INVESTMENT PASSPORT angl_final3.pdf · means of transport on a yearly basis. The network of public motor ways of state and local importance covers the total length of 4,117.9 kilometres,

INVESTMENT PASSPORT

www.if.gov.ua

Ivano-Frankivsk Oblast State Administration Address: 21 Hrushevskoho Str., 76004 Ivano-Frankivsk, Ukraine

Tel/Fax: +38 (0342) 55 20 07, 55 21 86 е-mail: [email protected], www.if.gov.ua

Economic Development, Industry and Infrastructure Department of the Ivano-Frankivsk Oblast State Administration

Address: 21 Hrushevskoho Str., 76004 Ivano-Frankivsk, Ukraine Tel/Fax: +38 (0342) 55 64 17, 55 26 10

е-mail: [email protected]

International Cooperation, European Integration, Tourism and Investment Department of the Ivano-Frankivsk Oblast State Administration

Address: 21 Hrushevskoho Str., 76004 Ivano-Frankivsk, Ukraine Tel/Fax: +38 (0342) 55 20 42

е-mail: [email protected]

OF IVANO-FRANKIVSK OBLAST

3

The Ivano-Frankivsk Regional State Administration places particular emphasis on continuing to attract investment in the region. With USD 908.6 million in inward foreign direct investments, it already ranks among the top five FDI destinations in Ukraine.

Industrial enterprises have attracted the lion’s share of foreign investment – USD 675.3 million. Recognizing the region’s enormous potential for highly profitable business, investors have set up a number of enterprises that operate in different industries. The range of industries include a plant that manufactures wiring systems for the automotive industry established by Leoni AG; Padana Chemical Compounds LLC, which specializes in preparation and granulation of PVC compounds; and Unibruk LLC, a manufacturer of concrete products for the building and construction industry.

In addition to the industrial sector, investors are increasingly interested in agricultural production, information technologies and innovative industries where the region’s product quality/cost ratio and high labour productivity would make it especially appealing to foreign partners.

The driving forces and facilitators for international cooperation are the EuroCarpathian Initiative, an investment platform established to promote the potential of Subcarpathia, and the Carpathian Space, a large-scale international festival that attracts participants from dozens of foreign countries.

I am confident that such initiatives help not only build and maintain effective relationships with investors, but also develop strong social and economic ties with the neighbouring countries and accelerate further integration of Ukraine into the European community. We envision the future development of Subcarpathia as a contemporary region open for initiatives and groundbreaking ideas implemented through cooperation among forces in government, business and civil society.

Today the Ivano-Frankivsk region, amassing unique economic and intellectual resources, is the flagship for reforms and the development of a revitalized Ukraine. We look forward to welcoming you to Subcarpathia – a region with unbridled potential for growth!

Head of Ivano-Frankivsk Regional State Administration

Oleg Goncharuk

CONTENTS

1. Key Figures ......................................................................................................4

2. Description of the Region ............................................................................. 5

2.1. Geographic Location ......................................................................................8

2.2. Transportation Infrastructure ..................................................................... 10

2.3. Labour Market ............................................................................................... 12

2.4. Education and Training ................................................................................ 14

2.5. Residential, Office and Industrial Spaces .................................................. 16

2.6. Economic Potential ....................................................................................... 18

2.7. Innovations .................................................................................................... 27

2.8. Foreign Trade.................................................................................................28

2.9. International Cooperation .......................................................................... 30

2.10. Foreign Investments .................................................................................... 32

2.11. Efficient Governance .................................................................................... 36

2.12. Development Prospects ..............................................................................38

3. Investment Opportunities...........................................................................40

3.1. Priority Industries for Investment ............................................................. 41

3.2. Other Industries with Significant Investment Potential ..........................42

3.3. Investment Property ....................................................................................50

4. Contact Details ............................................................................................. 52

KEY FIGURES

5

Key indicators Actual valueGrowth rate (in comparison with the

relevant period of the previous year), %

Population (as of January 1, 2018), million people

1.38

Area, thousand square kilometres 13.9

Gross regional product (2016), UAH million 51,404

Gross regional product per capita (2016), UAH 37,220

Index of physical volume of the gross regional product (2016), %

х 99.0

Capital investments (January – December, 2017), UAH million

8,972.6 132.1

Foreign direct investments (as of January 1, 2018), USD million

908.6 109.9

Industrial production index (January – December, 2017), %

х 112.0

Agricultural production index (January – December, 2017), %

х 103.4

Construction production index (January – December, 2017), %

х 112.2

Exported goods (2017), USD million 665.4 116.0

Imported goods (2017), USD million 642.3 158.2

Average monthly salary of one full-time employee (2017), UAH

6,074.0 144.5

Retail turnover (January –December, 2017), UAH million

19,347.4 107.3

6

ВЕРХОВИНАVERKHOVYNA

КОСІВKOSIV

КОЛОМИЯKOLOMYIA

ЯРЕМЧЕYAREMCHE

НАДВІРНАNADVIRNA

БОГОРОДЧАНИBOHORODCHANY

СОЛОТВИНSOLOTVYN

ТИСМЕНИЦЯTYSMENYTSIA

ІВАНО-ФРАНКІВСЬКIVAN0-FRANKIVSK

ТЛУМАЧTLUMACH

ГАЛИЧHALYCH

РОГАТИНROHATYN

КАЛУШKALUSH

РОЖНЯТІВROZHNIATIV

ДОЛИНАDOLYNA

БОЛЕХІВBOLEKHIV

ЯблуницяYablunytsia

ПаляницяPalianytsia

БУРШТИНBURSHTYN

ОТИНІЯOTYNIYA

ОБЕРТИНOBERTYN

ГВІЗДЕЦЬHVIZDETS’

ЗАБОЛОТІВZABOLOTIV

КУТИKUTY

ЯБЛУНІВYABLUNIV

ВИГОДАVYHODA

ПЕРЕГІНСЬКЕPEREHINSKE

ВОРОХТАVOROKHTA

ДЕЛЯТИНDELIATYN

ГОРОДЕНКАHORODENKA

СНЯТИНSNIATYN

Н-10 Н-10

Н-10

Н-10

Н-09

Н-09

Р-20

Р-20 Р-24

Р-24

Р-24

Р-62

Р-24

Р-21

Н-18

Н-09

М-12

L V I V R E G I O N T E R N O P I L R E G I O N

C H E R N I V T S I R E G I O N

T R A N S C A R PAT H I A N R E G I O NUzhgorod

Uzhgorod

Chernivtsi

Chernivtsi

Tern

opil

Ternopil

Lviv

Lviv

7

Ivano-Frankivsk Oblast is a unique and self-sufficient region, which combines European values and centuries-old national traditions. The major priority, identified in the Development Strategy of the Oblast for the Period to 2020, is to ensure the wellbeing and a high quality of life for the present and future generations in the context of building a competitive and innovative economy based on cultural traditions, natural features and regional advantages.

The Sub Carpathian Region has taken leading positions in the investment attractiveness rating of Ukrainian regions over recent years. In terms of foreign direct investments per resident, the oblast was ranked among the top 5 regions of Ukraine. Investments come from non-residents from almost 50 international countries. European Union countries are given priority in investing in the economy of Ivano-Frankivsk Region.

The economy of the region is rather diversified. Major industries in the economy include agriculture, electricity generation, production of construction materials, extractive and processing industries, and trade.

Successful cooperation with foreign investors has resulted in a number of new production facilities, constructed or technologically modernized in the oblast in such sectors as mechanical engineering, wood processing, chemicals, agriculture and alternative energy.

Three national motorways pass through Ivano-Frankivsk Oblast. They are connected to the European route E50, which goes through the oblast in the north, and merge with the routes E40 (Venice –Kyiv) and E85 (Baltic Sea – Black Sea).

Direct railroad routes connect Ivano-Frankivsk (through Lviv) with Berlin, Budapest, Bratislava, Warsaw, Wroclaw, Krakow, Minsk, Prague and Sofia.

The international airport, situated in the oblast centre, Ivano-Frankivsk, can handle aircraft of all types.

The oblast is widely famed for its recreational and therapeutic opportunities. Forests account for 41.0% of its area, and a considerable part of the oblast is located in the mountains. Also, there are a lot of mineral springs in the oblast.

The most important natural resources:

■fuel and energy resources: oil and gas;

■chemical resources: rock salt and potash, sulphur, phosphorites;

■construction materials: gypsum, marble, sandstone, sand, clay.

Apart from mineral resources, Sub Carpathian forests constitute an important natural resource. Alternative energy production, based on wind and solar power, had been significantly expanded.

Information technology is a rapidly developing sector in the Ivano-Frankivsk Region. This sector employs nearly 1,500 specialists, working for about 30 companies, most of which are outsourcers. There is the IT-Cluster and a regional branch of the 1991 Open Data Incubator in Ivano-Frankivsk.

