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RIVNE REGIONINVESTMENT PASSPORT
Rivne Region State Administration1, Maydan Prosvity, St.Rivne, 33000, Ukrainetel.: +38 (0362) 69-52-16fax: +38 (0362) 26-08-35
e-mail:[email protected]
InvestInRivne Agency19, Hetmana Mazepy St.Rivne, 33028, Ukraine
tel./fax: +38 (0362) 26-95-65e-mail:[email protected]
www.InvestInRivne.org
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CONTENTS
DESCRIPTION OF THE REGION
Rivne region on the map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
General information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Natural resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Human resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Export-import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Investments and construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Support for investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
After hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Sports and leisure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Hotels, health resorts and recreation facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
PRIORITY SPHERES AND INVESTMENT PROJECTS
Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Alternative energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
WOOD PROCESSING INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
CONSTRUCTION MATERIALS AND GLASSWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Food industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
474 km
794 km
1,039 km
1,076 km
1,131 km
1,845 km
2,169 km
Warsaw
Budapest
Vienna
Prague
Berlin
Brussels
London
DISTANCES FROM RIVNE TO SELECTED EUROPEAN CAPITALS
Warsaw
RIVNE
BerlinLondon
Brussels Prague
Vienna
Budapest
2
RIVNE REGION ON THE MAP
DISTANCES FROM RIVNE TO THE BORDER CROSSING POINTS WITH EUROPEAN UNION
POLAND• Yagodin 202 km• Ustylug 161 km• V .-Volynskyi 148 km• Rava-Ruska 245 km• Shehyni 290 km• Krakivets 277 km• Mostyska 278 km• Khyriv 322 km• Smilnytsya 336 km• Uhryniv 217 km
HUNGARY• Batyevo 475 km• Solovka 486 km• Kosyno 436 km• Vylok 486 km
ROMANIA• Porubne 368 km• Teresva 541 km• Rakhiv 419 km• Solotvyno 465 km
SLOVAKIA• Malyi Bereznyi 470 km• Uzhhorod 481 km• Chop 484 km
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Dubno
Mlyniv
Demydivka
Ostroh
Hoshcha
Kostopil
Berezne
Sarny
Volodymyrets
Dubrovytsia
Zarichne
Rokytne
Korets
ZHYTOMYRREGION
BELARUSREPUBLIC
VOLYNREGION
LVIVREGION
TERNOPILREGION
KHMELNITSKYIREGION
RIVNE
Zdolbuniv
Radyvyliv
Khmelnitsky · Odessa · Simferopol
Ternopil · Bucharest
Lviv · Krakow · Budapest
Lutsk · Warsaw
Kovel · Warsaw
Kyiv
Kyiv · Moscow
Minsk · Saint-Petersburg
Regional center
District center
State border
Regional border
District border
GENERAL INFORMATION
Rivne region is an industrial and agricultural region rich in natural resources and holding considerable manufacturing and investment potential. The region is located in the north-west of Ukraine and enjoys favorable geographic position for servicing the markets of the European Union, Belarus, Russia and Ukraine. Sharing its borders with Volyn, Zhytomir, Khmelnitskyi, Ternopil and Lviv regions of Ukraine it also has the national boundary with the Republic of Belarus.
PERCIPITATIONFrom 600 to 700 mm a year.Mild continental climate with mild winter and warm summer.
AVERAGE TEMPERATUREJanuary: -5.2°С, July: +18.5°С
SUNNY DAYS PER YEAR – 70
TERRITORIAL SYSTEMRegional capital:• Rivne cityAdministrative structure:• 16 districts• 4 cities of regional subordinationState borders:• Republic of BelarusDistance to the EU border:• �100 kmArea of the region — 20.1 thousand km2:• agricultural land 46%• forest 40%
DEMOGRAPHICSPopulation of the region: 1.2 million people:• urban 47 .8%• rural 52 .2%
Key cities:• Rivne 248 .3 thousand people• Dubno 38 .1 thousand people• Varash 40 .0 thousand people• Ostroh 15 .3 thousand people
The birth rate – 14.9 per 1,000 people of the actual population (1st place in Ukraine)
ALTITUDE ABOVE SEA LEVEL — 187 mThe peak of the region is 372 m
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Dubno
Mlyniv
Demydivka
Ostroh
Hoshcha
Kostopil
Berezne
Sarny
Volodymyrets
Dubrovytsia
Zarichne
Rokytne
Korets
Khmelnitsky · Odessa · Simferopol
Ternopil · Bucharest
Lviv · Krakow · Budapest
Lutsk · Warsaw
Kovel · Warsaw
Kyiv
P-05
H-22
Е373 Е373
P-05
E 85
E 40
E 40
E 85 E 40
RIVNE
Zdolbuniv
Radyvyliv
Kyiv · Moscow
Minsk · Saint-Petersburg
ZHYTOMYRREGION
BELARUSREPUBLIC
VOLYNREGION
LVIVREGION
TERNOPILREGION
KHMELNITSKYIREGION
Regional center
District center
State border
Regional border
District border
Motorways
Railway
Airport
Rail junctions
Motorways name
INFRASTRUCTURE
MAJOR MOTORWAYS
International highways:• �Е40 (Brussels – Dresden – Krakow – Rivne – Kyiv)• �Е373 (Lublin – Chelm – Kovel – Sarny – Kyiv)• �Е85 (Klaipeda – Vilnius – Dubno –
– Bucharest – Alexandroupolis)
National and regional roads:• �Н22 (Ustyluh – Lutsk – Rivne)• �Р05 (Horodysche – Rivne – Starokostiantyniv)• �Р26 (Ostroh – Kremenets – Pochaiv – Radyvyliv)• �Р76 (“Prykladnyky” chekpoint – Zarichne – Dubrovytsia)• �Р77 (Rivne – Tuchyn – Hoshcha)
RAILWAY NETWORKRivne region has developed railway network
of public service with the running length of 587 km. Rivne Passenger and Freight Railway Station is situated at Zdolbuniv-Kovel and Zdolbuniv-Sarny lines. Rail junctions Zdolbyniv and Sarny are one of the largest in Western Ukraine. Zdolbyniv station has direct connection with 9 regions of Ukraine and capitals of such neighboring states as Poland, Belarus and Russia.Rail junctions: Rivne, Zdolbyniv, Sarny, Dubno, Radyvyliv
BUS TERMINALSThere is RIVNE Bus Terminal in the city of
Rivne (40 Kyivska St.) with the capacity of 600 trips a day and CHAIKA Bus Station (16b Haharin St.) with the capacity of about 290 trips a day.International, interregional and intercity traffic is carried from bus terminal. Intraregional traffic is carried from bus station.
Rivne region has advantageous geographic location at the crossroads of international highways and railway lines connecting Europe with Asia and the Baltic Sea with the Black Sea. The distance to the EU border is just 100 km (1.5 hours drive) and 250 km (3 hours drive) to Kyiv, the capital of Ukraine.
AIRPORTRIVNE International Airport designed for acceptance,
maintenance and dispatching of all the aircrafts with the takeoff mass up to 210 tonnes is just two kilometres away from the city of Rivne. The airport embraces an area of 165 ha. It has one runaway 2,626 m long and 42 m wide.
Throughput:• passenger traffic — 500 passenger per hour;• freight traffic — 50 tons per day.
