The Ternopil region is a developed agricultural and industrial area of Ukraine. Significant natural and labour resources, the concentration of processing industry (sugar, alcohol, tinned vegetables and fruits), geographical location at the crossing-point of important transport routes from the Eastern to the Central and Western Europe notify the region as an area with good opportunities of doing business.
A large number of the enterprises, which promise to be profitable and favourable enough for capital investment, are located in the Ternopil region. Because of the lack of investment resources in Ukraine, the Ternopil region is deeply interested in attracting foreign investments. At present, the largest necessity is in implementation of new technologies, modern methods of management, infrastructure development, free market economy experience and practice.
Orientation in economic policy, laws, business environment of the country, understanding social-cultural traditions, the leading ideas, mentality of the nation are the key success factors in developing new markets.
THE TERNOPIL REGION IN CONTEXT OF THE HISTORY OF UKRAINE
The Ternopil region together with Lviv and Ivano-Frankivsk regions is a part of historical territory, named Halychyna. This Western-Ukrainian region due to some political events in Ukrainian history which led to division of Ukrainian lands, since the 14th century was under the power of Poland, Lithuania (1349-1772), Austria (1772-1918), Russia (1809-1815), Poland (1918-1939), Soviet Empire (1939-1991).
But the historical difficulties didn’t assimilate but, on the contrary, stimulated the spiritual activity in the region, notifying it by keeping the language and cultural traditions, religion and national identity.
The Ternopil region – is an ancient area of pre-Slav settlements. The traces of man’s staying on this territory go back to the era of early paleolit (over 100000 years ago). Eastern Slavs who lived on the present territory of Ukraine, in the 4th century A.D. formed the large unity of tribes known by the name of Anty. The most widely accepted idea about the roots of Ukrainians is that they originated from Anty.
In the 9th century the Eastern Slav lands were united into one state – Kyivan Rus, which was a strong country of the Medieval Europe. The following data are presented about the density of population at that time: in the 10th-13th centuries there were 300 ancient Rusian towns and sites, more than 100 necropolises. At the end of the 11th century there appeared the following separate principalities: Terebovlianske and Shumske which were later united into one, named Halytsko-Volynske principality. The towns of Terebovlia and Shumsk became important political, economic and cultural centres. Favourable geographic position, climate, fertile soils, convenient transport routes and water arteries (the rivers of Dnister and Seret) contributed to the development of residential sites, especially of the village type. Commerce and crafts were greatly developed. The main objects of commerce were bread, cattle, honey, wax, fish, and merchant goods.
According to the point of view of the prominent professor Ivan-Sviatoslav Koropetsky, two events in Ukrainian history influenced all its territory and were of great significance: Mongol-Tatar invasion in the 13th c. and Pereyaslav treaty of 1654 with Moscow. These events influenced geographic orientation of Ukrainian economy, its separated lands, i.e. the direction of commercial relations, acceptability of technological and social progress from some cultural area, which greatly influenced economic structure and efficiency, other spheres of social life – policy, religion, law and culture.
A very important role in the life of Kyivan Rus, due to its favourable geographic position, was played by the foreign commerce. The areas near the Dnipro river served as a route for commerce between Scandinavia and Byzantium. The commerce with the East and the countries of Central and Western Europe was done mostly through Halychyna.
Mongol-Tatar invasion greatly influenced the geographic distribution of commerce. The commercial relations between Pre-Dnipro territory and Byzantium declined, but instead of them the new commerce appeared, with eastern countries: Persia, Afghanistan, India. Especially important was the transference of the economic and political centre, from Kyiv to the West – to the cities of Halych, Volodymyr and later – to Lviv. The Dnister River substituted the Dnipro River as the main commercial artery between Ukrainian lands and the Black Sea. Halychian tradesmen made commercial operations through the Black Sea ports not only with Byzantium, but also with different Italian and French cities, and commerce with Hungary, Moldova, Poland and Germany became more developed.
The rebellion led by Bohdan Khmelnytsky (1648) stopped to some extent the Ukrainian commerce with the West through Poland and Baltic ports. But it was renewed in the last third part of the 17th century on the territory of Western Ukraine, which remained to be under the power of Poland.