A well-educated workforce is one of the advantages of the oblast. According to the Competitiveness Rating of Ukrainian Regions, the oblast ranked among the top 10 for quality of primary education, availability of research and engineering personnel and ratio of labour costs to workforce productivity. There are 39 higher education institutions of I-IV accreditation levels in the oblast, which educate more than 47,400 students.

The oblast’s potential for development is connected to the need to change its economic profile to ensure development of highly-technological sectors of the economy with high added value, expanded processing capabilities of raw materials of the wood processing industry, increased good exports, etc. Priority projects of the oblast are designed to develop the transport infrastructure and improve the region’s accessibility.

Implementation of the project “Eurocarpathian Initiative” was initiated and ensured by the Ivano-Frankivsk Oblast State Administration. The project is designed to ensure efficient implementation of initiatives aimed at bringing the level of economic development of Ivano-Frankivsk Oblast closer to that of European Union member states.

The project opens up new horizons for combining the oblast’s potential with capacities of domestic and foreign investors and offers a platform for their legal and administrative support. The Ivano-Frankivsk Oblast will become even more open and friendly to business by introducing the practices of European partners and receiving support from them.

Proximity to markets in Eastern Europe; highly-qualified human resources skilled in engineering, electronics, information technology and construction; high innovative and technological potential; presence of well-known international electrical engineering companies in the oblast; leadership in tourism make the Ivano-Frankivsk Oblast one of the most attractive investment destinations in Ukraine.

INVESTMENT PASSPORT OF IVANO-FRANKIVSK OBLAST

L E G E N D

National highway

Local roads

Railroad

Airport

Peat

Sandstone

Quarts sandstone

Rock salt

Gas

Crude oil

Phosphorite

Sulfur

Brown coal

Potash salt

Gypsum

Mineral water

GEOGRAPHIC LOCATION

In the South, Ivano-Frankivsk Oblast borders Romania. The distance to the border with other European countries (Poland, Hungary) varies from 250 to 300 kilometres. This creates highly favourable conditions for the transportation of goods to European countries.

The distance from Ivano-Frankivsk to Kyiv, the capital of Ukraine, is 550 kilometres.

Distances to major seaports:

Rotterdam – 1750 kilometres;

Antwerp – 1760 kilometres;

Hamburg – 1320 kilometres;

Gdansk – 860 kilometres;

Odesa – 795 kilometres.

Distances to interstate freight and passenger checkpoints for crossing the state border with:

Romania – 180 kilometres;

Poland – 200 kilometres;

Slovakia – 300 kilometres;

Hungary – 320 kilometres.

Motor road distances to important European economic centres:

Warsaw – 500 kilometres;

Bucharest – 640 kilometres;

Budapest – 660 kilometres;

Bratislava – 760 kilometres;

Vienna – 840 kilometres;

Vilnius – 950 kilometres;

Sofia – 1030 kilometres;

Prague – 1000 kilometres;

Berlin – 1100 kilometres;

Rome – 1900 kilometres;

Paris – 2060 kilometres;

London – 2450 kilometres.

Ivano-Frankivsk Oblast is located in the western part of Ukraine near the Carpathian Mountains. Its administrative centre is Ivano-Frankivsk with population of more than 220,000 people.

9

Іâàíî-Ôðàíêіâñüê

Київ

Minsk

TRANSPORTINFRASTRUCTURE

11

More than 100 million passengers are transported by all means of transport on a yearly basis.

The network of public motor ways of state and local importance covers the total length of 4,117.9 kilometres, including 1,000.4 kilometres of state importance roads and 3,117.5 of local importance roads.

The national motor roads Н-09, Н-10, Н-18 go through the

The transport system of the oblast consists of rail, road and air transports and is one of major components of the production and social infrastructure of Ivano-Frankivsk Oblast.

territory of the oblast. They are connected to the European route E50, which goes through the oblast in the north, and merge with the routes E40 (Venice–Kyiv) and E85 (Baltic Sea – Black Sea).

The oblast has an efficient interoblast and international bus service. In particular, there are 43 international lines to such countries as Italy, Poland, Czech Republic, Spain, Latvia, Moldova, Belarus, as well as over 100 interoblast routes, operating in the oblast.

The total length of rail roads is 495.6 kilometres. There are 35 railway stations in the oblast. Railway network density is 35.5 kilometres per 1,000 square kilometres. Major railway terminals are Ivano-Frankivsk, Kalush, and Kolomyia.

There is the International Airport “Ivano-Frankivsk” in the oblast centre. The airport has the capacity of 250 people per hour and offers regular daily flights from Ivano-Frankivsk to Kyiv, as well as seasonal flights to Turkish, Italian, Spanish and Polish cities.


КОСІВKOSIV







ЛЬВІВСЬКА ОБЛАСТЬLVIV REGION

LvivKrakowWarsawDresdenBerlin

KievDonetskMoscow

UzhgorodBudapestVienna

ChisinauBucharest

ТЕРНОПІЛЬСЬКА ОБЛАСТЬTERNOPIL REGION

ЧЕРНІВЕЦЬКА ОБЛАСТЬCHERNIVTSI REGION

ЗАКАРПАТСЬКА ОБЛАСТЬTRANSCARPATHIAN REGION

ТЛУМАЧTLUMACH

ГАЛИЧHALYCH


КАЛУШKALUSH


СНЯТИНSNIATYN

Н-10 Н-10

Н-10

Н-10

Н-09

Н-09

Р-20

Р-20 Р-24

Р-24

Р-24

Р-62

Р-24

Р-21

Н-18

Н-09

М-12

13

There are 804 settlements, including 15 cities (the most populated cities are Ivano-Frankivsk (255,200), Kalush (66,700) and Kolomyia (61,000).

As of January 1, 2017, the statutory minimum wage was equivalent to USD 120 per month in Ukraine, and the average nominal salary of full-time employees (in December, 2017) was

The workforce of the oblast is highly-educated. According to the Competitiveness Rating of Ukrainian Regions, the oblast ranked fourth in terms of the quality of primary education,

Population – 1.38 million people (urban – 0.6 million; rural – 0.78 million).

Out of the total economically active population (575,100) in January – September, 2017, 559,100 people were in employment, and 51,100 people were out of employment. The rate of unemployment among employable residents, calculated according to the methodology of the International Labour Organization, was 8.4% as of October 1, 2017.

The largest number of full-time employees is concentrated in such sectors as education (27.2% of the average number of personnel registered in the oblast), industry (22.4%) and healthcare (16.3%).

LABOUR MARKET

sixth in terms of availability of research and engineering personnel and ninth in terms of the ratio of labour costs to workforce productivity.

USD 252 in the oblast. This contributes to competitiveness of the work force compared to other countries and regions of Ukraine.

AGE STRUCTURE OF THE POPULATION OF IVANO-FRANKIVSK OBLAST, %

THE AVERAGE MONTHLY SALARY DEPENDING ON TYPES OF ECONOMIC ACTIVITIES (January – December, 2017):

in general for the oblast

agriculture and forestry

industry

construction

trade

transport

temporary accommodation and catering

information and telecommunications

finance and insurance

USD 258

USD 297

USD 326

USD 203

USD 201

USD 264

USD 223

USD 222

USD 346

18% 63%

19%

63%

19%

18%

16-59 years

Above 60 years

Under 15 years

EDUCATION AND TRAINING

The study to become specialists in law, business, engineering, healthcare, teaching, art, transport, agriculture, tourism and service provision, construction and architecture, geodesy and land management, etc.

Workers and junior specialists across more than 100 professions and specialities are trained by 30 colleges and 19 vocational education institutions to meet the needs of the oblast.

The vocational education network includes 19 vocational education institutions (6 vocational colleges, 11 vocational lyceums, 1 vocational education centre, 1 vocational school).

There are 39 higher education institutions in the oblast, including 4 universities, 4 institutes, 1 academy, 27 colleges, 2 vocational schools and 1 technical college. In total, 47,400 students study at higher education institutions of the oblast.