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Dubno
Mlyniv
Demydivka
Ostroh
Hoshcha
Kostopil
Berezne
Sarny
Volodymyrets
Dubrovytsia
Zarichne
Rokytne
KoretsRIVNE
Zdolbuniv
RadyvylivAmber
Peat
Basalt
Carbonate raw material
Building stones(granite, diorite, granodiorite)
Brick-tile raw materialsMineralwater
Quartz sand
ZHYTOMYRREGION
BELARUSREPUBLIC
VOLYNREGION
LVIVREGION
TERNOPILREGION
KHMELNITSKYIREGION
NATURAL RESOURCES
LAND RESOURCES – 21.1 thousand km2
The soils of the southern part of the region are mostly gray forest podsolized and low-humus black earths. Soils of the Northern part are mostly of sod-podzolic type.
WATER RESOURCES• Availability of water resources is twice
higher than the national average• 171 rivers (general length – 4,459 km)
the largest of which are – Pripyat, Stir, Ikva, Goryn, Sluch, Stygva, L’va
• 130 lakes (floor area – 33.3 km2) the largest of which are – Nobel (4.99 km2), Bile (4.53 km2), Ostrivske (1.12 km2)
MINERAL RESOURCES600 mineral deposits of 18 types of minerals explored in the region:• Amber – the only industrial deposits explored in Ukraine• Basalt – unique deposits of feedstock
for heat-insulating and facing materials• Building sand – 54 million m3
• Ragstone – granite, diorite, granodiorite and gabbro• Peat – 150 million tons or 20% of the total national reserve• Significant reserves of mineral water• Promising deposits of barrel-copper
The Region is rich in wood, the stocks of which amount to 112.8 million m3
Incredible volumes of wild berries are annually harvested in the Nothern part of the region (bilberry, cranberry, wineberry, blueberry)
Rivne Region is located in the territory of three natural zones: Forest Steppes, Polissia, and Small Polissia. A characteristic feature of the regions location is general flatness of its surface with a slight inclination of the territory from South to North.
STRUCTURE OF THE REGIONAL SOIL RESERVES
Agricultural land
Forest sheltered area
Waterlogged lands
Built-up lands
Lands without vegetation/with insignificant vegetation cover
Other lands
Water
0 25 50
46.4% • 930.0 thousand ha
40.1% • 803.9 thousand ha
5.2% • 104.9 thousand ha
2.9% • 57.7 thousand ha
1.6% • 32.8 thousand ha
2.2% • 43.3 thousand ha
1.6% • 32.7 thousand ha
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HUMAN RESOURCES
WORKABLE POPULATION
DIVISION OF EMPLOYEES BY ECONOMIC ACTIVITIES, thousand people
Employable
Youngerthan employable
Olderthan employable
68.4%
19.4%
12.2%
833.5 thousand peopleEmployable population
25%Population with
higher education
43.8%Population with
vocational education
56.3 thousand peopleRegistered
unemployment rate
USD 200Average salary
Other economic activitiesTradeAgricultureIndustryEducationHealth care, social assistanceTransportPublic administration and defence, compulsory social insuranceConstructionHotels' and restaurants' activityArts, sports, entertainment and recreationFinancial activity and insurance4.2
6.8
9.8
21.0
23.4
26.5
32.3
47.9
63.8
85.5
120.9
136.8
0 30 60 90 120 150
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EDUCATION
There are 659 general education institutions with 150.4 thousand pupils in Rivne region. Vocational technical schools amount to 24 units with 12 thousand students. Training of personnel with higher education by professional orientation is carried out in 15 higher education institutions (HEI), among which 10 HEI have I-II accreditation levels, 5 HEI have III-IV accreditation levels. HEI are divided into types in the following way: 8 universities, 1 academy, 4 institutes, 15 colleges, 3 technical secondary schools, 2 specialized schools.43.4 thousand people are attending classes in HEI of all the levels of accreditation.
• Poland 59• USA 14• Germany 11• United Kingdom 5• Lithuania 5• China 4
• France 3• Sweden 3• Spain 3• Slovakia 2• Hungary 2• Bulgaria 2
• Portugal 2• Italy 2• Greece 2• Croatia 2• Norway 1• Belgium 1
• Latvia 1• Estonia 1• Finland 1• Czech Republic 1• Australia 1• Israel 1
INTERNATIONAL PARTNERS OF HIGHER EDUCATIONAL INSTITUTIONS OF THE REGION
GRADUATES in 2017E DUCATIONAL INSTITUTIONS
– I-II levels of accreditation 3,843 – III-IV levels of accreditation 10,442
TECHNICAL SCHOOLS 5,785
C OMPREHENSIVE – II degree 12,653 – III degree 9,035
LEADING HIGHER EDUCATION INSTITUTIONS
Educational institution Faculties Training domains
Students, thousand people
National University of Water Management and NaturalResources Use 9 institutes 40 8.073
Rivne State Humanitarian University 2 institutes,9 faculties 49 7.898
The National University of Ostroh Academy 1 institute,5 faculties 19 2.862
International university of economics and humanities named after academician Stepan Demianchuk
1 institute,8 faculties 22 4.364
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42.8 %14.4 %13.1 %
9.4 %6.5 %
5 %2.9 %2.6 %2.3 %
1 %
Power production and distributionFood industryConstruction materials and glasswareWoodworking industryChemical industryOtherTextile industryMechanical engineeringMiningMetallurgy
0,0 42,8
ECONOMY
ECONOMIC COMPLEX OF THE REGIONThere are 4,697 enterprises in Rivne region including 3 large, 285 middle and 4,409 small enterprises. The main type of eco-nomic activity in Rivne region is industry. Basically the region is rated as industrial and agrarian one with developed services sector showing the highest growth dy-namics over the recent years.
INDUSTRYKey industries of the region include electricity and gas production and distribution; Chemical industry; Construction materials and glassware; Food industry; Woodworking industry; Mechanical engineering. Three glassworks of the region are ranked among the largest and most high-tech production facilities in Ukraine. Ukraine’s only matches factory is located in Rivne region.
Structure of the sold industrial products
Sectoral structure of GVA of the Region, million UAH
Products manufactured in the region
Industry
Agriculture, forestry and fisheries
Wholesale and retail trade;repair of vehiclesEducationTransport, warehousing,postal and courier activitiesHealth care and social assistance
Construction
Financial and insurance activities
Other types of economic activity
8,186
6,300
4,732
2,301
1,696
1,103
584
414
5,701
0 2000 4000 6000 8000 10000
Matches, tonnes
Plywood, thousand of m³
Glass bottles, million pieces
Wood chipboard, thousand of m³
Electricity, billion kWh. (generated by nuclear power plants)
Molded fabric
Break-stone, million tonnes
Cement, thousand tonnes0 20 40 60 80 100
5,728
115.4
655.9
527.9
17.5
4,185.8
6.9
982.2Ratio of the regionUkraine
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Grain (20.1%, 1300.4 thousand tons)Potato (18.7%, 1249.4 thousand tons)Milk (16.2%, 437.3 thousand tons)Other (15.9%)Meat (13.6%, 85.1 thousand tons)Vegetables (8.3%, 236.2 thousand tons)Eggs (4.0%, 580.1 million pieces)Sugar beet (3.2%, 543.4 thousand tons)0
5
10
15
20
2520.1% 18.7%
16.2% 15.9%13.6%
8.3%4.0% 3.2%
AGROINDUSTRIAL COMPLEXAgroindustrial complex of the region comprises 629 agricultural enter-prises of different business patterns, including 371 farm enterprises.Natural and climactic conditions are favorable for growing the major-ity of agricultural cultures (rape, wheat corn, sugar beet, flax, cereals). Development of agriculture in the region is facilitated by the presence of two major producers of mineral fertilizers in Western Ukraine.In the structure of gross agricultural production (by all categories of farms) the livestock sector accounts for 33.8%, plant growing – 66.2%.The priorities for development of the regional agriculture include production of grain, technical crops, meat and dairy cattle farming, poultry farming, organic farming and production of fruit and berries by modern technology.The fact that 40% of the region’s territory is covered with forest provides for harvesting significant volumes of wild berries such as blueberries, cranberries, red bilberries and blackberries.
