INVEST IN IVANO-FRANKIVSK REGION
WHY IVANO-FRANKIVSK REGION 2 LOCATION 3 TRANSPORT 4 POPULATION 5
LABOUR MARKET 6 EDUCATION 6 WORK FORCE 9
R&D LANDSCAPE 12
ECONOMY 15 EXPORT 18 IMPORT 19
FOREIGN DIRECT INVESTMENTS 20
INDUSTRIAL OPPORTUNITIES 25 BUILDING MATERIALS AND TECHNOLOGIES 25 INNOVATIONS AND NANOTECHNOLOGIES 26 RENEWABLE ENERGY 27 VALUE ADDED WOOD SECTORS 28 CHEMICALS 30 MACHINE BUILDING AND ELECTRONICS 31 FOOD MANUFACTURING, AGRY-FOOD, VALUE ADDED AGRICULTURE 32 TOURISM AND LEISURE 33
INVESTMENT PROPERTY 34 REAL ESTATE MARKET 34 INDUSTRIAL SITES 37
LIVING IN IVANO-FRANKIVSK REGION 39
m k 0 0 0 WHY IVANO-FRANKIVSK REGION 2
nd Ivano-Frankivsk region ranks 2 in Ukraine for investment attractiveness in m the «Rating of the Investment Attractiveness of Ukrainian Regions – 2014» k 0 0 5 1 Diverse, skilled and educated employees are a key feature of the region’s labour market. Businesses find it easy to recruit and retain high quality people, and our labour costs compare low with the rest of Ukraine
Advanced education, scientific and innovation platform. Local companies invest significant sums in order to continually bring innovative products and Ireland services to the market United Kingdom London 1901 km A welcoming business environment with competitive costs, friendly infrastructure, and efficient regional governance. Highly competitive rental rates are lower than in many regions across Ukraine
An emerging economy with high investment potential. Multinational companies in electro-technical and machine-building sectors have invested France here. The region is Ukraine’s only producer of ethylene, polyethylene and polyvinyl chloride suspension. Two-thirds of all washing machines in Ukraine are produced in the region
Outstanding quality of life, rich cultural and natural environment, clean and friendly cities, made attractive by combining their quality and cost of living. Ivano-Frankivsk, the regional center, ranks as one of Ukraine’s most livable cities. The City of Kolomyia, the second largest city in the region, ranks as one of Ukraine’s safest cities Madrid 2506 km rd Portugal 3 region-leader in the tourism sector in Ukraine. Ukraine’s biggest mountain ski resort located here. Region can host number of tourists which is in Spain 5 times more than its population Finland Norway Helsinki Sweden LOCATION m Oslo 1491 km k 0 1799 km 0 Stockholm 0 2 1492 km
Estonia
m Latvia k 0 0 5 1 Denmark Moscow Copenhagen Lithuania 1201 km 1405 km m k Belarus Hamburg 0 Gdansk 0 Russian Federation 1320 km 0 858 km 1 Minsk Poland 750 km Netherlands Warsaw Rotterdam 519 km 1735 km 0 Antwerp 0 1758 km Germany 5 Brussels Kyiv Belgium 1517 km 574km Luxembourg Prague 902 km Czech Republic Paris Slovakia Ivano-Frankivsk Ukraine 2014 km Vienna Moldova 822 km Budapest Austria 509 km Odessa Switzerland Hungary 828 km Slovenia Romania Croatia
Bosnia and Herzegovina Bucharest 511 km Italy Serbia Black Sea Bulgaria Montenegro Sofia Rome 783 km 1403 km Albania
Ankara Greece 1211 km Mediterranean Sea Turkey Athens 1303 km Syria TRANSPORT Ivano-Frankivsk region is located at the crossroads of three national routes: H18, H09, and H10. All H-routes are connected to the European motorway E50. The region is close to the international highway M06. From Kyiv to Lviv M06 is part of the E40 H09 (Calais-Ridder), from Lviv to Mukacheve – E471 T1417 on which from Stryi (Lviv Region) to Uzhhorod M06 Rogatyn also follows E50 (Brest-Makhachkala), and then М12 М12 from Uzhhorod to the Hungarian border by E573 Lviv Е 50 Е 50 (Puspokladany-Uzhgorod), heading Budapest. Košice The European route E50 (France – Russia) passes Krakow through the north of the region, linked with the Dresden motorways E40 (Venice - Kyiv) and E85 (Baltic Sea - Black Sea) H09 H10 T0910 T0903 T1419 Galych Bolekhiv H10 Kiev T0911 Kalush P20 Donetsk
Dolyna Yamnytsya H18 Rozhniativ Ivano-Frankivsk T0902 Tysmenytsia Tlumach Bogorodchany P21 T0906 P20
H09 P38
H10 Gorodenka
Nadvirna P24 Kolomyia motorways T0906 T0905 P20
railways H10 aeroport Yaremche Sniatyn P24 customs service T0909 Bucharest Kosiv H09 Chisinau P24 There is an international airport P24 located in the regional center, Ivano-Frankivsk, which can accommodate almost all types of 4 aircraft Verkhovyna P62 POPULATION
Population, in thousand persons as of January 01, 2014 1,4 million population
Rogatyn comparable to Upper 3,1% Estonia 42,5 the population of Austria
Galych 4,4% Kalush 60,9 4,3% Bolekhiv 60,1 Prague Munich Sofia Milan 1,6% Ivano-Frankivsk 21,6 17,8% Tysmenytsia Kalush (city) 245,6 4,9% 6,0% Dolyna 67,5 83 5,1% Rozhniativ 69,8 5,3% Tlumach 73,4 3,5% Bogorodchany 48,5 5,1% Kolomyia Gorodenka 70,1 7,3% 4,0% 54,8 Nadvirna 100,3 8,3% 115,3 Kolomyia (city) The BIGGEST cities 4,4% Yaremche 61,3 Sniatyn 1,6% 4,8% Dolyna Kalush 22,8 65,9 20,7 67,5 Kosiv thousand persons thousand persons 6,4% 88,5
Verkhovyna 2,2% 30,2 Kolomyia Ivano-Frankivsk (city council) 61,3 245,6 thousand persons thousand persons
th The region ranks 5 for natural growth rate in Ukraine
Burshtyn Nadvirna Bolekhiv (city council) Yaremche (city council) 15,3 22,2 21,6 22,8 thousand persons thousand persons thousand persons thousand persons
5 LABOUR MARKET EDUCATION
22 22 In 2013, the number of students was In 2013, the number of graduates universities vocational colleges 56 000 persons was 18 300 persons and technical schools
6% of working age population are students
The LARGEST Universities are: The education system of the Ivano-Frankivsk region is strong in vocational and higher education, providing a large number of highly- skilled workers to the labour market
Vasyl Stefanyk