After the forced union of Rightbank territory of Ukraine and Volyn with Moscow, the struggle between Polish, Prussian and Russian manufacturers started for the markets of the above mentioned Ukrainian areas. Due to protectional (taxation) policy of Moscow, the local demand for the industrial goods was usually satisfied by the production from Polish kingdom or Russia. In the middle of the previous century Ukraine, except Eastern Halychyna, became fully influenced by the Russian economy, being limited in relation with other countries, first of all with the Western European countries.
With the beginning of industrialisation of the European countries in the second half of the 19th century, 8 steam and 680 water mills, 170 alcohol and beer-boiling plants (in 1910 their number increased to 390) operated on the present territory of the Ternopil region. Some slaughterhouses and the enterprises of hide processing, soap, tobacco, bricks, tiles, wagons and wheel manufacturing also were active at that time. Among 623 enterprises producing commodity for the population, 250 of them were small, employing 5 or less persons. The railway route building that started at the end of the 19th century was of great importance for the economic development of the region. In 1939 on the territory of the Ternopil region there were 1700 enterprises, employing 8800 workers.
Having survived the ruins of the Second World War, the Ternopil region developed its agrarian-industrial potential during the afterwar years. New branches of industry appeared: machine-building, chemical, equipment producing, building materials, etc. Appearing from ruins the city of the Ternopil became one of the industrial and cultural centres of Ukraine.
New reality, with the proclamation of the Independence in Ukraine, determines the direction of changes, which lead to democracy, market, and state forming. We have to find our own way of development, being supported by the historical experience of many ages.
GENERAL INFORMATION ABOUT THE TERNOPIL REGION
The Ternopil region occupies the Western part of Podil plateau, bordering on Rivne region to the North, on Chernivtsi region to the South, on Ivano-Frankivsk region to the south-west, on Lviv region to the West. The Ternopil region is situated near the border of Ukraine with Poland, Slovakia, Hungary and Romania.
The region reminds the triangle, it stretches from the North to the South for 195 km, and from the West to the East for 129 km.
The climate of the region is moderately continental with warm, damp summer and gentle winter. Average temperatures range from -5°C in January to +19°C in July. Average annual rainfall is 520-600 mm.
The region covers an area of 13,8 thousand km2, which makes 2,3% of the territory of Ukraine. The population in the region amounts to 1142. The majority of the population in the Ternopil region lives in the villages (58%).
As an administrative territorial region, the Ternopil region is divided into 17 administrative districts. There are 16 cities, 19 settlements of an urban type and 1013 villages in the Ternopil region.
The administrative centre of the region is the city of Ternopil with about 228 000 inhabitants.
THE STOCKS OF NATURAL RESOURCES
Land resources are the main treasures of the Ternopil region. On the soil surface the black and grey ashed soils prevail which belong to the group of the most fertile soils in the world. The large part of fertile soils and the plainness of the territory largely stipulate a structure of an economic complex in the area and its specialisation.
The level of development of land resources is rather high. Of the general area of land fund, which makes 1382,4 thousand hectares, 85% constitute the lands, which are used for providing agricultural business. The main part of these lands is allocated under agricultural lands, the area of which reaches about 1000 hectares.
The plough of the territory is 64%. In a structure of agricultural areas ploughed lands make 84,2% (about 890 thousand hectares). This is one of the best indexes in Ukraine.
According to a technique of land and residential area money valuation, authorised by the Decree of Ministers’ Cabinet of Ukraine from the 23rd of March, 1995, ¹213, the average cost of one hectare of plough-land is determined to be 3564$, correspondingly, the cost of plough-land in the Ternopil region makes about 2,6 billion USD.
Forests cover about 14% of the regional territory (197,8 thousand hectares).
On the greater part of the territory the wide-foliage forests are spread (namely, oak, hornbeam, beech trees), the area of which is equal about 137 thousand hectares. In the North of the region mixed woods prevail.
Opportunities for industrial use of regional forest resources are small, because of insignificant density of forests on the territory and qualificative characteristics of woods. The wood stock makes 20,1 million m3 including 0,76 million m3 of mature woods. The felling volume annually makes about 200 thousand m3.