ECONOMY
Over the past 5 years significant growth of grain harvest volumes has been observed, in particular in 2016 gross grain production increased by 64.2% in comparison to figures of 2011.
Provision of internal needs of the region in the main types of agricultural products in 2016-2017 marketing year
Structure of agricultural production
The major agricultural companies of the region include: Agro-Expres-Service, Private Enterprise; Krupets Agrocorpora-tion; Agricultural enterprise named after Vilovikov, LLC; Agro-holding Zorya, LLC; Kamaz-Agro, Agricultural Enterprise; Idna, Agricultural LLC; Demetra, Private Enterprise; Vlada, Farm En-terprise; Hliborob, Private Agricultural Enterprise; Pyatuhirske, Farm Enterprise; Nyva, Farm Enterprise; Rozvazke, Private Ag-ricultural Enterprise; Serpanok, Farm Enterprise; Majak, Private Agricultural Enterprise; Myrohoshchanskyi State Hippodrome, State Enterprise; Shpanivske, Private Agricultural Enterprise.
Grain Cultures
Structure of areas under crops
Potatoesand vegetables
Forage crops
Technical cultures47.0%
21.7%
14.8%
16.5%
0 200
GrainEggs
VegetablesMilk
PotatoMeat
790.5
Thou
sand
tons
2011 2012 2013 2014 2015 20162017
expected
918.3
1108.51222.7
1299.3 1230.01101.5
600
2000 Gross grain collection by all categories of farms in 2011-2017
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EXPORT-IMPORT
EXPORT OF GOODSIn January – June 2017 export deliveries of goods amounted to $179.2 million while import amounted to $139.8 million. The enterprises and organizations of the region conducted foreign trade transactions with partners from 107 countries.The vast majority of goods was exported to Poland (18.5%), Germany (15.7%), Belarus (8.2%), Italy (5.2%), Hungary (4.2%), France (3.9%), Turkey (3.2%), Belgium (3.1%).Export of goods to the countries of the European Union amounted to $127.8 million or 71.3% of the total volume.
IMPORT OF GOODSThe largest import deliveries of goods – 56.1% of the total volume came from the countries of the European Union (Germany, Poland, Great Britain, France, Italy, Netherlands), USA (6.9%), Belarus (5.0%), China (4.8%), Russian Federation (18.2%). In the monetary equivalent, imports from the EU countries amounted to $ 78.4 million.
EXPORT OF SERVICESServices were basically exported to Switzerland (30.2%), Canada (26.5%), Russian Federation (8.9%), Germany (7.5%), Italy (5.3%) and Poland (4.1%). The largest unit weight was made up by transport services (58.6%) and services on processing of physical resources (37.8%).
IMPORT OF SERVICESThe major partners in the import of services were Poland (18.8%), Italy (16.8%), Hungary (12.8%) and Germany (11.4%).In the imports the largest unit weight was made up by transport services – 29.3%, business services – 26.0% and travel-related services - 25.3%.
0 25 50 75 100
Wood and wood productsOther goods
Plant productsConstruction materials and glassware
FurnitureLive animals, animal products
27.8% 21.6% 21.1% 13.1% 11.2%5.2%
Structure of export of goods
Structure of import of goods
Machines, equipment and mechanisms; electrical equipmentOther goods
Products of the chemical or allied industriesEquipment for surface transport except for rail
Plastic, polymeric materialsTextiles and textile products
Articles made from stone, gypsum, cementPaper and cardboard
0,00 16,25 32,50 48,75 65,00
23.9% 20.1% 16.8% 12.6% 9.9% 6.8%5.1%5.0%
Export of services Transport services59.2%
Services for goodsprocessing abroad38.2%
Travel related services1.0%
Services in the field oftelecommunications, computers and IT0.5%
Business services1.1%
Import of services Transport services31.7%
Repair and maintenance,not included in other categories
28.1% Business services27.4%
Services in the field oftelecommunications, computers and IT
Royalty and other services relatedto the use of intellectual property
0.2%
0.6%
Travel related services
12.0%
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INVESTMENTS AND CONSTRUCTION
INVESTMENT ACTIVITYRivne region has a long-standing tradition of cooperation with foreign investors from over 20 different countries. Successful operation of these companies in the region and implement-ed reinvestment projects are the best proof for favorable investment climate and respective business environment. Rivne is one of the few regions nationwide where foreign capital flight did not take place even during the last years that were extremely difficult for Ukrainian economy.Total volume of foreign direct investment (stock capital) attracted to the economy of the region as of 01.04.2017 amounted to $183.1 million. The major countries-investors to the region in-clude Germany, Great Britain, Netherlands, Italy, Poland and France.
CONSTRUCTIONDuring the first three quarters of 2017, the volume of capital investments in the construction industry of the region amounted to $ 56 million, which constitutes 47.6% of the total volume of capital investments. The volume of executed construction works is $ 39 million. Housing put into operation for the period January-June 2017 by 50% exceeds the same figure for the period in 2016. In the structure of capital investments, 54.1% is made up of own funds of legal entities, 23% – funds of individuals (for housing construction), 6% – expenditures of state and local budgets, 4.7% – credits and loans of financial institutions.
Major foreign investors operating in the region:
Major countries-investors to the region
Lafarge (France)
Construction materials
Verallia (France)
Glassworks
Sorbes + (Switzerland)
Woodworking
Dyckerhoff (Germany)
Construction materials
ODEK (Netherlands)
Plywood production
Fapomed (Portugal)
Medical accessories
Morgan Furniture (USA)
Furniture production
Basalt AG (Germany)
Construction materials
Italy
France
Germany
PolandGreat Britain
Netherlands
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SUPPORT FOR INVESTORS
INVESTINRIVNEForeign investors can obtain professional support from a spe-cialized organization – InvestInRivne Agency, which is intended to assist investors and businesses in Rivne region in site selec-tion and settlement, starting business and implementation of all phases of investment project. The Agency was found by lo-cal authorities with the support of the Organization for Security and Co-operation in Europe (OSCE).
HR SUPPORTRegional employment service at its own cost and onsite its own educational and production complexes provides training of required number of specialists according to the request of investor. The training may be implemented under the supervi-sion of investor’s representatives and using the equipment of particular company, which is installed at the educational and production complex of the Employment service. Dotation can be granted to compensate a part of labour expenditures during the first operational year.
ANDMINISTRATIVE SERVICES CENTRESThanks to the modern administrative services centres, the registration of new business takes only 24 hours. Besides, more than 100 types of permits and licenses for different types of economic activity can be received here. Such centres operate in all 16 districts of the region and 4 cities of regional subordination.