A Ω Precarpathian National 1940 University The National Technical University of Oil and Gas is a member of the International Association of Oil and Gas Universities and the only 18 700 students University in Ukraine that focuses on training professionals for the oil, transportation, and energy sectors
Ivano-Frankivsk National Technical University of Oil Population of age 6 and older per education level, 2013 (%) and Gas 10 000 students Higher education 33,7% Vocational education, 21,0% Complete secondary education, 18,3% Basic secondary education, 10,0% Ivano-Frankivsk Medical Primary secondary education, 10,0% University Under primary secondary education level and illiterate, 7,0% 6 000 students
6
Graduate Specialties, 2013 Foreign languages in higher education, 2012
Engineering and natural sciences, 25% English, 58% Social sciences, business and German, 20% law, 21% Polish, 11% Humanitarian sciences, art, education and medicine, 43% French, 7%
Other specialties, 11% Russian, 4%
Number of graduates and students in higher educational institutions, 2013
Specialties Students Graduates Over 85 specialties are offered by regional vocational colleges and technical schools Total 43 655 12 075 for future employment in industrial manufacturing, Social sciences, business and law 9 017 3 293 the automotive sector, agriculture, construction, trade, Engineering and advanced technologies 7 974 2 024 hospitality, transport, and communications Medicine, healthcare and veterinary 7 620 1 396 Pedagogics/Education 5 719 1 715
Humanitarian sciences and art 5 771 1 668
Natural sciences 2 888 705 Service sector 1 910 512 Transport 819 218 Agriculture, forestry, fishery and processing 700 231 Construction and architecture 647 186 Geodesy and land management 590 127
8 WORK FORCE
The work force comprises 165 000 people are employed 70 000 people are employed in over 607 000 people in SME sector (2013) manufacturing sector (2013) (563 thousand people were employed and 44 thousand people were unemployed in 2013)
Total employment, thousand people Labour productivity, GRP per person employed, USD/person
584,7 7451 2000 562,7 6393 2012 541,9 548,5 2013 535,7 528,9 530,3 5195 522,5 511,7 4333 4286 4881 3683 4147 2686 473,2 2004
Population age structure, 2012 Unemployment rate (ILO), % 12,8
11,9 12 Working-age population, 69% 10,5 10,2 2000 9 Population ages 65 8,8 8,7 and above, 17% 8,3 8,2 7,9 Population ages 8 7,9 7,2 0-14, 14% 2013
9 Total employment by economic sectors, 2012
20,0% Retail and repair, hospitality services
9,7% Education
7,1% Health and social care Agriculture, hunting, forestry, fishing, 27,4% 4,9% Other types of economic activities Industry, 12,8% 4,4% Public governance Construction, 4,5%
3,3% Real estate transactions, engineering and other services Transport and communication, 4,9% 1% Financial activities
Employment by industrial sectors, 2013
13,3% Food and beverages 10,1% Rubber and plastic products Wood and paper processing 7,9% industry, polygraphy Processing industry, 57% 5,8% Chemical industry 4,8% Textile and leather products Distribution of electricity, gas, steam and conditioned air; 3,8% Other industries water supply; sewerage, waste Motor vehicles, trailers and other transport 3,7% equipment management, 30,8% Coke and refined petrolium products 2,6% Mining and quarrying, 12,2% 2,5% Basic metals and fabricated metal products 2,5% Furniture manufacturing
10 The nominal wages in Ivano-Frankivsk region Average monthly nominal wages by economic sectors, represent a genuine competitive cost advantage 2013 (USD)
Nominal wages according to the UNECE Statistical 339 Economy in total Division Database, 2012 (USD) 503 Finance and insurance Finance and insurance 1 Belgium 4 606 420 Public administration and defence; 2 Germany 3 771 409 Compulsory social insurance 3 Croatia 1 328 401 Transportation and storage 4 Czech Republic 1 326 370 Industry* 5 Slovakia 1 275 326 Professional, scientific and technical activities 6 Estonia 1 140 324 Education 7 Hungary 1 114 308 Agriculture, forestry and fishing 8 Poland 1 083 299 Information and communication 9 Russia 870 278 Arts, entertainment and recreation 10 Belarus 449 263 Health and social care 11 Georgia 432 251 Accommodation and food services 12 Ukraine 379 243 Wholesale, retail and repair Ivano-Frankivsk region of Ukraine 232 Administrative and support services 340 USD (average monthly salary) 217 Construction 13 Moldova 287 163 Real estate transactions Other services
Employees structure by monthly nominal wages, * Mining and quarrying; processing industry; distribution of electricity, gas, steam 2013 (%) and conditioned air; water supply; sewerage, waste management
40 in all sectors 24,5 in industry 27 26 17 As of January 1, 2013 - 52 persons in average in Ivano- 21 Frankivsk region (10 persons in average in Ukraine) 8,5 8,5 claimed for 1 vacancy. The same index as of January 13 11 1, 2012 constituted 39 persons in average in Ivano- 2 Frankivsk region and 8 persons in average in Ukraine
143 - 250 251 - 375 376 - 500 501 - 625 626 - 1250 more than USD USD 1250 11 R&D LANDSCAPE pharmacy
alternative energy Value of completed R&D projects, thousand USD
R&D SECTORS 8945,6
heating 11,1 energy and systems 10,9 8283 alternative generation electrics 6227,5 storage devices
machine 9,5 nanotechnologies 9,8 building 9,4 9,1 oil and gas applied exploration and technologies 8,2 8,5 transportation 2005 2012 Value of scientific and technical projects Value of scientific and In 2012, the number of technical projects per professionals with scientific 1 scientist degree employed in the economy comprised Number of organizations and employees involved in innovation performance 1 921 professionals 1157 with scientific doctorates