LEADING COLLEGES OF IVANO-FRANKIVSK OBLAST:

• Nadvirna College of the National Transport University (www.ncntu.if.ua)

• State Higher Education Institution “Kalush Polytechnic College” (www.kpk.if.ua)

• College of Electronic Devices of the Ivano-Frankivsk National Technical University of Oil and Gas

(www.ifkepnung.if.ua)

• Kolomyia Polytechnic College of the Lviv Polytechnic National University

(www.kpk-lp.com.ua)

• Rohatyn State Agrarian College (www.rodak.if.ua)

• Communal Higher Education Institution “Subcarpathia Forestry College”

(www.ifk.pu.if.ua)

15

LEADING UNIVERSITIES OF IVANO-FRANKIVSK OBLAST

Name Number of students

Number of employees

Number of specialities Website

State Higher Education Institution “Vasyl Stefanyk 14558 1811 205 www.pu.if.ua

Ivano-Frankivsk National Technical University of Oil and Gas 6891 1599 26 www.nung.edu.ua

State Higher Education Institution “Ivano-Frankivsk National Medical University” 6461 1972 8 www.ifnmu.edu.ua

Private Higher Education Institution “King Danylo University” 1692 138 13 www.iful.edu.ua

Name Website

State Vocational Education Institution “Ivano-Frankivsk Vocational Polytechnic Lyceum” www.ifppl.net

Ivano-Frankivsk Higher Vocational Art School No. 3 www.vxpu3iva.ucoz.com

Ivano-Frankivsk Vocational Construction Lyceum www.pbl.if.ua

Broshniv Vocational Forest Industry Lyceum www.litsey-broshniv.at.ua

Nadvirna Vocational School No. 11 www.nadvirnaptu11.ucoz.ua

State Vocational Education Institution “Bohorodchany Vocational Construction Lyceum” www.bpbl-bog.at.ua

Ivano-Frankivsk Higher Vocational School No. 13 www.vpu13.if.ua

State Vocational Education Institution “Ivano-Frankivsk Higher Vocational School of Machinery Maintenance” www.vpusot.if.ua

State Vocational Education Institution “Ivano-Frankivsk Vocational Motor Transport and Construction Lyceum” www.ifplatib.at.ua

Kolomyia Higher Vocational School No. 14 www.vpu14.ho.ua

Ivano-Frankivsk Vocational Education Centre No. 1 www.cpto1.if.ua

State Education Institution “Kolomyia Vocational Service Sector Lyceum” www.kplsp.net.ua

Ivano-Frankivsk Higher Vocational School No. 21 www.vpu21.if.ua

State Education Institution “Horodenka Vocational Lyceum” www.dnzhpl.if.ua

State Education Institution “Korshiv Vocational Agricultural Lyceum” www.kplsp.if.ua

State Vocational Education Institution “Otynia Vocational Lyceum of Energy Technologies” www.oplet.if.ua

State Education Institution “Kuty Vocational Lyceum” www.ptu-36.ucoz.ua

More than 10,000 students study at such institutions, which provide training in 85 blue-collar occupations and 6 specialities for the education and qualification level “Junior Specialist”.

16

RESIDENTIAL, OFFICE AND INDUSTRIAL SPACES

HOUSING PER CAPITA

More than 26.0 square meters per oblast resident.

HOUSING STOCK STRUCTUREThe total housing stock is more than 36,000,000 square meters.

AVERAGE PRICES FOR RESIDENTIAL PROPERTY (HOUSES)

Average prices are USD 500-700 per square meter in Ivano-Frankivsk including the value of a land plot which averages 400-1,200 square meters, and USD 400-600 per square meter in the suburbs of Ivano-Frankivsk (the average land plot is 1,000-1,300 square meters).

AVERAGE PRICES FOR RESIDENTIAL PROPERTY (APARTMENTS):

primary housing market – USD 400-600 per square meter; secondary housing market – USD 500-800 per square meter.

17

AVERAGE RENT FOR WAREHOUSE SPACE

UAH 15-30 per square meter.

AVERAGE RENT FOR RESIDENTIAL PROPERTY:

1-room flat – UAH 1,500-2,300 per month; 2-room flat – UAH 1,800-3,500 per month;3-room flat – UAH 2,000-4,200 per month.

AVERAGE RENT FOR OFFICE SPACE

Suburban neighbourhoods – UAH 70-100 per square meter.Downtown – UAH 150-200 per square meter.

RENT FOR OFFICE SPACE DEPENDING ON ITS CLASS:

Class A – UAH 200-250 per square meter.Class B – UAH 80-150 per square meter.

AVERAGE RENT FOR INDUSTRIAL SPACE

UAH 35-50 per square meter.

ECONOMIC POTENTIAL

THE THREEFOLD OBJECTIVE OF ADVANCING THE REGIONAL ECONOMY IS TO DEVELOP INDUSTRY, AGRICULTURE AND TOURISM.The economy of the oblast is well-balanced. This is proved by the structure of the gross value added.

GROSS VALUE ADDED BREAKDOWN FOR IVANO-FRANKIVSK OBLAST OBLAST, %

Other services

Finance and insurance

Healthcare and social security

Governance and defense; compulsory social insurance

Education

Transport, storage facilities, delivery and postal services

Real estate operations

Mining industry and quarry development

Electricity, gas, steam and conditioned air supply

Processing industry

Agriculture, forestry and fishery

0.7

2.6

3.5

4.8

6.3

6.5

7.2

7.5

8.5

10.1

14.9

INDUSTRY

21

The oblast traditionally makes up a significant portion of the total national production of such industrial products as electricity, crude oil, associated petroleum gas, timber (sawn or split lengthwise, sectioned or peeled, over 6 mm thick), machines for working wood, cork, bone and hard plastics.

Goods, worth UAH 47.3 billion UAH (or 2.2% of the total amount of goods realized by Ukrainian industry), were sold by industrial enterprises in 2017, which employ about 44,000 people, which accounts for 22.6% of all employed residents of the oblast. Industrial production index amounted to 112.0% in 2017 compared to the previous year (2nd place in Ukraine).

In 2017, there occurred a number of positive improvements in the chemical industry, resulting in expanded industrial production, higher competitiveness and increased exports to the European Union. In particular, the LLC “Karpatnaftokhim”, one of the largest enterprises of the petrochemical industry in the Western Ukraine, resumed its operation. The company is the only manufacturer of polymeric products: polyethylene and suspension polyvinyl chloride, as well as membrane caustic soda, benzoyl, propylene, etc. There was an increase in

Industry is one of key sectors of the oblast’s economy. It accounts for 2.0% of the gross value added generated by the Ukrainian industry. There are around 130 large and medium industrial enterprises in Ivano-Frankivsk Oblast.

production of urea-formaldehyde resin (LLC “Karpatsmoly”), aerosil or silica (Orisil-Kalush, the subsidiary of the LLC “Orisil”), etc.

The machine manufacturing industry is one of the top priority industries of the region. Every year major enterprises of the industry, such as the State Enterprise “Production Association “Karpaty” and Tyco Electronics Ukraine Limited, implement projects aimed at expanding production of electric cables for cars. The first phase of producing electric cables was opened at the newly-built plant of the German concern “LEONI”, which provides employment for 560 people (as of January 1, 2018).

The PJSC “Ivano-Frankivsk Cement” is the leader of the Ukrainian cement industry in terms of production volume and technology. It implemented an innovative investment project aimed at building an all-dry cement plant based on new energy efficient and environmentally friendly technology.

The energy industry is represented in the first place by the standalone unit “Burshtyn Thermal Power Station” of the PJSC “DTEK Zakhidenerho” and the State Enterprise “Kaluska Teploelektrotsentral-Nova”. These enterprises form a core of the Burshtyn Energy Island, which is synchronized with the European Network of Transmission System Operators for Electricity.

In 2017, oil-and-gas bearing subsoil was used by 17 enterprises in the oblast based on 45 special subsoil use permits.

The gas trunk line managing subsidiary “Prykarpattransgaz” of the PJSC “Ukrtransgaz”, which has large natural gas storage capacities, is responsible for transportation of gas via gas trunk lines to consumers of the Western Region of Ukraine and ensures transit of natural gas through Ukraine to countries of the Western and Central Europe.