INDUSTRIAL PROPERTYMore than 15,000 hectares of Greenfields and 500,000 m2 of Brownfields are available for implementation of projects by for-eign investors. In order to facilitate implementation of investment projects lo-cal authorities created Industrial park of the Rivne region with the total area of 145 hectares. Creation of the largest Industrial park in Ukraine with the total area of 560 hectares in the territo-ry of Radyvyliv district of the region has already been started.
6 INDUSTRIAL ZONES AVAILABLE FOR IMPLEMENTATION OF INVESTMENT PROJECTS• Industrial zone Rivne – 5 hectares• Industrial zone Radyvyliv – 39 hectares• Industrial zone Dubno – 41 hectares
• Industrial zone Sarny – 17 hectares• Industrial zone Dubrovytsia – 32 hectares• Industrial zone Mlyniv – 11 hectares
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PROPERTY
HOUSING22.3 m2 per one resident of the region
HOUSING STOCKTotal housing stock – 25,900 thousand m2
AVERAGE HOUSING COST (HOUSES)In the city of Rivne amounts to (considering the cost of a land plot) $200 – $250 per m2
AVERAGE HOUSING COST (APARTMENTS)• primary market – $80 – $110 per m2
• secondary market – $80 – $100 per m2
AVERAGE RENT – HOUSING:• 1-roomed flats $150 – $185 per month• 2-roomed flats $170 – $220 per month• 3-roomed flats $200 – $300 per month
AVERAGE RENT – OFFICE SPACE –$4 per m2
RENTAL CHARGE OF OFFICE FACILITIES DEPENDING ON A FACILITY CATEGORY:• Category «À» — $9 – $11 per m2
• Category «B» — $7 – $9 per m2
• Category «C» — $5 – $7 per m2
• Category «D» — $4 – $6 per m2
• Category «E» and «F» — $2 – $4 per m2
AVERAGE RENT – PRODUCTION FACILITIES$2 – $3 per m2
AVERAGE RENT – STORAGE SPACE, WAREHOUSES$1 – $2 per m2
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AFTER HOURS
Vast natural and landscape advantages of Rivne region which are frequently among unusual (and unique) places in Europe make it one of the most fascinating areas of Ukraine. Land area in the region that is forested covers 40% of it, and the level of its conservation is one of the highest in the country. The area of local nature conservation and landscape designations is about 170 thousand ha (8.3% of the region’s territory which is two times higher than the national average). The country’s largest reserve, namely Rivne Nature Reserve, is located in Rivne region, as well as 3 regional landscape parks, 13 nature reserves of na-tional significance, 110 nature reserves of local significance, 8 natural landmarks of national significance, 56 natural land-marks of local significance, and 96 conservation areas. One of the regional natural wonders – The Tunnel of Love – is included in the Top 10 most romantic places in the world.
The city of Rivne is a significant cultural centre; here one can at-tend theatres (the Regional Music and Drama Theatre, the Pup-pet Theatre, and several studio theatres), a philharmonic hall, an organ and chamber music hall (with one of the best organs in Europe), a number of museums, palaces and houses of culture, 3 cinemas, numerous libraries, and a zoo which is considered to be one of the best in the country.
Rivne is a green city, as it has 8 large parks 3 of which are located in central part of the city. The Ustia River, the left trib-utary of the Horyn River, flows through Rivne. The city strives to offer sporting opportunities for all as its sport teams are widely known outside Rivne; these include a football club NK Veres Rivne, a speedway team SPS Rivne, a basketball club BC 93 Pulsar, a mini football team MFT Rivne, and a volleyball club Regina.
Rivne offers diverse cultural opportunities; first and the fore-most events that might interest foreign visitors of the city in-clude the following ones:• Rivne International Film Festival The Dream City• International Jazz Festival Art Jazz Corporation• International Festival of Blacksmithing
Metal Heart of Ukraine• International Salon of Art Photography
Pokrova Photovernissage• All-Ukrainian Festival-Fair Bulba-FestComfortable hotels, cosy cafes, restaurants, and 12 night clubs will satisfy even the most demanding tastes of visitors and guests of the city, as well as provide diverse selection of excit-ing leisure time activities.
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SPORTS AND LEISUREName, contacts Services
Avanhard Stadium34 Zamkova St., tel. +38 (0362) 22-32-27
Football matches and athletics competitions. Capacity — 20,000 people
Olimp Stadium1 Naberezhna St. Rugby, football and athletics competitions
Manhattan Fitness Club112 Soborna St., tel. +38 (0362) 45-09-99 Gym, fitness classes, massage room, boxing room
E.G.O. Club Fitness Center10 Kyivska St., tel. +38 (0362) 46-03-46 Gym, massage room, fitness classes, boxing room, sauna
Fitness Port Sports Club6A Kniahynia Olha St., tel. +38 (0362) 43-05-15
Gym, boxing room, swimming pool, massage room, fitness classes, yoga, sauna, fresh-bar
Aqua Ruy Health and Beauty Center15/17 Melnyka St., tel. +38 (067) 325-76-15 Gym, boxing room, swimming pool, aqua aerobics, sauna
Sky UP Family holiday park1B Konovaltsya St. tel. +38 (097) 107-80-80 3,000 m2 of various leisure-time entertainments
Rivne Zoo (State Zoological Park)110 Kyivska St., tel. +38 (0362) 28-84-83 150 animal species and natural forest area of 4.7 hectares
Climbing centre420 Soborna St.
Climbing centre which resembles the head of a Cossack, repeats relief rock and has a height of 10 meters
UKRAINE Kinopalats,2 Maidan Nezalezhnosti, tel. +38 (068) 800-55-88
Modern cinema that has 3 cinema halls and enters the all-Ukrainian network of cinemas Kinopalats
ERA Kinocenter51 Haharina St., tel. +38 (0362) 68-05-13
One of 17 multicinemas entering the largest Ukrainian network «MULTIPLEX»
Ekvator Shopping mall23 Makarova St., +38 (0362) 68-33-59
Ekvator is a national network of shopping malls holding various shows, circus performances, exhibitions, concerts
ZLATA PLAZA Shopping mall1 Korolenka St., tel. +38 (0362) 67-11-11
Shops, shopping halls, children’s entertainments center Leopark, cafes, etc.
Chaika Shopping mall16 Haharina St., tel. +38 (0362) 24-64-35
One of the best shopping malls of the city holding an area of 18,000 m2
Kant Beer Restaurant9 Kopernika St., tel. +38 (067) 200-06-06
Ukrainian and European cuisine, brewery, dishes on the grill, banquet hall
Vinograd Restaurant2B Vydumka St., tel. +38 (097) 779-86-70 Georgian cuisine
Gusto Gastro Salon Restaurant10 Prospekt Mira, tel. +38 (095) 471-00-31
European and Japanese cuisine, banquet hall, cocktail bar, delivery
New York Street Pizza Restaurant1A Kniahynia Olha St., tel. +38 (068) 007-00-72 European and Japanese cuisine, pizza, banquet hall, delivery
La RIVA Restaurant-pizzeria1 Naberezhna St., tel. +38 (0362) 45-28-28 Italian pizza
Barmaky Restaurant41 Kostromska St., tel. +38 (068) 876-58-76 Ukrainian cuisine, vegetarian menu, lunch menu, barbecue menu
Catarsis House of Emotions9 Kopernika St., tel. +38 (067) 200 06 07 Nightclub, karaoke, bar, sheesha, disco, restaurant
ZOV Nightclub9 Vidinska St., tel. +38 (096) 557-07-07 Karaoke, pole dance, bar, sheesha, cuisine
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TOURISM
Numerous historical, cultural, and architectural monuments, phenomenal natural creations, and distinctive objects which do not have equivalents either in Ukraine, or worldwide make Rivne region unique and attractive for every tourist. History lovers will be fascinated by the glory and mystery of the pat-rimonial castles of the most powerful princely families in Eu-rope, namely princes Ostrozky and Lubomirski, as well as one of the world’s most special authentic fortification construc-tion – Tarakaniv Fort.