The Ternopil region takes the leading place in Ukraine in preparation of non-wood production, i.e. fruits, small fruits, birch juice, medicinal herbs. The forests of the region possess significant resources of medicinal raw material. On the area of more than 860 hectares the plantations of dop-rose (wild rose), guelder-rose, cornelian cherry, Chinese lemon are created. The medicinal herbs such as St.Jone’s wort, strawberries, coltsfoot and others are of large significance.
The main part of mineral resources of the region makes non-ore economic minerals, in particular, natural building materials, which are explored in amount of 300 deposits.
Large stocks of mergel are found in the Western part of the Ternopil region (bed thickness of which is 18-30 m, and the depth of occurance is 15-20m) which is considered as high-quality raw material for manufacture of cement. But the industrial use of mergel in the region is insignificant.
Practically in all parts of the region there are the deposits of limestone (100 deposits are known) and the so called reef limestone, the deposits of which are rich in the area of Tovtrova Hryada, are unique in the world, due to large capacity of Calcium. The limestone is used basically in sugar industry, for limestone burning, for detritus manufacturing, in road and construction industry.
Significant deposits of clay and loams (more than 100 deposits, the depth of occurrence of layers does not exceed 7 m) are good raw base for brick-tile manufacturing. In the Northern and central parts of the region there are also deposits of fire clay and argil (potter’s clay) which are used for tile and pottery manufacture.
The region possesses the large stocks of building stone, dolomites and sandstone. The latter are widely used for high-quality roadway building and as facing material.
There are also significant deposits of sand. The deposits of quartz-glaukonit sand are also found, which is the raw material for glass manufacturing.
The deposits of chalk, being available in the region, are considered to be rather rare (in Ukraine only 3 deposits are known). They lie very close to the surface (to 10 m) and are rather thick which allows extracting them in the open air. Chalk is used in mixed feed production, for whitewashing of soils, for chalk-pencil production, for paper manufacturing, in lacquer-dye and pharmaceutical industries.
Potential stocks of gypsum on the regional territory are valued by dozens of millions of tonnes. In general, more than 20 deposits of it are known, the thickness of layers of which is about 20-25 m. By the occurrence and stock conditions the working on these deposits is possible for a long period of time and in large scale. The gypsum is applied to in agriculture (for soil gypsuming), in medicine, in paper, chemical and cement branches of industry. But in spite of the large stocks, gypsum is not produced and used in manufacture sufficiently.
The peatbogs are of great industrial significance in the Ternopil region. About 50 deposits are known in amount of about 7,7 million tonnes of peat.
Among the non-ore economic minerals, the phosphorus can be found in small amounts on the territory of the region, which are used as mineral fertiliser, and bentonit clays of high quality are also found and used as adsorbing material.
More than 200 thousand hectares of the landscape territory of the region (15% of the whole area) are of recreational significance.
The main natural units for excursions are Tovtrovy ridge, Kremenets mountains, Dnistrovsky kanion, karst caves. A lot of holiday hotels, tourist hotels, guesthouses are at tourists’ disposal.
Large stocks of mineral medicinal waters are located in the region, which may be used for treatment of internal organs, the organs of support-moving apparatus and other diseases. The wells of hydrocarbon, hydrogen sulphide and sulphate waters are also found on the territory of the Ternopil region.
The Ternopil region is an agrarian-industrial area. Its location in the Western part of the Rightbank of the partially wooded steppe – in the area with fertile soils and good damp – contributes to the development of agriculture. Its location (near the Lviv-Volyn coalfield and industrial area of Prykarpattia) also contributes to the development of different branches of industrial production. Region's location in the area with high population density determines the prevailing of labour consuming branches of economy.
GENERAL CHARACTERISTICS OF ECONOMY
The most important industries include:
- food industry;
- machine-building and metal processing;
- light industry;
- the industry of building materials;
- flour and cereals industry;
- wood processing industry.
Food industry, which processes agricultural raw materials, is the leading one in the economy of the region. The following branches are mostly notable: sugar, meat, milk, spirit-vodka, confectionery, tobacco, tinned vegetables, flour grinding and other branches. The sugar industry is the leading branch (there are 9 sugar plants operating in the region), concerning the production amount and realisation of products. Together with alcohol and tinned vegetables they are the branches of industry in which the Ternopil region is considered to be specialised on the state and local levels of labour division.