Industry 100.0

EXTRACTIVE AND PROCESSING INDUSTRY 58.1

EXTRACTIVE INDUSTRY AND QUARRY DEVELOPMENT 6.8

PROCESSING INDUSTRY 51.3

out of which:

production of chemical substances and chemical products 14.7

manufacture of wood products, production of paper and printing 11.3

manufacture of rubber and plastic goods, other non-metal mineral products 11.4

production of food, drinks and tobacco products 5.2

machine manufacturing, excluding repair and installation of machines and equipment 4.7

metallurgical production, production of finished metal products, except for machines and equipment 1.2

textile manufacture, manufacture of clothes, leather, products made of leather and other materials 1.0

other 1.8

ELECTRICITY, GAS, STEAM AND CONDITIONED AIR SUPPLY 41.2

WATER SUPPLY, SEWAGE DISPOSAL, WASTE MANAGEMENT 0.7

INDUSTRY BREAKDOWN (as of January 1, 2018), %

22

PJSC “Ivano-Frankivsk Cement” 2 Nazariia Yaremchuka Str., Yamnytsia Village, Tysmenytsia Raion

production of cement, asbestos and concrete products

State Enterprise “Production Association “Karpaty” 201 Halytska Str., Ivano-Frankivsk

production of electric cables, industrial utility devices, differential manometers, microprocessors, control devices, computing equipment, streetlights

LLC “Electrolux Ukraine” 23a Yunosti Str., Mykytyntsi Village, Ivano-Frankivsk

production of Zanussi and Electrolux washing machines

LEONI Wiring Systems UA GmbH 1 Sharlaia Str., Kolomyia production of electric cables for vehicles

Tyco Electronics Ukraine Limited 3 Markovetska Str., Mykytyntsi Village, Ivano-Frankivsk production of electric cables for vehicles

Standalone unit “Burshtyn Thermal Power Station”of the PJSC “DTEK Zakhidenerho”

Burshtyn generation of electric and thermal power

State Enterprise “Kaluska Teploelektrotsentral-Nova” 1 Promyslova Str., Kalush generation of electric and thermal power

Gas trunk line managing subsidiary “Prykarpattransgaz” of the PJSC “Ukrtransgaz”

48 Nezalezhnosti Str., Ivano-Frankivsk gas transportation

Oil and gas production division “Dolynanaftogaz” of the PJSC “Ukrnafta”

7 Promyslova Str., Dolyna oil and gas production

Oil and gas production division “Nadvirnanaftogaz” of the PJSC “Ukrnafta”

13 Hrushevskoho Str., Nadvirna oil and gas production

LLC “Karpatnaftokhim” 4 Promyslova Str., Kalush production of ethylene, propylene, suspension polyvinyl chloride, caustic soda

LLC “Karpatsmoly” 6 Promyslova Str., Kalush production of urea-formaldehyde resin

Padana Chemical Compounds LLC 58A Halytska Str., Yamnytsia production of chemical

additives, PVC compounds

Broshniv separated division of SWISS KRONO

83 22 Sichnya Str., Broshniv-Osada Village, Rozhniativ Raion production of chipboard

Nadvirna Subsidiary of Swisspan Limited 163 Soborna Str., Nadvirna production of chipboard

Uniplyt LLC 4 Zavodska Str., Vyhoda Village, Dolyna Raion

production of fibreboard, plywood, sawn timber

Tarkett Vinisin LLC 10 Promyslova Str., Kalush production of household linoleum, fitted carpets

LARGEST COMPANIES OF THE REGION

AGRICULTURE

25

The arable land (3.97 million ha) accounts for 63% of all agricultural lands (6.3 million ha).

Agricultural enterprises have been constantly increasing production of agricultural products over recent years. Rich grain harvests have been gathered by farmers over the past three years.

The agricultural sector of the oblast sufficiently provides

The agricultural industry is an important strategic sector of the economy, which ensures food security and employment for rural residents.

enterprises of the food and processing industries with raw materials.

Crop farming (grains, industrial crops and vegetables) is a strategic and most significant area for development of the oblast’s agriculture. Dairy and beef cattle breeding has been identified as a priority area of animal husbandry for the next few years.

The largest agricultural enterprises of the Sub Carpathian Region produce a significant portion of the gross agricultural output. They include: LLC “Danosha” (pig farming, cultivation of grain and industrial crops, renewable energy sources), LLC “Rosan-Agro” (pig farming), Farm “Potochyshche” and Private Farming Enterprise “Ridna Zemlia” (dairy cattle breeding and dairy products), Farms “Tyblevych” and “Toro” (beef cattle breeding), Branch “Perspective” of the PrJSC “Zernoproduct MHP” and LLC “Stern Agro” (cultivation of grain and industrial crops), Private Enterprises “Aroniia” and “Stepan Melnychuk” (fruit farming) and many others.

SMALL AND MEDIUM-SIZED ENTERPRISES INNOVATIONS

27

In 2016, 27 enterprises (which accounts for 21.1% of the surveyed industrial enterprises (the average value for Ukraine is 18.9%) were involved in innovation in the oblast.

Enterprises of the oblast introduced 17 new technological processes and started production of 109 innovative types of products in order to improve the technical and technological level of manufacture.

In 2017, as in previous years, major economic activities conducted by small enterprises covered the following sectors: trade (26.4%), industry (15.6%), construction (13.3%), and agribusiness (11.0%).

The oblast has a well-developed infrastructure to support small and medium-sized enterprises. As of January 01, 2018, the infrastructure included 260 institutions, particularly 18 business centres, 3 business incubators, technology and industrial parks, Regional Fund for Entrepreneurship and its 5 standalone units, 56 advisory institutions, 27 credit unions, etc. There are also 63 non-governmental associations of entrepreneurs in the oblast. 19 local coordination councils for entrepreneurship and a regional council of entrepreneurs were created in the oblast in order to ensure close cooperation between entrepreneurs and executive authorities on a partnership basis, as well as promote openness and transparency.

The present economic development of the region is primarily driven by innovative technology and knowledge-based industry.

According to the Main Department of Statistics as of January 1, 2017, there were 6,883 enterprises in the oblast, including 7 large enterprises (0.1%), 289 medium enterprises (4.2%) and 6,587 small enterprises. Additionally, the sector of small and medium-sized enterprises includes 46,300 sole proprietors. The number of small enterprises per 10,000 residents was 48 entities in early 2017. Small enterprises employ around 40.0% of the total employees. There is a positive tendency for this indicator to grow.

Total expenditures for introduction of innovations amounted to UAH 80.5 million.

The infrastructure, designed to support innovation, is composed of about 20 participants. They primarily include branches of higher education institutions of the oblast, scientific and research institutes, scientific research-to-production companies, science and industrial parks, NGOs and other entities.

The science park “Sub Carpathian University”, science camp “New Energy”, business support centre, created within the framework of EU4Business, are important components of the oblast’s innovation infrastructure.

At the moment, the primary objective is to promote development of the existing innovation infrastructure and create up-to-date centres in the united territorial communities.

26

Education

Finance and insurance

Information and telecommunications

Temporary accommodation and catering

Transport, storage facilities, postal and courier services

Administrative and supplementary support services

Professional, scientific and technical activities

Real estate operations


Construction

Industry

Wholesale and retail trade; vehicle and motorcycle repair

39

66

192

199

228

263

398

639

723

877

1026

1742

SMALL BUSINESS BREAKDOWN BY ACTIVITIES as of January 01, 2017

INVESTMENT PASSPORT OF IVANO-FRANKIVSK OBLAST INVESTMENT PASSPORT OF IVANO-FRANKIVSK OBLAST

25.0% 15.6%

8.7%

6.8

%

5.1

%

4.

3%

4.0% 3.9%

FOREIGN TRADE

29

At the year-end 2017, the oblast’s volumes of goods export and imports increased by 16.0 and 58.2% accordingly compared with 2016 and totalled USD 665.4 and 642.3 million. The oblast’s balance of foreign trade was favourable and amounted to USD 23.1 million.

The industrial enterprises of the oblast are oriented towards manufacturing high quality goods, which are exported to the EU, Asia and other countries.

In terms of import transactions, leading positions are occupied by the following associations and partner countries:

Europe – 58.0% of the oblast’s total export volume, CIS – 28.7%, Asia – 9.4%, America – 3.8%.

Measures have been taken to reinforce positive tendencies towards the expansion of the scope of the oblast’s foreign economic activity. They are aimed at increasing the presence of the oblast’s manufacturers in foreign markets. Factors of export potential development include export diversification, modernisation of production facilities and introduction of modern technologies. They will result in increased manufacturing output, improved product quality, expanded product line and ultimately enhanced competitiveness.

Today, 63.0% of all goods, produced in the oblast, are exported to European countries, 19.3% – Asia, 15.3 – CIS, 2.3% – Africa, and 0.2% America.

Electrical machines, plastics, polymeric materials, timber, wood products and grain crops dominated the export sector of the oblast.

EXPORT BREAKDOWN BY GOODS in 2017

LEADING PARTNER COUNTRIES OF IVANO-FRANKIVSK OBLASTIN TERMS OF EXPORT VOLUMES

(at the year-end 2017)

LEADING PARTNER COUNTRIES OF IVANO-FRANKIVSK OBLASTIN TERMS OF IMPORT VOLUMES

(at the year-end 2017)

Electrical machinery

Plastic, polymeric materials

Wood and wood products

Grain crops

Organic chemical compounds

Seeds and fruits of oil plants

Boilers, machines

Mineral fuels; oil and oil refining products

Paper and cardboard

18.4%

15.9%

15.5%

10.2%

6.6%

5.5%

4.6%

3.3%

2.8%

17.6% 8.9%

8.7%

7.2%

5.4

%

4.5%

4.4

%

3.4% 3.3% 17.6%

8.9%

8.7%

7.2%

5.4%

4.5%

4.4%

3.4%

3.3%

Romania

Poland

Turkey Russian Federation

Czech Republic Germany

Belarus

Italy

Netherlands

25.0%

15.6%

8.7%

6.8%

5.1%

4.3%

4.0%

3.9%

Russian Federation

Germany

Poland

Romania

China

Italy

Hungary

Czech Republic

INTERNATIONAL COOPERATION

31

International cooperation is actively promoted in the Sub Carpathian Region. As of January 1, 2018, 10 agreements on interregional cooperation with regions of Poland, Lithuania, Romania, Canada and other countries were concluded between the oblast and foreign partners in order to facilitate development of economic relations and implementation of joint educational, cultural, scientific and technical projects.