The most of the R&D projects in 899 2012 were achieved with private 27 funding, of those 41% were in scientific and technical services and one-third concerned new developments and technologies 23 23 th 8 position in 22 Ukraine for quality of scientific 21 21 21 21 research institutions in 2005 2012 Ukraine regions’ Number of employees in research competitiveness organizations rating 2013 Number of research organizations
12 Share of companies involved in innovation 21,4% of industrial companies in 2013 were engaged in innovation performance performance in the regions of Ukraine, 2013 28,8% Zaporizhia region The share of innovative companies in Ivano-Frankivsk 25,6% city of Kiev region ranks above the average in Ukraine 16,8 % 24,9% Mykolaiv region
23,6% Kherson region The most receptive to innovations were chemical and petrochemical, machine building, food and beverages 23,2% Kharkiv region industries 21,4% Ivano-Frankivsk region th 20,7% Chernivtsi region 7 position in Ukraine for capacity for innovation in Ukraine regions’ competitiveness rating 19,4% Vinnytsya region 2013 18,3% Kirovograd region
18,2% Khmelnytskyi region Over of industrial companies involved in 80 % 8% 264,6 innovation performance introduced the innovations into manufacturing in 2013
76 % of industrial companies involved in innovation performance supplied the innovative goods and services Total public and private R&D to the market expenditure, million USD
600 titles of innovation products and 65,1 65,3 124 new technological 53,0 45,1 25,8 19,3 processes have been introduced in 2010-2013 11,2
2005 2012 Regional R&D expenditure has tripled over the past 10 years
13
ECONOMY
Sound and diversified The gross regional product (GRP) in 2012 amounted to USD 4 087 million economic base (share in the national GRP – 2,2%)
Ivano-Frankivsk region is part of the Carpathian Dynamics of gross regional product and gross economic region of Ukraine added value
3386 Gross regional product, million USD 2783 Main economic sectors: 2588 2322 2950 2263 2182 2482 1924 2345 industry 1990 2062 1980 1379 1717
1276 agriculture Gross added value, million USD tourism 2004 2011 construction Industry dominates in the regional economy with a share of 40% of total goods (works, services) produced transport
Industrial manufacturing in the region comprises almost communications 1 300 companies with 45 thousand employees
Over the past 10 years Ivano-Frankivsk region has recorded steady economic growth
15 16 Structure of regional gross added value, 2011 14,3% Retail and repair
9,4% Transport and communications Agriculture, hunting and forestry, 12,7% 7,5% Education Real estate transactions, engineering and Mining industry, 11,4% 5,6% other services to businesses 5,4% Public governance Manufacturing industry,10,0% 4,3% Health and social care Energy, gas, water production and distribution, 8,6% 3,9% Financial activity 2% Utilities, culture and sports Construction, 4,2% 0,7% Hotel and restaurants
Structure of industrial output, 2013 12,4% Food and beverages
11,2% Wood products, paper industry and Manufacturing industry, 43,8% polygraphy
9,7% Rubber and plastic products Electricity, gas supply and water distribution, 45,0% 4,2% Chemicals and petrochemicals Mining industry, 11,2% 2,8% Machine building 3198,6 3,5% Other industries 3046,3
Dynamics of industrial production, million USD 2593,2 2013 2325,7
2095,6
1737,9 1604,5 1467,1 1416
1125,1 2004 17 EXPORT
Exports in 2013 were worth a total of
USD 472 million 23% Almost half of exported goods were supplied to European countries, one- third to the CIS and one-fi fth to Asia Russian Federation
12% 7% 6% 6% Machines, Timber and Live animals, equipment and wood products animal products mechanisms USD 76,8 mln USD 58,9 mln Romania Jordan Italy Germany USD 95,5 mln 16,3% 12,5% 20,3%
USD mln % 5% 4% 4% Pulp of wood and other fi brous cellulosic 51,9 11,0% materials Czech Republic Belarus Republic of Moldova Polymeric materials, 41,9 8,9% plastic products Chemical industry 34,0 7,2% Other countries Other CIS countries products Other EU countries Other Asian countries Textile 27,1 5,7% Leather, products from 1% 22,5 4,8% 17% leather and fur Other 63,1 13,3% 5% 10%
18 IMPORT
Exports in 2013 were worth a total of
USD 472 million 23% Almost half of exported goods were supplied to European countries, one- 11% third to the CIS and one-fi fth to Asia Russian Federation Imports in 2013 were worth a total of 17% Poland
USD 578 million 12% 7% 6% 6% Machines, Timber and Live animals, Almost 70% goods were supplied from EU 10% equipment and wood products animal products countries. 15% of goods were imported mechanisms USD 76,8 mln USD 58,9 mln from Asia and 11% from CIS Romania Jordan Italy Germany USD 95,5 mln 16,3% 12,5% Germany Russian Federation 20,3%
USD mln % 5% 4% 4% Pulp of wood and Machines, Polymeric Chemical other fi brous cellulosic 51,9 11,0% equipment and materials, industry 8% 7% 5% materials mechanisms plastic products products Czech Republic Belarus Republic of Moldova Hungary Italy United States Polymeric materials, USD 139,6 mln USD 123,7 mln USD 107,2 mln 41,9 8,9% plastic products 24,1% 21,4% 18,5% Chemical industry 34,0 7,2% Other countries Other CIS countries products USD mln % Other countries Other CIS countries Other EU countries Other Asian countries Other EU countries Other Asian countries Textile 27,1 5,7% Pulp of wood and other fi brous cellulosic 52,8 9,1% Leather, products from 22,5 4,8% materials 1% leather and fur 0,5% 17% Non-precious metals 25% Other 63,1 13,3% 42 7,3% 5% and products 1,5% 10% Textile materials and 15% 30,4 5,3% goods Surface transport vehicles, air- and 24,4 4,2% fl oating crafts Other 58,1 10,1%
