Norway Finland

Sweden

Estonia

The city of is modern, developed and a friendly Latvia Denmark city in the North-East of , which is open for Ireland

collaboration with investors on mutually beneficial terms. Lithuania The city of Sumy has a number of competitive United Kingdom advantages that attract investors: strategic geographical Belarus location, strong industrial, scientific and human Netherlands resources, promising infrastructure. Poland One of the most important tasks for the city Belgium government is to create a favorable investment Sumy Ukraine climate for attracting investment, so, for our part, we Czech Republic guarantee investors openness of power, clear and Slovakia transparent rules for starting and running a business, Moldova free access to investment proposals: land plots, Switzerland Austria Hungary vacant premises, of the industrial park "Sumy". France Slovenia Romania We are interested in establishing of a long-term Croatia cooperation for the confident, efficient and stable

development of our city, so we will be happy to Bosnia and Herzegovina Serbia welcome you to the city of Sumy to work together Portugal Spain to achieve success. Montenegro Italy

Macedonia

Albania

Turkey

Greece

Main types of economic activity Content (CONSTRUCTION) 11 Lysenko Business card of Sumy city Main types of economic activity Oleksandr territorial community 2 (TRANSPORT AND COMMUNICATION) 12

Main types of economic activity 13 Transport infrastructure 3 (DOMESTIC TRADE)

Demography and human resources 4 Foreign economic activity 14

For investors 15 Labor market 5 (Taxation System)

Staffing training 6 Successful investment stories 16

Competitive advantages of the city 7 Promising investment projects 17

Education, health care 8 Municipal investment projects 18

Sumy City Mayor: Leisure and recreation 9 International cooperation 19 Lysenko Oleksandr Dates of election to the position: 25.05.2014 Main types of economic activity For investors 20 15.11.2020 (INDUSTRY) 10 (Industrial Park) Business card of Sumy city territorial community Transport infrastructure

Distance to neighboring The city of Sumy is the administrative center of and, at the same time, the oblast centers administrative center of Sumy city territorial community (SСTC). Sumy is located in the east of Sumy oblast, in the forest-steppe zone on the flat undulating to Chernihiv Sumy plateau of the last south-western spurs of the Middlerusian upland. 307 km The total area of Sumy city territorial U K R A I N E to Poltava community is 145.5 km2, including the city of SUMY — 95.38 km2 177 km

Climate — to Kharkiv temperate continental. distance average temperature 184 km July +19.5 °C, January –7.5 °C. to KYIV — The absolute maximum is +39 °C, minimum –36 °C. the transport Maximum precipitation falls in system summer in the form of rain. Annual of Ukraine precipitation is over 600 mm Road transport — a bus station and one suburban By road bus station provide international The founding of the city transport 366 km and long-distance transportation: of Sumy is connected with Sumy 84 intercity routes and the events of the liberation war 60 suburban routes (regular service) led by Bohdan Khmelnytskyi in 1648–1654. The city got its name By railway from the Sumka River, in the mouth of which it was founded transport 350 km Railway transport — the railway station is capable for a day: take more than 50 trains, hold about 700 passengers, Sumy is located in the north- By air transport serve more than 2,500 long-distance eastern part of Ukraine, in Sloboda and local passenger and 1,500 suburban Ukraine, within the forest-steppe 308 km passengers. It has a passenger flow zone on the banks of River of 4,000 people daily and its tributaries Sumka and Strilka Air transport — airport “Sumy” B-class (UMY) operates in the mode of private flights, Water bodies: Psel River, Sumka River, Strilka River, the runway length is 2,500 m Cech Lake, hydro quarry Blakytni Ozera Altitude: 138 м with asphalt pavement Distance to the nearest international airports (IA)

Address of Sumy City Council: Contact person: to the Boryspil International 2 Nezalezhnosti Square, Sumy, Svitlana Lypova, Airport (KBP) — 337 km 40000 Ukraine Director of the Department of Finance, tel.: +38 (0542) 700-560 Economics and Investment to the Kyiv International fax: +38 (0542) 700-560 of Sumy City Council Airport (IEV) — 368 km e-mail: [email protected] tel.: +38 (0542) 700-399 web-site: http://smr.gov.ua e-mail: [email protected] to the Kharkiv International web-site: https://finance.smr.gov.ua Airport (HRK) — 197 km 2 3 Demography and human resources Labor market

