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Secretariat of the President of Ukraine. Ukraine -country with great and unrealized potential. Rapid development of Ukraine is defined by the development of the private sector, FDI inflow, growth in demand and better trade conditions. 2007
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Rapid development of Ukraineis defined by the development of the private sector, FDI inflow, growth in demand and better trade conditions
2007 has become another year of considerable economic growth for Ukraine
Ukraine – a brief survey • Population 46,490mpeople • Territory 603,7 thousand sq. km • 1 USD = approx. 4.85 UAH • GDP (USD billions), 2007 = 131.2 • GDP (PPP, USD) per capita = 6,309.8 • GDP (USD) per capita, 2007 = 2,829.7 • GDP (PPP,USD) as share of world total (%), 2007 = 0,53 • Global Competitiveness Index 2007-2008 (rank out of 131) – 73
A bit of Context for Ukraine: the recovery 1999-2007 • Overall macro stability 1999-2007 • Benign external environment • Property (particularly “profit”) rights improved • Access to finance and credit boom • Underutilized industrial capacity allowed output growth with small new investments • Limited competition and big returns have attracted investors
Ukraine Today 6.2% GDP Industrial Output Gross Agricultural Output Retail Turnover of Goods Real State Budget Revenues (January-March 2008) Real Disposable Incomes of Population (January-March 2008) Consumer Price Index(April 2008 to December 2007) Hryvnia depreciated to USD (May, 1) Natural Persons Deposits(April, 1) 8.0% January-April 2008 cumulative since the beginning of the year versus previous period: 0.1% 29.0% 13.8% 19.8% 13.1% April since the beginning of the 2008: 0% 9.6%
Indexes of transitional period in Ukraine in 2007 in points ∙∙ ↑↓ arrows indicate change from the previous year in that sectorial transition indicator. One arrow indicates a movement of one point (for example, from 2 to 2+).Up arrows indicate upgrades, down arrows downgrades.
EURO 2012 Goals and tasks of the Program of preparation to EURO 2012 requiredrastic structural and institutional changes and new forms of cooperation
The championship will be held in Kyiv, Dnepropetrovsk, Donetsk, Lviv, and in Kharkiv and Odessa as reserve cities
Kyiv • Kyiv is the biggest contributor to Ukraine’s economy. Its gross regional product (GRP) amounts to some 18% of Ukraine’s total GDP. • The Kyiv region has a diversified industrial base including: aviation, shipbuilding, IT, chemicals, pharmaceuticals. • Kyiv takes an important place in the national economy: • almost 32,2% of investments in the fixed capital and around 31,5% of the direct foreign investments are concentrated in Kyiv city; • Kyiv accounts over 36% of Ukrainian import of goods and services; • over 12% of export of goods and services; • there are two thirds of national banking assets in the capital; • sixth part of retail trade of the state is concentrated in Kyiv; • highly developed engineering transportation network; • powerful building system.
Dnipropetrovsk • The Dnipropetrovsk region is a best performer in Ukraine on infrastructure development, higher education and training, labor markets efficiency and innovation. • Technological readiness is average, but low FDI levels hinder technology transfer. • The Dnipropetrovsk region is one of the wealthiest and most industrialized regions in Ukraine. • It is characterized by a well-developed basic industry, mainly in iron and steel production, but also in engineering and construction of electromechanical machines, as well as the automotive, chemicals and agricultural sectors. With its GRP per capita of UAH 11,909, it accounts for 9.3% of Ukrainian GDP, but only for 7.3% of the country’s population. In 2006, Dnipropetrovsk accounted for 18.6% of Ukraine’s total exports and after Donetsk is the second largest exporter in Ukraine.
Donetsk • The Donetsk region is high quality institutions and infrastructure development. • Financial markets are relatively sophisticated, but technological readiness is fairly low. • In terms of economic size, with GRP of UAH 58 billion, Donetsk is the second largest regional administrative unit in Ukraine behind the city of Kyiv. • It represents some 13% of Ukraine’s economy, compared to 17% for Kyiv. The region’s economy is mainly structured around coal extraction, metallurgy and machine building industries. Other branches include chemical industry, power generation, and consumer goods. • It is the most populated region in Ukraine. • The region has one of the most developed financial markets in Ukraine.
Lviv • Lviv ranks first nationally in terms of macroeconomic stability and second for the quality of its higher education system. • Its boasts an above-average institutional framework, and business sophistication and innovation capacity is higher than the rest of the country. Region’s GDP accounts for 3,9% of Ukrainian GDP. • The local economy is structured around mechanical engineering, the petro-chemical industry, construction materials, cellulose paper and printing industries, as well as food processing. • The proximity to the European Union provides the region’s relatively better ability to adopt technology from abroad. • The latest technologies are more available, firms absorb foreign technologies more easily than in other regions. The large amount of FDI has poured into car manufacturing plants of the region. Thanks to the developed education system, region is more innovative than the national average.