19 FOREIGN DIRECT INVESTMENTS
In the last ten years, the region’s inward FDI stocks Major investors in 2013 were from: have grown ten times to reach an amount of more
than USD 813 million in 2013
USD 590 FDI stock per 38,5% 28,5% capita recorded as of January 01, 2014 Cyprus Netherlands 90% of the total investments originate from 24 EU countries
5,1% 5% 5% Resident companies from 53 countries have invested in the region Denmark Serbia Poland 80% (USD 645 million) inward FDI stocks were placed in industry sector
17,9% 435 companies with FDI projects
1/3 part of industry FDI stock falls to chemical sector Other countries
In 2010, when we made decision to purchase a factory in Ivano-Frankivsk I was the first from the company who visited Ukraine. One of the reason why Electrolux decided to invest here - is your region. Precisely, its special investment climate, which is being considered quite good. Of course, each investment project – is a challenge. When I came to my boss and asked for a few millions of Euro to invest into the deal, he asked me: «Ernesto, do you believe that factory in Ukraine will work, produce and sell products?». I answered yes. Today’s event actually proves this. We see qualified and capable work force, local authority officials, who are ready to assist us, and the products being manufactured
Ernesto Ferrario Senior Vice President of Electrolux during plant opening in Ivano-Frankivsk in 2011
20 Whether companies are looking for access to regional centers, a business-friendly environment, a growing economy or stability, investors who set up operations in Ivano-Frankivsk region will benefit from undeniable competitive advantages!
21 FDI projects share by sectors as of January 01, 2014
33% Food products, beverages
29% Chemicals and chemical products Manufacturing industry, 77% Rubber and plastic products, other non-metallic 7% mineral products Agriculture, foresty and fishing, 12,3%
3% Textile and clothing Construction, 3,6%
3% Wood products, paper and polygraphy Other, 7,1%
2% Other processing industries
Investment projects in Ivano-Frankivsk region’s economy were made by investors from 53 countries, the vast majority of which were EU countries. Key FDI sourcing countries, except Cyprus, whose share in FDI stock was the biggest in 2013, were the Netherlands, Denmark, Serbia and Poland
In 2013, as in previous periods dominated «industrial» investments. Specifically, investment projects in processing industry sectors took ¾ of all FDI
Major Investors to the region: Electrolux Sweden USA Switzerland France Netherlands
ANOSHA
Poland Denmark Cyprus Poland United Kingdom
Austria Germany Serbia Hungary Russian Germany Federation
22 23
INDUSTRIAL OPPORTUNITIES BUILDING MATERIALS AND TECHNOLOGIES
Rich deposits of zeolites stone salts, kaolin, Rogatyn ceramic clay, raw materials for bricks and tiles 25 types of minerals
st 224 mines 1 position among other regions of Ukraine in the number of salt deposits. The Galych reserves are yet to be developed Bolekhiv Kalush
rd Dolyna 3 position in Ukraine in Rozhniativ ІVANO-FRANKIVSK producing cement raw materials Tysmenytsia (11% of Ukraine’s cement production Tlumach output) Bogorodchany
Nadvirna Gorodenka
Kolomyia The main leaders of the region’s Yaremche building materials production: Sniatyn
JSC «Ivano-Frankivsktsement» - Kosiv the biggest cement plant in the region producing cement, roofing materials,
asbestos cement pipes, gypsum and Verkhovyna gypsum medical bandages
LLC «3 Betony» – manufacturer of unique reinforced concrete construction for modern shopping centers Natural gas Phosphorite and bridges Oil Gypsum
Peat Potassium salts Mineral water LLC «Budmaterials» – manufacturer of bricks and building Mineral salt materials spring Glass-making Brown coal sand Sandstones Ozocerite
Sulfur
25 INNOVATIONS AND NANOTECHNOLOGIES
Innovation infrastructure: 600 innovation products introduced in 2010-2013 Research and training center of National Academy of Science of Ukraine «Physics, chemistry and nanotechnology», Vasyl Stefanyk Precarpathian National University Development and improvement of technologies 124 new technological of growing crystals, films and nano-based semiconductor compounds II-VI and IV-VI, processes introduced in 2010-2013 competitive materials for thermoelectric energy converters and devices of the infrared technology
th Research and Education Center “Nanomateria’s 7 position in capacity for innovations in in generating devices and energy storing”, Ukraine regions’ competitiveness rating 2012 Vasyl Stefanyk Precarpathian National University Application of nanotechnology and nanomaterials in technology sources and energy storages, optimization of the morphology of th nano-porous carbon materials, development of in quality of scientific research 8 position new magnetic nanomaterials, new nanomaterials institutions in Ukraine regions’ competitiveness rating of sensitized solar cells, supercapacitors and 2012 lithium electrical energy sources
National contact points (NCPs) of the EU Oil and Gas Sci-Tech Park, Seventh Framework Programme for Ivano-Frankivsk National Technical University of Oil and Gas Development, production and speeding «Nanotechnologies, advanced materials and up to implement new both domestic and advanced manufacturing and processing», Vasyl foreign science- based, energy saving, and Stefanyk Precarpathian National University environmentally friendly technologies and technical means of search, production, «Secure, clean and efficient energy», Ivano-Frankivsk transportation, storage and processing of National Technical University of Oil and Gas petroleum products and gas