Average number The total permanent population of the Sumy city of full-time employees territorial community (as of 01.01.2020) (in 2019) Sumy city council Sumy city Rural locality 264,188 persons 261,317 persons 2,871 persons 71 ths. persons

The number In 2019 in the The share of the city in the regional indicator — Population division by age structure 37.0% of economi- in the city of Sumy city of Sumy cally active Persons aged: 5,520 new work- up to 15 years — from 15 to 59 — from 60 and older — population 38,794 165,625 59,769 places were (as of 01.01.2020) Average monthly salary in the city of Sumy created: of full-time employees

(in 2019) aged 15 to 64 years — 426 — at industrial 184,773 persons enterprises 404 – in construction 9,553 297 – in trade The ratio of men and women UAH in the city of Sumy

(as of 01.01.2020) 11.4% more than the regional men — women — average and 2.3 more 119,207 144,981 than the minimum wage for 2019

Population density of the Sumy city Number of registered unemployed territorial community in the city of Sumy 1,816 persons per 1 km2 (as of 01.01.2020) based on the area SCTC 145.5 км2

(as of 01.01.2020) 2,146persons

4 5 Staffing training Competitive advantages of the city

Information on the number Over the past five years, the rating of graduates in 2020 of investment attractiveness of the city of Sumy has been confirmed at the level From higher Absence of administrative barriers, «invA- high investment attractiveness»; mobility and high level of government education the credit rating is at the level of transparency institutions6,387persons «uaA- stable» From institutions of professional beforehigher 662 There are education persons 4 higher Total: Powerful industrial potential, educational 7, persons042 which ensures the production institutions of competitive world-class goods Among them on the main with about 20 ths. educational directions: students from more Social sciences, business and law 1,751 than 50 countries Health care 914 of the world ІТ 902 More than 3.5 ths. students Agriculture 627 Favourable geographical study in 7 institutions of Engineering 510 location professional beforehigher Humanities and arts 502 education Education 426 Construction and architecture 341 In 2020, on the basis of the Geodesy and land management 68 Machine-Building Professional Service sector 48 College of Sumy State University, High level of personnel the first in the region training and and scientific potential production center of dual education Other 960 was opened, the activity of which is aimed at complex training of specialists ready to work at Information about the enterprise immediately after vocational education institutions graduation Number of VEI —7 High level of investor The total confidence number 2,826persons The Sumy City Development of students Strategy until 2030 has The total number been approved of graduates in 2020 995persons 6 7 Education, health care Leisure and recreation

Educational institutions

incl. communal PHYSICAL CULTURE form of ownership Number sports facilities of schools 39 38 Gyms 136 The total number Swimming pools 8 of pupils 28.6 28.2 Skiing bases 6 ths. persons ths. persons Stadiums 4 Rowing and sports bases 2 Number of preschool Equestrian bases 1 institutions 36 35 Tourist The total number information The city of Sumy annually hosts of children 11.1 10.9 an average of 3 sports competitions ths. persons ths. persons number of tourist of international level and about 20 — national On the territory routes — 5 of the city of Sumy SUMY is the capital of women's indoor hockey of Ukraine (Europe) there is an inclusive With the Ulab AR application Team Sumchanka is a multiple winner resource center virtual guide tells about of the Ukrainian championship and the architectural various international tournaments health care monuments of Sumy institutions CULTURE a hospital for war veterans u . diagnostic center y the most popular events m

center of infectious diseases u s

. june donor center t

i Thrumpets of Ukraine s

blood service i all-Ukrainian festival

emergency center v of brass music medical care visit.sumy.ua/EN march-april dental clinics Chekhov-Fest 1 all-Ukrainian theater festival maternity hospitals april children's hospitals Organum 2 cultural institutions international music festival centers primary medical and sanitary Libraries 21 june-september Club establishments 10 may assistance Sumy Extreme Style Night of museums 3 Art schools 10 project of street culture and clinical hospitals Museums (including branches) 3 an international promotion spectacular competitions that discover a new look Cinemas 3 at the museum business specialized hospital Theaters 2 5 institutions (dispensaries) Philharmonic 1 september september Leisure centers 1 Kharitonenko-fest Night of the city private practice Municipal galleries 1 street art festival festival of extraordinary locations medical institutions and unforgettable impressions 8 39 9 Main types of economic activity Main types of economic activity

