-chemical enterprises;
  • the production of construction materials;
  • the technical re-equipping of agricultural complex enterprises, the introduction of a new technology of farm crops growing, live-stock breeding and products processing;
  • the reconstruction of light industry enterprises aimed at the product quality increase and saturation of the internal market;
  • the development of export-oriented production;
  • the development of science-capacious production.
  • the protection of environment

CONTACT US

The Kherson Chamber of Commerce and Industry
34-a, Gagarin Str.,
Kherson, 73013, Ukraine
Phone: +380(552) 22-57-49
Fax: +380(552) 24-33-29; 24-22-92
E-mail:




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