26 RENEWABLE ENERGY
The technically feasible renewable power capacity in Mountainous terrain provides the region with one of the the region accounts for maximum 4,5 million tons strongest wind resource in Ukraine. The average wind speed of oil per year including potential of energy plants of is almost 5,5 m/s. The wind energy potential capacity of 1,6 maximum 2,8 million tons of oil (UNDP Report, 2013) GW•H per year equal to 270 thousand tons of oil Specific potential of solar radiation in the region (1 Technically feasible renewable energy potential, 200 -1 300 KWT*hour/m2/year) is higher than the thousand tons of oil equivalent (UNDP Report, 2013) Wood and average in Germany, solar energy development leader 330-770 agricultural in EU (UNDP Report, 2013) waste biomass 200-1 100 Energy crops Renewable energy generating company: 270 Wind energy Solar power plant «Stari Bogorodchany-1» - 180 Geothermal energy installed capacity of 2 802 kW and annual electricity generation capacity of 2 957 KW 130 Solar energy per hour (12 320 units of photo voltage 97 Hydro energy modules) Solar power plant «Gelois-Energy» - installed capacity 3 993 KW The share of hydro energy potential of small rivers Sectoral tax incentives: The national law of Ukraine foresees numerous tax incentives in accounts for of Ukraine’s total 10% terms of Corporate Income Tax, VAT/Customs Duties and Land Taxes for renewable energy generating companies Please, see www.investin.if.ua for details Green tariffs in Ukraine* (fixed minimum green tariffs depending on the type of renewable energy sources)
Types of renewable energy source (RES) Green Tariff, EUR/MWh (exclusive of VAT) Electricity produced by Installed capacity below 600 kW (inclusive) 64,6 generating units from Installed capacity above 600 kW but below 2000 kW (inclusive) 75,4 Wind Installed capacity above 2 MW 113,1 Electricity produced Ground-mounted generating units 465,3 from solar sources Rooftop units with installed capacity above 100 kW 445,9 Rooftop units with installed capacity below 100 kW (inclusive) and units installed 426,5 on the front of buildings (irrespective of generating capacity) Electricity produced by small hydroelectric power plants (with generating capacity not exceeding 10 MW) 77,5 Biomass plants 123,9
*Green tariffs are established in Ukraine until 01.01.2030 and are reviewed by the National Energy Regulatory Commission of Ukraine on a monthly basis with a guaranteed «minimum floor» set in EUR. Green tariffs will be decreased for renewable energy sources units commissioned or substantially modernized in 2014, 2019 and 2024, by 10%, 20% and 30%, respectively, from the current rates specified above
27 VALUE ADDED WOOD SECTORS
Ivano - Frankivsk region is a heart of Ukraine’s forests The main leaders:
«Krono - Ukraine» - producer of furniture polished slabs, laminated slabs, countertops and OSB/3 slabs 45 % of region’s territory is covered with forests (635,4 ha) LLC «Solid - Ukraine» - producer of wood and wood materials like wood parquet, wood 10 % of Ukraine’s wood stock (over 162 million briquettes and stairs m3 including in mature and overmature stands - 19,0 million m3). Overall average annual growth of wood - 2,5 million m3 (4,4 m3 per 1 ha of forested area) LLC «Woodexport» - producer of recycling lumber on the initial and secondary stages, wooden containers and lumber drying
41% of Ukraine’s chipboards production Private Enterprise «Firma «Collector» - producer of slabs /parquet/parquet boards, planks and 3 friezes for parquet flooring Timber harvesting accounts for 1 375 700 m LLC «Uniplyt» - manufacturer of high-quality wood-based products: fiberboard, painted fiberboard in various range of colors and The volume of goods, works and services of forestry textures; 3D painted fiberboard, plywood (both moisture resistant and waterproof), timber and accounts for USD 45 million packaging materials
28 29 CHEMICALS
Chemicals and chemical products accounted for The main leaders: 4,2% of region’s industrial output in 2013 (USD LLC «Tarkett Vinisin» - manufacturer of 107,7 million) carpets, linoleum, synthetic fibers
Exports of chemical products reached LLC «KarpatSmoly» - manufacturer of urea- formaldehyde glue of modern technical and USD 34 million in 2013 technological level
FDI in the manufacturing of chemicals and chemical LLC “Kalush Pipe Plant” belongs to PolyPlas- products reached an accumulated tic group, which is a leader in the develop- ment and manufacture of polymeric pipes USD 232 million in 2013 and engineering plastics. The company produces high quality polyethylene pipes for water and gas supply, as well as PVC pipes for sewerage and plumbing systems. Annual capacity - 10 tons of plastic pipes 53% of Ukraine’s production of plastics in primary forms
State company «Kalush Test Experimental Plant of the Institute of Surface Chemistry” National Academy of Sciences of Ukraine - Ivano- Frankivsk region is the only Ukraine’s manufacturer of pyrogenic silica (silicon di- producer of ethylene, polyethylene, polyvinyl oxide) of standard grades. The only Eastern chloride suspension and tufted surface European producer of its modified forms (high-tech products). Research and ad- vance technology development in the field of special ultrafine inorganic substances for the manufacturing of advanced composite City of Kalush is a regional leader in the chemical industry materials, polymers, rubber and resins