1 2 INDUSTRY CONSTRUCTION

The main types of economic activity in the structure of sales of industrial products are The structure of the volume the processing industry (65.7%), electricity, gas, steam and air conditioning (32.8%). of construction works performed: The remainder of the sales falls on the extractive industry and the development of quarries, and services for water supply, sewerage, waste management. (1.5%). Buildings – 76.3% incl. The structure of the volume sales residential – 24.4% of industrial products in Sumy non-residential – 51.9% Manufacture of rubber Engineering structures – 23.7% and plastic products, other non-metallic VOLUME mineral products volume of The main building companies Manufacture of basic 12.9% of the city are: pharmaceutical Metallurgical OF SOLD production, construction PJSC “Sumbud”; products and LLC “CIC Company “Fedorchenko”; INDUSTRIAL pharmaceutical production of finished works performed preparations metal products, LLC “PCE “Notekhs”. 3.9% except machinery and PRODUCTS equipment for 2019 — 11.9% in the city Machine building, 1,121.5 million UAH VOLUME OF capital investment except repair in the city's economy of Sumy for 2019 and installation of The share of the city (in 2019) machinery in the total regional 22 billion UAH and equipment 14.6% indicator — 74.0% 2,808.4 The share of the city Area of million UAH in the total volume of sales The share of the city in the regional of the oblast is 45.3% commissioned indicator — 37.6% 2 housing — 66,370 m The share of the city in the total regional Indicators of land and property value (UAH /m2) Minimum Maximum indicator — 60.1% value value Volume of sold industrial Manufacture products per 1 person Cost of acquiring of chemicals a land plot 78.6 2,546.3 and chemical 59.0 ths. UAH products Supply The volume of commissioned Cost of acquiring 14.4% of electricity, housing for 1 person: a house 6,047.0 41,572.3  — in Ukraine gas, steam and air 2 Cost of acquiring conditioning 0.26 m an apartment: ths. UAH Manufacture 83.0 32.8%  — in Ukraine primary market 7,472.9 10,817.0 2019  — in Sumy of wood products, secondary market 12,108.5 31,599.7 paper production Cost of renting a house

year and printing 2 Other types 0.25 m (per month) 46.6 131.0 2.2% of processing 2019

reporting reporting industry  — in Sumy Cost of renting an office Textile production, 1.8% space (per month) 54.4 291.0 year production of clothing, Cost of acquiring leather, leather products reporting reporting an office space 4,705.5 12,094.0 and other materials Manufacture of food products, 1.1% beverages and tobacco products 10 2.9% 11 Main types of economic activity Main types of economic activity

3 4 TRANSPORT AND COMMUNICATION DOMESTIC TRADE

In 2019 Sumy city transport enterprises: trans- Number of retail trade enterprises ported 50.7 million passengers; passenger turnover in the amount of 202.4 million passenger-km was as of 01.01.2020 performed; transported 2,043.4 thousand tons is 1,350 units, including of cargo were transported; cargo turnover in the amount of 461.3 million tons-km was performed. stores — 1,310 units: In the field of telecommunication services (analogue, digital, HDTV, Internet) in Sumy there food — 458 units are 5 largest telecommunications providers: LLC "CE non-food — 850 units Public "Intertelecom", LLC "TRC "Maybuttya", LLC "Volya- The main Kabel", LLC "SITV" and Triolan, telecommunication mixed trade – 2 units transport services in Sumy are provided by companies, shopping and 6 The total retail space of stores the largest of which are the Sumy branch of PJSC "Ukrtelecom", PE "TC "Chereda" and LLC "Technical entertainment is 193.4 ths. m2 45 city bus routes Center "Radiosystems". The territory of the city of Sumy is covered by high- centers of the city 16 trolleybus routes speed mobile Internet of the fourth generation (4G). "Lavina", "Atrium", "Manufaktura", "Eurobazar" The volume of retail turnover in 2019 Length of electric transport routes MAIN TRADING The length of the NETWORKS contact network in the city of Sumy 348.3 OF SALES 7.5 103.1 km km of food products: billion UAH "Silpo", The share of the city in the regional "ECO–market", indicator – 57.7% "ATB market" HE LENGTH OF ROAD TRANSPORT ROUTES