Those interested in the sole and heroic past of Ukrainian people will be inspired by a journey to Peresopnytsia – the birthplace of the well-known Peresopnytsia Gospel on which nowadays the elected presidents of Ukraine take their oath of office, and Pli-asheva where one of the most fabulous battles in Europe was fought – the Battlefield of Berestechko. Tourists driven by nos-talgia can make a trip into the past by the longest narrow gauge railway functioning in Europe which has been operating since 1895 and is known as Polissian Tram.
Seekers of romance and great impressions will be delighted by natural wonders: the famous Tunnel of Love which is included in Top 10 most romantic places in the world, unique deposits of basalt which form gigantic octagon-shaped columns, and mag-nificent 1,300-year-old Yuzefin Oak which is one of the oldest trees in Ukraine.
Over 60 agricultural homesteads located in most picturesque places function in the region. They offer tourists fascinating op-tion for active rest; this includes fishing, hunting, boating, horse riding, guided tours, workshops from craftsmen, and tasting the dishes of Ukrainian cuisine cooked according to ancient reci-pes. Bicycle tour lovers will be impressed by interesting histor-ical and natural objects of picturesque Polissia, if they partic-ipate in Poliska Sich randonnée (brevet). For nature and sport lovers, a “green” way Medove kolo is the ideal place to explore as it provides an opportunity to get acquainted with honey hunt-ing – an ancient form of authentic beekeeping preserved only in the territory of Rivne region.
Tarakaniv Fort
Tunnel of Love
Polissian Tram
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HOTELS, HEALTH RESORTS AND RECREATION FACILITIES
Name, contacts Services
HOTELSUkraina Hotel 4*112 Soborna St., tel. +38 (0362) 64-91-41 Hotel, restaurant, sauna, fitness center
Myr Hotel 3*32 Mitskevich St., tel. +38 (0362) 63-63-02 Hotel, restaurant, office center, conference room
Optima Rivne Hotel 3*9 Slovatskogo St., tel. +38 (0362) 42-03-10 Hotel, restaurant, conference room
Khutir Hotel and Entertaining Sports ComplexVelika Omelyana, Rivne district, tel. +38 (096) 444-04-48
Hotel, restaurant, karaoke, bowling, golf, tennis, sauna, swimming pool, artificial lake, playground
Aivengo Hotel and Restaurant ComplexKolodenka, Rivne district, tel. +38 (0362) 20-89-52
Hotel, restaurant, tennis courts, sauna, hammam, swimming pool, billiards, banquet hall, catering
Melrose Hotel59 Kostromska St., tel. +38 (099) 248-89-86
Hotel, restaurant, sauna, hammam, swimming pool, spa complex, billiards
Sofia Hotel and Restaurant ComplexVelika Omelyana, Rivne district, tel. +38 (050) 840- 87-68
Hotel, restaurant, banquet hall, water tanks, sauna, hammam, swimming pool, gym, tennis courts, padel tennis, children’s playground, billiards, conference service
4Х4�Hotel�and�Restaurant�ComplexKolodenka, Rivne district, tel. +38 (0362) 20-88-00 Hotel, restaurant, pool, sauna
Park-hotel SwitzerlandObariv, Rivne district, tel. +38 (0362) 61-93-00
Hotel, restaurant, lake with sandy beach, karaoke club, conference room
HEALTH RESORTS AND RECREATION FACILITIES
Chervona Kalyna SanatoriumZhobryn, Rivne district, tel. +38 (097) 736-00-98
Hotel, therapeutic and diagnostic pavilion, sauna, beach, catamarans, cinema, library, café, bars, billiards, badminton, volleyball, football, basketball, tennis, beautiful nature
Khrinnyky SanatoriumKhrinnyky, Demydivka district, tel .: +38 (096) 137-40-88 Catamarans, beach, fishing, sports grounds, tennis
Elektronik-Rivne Sanatorium and Health Improvement ComplexOleksandriya, Rivne district, tel. +38 (0362) 26-74-33
Recreation camp, scene, dining room, playgrounds
Kraina Mriy Children’s ComplexMezhyrich, Ostrog district, tel. +38 (095) 419-00-23
18 two-storey houses, library, video and computer games room, swimming pool, karting, rope parks and school tourism
Monte Carlo Recreation CenterReshutsk, Rivne district, tel: +38 (098) 081-25-19
Hotel rooms and chalet, bath-house, water tanks, kayaking, fishing, playground, bicycle rentals, alcoves, café-bar
Voronukha Recreation CenterMala Sovpa, Korets district, tel. +38 (097) 293-88-76
Comfortable lodging houses, delicious Ukrainian cuisine, bathhouse, fishing
Myslyvska Khata Wellness Entertaining ComplexTarakaniv, Dubno district, tel. +38 (093) 354-83-20 Bath-house, sauna, swimming pool, billiards
Farm House Rest ComplexMyrohosshcha, Dubno district, tel. +38 (068) 377-34-83 Hotel rooms, alcoves, volleyball court, sauna, eco-farm
Harmony Tourist and Health CenterOzhenin, Ostrog district, tel. +38 (097) 274-00-79 Sauna, swimming pool, wellness massage, restaurant
Khutir Kasen FarmhousePovcha, Dubno district, tel. +38 (067) 763-83-11
A house for 2 rooms, a sauna with Tibetan salt, cycling, gym, fishing, excursions, mushrooming, berries, herbs
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GENERAL DESCRIPTION OF THE INDUSTRYFavourable geographic location of Rivne region contributes to the development of transit of goods and passengers between Europe, South Asia, and the Middle East. The territory of the region is crossed by a range of international transport corridors, the total length of which is over 254.6 km. Today the region’s transport infrastructure consists of 5.1 thousand km of automobile roads, 448.8 km of railways, 1 civil airport, and other transport facilities.
Transport corridors that cross Rivne region:
Crete�No.3�(Е40) Brussels Dresden Krakow Rivne Kyiv
Crete�No.5�(Е373) Lublin Chelm Kovel Sarny Kyiv
The Baltic Sea – the�Black�Sea�(Е85) Klaipeda Vilnius Dubno Bucharest Alexandroupolis
Europe – Asia Krakovets Lviv Rivne Kyiv Kharkiv
Last year about 133.3 million passengers and 10.8 million tonnes of goods were transported across the region. Most passengers (66%) travelled by vehicle transport, whereas most goods (79.2%) were carried by railway transport. Experts predict that the volume of traffic will increase, and the quality of services will improve during the following three years.
Structure of passenger traffic flow in 2017, thousand passengers
Average growth in passenger transport in the region is 11%.
Structure of freight (goods moved by mode) in the region, thousand tonnes
Average growth of freight in the region is 33.8%.