30 MACHINE BUILDING AND ELECTRONICS
USD 155 million of FDI stock for The main leaders: 2008-2013 Production Association «Karpaty» – well-established manufacture operating in electronics sectors, producer of cables and wires for cars (Skoda, Volkswagen, Mercedes), LED lightning products and projects, energy 1 500 new work places efficient solutions created in 2008-2013 Elektrolux Ukraine – branch factory of multinational company, manufacturer Electrolux of automatic washing machines under trade marks Electrolux and Zanussi
Tyco Electronics - over EUR 60 million investment project of multination 65% of all automatic washing machines in Ukraine company launched in 2008, producer are produced in Ivano-Frankivsk region of electro cable products for automobile industry
Microl - a new look at the world of A qualified workforce exists for precise engineering modern technologies and applications and advanced technologies. Ivano-Frankivsk National in the design and manufacture of Technical University of Oil and Gas trains specialists automation of manufactured products, in electrical engineering, automation and computer efficient supply of energy resources, integrated technologies, mechanical engineering and energy conservation, applied maintenance of mechanical building productions technologies
31 FOOD MANUFACTURING, AGRY-FOOD, VALUE ADDED AGRICULTURE
The main leaders: nd 2 place in Ukraine for agricultural output LLC «Imperovo Foods» - manufacturer per 100 ha of agricultural land, 2013 and supplier of high-quality egg products, fermented protein (albumen) powder. The USD 708 million gross agricultural output largest Ukrainian egg-products exporter USD 328 million gross crop production LLC «Grain-processing company «UMAS» – USD 380 million gross livestock production producer of wheat flour under the brand name «Albinos» JSC «Production and Trade Confectionary st 1 place in Ukraine for gross livestock Firm «Lasoschi» – manufacturer of production per 100 ha of agricultural lands, 2013 confectionery products: pralines, lollipop caramel with fillings, churned and jelly glazed candies, sweets in gift boxes Share of food and beverage production accounted for LLC «Danosha» - Ukrainian pig farming 12,4% of industry output company with Danish investments, a sister company to Poldanor in Poland: animal and
ANOSHA plant production, breeding of healthy low-fat pigs with high growth, good feed conversion 795 agricultural enterprises and farms recorded and high fertility, based on Danish breeding material Company «Kniagynyn»- a renowned Agricultural land cover 630,9 ha in 2013 including: Ukrainian producer of alcoholic beverages like «Horilka» and liquors
arable land - 62% (392,9 ha) Sectoral tax incentives: pastures - 20% Qualified agriculture producers in Ukraine are subject to particularities in (128,2 ha) taxation, under which: • Corporate Income Tax is being paid on the basis of reporting period of hayfields - 13% a year (not on a quarterly basis) (83,6 ha) • Amount of corporate income tax due is reduced by the amount of other – 5% land tax paid • Special taxation of VAT – exempted fully or in part from VAT payments, (26,2 ha) accounted on the value of agricultural goods/services sold • Fixed agricultural tax – exemption from number of obligatory taxes and duties (Income Tax, Land Tax etc), simplified system of accounting and reporting
32 TOURISM AND LEISURE
Tourism is one of Ivano-Frankivsk region’s key sectors The main leaders: Tourism and leisure industry sales accounted for
USD 29,5 million of tourism expenditures in 2012
8,2 million tourists - annual accommodation capacity The tourism industry encompasses a wide range of The biggest in Ukraine mountain ski resort attracts over market segments with their breadth of motivations and 1 million visitors annually needs. There is considerable scope for more tourism investment in accommodation, attractions, transport and 869 facilities of historical heritage tour operations 99 places of nature heritage
1 443 places of architecture heritage
124 museums
1 490 archeological places
UNESCO World Heritage Sites – Holy Spirit Church in Rogatyn and the Blessed Virgin Mary Nativity Church in the Nyzhniy Verbizh of Kolomyia district
Local government investments in tourism and infrastructure projects: • Road construction to the state border with Romania for vehicles of 3,5 tons carrying capacity and border pass infrastructure • Master planning of two potential mountain resort areas in Vyshkiv and Myslivka in Dolyna district • Vygoda Historic Railway Heritage Center in Dolyna district
Sectoral tax incentives: Profit obtained from the provision of hotel services in hotels with 5*, 4*, 3* is exempt from Corporate Income Tax until 01.01.2021 33 INVESTMENT PROPERTY REAL ESTATE MARKET
2 of new residential property have Competitive prices 4,5 million m for industrial property been commissioned since 2000
2 City of Ivano-Frankivsk took a leading position Office space rent prices, USD per m in Ukraine in commissioning new residential property (m2) per Ivano-Frankivsk 3,9 - 9,1 capita in 2006-2013 Ternopil 3,9 - 10,4 Khmelnytsky 4,5 – 11,7 Lviv 6,5 - 15,8 Dnipropetrovsk 9,1 - 16,9 Odessa 9,1 - 24,7 Kyiv 13,0 - 26,0
Storage facilities rent prices, USD per m2
Ivano-Frankivsk 1,6 - 3,2 Ternopil 1,9 - 3,9 Khmelnytsky 2,3 - 5,8 Lviv 2,6 - 6,5 Odessa 3,2 - 6,5 Dnipropetrovsk 3,9 - 7,8 Kyiv 4,5 - 9,1
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Ivano-Frankivsk Regional Centre for Investors and Development offers unique industry property search facility at www.investin.if.ua