Implementation of dozens of international technical assistance projects in the oblast resulted in introducing strategic approaches to planning territorial development, improved environment for small business and tourism, taking measures aimed at increasing energy efficiency, introducing energy-saving technologies, and improving the ecological situation.

25 international technical assistance projects were implemented in the oblast in 2017. They contributed to a number of measures and achievement of positive changes in the following areas: small and medium-sized enterprises, investments, tourism, justice, healthcare, organic production, ecology, heat supply, and energy efficiency.

The attracted investments stand at EUR 10 million, CAD 480,000 and UAH 20 million.

Ivano-Frankivsk Region participates in 3 joint operational European Neighbourhood Instrument Cross-Border Cooperation Programmes 2014-2020 (hereinafter – the “ENI CBC Programmes”): “Hungary-Slovakia-Romania-Ukraine”, “Romania-Ukraine” (as a major region), “Poland-Ukraine-Belarus” (as an additional region).

A number of international technical assistance projects, focused on entrepreneurship development, are implemented in the oblast:

■ Project “Ivano-Frankivsk Region – Land for Tourism” (since 2014) supported by the Delegation of the European Union to Ukraine;

■ Partnership for Local Economic Development and Democratic Governance Project (December 2015 – end of 2020) supported by the Federation of Canadian Municipalities and funded by the Government of Canada;

■ Implementation of Phase III of the EU/UNDP Community Based Approach to Local Development Project for 2015-2018;

■ Implementation of Phase III of the Swiss-Ukrainian project “Decentralization Support in Ukraine” (DESPRO) since 2014.

Within the framework of the Municipal Infrastructure Development Project, funded by the International Bank for Reconstruction and Development:

■ the Communal Enterprise “Ivano-Frankivskvodo-ekotekhprom” finished project implementation within Stage I of the Project, started preparations for participation in Stage II for implementing the project “Sludge Treatment Line Construction for Ivano-Frankivsk”;

■ the Communal Enterprise “Kolomyiavodokanal” – the project “Reconstruction of the Water Supply Networks of Kolomyia Based on Advanced Technologies. Energy Saving in Apartment Buildings”;

■ the project “Major Overhaul of the Street Lighting Networks in Kolomyia by Technically Upgrading Streetlights Based on LED Technologies” was completed under loan agreement, concluded with the Nordic Environment Finance Corporation (NEFCO).

0

100

200

300

400

500

600

700

800

33

Ivano-Frankivsk Oblast has taken a leading position in the investment attractiveness rating of Ukrainian regions over recent years. It demonstrates the highest efficiency in attracting foreign direct investment among oblasts of the Western Ukraine.

ЗThe oblast ranks 5th among Ukrainian regions according to the amount of foreign investment per resident of Ivano-Frankivsk,

As of December 31, 2017, foreign direct investments (share capital) in the oblast’s economy amounted to USD 908.6 million (an increase of 9.9% in investment levels since the beginning of 2017). Accordingly, if compared to the beginning of 2017, the amount of foreign investments, increased by USD 81.9 million, which is one of the best results in Ukraine.

Investments came from non-residents from almost 49 countries internationally. USD 831.7 million (91.5% of the total

DYNAMICS OF ATTRACTING FOREIGN DIRECT INVESTMENT IN THE ECONOMY OF WESTERN UKRAINIAN OBLASTS in 2010-2017 (USD million)

DYNAMICS OF ATTRACTING FOREIGN DIRECT INVESTMENT PER RESIDENT IN THE ECONOMY OF WESTERN UKRAINIAN OBLASTS in 2010-2017 (USD)

at the same time, the Ivano-Frankivsk Region has been a leader among oblasts of Western Ukraine by this criterion over recent years.

share capital) was invested by EU countries, and USD 76.9 million (8.5%) – by other countries.

The top 5 major countries, investing in the oblast and accounting for 85% of the total direct investments, include Cyprus (USD 458.4 million), Netherlands (USD 208.9 million), Poland (USD 39.7 million), Serbia (USD 32.5 million) and Denmark (USD 31.7 million).

1600140012001000800600400200

001.01.2011 01.01.2012 01.01.2013 01.01.2014 01.01.2015 01.01.2016 01.01.2017 01.01.2018

01.01.2011 01.01.2012 01.01.2013 01.01.2014 01.01.2015 01.01.2016 01.01.2017 01.01.2018

Lviv Oblast

Ivano-Frankivsk Oblast

Zakarpattia Oblast

Volyn Oblast

Rivne Oblast

Ternopil Oblast

Chernivtsi Oblast

Volyn Oblast

Zakarpattia Oblast

Ivano-Frankivsk Oblast

Lviv Oblast

Rivne Oblast

Ternopil Oblast

Chernivtsi Oblast

FOREIGNINVESTMENT

3534

FOREIGN DIRECT INVESTMENTS IN THE OBLAST’S ECONOMY BROKEN DOWN BY ECONOMIC ACTIVITIES as of December 31, 2017

USD 108.7 million (12.0% of the total amount) was invested in wholesale and retail enterprises, USD 70.1 million (7.7%) – in agriculture, forestry and fishery, USD 24.5 million (2.7%) – in construction, USD 10.3 million (1.1%) – in temporary accommodation and catering.

Major Foreign Investors in the Oblast’s Economy

An example of successful cooperation between the oblast and investors is attraction of the well-known international company “LEONI”, which started construction of a plant to produce electric cables for motor vehicles in Kolomyia in 2016. And the official ceremony of opening the LEONI plant took place on September 29, 2017. It is expected that 5,000 jobs will have been generated by 2021 in Kolomyia, in contrast with 800 at present.

In early 2018, the management of LEONI decided to construct another plant to produce electric cables for motor vehicles in Burshtyn.

Additionally, a number of new production capacities have recently been constructed or technologically updated as a result of successful cooperation with foreign investors. This includes production of automatic washing machines (LLC “Electrolux Ukraine”), electric cables for motor cars (Tyco Electronics Ukraine Limited), parquetry and glued wooden boards (LLC “Solid Ukraine”), paper envelopes (LLC “Kuvert Ukraine”), chlorine and caustic soda, suspension polyvinyl chloride (LLC “Karpatnaftokhim”), plastic pipes (LLC “Kalush Pipe Plant”), linoleum (Tarkett Vinisin LLC), wallpapers (LLC “Viva Decor”), ferro-concrete structures (LLC “3 Betony”), wire products based on a cold welding technology (LLC “Dana

FOREIGNINVESTMENT

74.3%

1

2%

7.7% 2.7% 2.2% 1.1%

74.3%

12.0%

7.7%

2.7%

2.2%

1.1%

Industry

Wholesale and retail trade


Construction

Other industries

Temporary accommodation and catering

Metal Ukraine”, Tysmenytsia Raion), laminated chipboard (LLC “Swiss Krono”, Rozhniativ Raion), as well as operational commissioning of cattle-breeding complexes and a 1.1 MW biogas plant (LLC “Danosha”, Kalush Raion), the solar power plant (“Bohorodchanska-1”, Bohorodchany Raion) and many other facilities.

Furthermore, a number of investment projects are currently being implemented in the oblast. They include construction of a biogas plant of the LLC “Danosha” in Halych Raion and construction of a factory to produce plaster blends and gypsum plasterboard by the Private Enterprise “Troianski Hipsy” with

participation of the French investor “Saint-Gobain” (expected results – production of 100,000 tons of building mixes per year using raw materials derived from the Khotymyr Gypsum Field).

Cooperation with the existing investors is promoted by creating a favourable environment for re-investment in new projects, visiting enterprises to learn about their activities and challenges, assisting in resolving problems related to their operations. Enterprises with foreign capital are provided with continuous support and are communicated with on an ongoing basis.

50.5%

23.0%

4.4%

3.6%

3.5%

15.1%

Cyprus

Netherlands

Poland

Serbia

Denmark

Other countries

50.5%

2

3.0%

4.4%

3.6%

3.5%

15.1%

BREAKDOWN OF INVESTMENTS BY ORIGIN

Industrial enterprises remain attractive for foreign investors who have invested USD 675.3 million (74.3% of the total amount), out of which USD 664.7 million (73.2%) is in the

processing industry, USD 4.5 million (0.5%) is in extractive industry and quarry development.