50.7 Passengers were of non-food products: The volume of retail turnover million transported, including: hypermarket "Epicenter", for 1 person pass. 1,037.4 km "Eldorado", "Comfy" 16.1 million pass. 19.0 ths. UAH by electric transport  — in Ukraine The priority of the city's

34.6 million pass. development is the enlargement 2019 28.4 ths. UAH 2019 by road transport of cycling infrastructure  — in Sumy year year reporting reporting

reporting reporting Sustainable Urban Mobility Plan (SUMP) is Developing in the city of Sumy

12 13 Foreign economic activity FOR INVESTORS (Taxation System)

VOLUME OF EXTERNAL corporate profit tax — 18% TURNOVER OF GOODS FOR 2019 personal income tax — 18% 715.2 National taxes mln. USD value-added tax (VAT) — 20%/7%/0% single social contribution — from 22% Export of goods and services excise tax

(as of of (as environmental tax

01.01.2020) rent duty 300 370.3 mln. USD 200 d insuran an ce s c Trade balance e o x n 100 a t t r Taxation l i b a u n 0 t o +25.4 i i in Ukraine o

t

mln. USD n

a s

-100 n import of goods and services In Ukraine, national -200 and local taxes -300 Lo s 344.9 and fees are set ca fee

mln. USD l taxes and

Commodity structure of foreign trade of Sumy in 2019 property tax (property tax Export structure Import structure in % to the total volume in % to the total volume other than the land plot; transport tax; land fee) — machines, equipment and 24.7% 14.7% mechanisms; single tax electrical equipment — products of parking charge for vehicles 22.0% 0.5% plant origin tourist tax Local taxes and fees and taxes Local — base metals and articles 17.9% 20.3% thereof

— polymeric materials, plastics 17.7% 12.7% and articles thereof The rates of immovable property tax, land tax and land rent are approved by decisions of Sumy — products of chemical City Council. 2.7% 27.3% and related industries The base estimate The land tax rate for 2020 does not exceed 3% of 1 m2 — 218.36 UAH of the normative monetary value of the land. in accordance with the normative The amount of land rent — the annual amount monetary value of the lands of payment can not be less than the amount of The volume of direct investment in the city of Sumy, specified land tax and does not exceed 12% of the normative in the city economy in the Decision of Sumy City Council monetary value. (as of 31.12.2019) dated May 6, 2015, No. 4307-MR The tax rate on immovable property other than “On approval of technical the land plot in the amount that does not exceed documentation on the normative 0.6% of the minimum wage established by law 108.2 monetary value of lands on January 1 of the reporting (tax) year, per 1 m2 mln. USD in the city of Sumy” (for residential property) and does not exceed 1.5% The share of the city in the regional (for non-residential property). indicator – 54.6% 14 15 Successful investment stories Promising investment projects