34 brownfields sites with total area of 2 558 502 m2 (255 ha) and 338 887 m2 of industrial space
92 greenfields sites with total area of 13 021 855 m2 (1 302 ha)
Rogatyn 1 1
Galych Kalush 4 3 Bolekhiv 2 6
4 Ivano-Frankivsk Dolyna Kalush (city) 2 Tysmenytsia 4 3 1 1 Rozhniativ 2 3 4 Tlumach 14 Bogorodchany Kolomyia 5 6 Gorodenka 5 1 Nadvirna 8 1 Kolomyia (city) Yaremche 3 5 Sniatyn
Kosiv 4 33
Verkhovyna
36 Dolyna industrial park Kalush industrial park Kolomyia industrial Khryplyn industrial park zone INDUSTRIAL SITES Territory Cities Dolyna (population: Kalush (population: Kolomyia (population: Ivano-Frankivsk city – 20,7 thousand city – 67,5 thousand city – 61,3 thousand (regional center, popu- people, district – people, district – people, district – lation: 245,6 thousand 69,8 thousand people). 60,1 thousand people). 100,3 thousand people) Distance to the regional Distance to the regional people). Distance to Incentives for location within center – 50 km center – 35 km the regional center – the registered industrial 60 km parks in Ukraine: Ownership Communal - Dolyna Communal - Kalush city Communal - Kolomyia Communal - city council council city council Khryplyn village coun- cil, Mykytyntsi village 1. Exemption from import council (city of Ivano- duties on imported Frankivsk), private machinery, equipment and Area (total/usable) 29,4 ha / 27,1 ha free 18 ha (with possibility 33,7 ha / 33,7 ha 612 ha in total, 270 from buildings, the area of extension up to 26 free from buildings, ha available, 30 ha in components is planned to be divided ha) free from buildings, the area is planned to municipal ownership into 6-11 land plots the area is planned to be divided into 5 land 2. Exemption from payments be divided into 3 land plots with possibility to the local infrastructure plots of their fragmentation into smaller 2-2,5 ha development funds (up to 11 land plots) 3. State financial assistance, Industrial facilities preferential loans Proposal concern- wood processing, light large capacity enter- light, wood processing machine building, ing allocation of industry, machine prises, enterprises of and machine building applied technologies, 4. Easy access to the land of industrial facilities building innovation sectors of industries (particularly electronics, con- industry automobile building) struction of building industrial use materials Engineering infrastructure Electricity 0,8 km - transformer 0,05 km - power sta- 0,5 km - substation 0,4 km - industrial substation 110/10 kW tion-220, 250 MW «ZBVK» 35/10 kW in capacity the area– PL-35 kW Water 0,9 km - water pipe 0,01 km - industrial 1,5 km - water pipe- 0,4 km - industrial cap- line, 500 mm diameter capacity water pipe line line, 90 mm diameter acity water pipe line Gas 0,6 km - gas distri- gas pipe line, 159 mm gas pipe lines in the 0,4 km - industrial bution substation, diameter in the area area needs capacity gas pipe line of high (area limit) pressure Transport and social infrastructure Distance to the 0,1 km Motorway 9 km Motorway Ivano- 1 km Motorway N-10 3 km E 85, Baltic Sea – motorway, km Dolyna – Khust Frankivsk – Stryi Black Sea Distance to the 4,1 km Dolyna station, 7 km Cargo station 1,8 km Kolomyia 0,1 km Khryplyn railway, km 0,05 km railway station with customs terminal station station for industrial use Distance to the 69 km - International 45 km - International 60 km - International 6 km - International airport, km airport «Ivano- airport «Ivano- airport «Ivano- airport «Ivano- Frankivsk» Frankivsk» Frankivsk» Frankivsk» Distance to the 0,5 km 2 km 1,5 km 2 km residential area Custom points Custom point «Dolyna» Custom point «Kalush» Custom point Custom point «Ivano- «Kolomyia» Frankivsk - central»; international crossing point for air connec- tion «Ivano-Frankivsk»
THE BEST REGION TO LIVE in Ukraine LIVING IN IVANO-FRANKIVSK REGION
Traditional cultural environment Housing and lodging available at low rent price Gorgeous Carpathian landscapes, pristine air, and crystal rivers have nourished generations of truly The average rent price in the city of Ivano-Frankivsk, generous people. Wherever you go, you will be 2013 (USD) welcomed as dearest guests, feel the magic of the local traditions experienced through the local foods, the crafts For studio apartment - 131- 265 and the magnificent landscape. For 1 bedroom apartment - 195 - 398 Languages spoken in the region: Ukrainian, Polish, For 2 bedroom apartment - 265 - 531 Russian, English, German
Comfort and safety Regional center, the city of Ivano-Frankivsk, ranks as «THE BEST LIVABLE CITY IN UKRAINE» (Focus Magazine rating, 2007-2012)
City of Kolomyia ranks as «THE SAFIEST CITY IN UKRAINE» (Focus Magazine rating, 2013)
39 40 Quality school education Reliable healthcare
386 Pre-schooling establishments th 6 position in Ukraine for the quality of healthcare (Ukraine regions’ competitiveness rating 2012)
745 Secondary schools nd 2 position in Ukraine for the average life For families with kids there are various children expectance (years at birth) development centers available at reasonable prices: (Ukraine regions’ competitiveness rating 2013) private sport sections, dancing schools, Lego clubs, summer camps, and different art development studios
15 private clinics located in the regional centre, city of Ivano-Frankivsk