Odesa • Odesa is an important transport, industrial, scientific, cultural and resort center with the population more than 1 mln people and every year more than 1 mln. tourists visit Odesa. • Odesa seaport is one of the biggest ports of the Black Sea basin. Its berths allows to take freight ships with tonnage up to 100 thousand tons. • 75 % of the whole state industrial potential situated in Odessa region and consists of 7 ports: • Port of Odessa • Port of Yuzhniy • Port of Illichivsk • Port of Reni • Port of Izmail • Port of Ust-Dunay • Port of Belgorod- Dnestrovsk and also dockyards and shipbuilding plants • Companies of petrochemical and machine building industries, repair and assembly of machines, metallurgy and metal working, chemical and petroleum chemical sectors, food, light, and other industries are available in the territory of the region
Kharkiv • The Kharkiv region retains a convenient transport and geographical position at the crossing of international ways "North-South" and "West-East". • The Kharkiv region leads the way in the mechanical engineering industry of Ukraine. • There, a powerful tractor-building complex has been formed. The production of power equipment, aircraft construction, machine tool construction, fuel, electronic, chemical, pharmaceutical, food, and light industries are of great importance. • As regards scientific and scientific-and-technological organizations, the Kharkiv region is the second-largest one after Kyiv and the largest region in Ukraine. • There 56 % of R&D facilities of Ukraine are concentrated. • A stock market infrastructure is actively developing in region. There has been formed the market infrastructure capable of securing the development of business.
National Program on Preparing and Conducting of a Final Tournament of European Football Championship 2012 in Ukraine • 21 tasks, based on the UEFA requirements and corresponding government guarantees. • General Budget of the Program is estimated around 16,85 billion EUR (126,4 UAH), of which: • 2,85 billion EUR (21,4 billion UAH) – from the State Budget of Ukraine (16,9% of general budget); • 1,65 billion EUR (12,4 billion UAH) – funds from local budgets (9,8%); • 12,35 billion EUR (92,6 billion UAH, 73,3%) – from other sources (investors, private funds etc).
Sport objects Sport infrastructure in total: 1211.64 mln EUR (7.2% of general program financing) including: • State budget – 269.09 mln EUR • Local budget – 13.46 mln EUR • Other sources (investors)– 929.08 mln EUR
Transport Infrastructure Construction,reconstruction and repair of the airports Developing 13 airports: Boryspil International Airport Kyiv Zhuliany International Airport Gostomel Airport Lviv Airport Dnipropetrovsk Airport Donetsk Airport Odesa Airport Kharkiv Airport Zaporizzhia Airport Luhansk Airport Mariupol Airport Ivano-Frankivsk Airport Mykolayiv Airport Estimated expenditures: Total – 1262.4 mln EUR (7.5% program amount) including: State budget – 321.77 mln EUR Local budget – 5.15 mln EUR Other sources (investors) – 935.48 mln EUR
Transport Infrastructure • Construction, reconstruction and repair of the railways • Construction of the railway-automobile bridge link across the Dniper river in Kyiv. • Finishing the construction of passenger terminal complex at the Darnitsa station (Kyiv). • Reconstruction of the parking place for the tourist trains at the station Kyiv-Dniprovskyy (Kyiv). • Construction of new suburban passenger terminal at the Station Donetsk. • Introducing high-speed trains (334km/h) at the Ukrainian railways. • Construction of the technical station, reconstruction of 12 depot. • Purchasing of 7 special high-speed trains. • Estimated expenditures: • Total – 1836.93 mln EUR (10.9% program amount) including: • State budget – 0.0 million EUR • Local budget – 0.0 million EUR • Other sources (own funds of Ukrzaliznytsia)– 1836.93 mln EUR
Transport Infrastructure • Construction, reconstruction and repair of the motorway of general usage in accordance with European Standards (intercity communication) • Construction of 4204.4 km. roads with the improved transport and exploitation conditions • Estimated expenditures: • Total – 5006.27 mln EUR ( 29,7% program amount) including: • State budget – 1206.22 mln EUR • Local budget – 0.0 million EUR • Other sources (investors) – 3800.05 mln EUR
Transport Infrastructure Transport infrastructure (intercity connection): 8105.6 mln EUR (48.1% general financing of the program) including: • State budget – 1527.99 mln EUR • Local budget – 5.15 mln EUR • Other sources – 6572.47 mln EUR
Accommodation Total estimated expenditure: 3581.24 mln EUR (21.3% of program budget) including: • State budget – 80 mln EUR • Local budget – 0.0 million EUR • Other sources (investors) – 3500.57 mln EUR
Other tasks • TotalSafetyandSecurity: 267.4 mln EUR (1.6% of general program budget) State budget– 244.2 mln EUR Local budget– 12.4 mln EUR Other sources – 10.8 mln EUR • Total Energy Supply: • 603.15 mln EUR (3.6% of program budget) • State budget – 46.32 mln EUR • Local budget – 35.23 mln EUR • Other sources (investors) – 521.61 mln EUR • Total Other Domains: • 2558.12 mln EUR (15.2% of program budget) • State budget– 535.64 mln EUR • Local budget– 1292.08 mln EUR • Other sources (investors) – 730.39 mln EUR
Principal forms of investing in Ukraine • Incorporation/Establishment of new enterprises • Participation in already existing enterprises (acquisition of shares) • Acquisition of research and engineering, including houses, apartments, premises, equipment, means of transport and other objects of ownership, by way of direct acceptance of property and property complexes or in form of shares, bonds and other securities • Acquisition of the rights to use land and use of natural resources of Ukraine • Economic (entrepreneurial) activity under the share-production agreements • Other forms not prohibited by Ukrainian legislation
Conclusions • EURO 2012 - the biggest large-scale project which is sure to bring investments to Ukraine • business and investments show stable and fast growth • ongoing reforms • legal advisers may assist to mitigate risks and achieve your business objectives
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