planned for implementation in the city of Sumy project Reconstruction of the KCl supply unit during the production of NPK 10:26:26 in the WCMF I turn project Reconstruction of sewage local treat- General volume of investments ment facilities (LTF) of closed type with a PJSC capacity of 75 m3 per day, with the reuse of of one's own funds 435.4 ths. USD "Sumykhimprom" return water for technical needs at the en- of borrowed funds the purpose of the project – terprise "KUSUM PHARM" in Sumy, street Improving the quality of mineral fertilizer granules Scriabin, 54 General volume of investments LLC project of one's own funds 300.0 ths. USD Reconstruction of the white filtration unit "Kusum Pharm" LLC "Gualapack Ukraine" of borrowed funds for the production of titanium dioxide with the purpose of the project – 23.8 million USD the installation of a press filter in the WPTD Introduction of technological process of return water purification to the level of technical needs General volume of investments PJSC of one's own funds "Sumykhimprom" 885.0 ths. USD of borrowed funds – project JSC "Technologia" the purpose of the project Establishment of a full cycle Improving the quality of titanium dioxide, reducing energy of production of ethyl alcohol (grain 5.4 million USD consumption rates, reducing losses of HDT Leading enterprises distillate) of the city LLC General volume of investments of one's own funds ths. USD PJSC "Sumykhimprom" (production of "GOROBYNA" 1,500.0 LLC "Kusum Pharm" of borrowed funds phosphoric mineral fertilizers, coagulants, the purpose of the project — 21.0 million USD additives for cement, acids, titanium Production of a new type of product — dioxide, pigments and other chemical grain distillate products) JSC "NASOSENERGOMASH Sumy" (deve­ project lopment and production of pumping Acquisition, modernization, overhaul JSC "NASOSENERGOMASH Sumy" equipment, power units and complex of technological equipment hydraulic systems for industries, power 8.3 million USD engineering, metallurgy, etc.) General volume of investments JSC "NASOSE­N­ERGOMASH Subsidiary Enterprise "Drill Collars and of one's own funds Kellys Plant" (production of drill collars and Sumy" 1,500.0 ths. USD of borrowed funds rotary kellys for drilling operations) the purpose of the project – LLC "Guala Closures Ukraine" Branch "Sumy Dairy Plant" Subsidiary Enter­ Expansion of technological capabilities of production, 5.0 million USD prise "Aromat" (processing of milk, production improvement of product quality of butter, cheese and dairy products) LLC "Construction Industrial-Commercial Company project "Fedorchenko" (construction of multi-storey apartment Reconstruction of municipal sewage treatment buildings, production of building materials) facilities of the utility company “MISKVODOKANAL” PJSC "Sumy Machine-Building Science-and-Production of Sumy City Council LLC "Kerameya" Association" (or PJSC "Sumy NPO") (manufacture of General volume of investments special-purpose machine­ry and equipment) MUNICIPAL ENTERPRISE "MISKVODOKANAL" 15.0 million USD LLC "Guala Closures Ukraine" (manufacture of light metal of one's own funds – OF SUMY CITY COUNCIL packaging) of borrowed funds 12,000.0 ths. USD LLC "Gualapack Ukraine" (production of packaging for the purpose of the project baby food and other food products) Ensuring reliable operation of treatment facilities, increasing environmental safety JSC "Technologia" (production of corking and packing materials) project LLC "Kerameya" (production of clinker ceramic bricks, Construction of a production complex for the processing of plants waste and the clinker stone blocks, ceramic porous blocks) production of fuel briquettes and organic fertilizers on the area of the site for storage of LLC "Kusum Pharm" (production of non-sterile drugs in plants waste on the street M. Lukash, Sumy solid dosage and liquid non-sterile dosage forms for General volume of investments peroral administration) Department of city infrastructure of one's own funds 5.3 ths. USD of Sumy City Council of borrowed funds ths. USD the purpose of the project 4,195.0 16 Processing of plants waste and production of fuel briquettes and organic fertilizers 17 Municipal investment projects International cooperation

epublic a city Projects at the expense of credit funds l R of ats , Bu ra Ge r lg de r V a of the international financial organizations Year of e m ri F a a , n Ministry for Communities parthership y y it c and Territories Development establishment e of Ukraine l

l

Implementation of Energy e C Efficiency in buildings in education 5.2 sector in the Sumy city mln. euro 1990 2000

opolski c lk ity Renewal of the rolling stock ie , R e of the municipal enterprise W p 4.0 - u International "Elektroavtotrans" mln. euro partner b w l i o c

z o

financial Increasing energy efficiency cities r f

P

o

in educational buildings o

G l

a

and donor of Sumy city (KGs №2, 22 n 9.4 d mln. UAH and school №29) organizations The city of Sumy Energy efficient thermal modernisation 2005 with which Sumy City (capital repair) of the in-patient facility constantly (new building, 3-floor building) y, Republic strica ci cit o y ty, of the Communal Non-Commercial f P B S in o lo Council cooperates cooperates l l a v Enterprise "Children Clinical Hospital b a k a n s k u d of St. Zinaida" of Sumy L n R with 10 cities a e p City Council located at: B European Investment u