City life Local restaurants range from upscale European to traditional Hutsul restaurants. In any case, the price is High-quality health services are provided by local most low compared to the taste and quality of dishes respected hospitals Authentic handmade souvenirs and stylish local brands can be purchased on the traditional markets in Kosiv and Yaremche, as well as in shopping malls 108 nurses for 10 thousand of inhabitants and boutique shops in Ivano-Frankivsk and Kolomyia 63 doctors for 10 thousand of inhabitants Night entertainment, theatres and cinemas are at your 272 of medical establishments convenience and choice in bigger cities 85 hospitals
41 Holiday opportunities Fresh air, beautiful landscapes, gorgeous mountains create unforgettable atmosphere for our guests to relax. You can choose from diverse accommodation options: boutique hotels, mountain resorts, spa and wellness facilities, B&B, self catering and private cottages. If you choose to visit private households of hospitable highlanders, you will be able to rest in the centres of wild nature, get acquainted with the environment and taste traditional home-made dishes cooked from eco-friendly ingredients
Popular outdoor tourist activities: relaxation and professional walking, wild life watching, cycling, skiing, horse riding, rafting, spa and wellness relaxation, crafts and cooking classes and many others
For kids this may be the first experience of learning about wildlife by observing birds, animals and even insects in their natural environment – mini zoo with the Carpathian national nature park in Yaremche. Make sure you bring your entire family here; your children will appreciate it!
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Hungary-Slovakia-Romania-Ukraine The Programme is co-financed ENPI Cross-border Cooperation Programme by Europian Union
This publication has been prepared within the project “Local development and preconditions for border pass opening and motorway construction across the Ukrainian-Romanian state border in Shybene Verkhovyna district Ivano-Frankivsk Oblast of Ukraine and Poenile-de-Sub-Munte Maramures County of Roma- nia”, which is implemented under the Hungary-Slovakia-Romania-Ukraine ENPI Cross-Border Cooperation Programme 2007-2013 (www.huskroua-cbc.net) and is co-financed by the European Union through the European Neighborhood and Partnership Instrument. The European Union is made up of 27 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. The European Commission is the EU’s executive body. The Hungary-Slovakia-Romania-Ukraine ENPI Cross-border Cooperation Programme is to be implemented in the period of 2007-2013 on the external border of the participating EU Member States with Ukraine. The European Neighbourhood and Partnership Instrument supports cross-border co-operations on the external borders of the EU. The overall objective of the Programme is to intensify and deepen cooperation in an environmentally, socially and economically sustainable way between Zakarpatska, Ivano-Frankivska and Chernivetska regions of Ukraine and eligible and adjacent areas of Hungary, Romania and Slo- vakia. The Joint Managing Authority of the Programme is the National Development Agency, Hungary. The website of the Programme is www.huskroua-cbc.net
Invest in Ivano-Frankivsk Region, 2014 – 44 pages. 4000 copies. Distributed free of charge © Agency for private Initiatives Development © Ivano-Frankivsk Regional Center for Investment and Development ONE-STOP SHOP FOR INVESTORS
INVESTOR INQUIRY INDUSTRY INVESTMENT DEAL PROJECT SITE VISITS AFTERCARE ASSESSMENT ASSESSMENT PROPOSAL FACILITATION LAUNCH
BUSINESS INTELLIGENCE PRE-INVESTMENT SUPPORT SUPPORT IN GETTING AFTERCARE SERVICES STARTED Information supply Business development & • Handling investment Investor visit arrangements Site development support networking inquiries • Visit arrangements • Hard infrastructure • Investment expansion/re- • Sectoral investment • Meetings with local development investment plans opportunities authorities • Business start-up • Update on legislation • Investment projects • Meetings with private • Identification of local changes • Legal & business institutions suppliers and service • Identification of local framework for FDI providers suppliers Location selection services • Feasible project partner • Business networking • Site visits search and contact Research & contacting • HR support • Basic market analysis • Site allocation Troubleshooting • In-depth industry research • Property investigations • Individual troubleshooting • Regional data research • Real estate search Local & central government • Assistance in day-to-day • Study of competitors’ relations operational issues market • Licensing and permits • Liaising with regulators The Ivano-Frankivsk Regional Center for Investment and Development: is an investment promotion unit located within the State Agency for Investment and National Projects of Ukraine. It provides a simplified system of cooperation between Investor, Government and Local authorities through a one- stop-shop format. It is a public vehicle for investors, providing support for accessing business information and legal advice. It provides high quality consultancy in areas of project integration for strategic investors who are considering investing in the Ivano-Frankivsk region of Ukraine. As a voluntary organization, it provides free advice to investors who want the easiest and shortest way to establish a business
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office 655 21 Grushevskogo St 76004, Ivano-Frankivsk Ukraine
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This publication has been produced with the assistance of the European Union. The contents of the brochure is the sole responsibility of NGO “Agency for Private Initiative Development” and can in no way be taken to reflect the views of the European Union.