LOGISTICS
Vehicle transport59,085.9 thousand passengers
Trolleybuses19,969.7 thousand passengers
Railway transport3,369.3 thousand passengers
71.7%
24.2%4.1%
Vehicle transport1,496.4 thousand tonnes
Railway transport5,927.7 thousand tonnes
79.8%
20.2%
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LOGISTICS
Top-priority directions for the industry development in the nearest years are the following:• Development of the Rivne International Airport
(regular flights, equipment for servicing modern aircrafts, non-aviation services).• Creation of a transport and logistics complex capable to integrate into the Trans-European
Transport Network (TEN-T).
OPORTUNITIES AND POTENTIAL OF RIVNE INTERNATIONAL AIRPORTThe operating airport RIVNE International Airport boasts a close proximity to the city of Rivne. It was designed for accom-modating, servicing, and dispatching all types of aircrafts with the maximum permissible take-off weight of 210 tonnes. Total airport area is 165 ha. The runway is 2,626 m long and 42 m wide. The carrying capacity is 500 passengers per hour.The airport is located at the crossroads of international air routes and roads, in close proximity (1 km) to the internation-al highway E 40, the longest European route, more than 8,500 kilometres long, connecting Calais in France via Belgium, Ger-many, Poland, Ukraine, Russia, Kazakhstan, Uzbekistan, Turk-menistan, and Kyrgyzstan, with Ridder in Kazakhstan near the border with Russia and China. Today the airport operates: it receives medium-range aircrafts 24 hours a day. There is a summer charter programme Rivne – Antalya and a winter charter programme Rivne – Hurghada / Sharm El Sheikh. The airport serves as a base for Vulkan Air An-26 and Universal-Avia An-12 aircrafts. Negotiations are being held with nine international air companies about establishing regular flights.The potential number of passengers is 5 million people from Rivne, Volyn, Zhytomyr, Khmelnytsky, and Ternopil regions of Ukraine and from Belarus. At the same time, 40% of the to-tal number of Ukrainians who cross the border throughout a year go to Poland. About 14 bus trips per day pass through
Rivne to Poland. In 2016, the Consulate General of the Repub-lic of Poland issued 300 thousand visas; there were 15 million Ukrainian-Polish border-crossings. 1,200 thousand Ukrainians work and study in Poland.
Top-priority actions planned for the development of Rivne International Airport include the following:• Purchase of machines and equipment (new approach lighting
system (ALS) for the runway, precision landing system that uses instrument landing system (ILS) equipment) necessary for servicing В737 and А320 aircrafts and performing interna-tional air carriages.
• Modernisation and winterisation of airport facilities and terminal.
• Project development and construction of a transport-and-lo-gistic complex at the site of the Rivne International Airport, Regional Municipal Enterprise.
• Project development and construction of a hotel complex at the site of the Rivne International Airport, Regional Municipal Enterprise.
• Reconstruction of the 550-m runway for small aircrafts.• Organisation and development of non-aviation services (stor-
age room, Duty-Free, Tax-Free, catering, shops/supermar-kets, car rental, cash machines/payment terminals, pharma-cy, currency exchange, tourist office etc.).
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BIOMASS• Biomass potential of Rivne region consists of grain legume biomass –
200 thousand mWh per year; corn biomass – 310 thousand mWh per year; vegetable biomass in open and closed ground – 230 thousand mWh per year.
• Annual potential of animal agricultural biomass in Rivne region: the volume of organic matter – 10.4 million tonnes, biogas yield – 498 million m3, organic fuel substitution – 398 thousand tonnes of fuel equivalent.
• Average volume of waste wood to be used as fuel – 111 thousand m3 per year, energy saving from using waste wood as fuel – 21.8 thousand m3 per year.
• In 2017 a biogas station has started its operation at Rivne landfill.• The pilot projects on growing energy willow and energy crop Miscanthus Giganteus
were successfully implemented.
SOLAR ENERGY• Annual amount of captured solar energy is about 1,100 kWh/m2
• The total potential of the region is estimated at 21.8*109 mWh per year, technical potential – at 10.5*107 mWh per year, and economically efficient potential – at 1.6*105 mWh per year.
• The region has a great number of land plots unsuitable for traditional farming which can be used for the creation of solar power stations.
HYDRO ENERGY• Rivne region has considerable resources of surface waters (7 km3), as well as a
range of rivers that have high hydro-technical potential for the location of small HPP (of 500-kW capacity): Horyn, Lva, Stubelka, Zbytynka, Putylivka, and Bober.
• The total potential of the region is estimated at 0.304 billion kWh per year, technical potential – at 0.201 billion kWh per year, and economically efficient potential – at 0.091 billion kWh per year.
• Two small hydroelectric power plants function in the territory of the region, namely, Mlyniv HPP (362 kW) and Khrinnyky HPP (860 kW).
ALTERNATIVE ENERGY
GENERAL INFORMATIONRenewable energy sources and alternative fuels have been identified as a priority for the development of the sustainable regional energy sector.In total alternative energy sources contribute only 3.5% to total energy consumption in the region.This is one of the best results across Ukrainian regions. During the recent years the region has installed equipment operating on alternative energy sources with the total capacity of 10.6-mW. This replaced 1.6 million cubic meters of natural gas per year.The urge of central and regional authorities to diversify energy sources, as well as their principal emphasis on renewable energy sources, is outlined in the following regional strategic documents:• Development Strategy of Rivne Oblast (region) till 2020;• �Regional� Programme� of� Loan� Interest� Reimbursements� for� Physical� Persons� Implementing� Energy� Efficiency� Measures
2015-2018;• Complex�Energy�Efficiency�Programme�of�Rivne�Oblast�(region)�2018-2025.
21
ALTERNATIVE ENERGY
WIND ENERGYAverage wind speed in the region is 4.5 m/s. The wind’s natural potential at a 15-m height is 2,010 kWh/m2 per year, and its tech-nically attainable potential is 390 kWh/m2 per year. To compare, the same parameters at a 30-m height are the following: natural potential – 2,710 kWh/m2 per year and technically attainable po-tential – 520 kWh/m2 per year.
PEAT• About 20% of Ukraine’s national peat reserves are located in
Rivne region. The experts’ assessments state that their volumes exceed 136 million tonnes.
• The total energy potential of peat in Rivne region is 1,176.2 million mWh per year, and economically efficient potential – 575.3 million mWh per year.
The region hosts numerous events directed at the development of alternative energy sources, namely:• Rivne Cluster of Renewable Energy Sources has been created;• A project Biomass Energy – Turning Natural Potential into Regional Partnerships is currently being implemented within the
framework of Belarus-Ukraine Eastern Partnership Territorial Cooperation Programme.• The annual International Specialized Exhibition Modernity. Energy conservation. Technologies. (SET) (founded in 2015) gives
an opportunity for the enterprises from Rivne and neighbouring regions, as well as foreign partners, to share their experience and demonstrate their results and new developments in the field of alternative energy;
• Eco-festival Zelo;• Non-governmental organization Ecoclub.
INVESTMENT PROJECTS
PRODUCTION OF SOLID BIOFUEL FROM PERENNIAL GRASS MISCANTHUS GIGANTEUS
The project foresees planting and growing energy crops on the area of ≥ 10,000 ha, organising stool bed, harvesting and biomass processing into fuel pellets, and selling solid biofuel.
Natural and climatic conditions, as well as soils, in the northern districts of Rivne region are suitable for the implementation of the project.