LEONI


EFFICIENTGOVERNANCE

37

The authorities of the oblast place a high priority on satisfying the needs and expectations of citizens. To this end, a large network of administrative service centres was created in cities and raions of the oblast. It serves as a platform for dialog between the government and community, as well as a convenient place where people can receive any information, advisory or other support from competent and friendly officers.

As of the end of 2017, there were 24 administrative service centres (ASCs) in the oblast, including 14 in raions, 6 in cities of the oblast significance, 3 in united territorial communities (Pechenizhyn, Verkhnia and Stari Bohorodchany) and 1 in the Polianytsia Village Council.

3 additional local branches of the Ivano-Frankivsk ASC have been opened for convenience of applicants since 2016. For the purpose of providing citizens with disabilities and people with reduced mobility with the access to certain administrative services through the Ivano-Frankivsk ASC, the service “Mobile Administrator” was introduced on September 4, 2017. It acts as a remote work place. The quality of servicing and administrative services can be evaluated by clients through the official website www.cnap.if.ua, On-Line Consultancy Service and mobile application “Mobile Ivano-Frankivsk”.

402,400 services were rendered by administrative service centres of the oblast by year-end 2017. ASCs provide up to 215 various administrative services, including most demanded services relating to land matters, registration of residency, citizens, business and immovable property.

The administrative services, such as issuance of a passport for a citizen of Ukraine and a passport of a citizen of Ukraine travelling abroad, are delivered by ASCs of Ivano-Frankivsk and Kalush. The administrative service centre of the Nadvirna Raion State Administration has procured special equipment necessary for one work place in order to provide the

abovementioned services. Technical work is being carried out to install the said equipment.

The administrative service centres of the Kalush and Nadvirna Raion State Administrations have received access to the State Land Cadastre, which will speed up provision of the relevant services.

Public Procurements

The electronic procurement system “ProZorro” is successfully operating in the region. Ivano-Frankivsk Oblast is one of 12 regions, where a ProZorro Competence Centre was established and is currently operational. The centre is designed to enhance the awareness and professional capacity of participants, who carry out procurement, as well as promote involvement of business representatives in public procurement. Roving training seminars “Professionalization of Public Procurements” were held by the Oblast State Administration in cooperation with the Centre in all raions of the oblast.

27,470 procurements, almost five times more than in 2016, totalling UAH 17.1 billion, were carried out by clients of the oblast through ProZorro in 2017. This allowed for a saving of UAH 836.0 million or 4.9% of the expected value. In total, 883 organizers and 7,330 participants took part in electronic procurements. It is worth mentioning that the number of participants is constantly growing.

DEVELOPMENTPROSPECTS

39

The oblast’s potential for development is connected to the need to change its economic profile to ensure development of highly-technological sectors of the economy with high added value, expanded capabilities of processing industries, particularly wood and food processing, increased goods exports, etc.

Priority projects in the oblast are designed to develop the transport infrastructure and improve the region’s accessibility. The key objectives, which, if accomplished, will result in significantly improved investment attractiveness of the region, include:

■ improving the quality of roads and road transport infrastructure (particularly by constructing new bitumen and asphalt production facilities);

■ opening a Ukraine-Romania state border checkpoint and building a motorway to it;

■ creating industrial and science and technology parks (industrial parks in Dolyna, Burshtyn, Kalush, Kolomyia; Oil and Gas Science and Technology Park);

■ developing the tourism sector by constructing new tourist complexes, including ski resorts, modernising the international airport “Ivano-Frankivsk”;

■ introducing an integrated municipal solid waste recycling system.

It is planned to channel resources into the following projects in order to increase the energy efficiency of the oblast:

■ introducing an energy management system into the public sector in compliance with ISO 50001;

■ reducing dependence of heat generation systems on natural gas and replacing it with local and alternative fuels;

■ optimizing main networks and using local heat supply systems in city micro districts;

■ using solar thermal collectors for heating water in public sector buildings;

■ developing the alternative energy sector, etc.

INVESTMENT OPPORTUNITIES

41

ALTERNATIVE ENERGY GENERATION AND ENERGY-SAVING TECHNOLOGY

Particular attention is being paid to issues of energy saving, reducing or replacing consumption of natural gas, its efficient use, ensuring greater energy independence of specific facilities and the entire region. In order to enhance the energy efficiency of the oblast, it is planned to channel resources into such projects as introducing an energy management system into the public sector in compliance with ISO 50001; reducing dependence of heat generation systems on natural gas and replacing it with local and alternative fuels; using solar thermal collectors for heating water in public sector buildings; developing the alternative energy sector, etc.

Energy Potential of the Oblast for Alternative Energy Generation.

Potential of renewable energy sources – 946,000 tonnes of oil equivalent:

■ 162,000 tonnes of oil equivalent – wind power potential (average annual wind speed – 5.5 meters per second);

■ 140,000 tonnes of oil equivalent – hydro technical potential of minor rivers.

Basin resources:

■ Dniester – 1,035.9 MWh per year; Prut – 2,607 MWh per year;

■ 203,000 tonnes of oil equivalent – wastewater thermal energy potential;

■ 350,000 tonnes of oil equivalent – biomass potential:

■ cattle breeding – 300,000 tons;

■ crop farming – 200,000 tons;

■ logging residues – 150,000 cubic meters per year;

■ wood-processing residues – 50,000 cubic meters per year.

■ 91,000 tonnes of oil equivalent – solar power potential.

■alternative energy generation and energy-saving technology;

■ industry: machine manufacturing; chemical industry; wood processing; light industry;

■ information technology;

■ agriculture; food/processing industry;

■ tourism and recreation sector.

PRIORITY INDUSTRIES FOR INVESTMENT:

INDUSTRY

Innovative development of the industry driven by attracted investments is one of the key objectives of the Ivano-Frankivsk Oblast Development Strategy for the Period to 2020.

Investors wishing to invest capital in industrial development of the oblast, have excellent prospects. This can be demonstrated by a number of investment projects, implemented by existing enterprises, and construction of new manufacturing facilities.

43

WOOD PROCESSING INDUSTRY The major products of the wood processing industry include chipboard and fibreboard, plywood, sawn timber, wooden containers, joinery products, jointed glued boards, parquetry, veneer sheets, paper bags, envelopes, etc.

The separated division of the LLC “Swiss Krono” is one of the largest producers of chipboard and decorative parquet (laminating film).

LIGHT INDUSTRY

MACHINE MANUFACTURINGMain production facilities of the machine manufacturing industry are located primarily in Ivano-Frankivsk, Kalush and Kolomyia.

Cabling and wiring products, electrical products, solid fuel boilers, radio technical products, and streetlights are produced by the State Enterprise “Production Association “Karpaty”. The enterprise started production of electrical cables for Skoda and Volkswagen motor cars.

A wide range of Zanussi and Electrolux automatic washing machines are manufactured by the LLC “Electrolux Ukraine”. They are sold in Ukraine, Eastern European and Baltic countries.

The German company “Leoni AG”, which runs a plant producing cable networks for the automotive industry in Stryi (Lviv Oblast, Ukraine), officially opened a second plant in Kolomyia

CHEMICAL INDUSTRYChemical industry enterprises produce heavy organic synthesis products, urea-formaldehyde resin, aerosil (silica), fine chemicals, household chemicals, etc.

The largest producer in the industry is LLC “Karpatnaftokhim”, which produces ethylene, propylene, petrobenzene, membrane caustic soda, as well as polymeric products, such as polyethylene and suspension polyvinyl chloride. The company employs 2,500 people and has implemented a number of cost-effective projects.

DK Orisil Plant, Ltd produces aerosil (silica), and the LLC “Karpatsmoly” is a producer of urea-formaldehyde resin.

Padana Chemical Compounds LLC is one of the leading producers of a wide range of cable and PVC plasticisers and rigid compounds. The company opened a new modern

(Ukraine) on September 29, 2017. The plant produces cable networks for leading automobile brands, particularly BMW. The investments total EUR 16 million.

technological line dedicated to production of import-substituting products – PVC plasticized compounds for medical applications.

42

Uniplyt LLC is an industry leader in the production of fibreboard, plywood and sawn timber. The company exports its products to more than 20 countries.

CBM “Osmoloda” Ltd, Nadvirna Subsidiary of Swisspan Limited, LLC “Viva Décor”, LLC “Solid Ukraine”, Private Enterprise “Syvulia” and other companies are famous wood processing enterprises.

The oblast has a significant potential for development of light industry, enterprises in the oblast manufacture carpet (tufting) flooring, textile and fur clothing, working clothes, bedclothes, leather, and tents for motor cars.