28 Troitska Street, b l

from countries i 14.7 7 c Bank (EIB), mln. UAH city of Sumy Northern Environmental Modernization and Finance Corporation (NEFCO), reconstruction of the sewage Deutsche Gesellschaft fur Inter­ system in the city of Sumy 2013 2016 na­­tionale Zusammenarbeit (GIZ), i city, eople's y, Peo 1.5 ais Ge y, P Re cit ple' t or it p ji s R European Union (EU), mln. euro u gi c ub u e 0.3 K a g l h p mln. euro n ic Z u Investment grant from the a o b i f l i C c Investment grant from the Neighbourhood x Neighbourhood Investment h o n f Investment Platform (NIP) i i n

C

a

Platform (NIP), X h i n

European Economic Area Grant funded projects a and Norway Increasing energy efficiency Grants Fund in educational buildings 2018 2018 2018 (EEA of Sumy city 1.1 iai city, Re , People's R (EU grant) mln. euro ik pu ity ep e b c ub and Norway z lic n l a i ic Circular-based waste o M f b o Grants Fund) r f management L i a C t h h (EEA and Norway H i u 0.17 n

a

Grants Fund) mln. euro a

n

i a Modernization Partnership: Energy Efficiency in Hospitals 0.3mln. euro 18 (GIZ grant) 2019 2020 19 FOR INVESTORS

Benefits for participants of the Industrial Park: cost minimization for start-up; access to skilled labor and education; convenient logistics and developed infrastruc- ture; simplified procedure for obtaining registration and permit documents in the Center for Providing Administrative Services in Sumy; exemption from payment of import duties for the import of machinery, equipment and parts therefor that are not produced in Ukraine and are not excisable goods imported by participants of industrial parks for economic activities Industrial within the industrial parks; reduction in the bid rent for land; Park "Sumy" benefits for payment of estate tax. Infrastructure of the land plot Initiator of the establishment — Sumy City Council The Industrial Park "Sumy" is located on the territory of the Northern Indus- (Decision dated May 23, 2018 trial Hub. This territory was conside­ No. 3498-MR red as a reserve, and has all the possi- "On approval of the concept bilities for connecting to the existing engineering communications, which of the Industrial Park "Sumy" have reserve capacities for this. and establishment of Industrial Park "Sumy") Transport Infrastructure:

next to the site is the existing The term for which railway track; the Industrial Park "Sumy" in immediate proximity to the site is a paved road of Sumy–Pishchane; was established is 30 years nearby is the classified highway H-07 Kyiv–Sumy–Yunakivka (1.3 km); within the city there is the Airport The total area is 17.5 ha "Sumy" (UMY) — it is possible to accom­ modate cargo aircraft. Cadastral number The territory of the Industrial Park "Sumy" is 5910136600:03:006:0036 designed to locate the enterprises of the IV-V class of harmfulness, which carry out: economic activities in the field of processing industry; scientific research activities; activities in the field of information and Type of land — Green-field (land without telecommunications; buildings). associated activities (administrative organizations, Designated purpose of land: 11.02 for the warehouses, public catering establishments, open location and operation of the main, subsidiary parking for temporary storage of motor vehicles, etc.). and auxiliary buildings, and facilities of enter- As the Industrial Park "Sumy" borders on the prises of the processing, machine-building and enterprises of the 2nd class of harmfulness, it allows other industries. further locating on its territory the production capacities of the enterprises of the 2nd class of harmfulness (subject to making appropriate changes 20 to the urban planning documentation)