Project cost: $ 20,000,000Payback period: 7.6 years
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The forest reserves of the region occupy 780 thousand ha or almost 40% of its territory. By percentage of forest land Rivne region ranks third in Ukraine after Zakarpattia and Ivano-Frankivsk regions. Pine, oak, and aspen mainly grow in the region. The total reserve of timber stand is 120.5 million m3, of which 65.8% is occupied by pinewood, 10.7% – by hardwood, and 23.5% – by softwood. The average age of timber stand is 52 years.Forest land spreads unevenly around the territory of the region, and it is mainly concentrated in its northern districts.Total annual reforestation and afforestation covers over 5 thousand ha in the region.Wood processing industry plays an important role in Rivne region economy, for it traditionally shows steady annual growth rate.
Key Characteristics of Wood Processing Industry
Growth Rate (%) Sales Volume (million UAH) Industry Share in Manufacturing Sector (%)
2016 01-06.2017 2016 01-06.2017 2016 01-06.2017
Rivne region 106.5 106.2 2,670.2 1,516.7 9.0 9.4
Ukraine 102.6 103.9 69,428.3 31,967.7 3.8 4.7
PRODUCTSGross sales of wood processing industry for the first three quarters of 2017 have increased by 3.2% compared to the first three quarters of 2016, moreover, its share in the total gross sales of Rivne region has also increased to 9.5%. The major types of industry products in the region are wood chipboard (also known as particleboard, low-density fibreboard (LDF), wood sawn or chipped, bars, friezes, flooring, and furniture.
Production of Major Types of Wood Processing Industry Products
Product Type Volume
Wood sawn or chipped lengthwise 87.4 thousand m3
Wood chipboard unwrought 809.4 thousand of m3 equivalent
Pinewood moulding 528 tonnes
Hardwood moulding 1,260 tonnes
Plywood, plywood panels, and alike multilayer wooden materials 85,266 m3
Millwork materials (any woodmill-produced components) 601.8 m3
Wooden parquet 4.90 thousand m3
Wood windows, balcony doors, and their frames 71 unit
Wood doors, their frames and thresholds 403 units
WOOD PROCESSING INDUSTRY
Woodinessof Rivne regionby districts, %
less than 10%
from 30% to 40%
over 40%
from 10% to 30%
Zarichne district
Dubrovytsiadistrict
Rokytnedistrict
Volodymyretsdistrict
Sarny district
Berezne districtKostopil district
Rivne district
Zdolbunivdistrict
Dubno district
Mlyniv district
Demydivkadistrict
Radyvylivdistrict
Ostrohdistrict
Hoshchadistrict
Koretsdistrict
23
WOOD PROCESSING INDUSTRY
The only match factory in Ukraine, an enterprise that provides over 60% of plywood production in Ukraine, one of the largest veneer manufacturers in Europe, as well as other enterprises with a closed production cycle, function in the region.
Largest Companies of the Sector in the Territory of Rivne Region
Company Name Manufacturing Activity Location
Swisspan Limited, LLC Laminated boards, wood chipboards Kostopil
Morgan Furniture, LLC Furniture Kvasyliv
ODEK Ukraine, LLC Large-sized sorted and laminated plywood Orzhiv
Ukrainian Match Factory, LLC Matches Berezne
Evroshpon-Smyga, Closed JSC Sliced veneer Smyha
Ukrainian Wood Processing Company, LLC Furniture board, lamella, flooring, tables, windows Kostopil
Eskada-M, LLC Veneer panels Rivne
Kostopil Plywood Plant, LLC Plywood Kostopil
Ukrainian Lumber Company, LLC Wooden / millwork building materials, doors, lining Ostky
Olisma, LLC Furniture Rivne
INVESTMENT ATTRACTIVENESS OF THE INDUSTRYThe vast majority of large-scale wood processing companies in Rivne region are export-oriented enterprises with foreign investment. The share of wood processing products in the region’s exports is 27.7%; the share of furniture and its components in the region’s exports is 11.4%.The moratorium on the export of round wood imposed in 2015 became an important factor that encouraged foreign companies to invest in the wood processing industry of the region. Thus, during the period of 2015-2017 Scandinavian investors have invested over EUR 25 million in a high-technology wood processing enterprise in Kostopil district, capable of processing 300 thousand m3 of wood per year, which will be put into operation by the end of 2017.
Prospective projects of the industry include the following:• Construction of a new sawmill by Scandinavian investors in Sarny
district of the region with a total cost of over EUR 20 million;• The project on expanding a furniture factory and construction of a
storage facility at Morgan Furniture, LLC – an export-oriented company producing highly competitive cushioned furniture. Total investments: EUR 10.5 million.
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Construction materials and glasswork industry in Rivne region is based on local raw materials; therefore, its development is closely connected with mining industry growth and construction trends in the region. Local forest reserves are one of the biggest in Ukraine. Moreover, raw materials for the production of broken stone, cement, lime, brick, and facing tile are available in the area. Basalt stone applied in the production of thermal insulation and facing materials is also quarried in the region. One of the largest cement enterprises, as well as three out of ten of the largest glass factories in Ukraine, have production sites in Rivne region.
Key Characteristics of Construction Sector
Growth Rate (%) Sales Volume (million UAH) Industry Share in Manufacturing Sector (%)
2016 01-06.2017 2016 01-06.2017 2016 01-06.2017
Rivne region 105.2 114.1 3,897.5 2,125.8 13.2 13.1
Ukraine 106.5 107.6 106,374.6 47,821.8 3.7 4.4
PRODUCTSProduction of Major Types of Building Materials and Components
Product Type Volume
Cement 875.7 thousand tonnes
Non-fireproof ceramic construction brick 847.05 thousand tonnes
Blocks and bricks made from cement, artificial stone, or concrete 0.9 thousand tonnes
Tile, panels, roof tile, and similar products made from cement, artificial stone, or concrete
1.0 thousand tonnes
Non-metallic construction materials 34,821.8 thousand m3
Dry building mixtures 4.80 thousand tonnes
Ready-to-use grouts 76.5 thousand tonnes
IMPORTS AND EXPORTSDuring the first six months of 2017 the share of construction materials and glasswork in the total region’s exports of goods was 13.1%, whereas the exports volume increased by 30.3% as compared to 2016.
Export Dynamics for Construction Materials and Glasswork in the Region in 2012-2017, million USD
2011 2012 2013 2014 2015 2016 1st half of 2017
29.5 29.432.9
38.6 38.9 36.531.9
0,000000
8,333333
16,666667
25,000000
33,333333
41,666667
CONSTRUCTION MATERIALS AND GLASSWORK
25
CONSTRUCTION MATERIALS AND GLASSWORK
The share of construction materials and glasswork in the region’s exports is 13.1%. The share of imported construction materials and glasswork is about 5.0% of the total volume of goods imported into Rivne region in 2017.
Largest Companies of the Sector in the Territory of Rivne Region
Company Name Manufacturing Activity Location
Volyn-Cement, Public JSC (Dyckerhoff brand) Production of cement and concrete Zdolbuniv
Kostopil Glass Works, Private JSC Production of glassware Kostopil
Consumers-Sklo-Zorya, Private JSC (Verallia brand) Production of high-quality glassware for food industry Zoria
Rokitnovskiy Glass Work, Private JSC Production of high-quality glassware Rokytne
Rivne Home-Building Factory, Additional Liability Company (Rivne DBK)
Production of ferro-concrete and concrete Rivne
INVESTMENT ATTRACTIVENESS OF THE INDUSTRYFor the first three quarters of 2017 the volume of capital investments into the region’s construction industry has amounted to UAH 1.5 billion which makes 47.6% of the total capital investment volume. The volume of completed construction works amounts to UAH 1.05 billion. In January-June, 2017, 50% more housing facilities have been put into operation than during the same period of 2016.