Leading enterprises in the industry include

■ Tarkett Vinisin LLC (textile production);

■ PrJSC “Ivano-Frankivsk Garment Manufacturing and Trading Enterprise “Halychyna”, LLC “Garment Factory “Dovira” (clothing manufacture);

■ LLC “Tykafurlux” (fur clothing);

■ PrJSC “Shkirianyk”, LLC “Svit Shkiry” (leather manufacture).


45

CONSTRUCTION INDUSTRYThe Ivano-Frankivsk region ranks among leading regions in Ukraine according to the total space of commissioned residential buildings per person. There is sufficient capacity to manufacture products, and construction materials needed for building companies of the oblast, such as ceramic bricks (220 million standard units), concrete and ferro-concrete constructions (233,000 cubic meters), joinery products made of wood (more than 14,000 square meters) and polymeric materials (43,000 pieces), non-metallic construction materials (more than 1.1 million cubic meters), cement (2.5 million tons), ceramic and facing tiles (over 3 million square meters), wooden parquet (365,000 square meters), linoleum (5 million square meters), slaked lime (43,000 tons), gypsum (30,000 tons), dry building mixes (4,000 tons), concrete grouts (456,000 tons), wallpapers (12,000 tons), slates (112 million standard units).

The leading manufacturer of building products is the PJSC “Ivano-Frankivsk Cement”, which is one of the largest cement producers in Ukraine. The company uses innovative,

energy efficient and environmentally friendly technologies for production of dry cement.

The Private Enterprise “Troianski Hipsy” and the French investor “Saint-Gobain” are involved in construction of a factory to produce plaster blends and gypsum plasterboards. The factory is expected to produce 100,000 tons of building mixes per year using raw materials derived from the Khotymyr Gypsum Field.

TRANSPORT AND LOGISTICS INFRASTRUCTURE

44

INFORMATION TECHNOLOGIES

IT sector employs more than 1,400 specialists, working for around 30 companies, most of which are outsourcers.

There are the IT-Cluster and a regional branch of 1991 Open Data Incubator, opened in autumn of 2016, in Ivano-Frankivsk.

The Ivano-Frankivsk IT-Cluster is a voluntary, independent, non-profit, non-governmental organization, which unites the IT professionals of Ivano-Frankivsk and is designed to develop a competitive national information technology industry in the city. Major objectives: promote IT as a priority sector in the oblast; represent and advance the interests of the IT industry in the region; develop cooperation between and ensure integration of educational institutions to solve practical problems; creating favourable conditions and environment for IT professionals; etc. Website: www.it-cluster.if.ua.

1991 Open Data Incubator Ivano-Frankivsk is the first Ukrainian non-commercial incubator, designed to transform tons of open public data into real start-ups, which provide services to Ukrainian citizens, businesses and authorities. The incubator looks for projects, which can improve local governance by using open data and guarantee state support. Website: www.1991.vc/if.

IT Rally is the largest annual IT conference, held in Ivano-Frankivsk in the spring. Beginners have a good opportunity to meet potential employers. Website: www.dou.ua/calendar/10757.

Startup Camp is an annual large-scale IT conference where successful global Ukrainian projects share their experience and inspiring success stories. Website: www.startupcamp.if.ua.

Design Village is a conference devoted to UX and UI-design, branding, calligraphy, social posters, customer relations and project management. Website: www.designvillage.com.ua.

IT Weekend Ivano-Frankivsk is a conference for IT professionals, organized by SoftServe. Website: www.dou.ua/calendar/12799.

Ivano-Frankivsk Startup Crash Test – regular meetings of start-uppers. Website: www.dou.ua/calendar/11303.

IT Vechornytsi – a series of events with the aim to build a community of people who will regularly meet to discuss the latest technology and share practices of their application. Website: www.facebook.com/groups/1704394919783732.

IT Education

IT specialists are trained by the following institutions:

■ Ivano-Frankivsk National Technical University of Oil and Gas;

■ State Higher Education Institution “Vasyl Stefanyk Precarpathian National University”;

■ Private Higher Education Institution “King Danylo University”;

■ Private Higher Education Institution “Galician Academy”;

■ College of Electronic Devices of the Ivano-Frankivsk National Technical University of Oil and Gas;

■ Ivano-Frankivsk Financial and Commercial Cooperative College Named After S. Hranat;

■ Kalush College of Economics, Law and Information Technologies of the Ivano-Frankivsk National Technical University of Oil and Gas.

IT knowledge and skills can be acquired by attending commercial courses, offered by:

■ SoftServe IT Academy;

■ Lviv IT School;

■ Programming Academy.


47

AGRICULTURE AND FOOD INDUSTRY

The agricultural industry is an important strategic sector of the economy, which ensures food security and employment of rural residents.

The arable land (397,200 ha) accounts for 63% of all agricultural lands (630,500 ha).

The agricultural enterprises have been constantly increasing production of agricultural products over recent years. Rich grain harvests have been gathered by farmers over the last three years.

The volume of production of agricultural products per one person was UAH 4,337, which is by UAH 63 (3.6%) more than in 2016.

In 2017, grain and pulse crops were harvested from the area of 144,400 ha, nearly 741,800 tons of grain was produced, which is by 4% less than in the previous year, with output of 51.4 centners per hectare (increased by 0.4 centner per hectare compared to 2016), including: 291,100 tons of winter and spring wheat (0.9% increase) with output of 51.7 centners per hectare (increased by 4.2 centners per hectare), 122,400 tons of winter and spring barley (6.8% decrease) with output of 45.9 centners per hectare (increased by 1.9 centners per hectare), 11,100 tons of rye (at the level of the previous year) with output of 43.0 centners per hectare (increased by 2.6 centners per hectare), 280,100 tons of grain maize (9.7% decrease) with the output of 62.4 centners per hectare (decreased by 7.2 centners per hectare).

There was a significant increase in the gross potato yield of 1,000,200 tons, which is by 25,200 tons (2.6%) more than in 2016, vegetables – 174,200 tons (increase of 2,000 tons or 1.2%), fruit and berries – 51,100 tons (increase of 2,400 tons or 4.9%), sunflower seeds – 76,800 tons (increase of 23,700 tons or 40%), soybeans – 65,200 tons (increase of 16,000 tons or 30%), rape – 98,700 tons (increase of 42,500 tons or 80%).

Cattle breeding and poultry farming enterprises produced 124,400 tons of meat, 462,900 tons of milk and 352.8 million eggs in 2017.

The agricultural sector of the oblast sufficiently provides enterprises of the food and processing industries with raw materials.

The Hazard Analysis and Critical Control Point System was introduced by 33 enterprises of the food and processing

46

industry in the oblast. In particular, 8 enterprises acquired permits to export goods to EU and Customs Union countries.

Key components of the investment attractiveness of the region’s agricultural industry include fertile land, highly qualified workforce, and the considerable capacity of the processing industry and advantageous geographic location to export goods.

Crop farming (grains, industrial crops, vegetables) is a strategic and most significant area for development of the oblast’s agriculture. Dairy and beef cattle breeding has been identified as a priority area of animal husbandry for the next few years.

An important task, which should be accomplished in the area of agriculture, is to ensure development of the rural infrastructure by forming agricultural servicing cooperatives and establishing family farms, implementing investment projects (technology parks, clustering), and producing ecologically safe organic products, which will be realised through the Integrated Programme of Agricultural Industry Prospects and Development of Rural Territories of Ivano-Frankivsk Oblast for 2016-2020.

There are 78 agricultural servicing cooperatives in the region, which provide rural residents a wide range of services, such as cultivating land, harvesting, procuring vegetables, fruit, meat and milk.

Each of the 80 family farms, operating in the oblast, has at least 5 cows.

The projects, aimed at expanding production capacities of agricultural enterprises and updating the existing ones, are implemented in the region.

Thus, a modern elevator with the total capacity of 75,000 tons was put into operation by the Private Enterprise “Farming Enterprise “Vilkhivtsi”.

Reconstruction of cowsheds for 200 animals and installation of the milk delivery line were completed by the Private Enterprise “Stepan Melnychuk” and Farm “Toro”. A hog house for 200 pigs was constructed by the Farm “Eco Simbino”.

The LLC “Danosha” started construction of a group of agricultural buildings and structures designed to service a pig farm in Tustan Village of Halych Raion (a plant for processing cattle breeding and crop farming wastes (a biogas plant) and grain silos). The Farm “Persei Ahro” (Rohatyn Raion) is involved in reconstruction of a cattle breeding complex, located in Chesnyky Village, as well as grain storage facilities in Koniushky Village. Fields of 11 and 8 ha are planted with berries by the farms “Eko-Karpaty” and “Flora Dolynshchyny” accordingly.