According to national standards the transport network in the region is well developed. The main kinds of transport are the automobiles and railway. As for the number of cargo and passenger carryings, the automobiles take the leading role (the average data – 35,5 million passengers and 1,1 million tonnes of cargo annually). The length of regional roads amounts to approximately 5,1 thousand km, when 5,0 thousand km comprise the roads with fixed and steady covering. 370km of the automobile roads fall per each 1 thousand km2 of the regional territory, including 362 km of the road with fixed and steady covering.
The regional railway system comprises 575 km, the density of the railway network makes 41,4 km per each 1 thousand km2, which exceeds the analogous data in Ukraine (37,6). Every year the railway transport carries approximately 0,7 million tonnes of cargo and 8million passengers.
There are several important non-state establishments functioning in the region, who are to help the businessmen in doing business activities. Thus, in the Ternopil regional Chamber of Commerce and Industry you can receive the information concerning the valid business-opportunities both in the region and outside of it, and also the information about the local enterprises.
Through contact with the League of Businessmen of the Ternopil region it’s possible to find reliable business partners, to get acquainted with the business environment in the region, to receive the necessary support in practical realisation of business projects.
FOREIGN ECONOMIC ACTIVITY
The export and import deliveries tie the Ternopil region with 72 countries of the world. The main trade partners of the region are Russian Federation, Germany, Moldova, Poland, Italy, India, USA, Hungary, and Czech Republic.
The main external sales markets for the production exported from the Ternopil region are Russian Federation, Germany, Turkmenistan, Moldova, Poland, India, Georgia.
Owing to the peculiarities of the regional economy specialisation the products of food industry prevail in the export delivery structure, livestock and stockbreeding products, machines and power engineering equipment, textiles, other industrial goods, wood and wood goods.
Among the important production suppliers of the import prevail: Germany, USA, Russia, Poland, Italy, Czech Republic and Hungary.
The main kinds of products imported to the region are: machines and electric equipment, production of chemical industry, textiles, base metals and the articles made of them, synthetic materials and articles made of them, rubber products, products of plant origin, transport means and other goods.
PRODUCTION OF THE TERNOPIL REGION, WHICH CAN BE DELIVERED ON EXPORT
Butter, Cheese, Technical casein, Dry milk, Meat and subproducts of the 1-st category, Sausage products, Sugar, Tinned vegetables, Canned meat, Confectionery products, Mineral water, Food concentrates, Liqueur-vodka products, Food spirit, Noodles
Barley, Oats, Buckwheat, Rape, Potatoes, Vegetables, Flour, Cereals (different)
Porcelain utensils, Glass utensils, Household fixtures, Industrial fixtures, Cotton fabrics, Shoes, Radio-connection systems "Transport" &“Orion” types, Decimetre aerials, aerials of satellite connection, Beet-gathering machines, Furniture, wooden tiles, parquet, Artificial leather, Goods of household chemistry, Detergents, shampoos
Needs of the region for the most important resources
Automobile petrol, Diesel fuel, Black oil, Diesel oils, Other kinds of the oil products, Cotton, Mineral fertilizers, Paper, cardboard, New technological lines, equipment
In terms of nowadays structural economy rebuilding in the region, the most priority investments are those, which are contributed into food processing industry, radio-electronic, timber, furniture and light branches of industry.
Such branches of the economy like industry, trade and public catering, agriculture, and household services were heavily invested.
EXHIBITIONS AND TRADE FAIRS
Although the Ternopil region is not an exhibition centre, starting with the year of 1993 the traditional international specialised exhibition-fairs are constantly held in Ternopil.
“Expo-Ternopil LTD” society specialises in their organisation. All the exhibitions are arranged in the local palace “Berezil”, where it is possible to place the expositions on the territory of 1000 m2.
The fairs are planned to be accompanied by different seminars, conference, and presentations.
To participate at a particular exhibit you should apply for a stand at least 2-3 months beforehand. Usually, the costs for the stand placement are USD 35-50 per 1 m2 of the exhibition area.
The complete information concerning participation in and organisation of fairs may be obtained from:
19, boulv. T.Shevchenko, Ternopil, 46001
phone: (0352) 22-12-42, fax: (0352) 22-34-73
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- Integrites International Law Firm LLG
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