The structure of capital investments is as follows: 54.1% – personal finances of legal entities, 23% – financial assets held by individuals (for housing construction), 6% – state and local budgeted public expendi-tures, and 4.7% – credits and loans of financial institutions.Last year Verallia company invested EUR 12 million into modernisation and increasing capacity of a glass factory located in Rivne district of the region. The owners of the enterprise plan to invest EUR 35 million into its development in the nearest three years.
INVESTMENT PROJECTS
PRODUCTION OF MAG-BE MAGNESITE SLABSThe project foresees the creation of a factory producing an innovative composite construction material: a magnesite bischofite slab “Mag-Be” with 10- and 15-mm thickness and 1200 mm width which is an alternative to gypsum plasterboard and siding.Project cost: $ 8,020,000Payback period: 31 months
PRODUCTION OF AGGLOMERATE PANELSThe Start-Up project foresees the creation of a new production site of finishing materials (agglomerates), particularly panels and blocks made from various types of natural stone: granite, basalt, diabase, or marble. The production shall be based on mineral and raw material resources of the region.Project cost: $ 15,750,000Payback period: 51 months
0
600
1,200
1,800
2,400
3,000
2010 2014 2015 2016
Engineeringconstructions
Residentialbuildings
Non-residentialbuildings
mill
ion
UAH
Capital Investment Dynamics in Construction (million UAH)
26
FOOD INDUSTRY
Food industry is mainly based on the raw material base located in the region. The most developed branches are dairy processing, meat processing, flour-and-cereals industry, baking industry, confectionary, and fruit-and-vegetable processing.
Performance indicators of the industry
Growth rate, % Sales volume, mln. UAH Ratio of industry in production sector, %
2016 01-06.2017 2016 01-06.2017 2016 01-06.2017
Rivne region 106,0 113,1 4935,8 2337,4 16,7 14,4
Ukraine 104,4 105,1 459196,0 213564,5 1,1 1,1
FLAGSHIP PRODUCTS AND DYNAMICS OF THE INDUSTRYProduction of principal products for the period January-September 2017
Type of products Tons Type of products Tons
Meat of bovine animals, fresh or frozen 2700 Cheese, rennet and processed 14987
Meat of swine, fresh or frozen 3028 Yogurt and other fermented milk and cream 5321
Sausage products 524 Flour 35176
Vegetables, canned natural 4342 Bread and baked products, of short-term storage 20445
Jams, fruit jellies, fruit or nut purees and pastes 1596 Pastry 574
Crude oil 210 Sweet biscuits and waffles 1830
Milk, liquid and processed (pasteurized, sterilized, homogenized, baked, peptonized)
12046Chocolate and ready-made food products that contain cocoa (except sweetened cocoa powder), in packages not exceeding 2 kg
1835
Butter 2027 Sugar confectionary (including white chocolate) that does not contain cocoa 2207
Upon results of first three quarters of 2017 the enterprises of food industry increased their production volume by 7.3% as compared to 2016. Considerable growth has been observed in production of fresh or frozen bovine animals meat, milk, canned vegetables, fermented milk products, butter, and high-fat cheese.In 2016 the sales volume of food industry has reached $ 174.4 million, which amounts to 15.9% of the general sales volume in the region’s production sector.
Ratio of main types of food products sold in 2016Milk products (UAH 1802.6 mln.)
Sugar (UAH 610.2 mln.)Meat and meat products (UAH 550.8 mln.)
Other foods (UAH 502.1 mln.)Bread, baked products, and flour products (UAH 477.6 mln.)
Oil and animal fats (UAH 339.1 mln.)Cocoa, chocolate, and sugar confectionary (UAH 237.3 mln.)
Processed fruits and vegetables (UAH 149.1 mln.)0,00 16,25 32,50 48,75 65,00
27
FOOD INDUSTRY
Leading players in Rivne region
Name of company Products/services Location
Dubnomoloko, Public JSC Milk processing and production of butter and cheese; Wholesale trade of milk products, eggs and edible oils and fats Dubno
Radyvylivmoloko, LLC Milk processing and cheese production Krupets
Krupets Agrocorporation Production of eggs, meat of poultry, growing of corn, wheat, sugar beet and brewing barley Krupets
Rivne-boroshno, Public JSC Production of wheat and rye flour, purchase and sale of grain crops, storage of grain crops Rivne
Polissiahlib, Public JSC Production of bread and baked products Rivne
Company Zeus Ltd, LLC Wholesale deliveries of beef, blocks of meat, meat half-finished products and by-products Dubno
Rivne confectionery, Public JSC Production of cocoa, chocolate, and sugar confectionary Rivne
Rodyna, Public JSC Production of sweets, fruit pastes and beverages Kostopil
Kostopil margarine plant, PE Production of mayonnaise and meat products Kostopil
Goscha food product plant, Public JSC Production of fruit and vegetable juices Goshcha
Riven, Open JSC Production of beer and drinking water Rivne
Agropererobka, LTD of VTP Production of milk products, fillers, syrups and toppings Rivne
Rivneholod, ALC Freeze-quenching of wild berries Rivne
Vilis, PE Production of pasta and fruit paste Rivne
Ostroh mineral water plant, LLC Production of mineral water and other non-alcoholic beverages Ostroh
INVESTMENT PROSPECTS OF THE INDUSTRYGrain production in Rivne region exceeds its needs by 88%, eggs – by 36%, vegetables – by 31%, milk – by 23%, and potato – by 6%. Therefore, the issue of processing agri products and related development of food industry is highly topical for the region.It is planned to implement the НАССР system into all enterprises of food industry in the region during the period of 2017-2020.
INVESTMENT PROJECTS
BUILDING WHOLESALE AGRICULTURAL MARKET “SHELEN”Shelen market was assigned the status of a wholesale agricultural market that stipulates its monopoly position in Rivne region. All necessary design documents and approvals have been received, the initial phase of construction has already been started. Prospec-tive investments will be directed to construction works and start-up of the market activity.Project cost: $ 12 000 000. Payback period: 5 years
DEEP FREEZE OF FRUITS, VEGETABLES AND BERRIESEstablishing innovative production of “shock” freeze of fruits, vegetables and berries for their year-round consuming, substituting existing imports and making export supplies.Project cost: $ 7 600 000. Payback period: 3,5 years
Meeting the region’s domestic needsin main types of agricultural goodsin 2016-2017 marketing year
Grain
Chicken eggs
Vegetables
Milk
Potato
Meat
0 50 100 150 200
188%
136%
131%
123%
106%
101%
RIVNE REGIONINVESTMENT PASSPORT
Rivne Region State Administration1, Maydan Prosvity, St.Rivne, 33000, Ukrainetel.: +38 (0362) 69-52-16fax: +38 (0362) 26-08-35
e-mail:[email protected]
InvestInRivne Agency19, Hetmana Mazepy St.Rivne, 33028, Ukraine
tel./fax: +38 (0362) 26-95-65e-mail:[email protected]
www.InvestInRivne.org