Steps are being taken to involve international technical assistance projects in development of agricultural cooperation. Within the framework of the Memorandum of Understanding between the Oblast State Administration and the Canadian non-governmental organization “SOCODEVI”, advisory and technical assistance is rendered to promote dairy cooperatives and family farms.

The largest agricultural enterprises of the Sub Carpathian Region produce a significant portion of the gross agricultural output. They include: LLC “Danosha” (pig farming, cultivation of grain and industrial crops, renewable energy sources), LLC “Rosan-Agro” (pig farming), Farm “Potochyshche” and Private Farming Enterprise “Ridna Zemlia” (dairy cattle breeding and dairy products), Farms “Tyblevych” and “Toro” (beef cattle breeding), Branch “Perspective” of the PrJSC “Zernoproduct MHP” and LLC “Stern Agro” (cultivation of grain and industrial crops), Private Enterprises “Aroniia” and “Stepan Melnychuk” (fruit farming) and many others.


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TOURISM AND RECREATION SECTOR

The Sub Carpathian Region is one of leading tourism and recreation regions of Ukraine with a considerable number of cultural heritage sites and natural reserves, and sufficiently developed tourism infrastructure and transportation systems.

The Ivano-Frankivsk Oblast Development Strategy was adopted by Resolution No. 1401-32/2014 of the Oblast Council on October 17, 2014. One of the strategic objectives is development of the tourism and recreation sector. Rational and efficient use of all regional resources is impossible without long-term policy measures, informed managerial decisions and well-considered practical actions. They should be focused on an integrated tourism development, rational use of regional tourism resources, as well as infrastructure and information support for tourism sites. Having regard to the above, the Integrated Regional Targeted Oblast Tourism Development Programme for 2016-2020 was adopted by Resolution No. 1820-39/2015 of the Oblast Council on October 16, 2015.

In 2017, railway connection of the Ivano-Frankivsk region with other regions of Ukraine was improved, railway rolling stock of interregional and regional trains was updated; new trains were allocated to routes from Kostiantynivka (to Ivano-

Frankivsk), Odesa (to Yaremche), Kharkiv (through Ivano-Frankivsk, Yaremche, Vorokhta); the Ivano-Frankivsk – Kyiv route was extended to Chernihiv for 2017/2018 winter period. Due to the growing demand, additional trains are allocated to routes from Kyiv and Dnipro every year. The frequency of the Mykolaiv to Ivano-Frankivsk train was increased.

All this results in improved access to the tourist attractions of the Ivano-Frankivsk region for Ukrainian citizens, (residents of other regions) and foreigners, new attractions are opening in response to growing tourist flows in the Sub Carpathian region. The park and museum “Carpathians in Miniature” (Yaremche) and Museum of Hutzul Magic (Verkhovyna Village) were opened in 2015. 2016 saw establishment of Vyhoda Narrow-Gauge Railway Heritage Centre (Vyhoda Village, Dolyna Raion), Ethnographic Museum of Hutzul Region Antiquity (Kryvorivnia Village, Verkhovyna Raion), Sacred Art Museum (Kosiv) and Cheese Making and Hutzul Region Folk Craft Museum “Khata-Staia” (Verkhovyna Village). The complex “Polonyna Pertsi” (Mykulychyn Village, Yaremche City Council) and museum “Didova Apteka” (Kryvorivnia Village, Verkhovyna Raion) were opened in 2017.

Concerning the event tourism, tourists are primarily attracted by the International Art Festival for the Countries of the Carpathian Region “Carpathian Space”, International Blacksmiths Festival “Sviato Kovaliv”, International Hutzul Festival, All-Ukrainian Folklore Festival “Pysanka”, Hutzul Folk Activity “Polonynske Lito”, Art Festival “PORTO FRANKO”, etc.

It is worth noting that the oblast’s natural, historical and cultural tourism resources are well-balanced. The area of nature reserves of the oblast accounts for almost 16%. Popular ecotourism destinations include the national nature parks “Carpathian Park”, “Hutzul Region”, “Galician Park”, “Verkhovyna Park”; regional landscape parks “Polianytsia

Park” (natural monument “Dovbush Rocks”) and “Dniester Park” (recreational area “Dniester Canyon”), Kniazhdvir Yew Reserve, etc.

There are 3,944 cultural heritage objects, including 107 objects of national importance, appearing on the state register. The Ivano-Frankivsk region is a part of Galicia, the historical region praised in Old Russian writings as a home of the Eastern Slavs. There are six cities in the oblast, referred to in Old Russian chronicles. They include Halych (898), Tysmenytsia (1143), Sniatyn (1158), Horodenka (1195), Tlumach (1213) and Kolomyia (1240). Halych is known as the capital of the powerful Principality of Halych and Kingdom of Galicia–Volhynia. The National Reserve “Ancient Halych” was created in the city. St Panteleimon’s Church (12th century), Manyava Skete (17th century), wooden Hutzul and Boyko temples are internationally famous monuments. The Descent of the Holy Spirit Church and Nativity of the Blessed Virgin Mary Church, located in Nyzhnii Verbizh Village of Kolomyia Raion, were added to the UNESCO’s World Heritage List in 2013.

Ethnographically, the region is unique to Ukraine. Boykos, Hutzuls, Opolans and Pokuttians live in the oblast. They preserved their unique language, clothes, customs and culture, which attract tourists.

At the year-end 2017, Ivano-Frankivsk Oblast ranked third in Ukraine according to the number of serviced tourists, number of internal tourists, who visited the oblast, and number of incoming (foreign) tourists, as well as second according to revenues from tourism services rendered. It is estimated that Ivano-Frankivsk Oblast was visited by 2.4 million people in 2017 (2.1 million in 2016). Tourist taxes amounted to UAH 3.0 million, which accounts for a 130.4% increase compared to 2016.

There are more than 500 tourism and recreation institutions capable of handling 20,000 visitors in the oblast. Accommodation services are provided by nearly 800 rural green tourism cottages. More than 200 tourism business entities were registered. 36 of them are tour operator licence holders. There are 6 tourist information centres.


The Investment Passport of Ivano-Frankivsk Oblast was produced with the financial support of the Partnership for Local Economic Development and Democratic Governance Project (PLEDDG), a technical assistance project implemented by the Federation of Canadian Municipalities (FCM) and financed by Global Affairs Canada. The views and opinions expressed herein are the responsibility of the authors and do not state or reflect those of Global Affairs Canada.

PLEDDG Project aims to strengthen Ukraine’s municipal sector by increasing capacities to advance local democracy and economic development through implementing an open government model and ensuring transparent and effective decision making by local government, creating enabling conditions for the creation and growth of small and medium-sized enterprises, and facilitating decentralization of authorities and integrated development planning at the local, regional and national levels.

www.pleddg.org.ua

Industrial parks are created in the oblast. The concept of the industrial park “Dolyna” was approved by the resolution of the Dolyna City Council as of October 31, 2013. The industrial park “Dolyna” was entered in the Register of Industrial Parks on February 3, 2014.

Resolutions on approval of industrial park concepts were also carried by Kalush, Kolomyia and Burshtyn City Councils.

The Khryplyn Investment and Industrial Zone is located near Ivano-Frankivsk, the administrative centre. There are all necessary utility systems for construction of production facilities in the zone.

Moreover, the oblast developed high-quality proposals for potential investors concerning 40 greenfields and brownfields, as well as 14 manufacturing sites.

Information and proposals for investors are available at the link: http://www.if.gov.ua/news/33320.

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КОСІВKOSIV





СОЛОТВИНSOLOTVYN



ТЛУМАЧTLUMACH

ГАЛИЧHALYCH


КАЛУШKALUSH

РОЖНЯТІВROZHNIATIV

ДОЛИНАDOLYNA

БОЛЕХІВBOLEKHIV

ЯблуницяYablunytsia

ПаляницяPalianytsia

БУРШТИНBURSHTYN

ОТИНІЯOTYNIYA

ОБЕРТИНOBERTYN

ГВІЗДЕЦЬHVIZDETS’

ЗАБОЛОТІВZABOLOTIV

КУТИKUTY

ЯБЛУНІВYABLUNIV

ВИГОДАVYHODA

ПЕРЕГІНСЬКЕPEREHINSKE

ВОРОХТАVOROKHTA

ДЕЛЯТИНDELIATYN


СНЯТИНSNIATYN

Н-10 Н-10

Н-10

Н-09

Н-09

Р-20

Р-24

Р-24

Р-62

Р-24

Р-21

Н-09

М-12

– Green�eld

– Brown�elf

INVESTMENTPROPERTY

INVESTMENT PASSPORT OF IVANO-FRANKIVSK OBLAST

Documents

INVESTMENT PASSPORT angl_final3.pdf · means of transport on a yearly basis. The network of public motor ways of state and local importance covers the total length of 4,117.9 kilometres,