REGION INVESTMENT PASSPORT Rivne Region State Administration 1, Maydan Prosvity, St. Rivne, 33000, tel.: +38 (0362) 69-52-16 fax: +38 (0362) 26-08-35 e-mail:[email protected] www.rv.gov.ua

InvestInRivne Agency 19, Hetmana Mazepy St. Rivne, 33028, Ukraine tel./fax: +38 (0362) 26-95-65 e-mail:[email protected] www.InvestInRivne.org 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.

1 RIVNE REGION ON THE MAP

DISTANCES FROM RIVNE TO SELECTED EUROPEAN CAPITALS

2,169 km London

1,845 km Brussels

1,131 km Berlin

1,076 km Prague

1,039 km Vienna

794 km Budapest

474 km

Warsaw London Berlin RIVNE

Brussels Prague

Vienna

Budapest

DISTANCES FROM RIVNE TO THE BORDER CROSSING POINTS WITH EUROPEAN UNION

POLAND HUNGARY ROMANIA • Yagodin 202 km • Batyevo 475 km • Porubne 368 km • Malyi Bereznyi 470 km • Ustylug 161 km • Solovka 486 km •  541 km •  481 km • V -Volynskyi. 148 km • Kosyno 436 km •  419 km • Chop 484 km • Rava-Ruska 245 km • Vylok 486 km •  465 km • Shehyni 290 km • Krakivets 277 km • Mostyska 278 km • Khyriv 322 km • Smilnytsya 336 km • Uhryniv 217 km

2 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, , and Ukraine. Sharing its borders with Volyn, Zhytomir, Khmelnitskyi, and regions of Ukraine it also has the national boundary with the Republic of Belarus.

TERRITORIAL SYSTEM PERCIPITATION Regional capital: From 600 to 700 mm a year. • Rivne Mild continental climate with mild winter Administrative structure: and warm summer. • 16 • 4 of regional subordination AVERAGE TEMPERATURE State borders: January: -5.2°С, July: +18.5°С • Republic of Belarus Distance to the EU border: SUNNY DAYS PER YEAR – 70 • 100 km Area of the region — 20.1 thousand km2:

• agricultural land 46% Minsk · Saint-Petersburg BELARUS • forest 40% REPUBLIC Zarichne

DEMOGRAPHICS Population of the region: 1.2 million people: • urban 47 8% . • rural 52 2% .

Sarny Rokytne Key cities: · Warsaw

• Rivne 248 .3 thousand people · Moscow • 38 1. thousand people • 40 0. thousand people VOLYN • 15 .3 thousand people REGION REGION

The birth rate – 14.9 per 1,000 people of the · Warsaw actual population (1st place in Ukraine) RIVNE Kyiv ALTITUDE ABOVE SEA LEVEL — 187 m The peak of the region is 372 m Demydivka Dubno Ostroh Khmelnitsky · ·

KHMELNITSKYI LVIV REGION Regional center State border REGION Ternopil · Bucharest center Regional border Lviv · Krakow · Budapest TERNOPIL District border REGION

3 INFRASTRUCTURE

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 . 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.

MAJOR MOTORWAYS AIRPORT RIVNE International Airport designed for acceptance, International highways: maintenance and dispatching of all the aircrafts with the • Е 4 0 (Brussels – Dresden – Krakow – Rivne – Kyiv) takeoff mass up to 210 tonnes is just two kilometres away • Е 3 7 3 ( – Chelm – Kovel – – Kyiv) from the city of Rivne. The airport embraces an area of • Е 8 5 (Klaipeda – – Dubno – 165 ha. It has one runaway 2,626 m long and 42 m wide. – Bucharest – Alexandroupolis) Throughput: National and regional roads: • passenger traffic — 500 passenger per hour; • Н 2 2 (Ustyluh – Lutsk – Rivne) • freight traffic — 50 tons per day. • Р 0 5 (Horodysche – Rivne – Starokostiantyniv) • Р 2 6 (Ostroh – – Pochaiv – Radyvyliv) • Р 7 6 (“Prykladnyky” chekpoint – Zarichne – Dubrovytsia)

• Р 7 7 (Rivne – – Hoshcha) Minsk · Saint-Petersburg BELARUS REPUBLI RAILWAY NETWORK Zarichne

Rivne region has developed railway network P-05 of public service with the running length of 587 km. Dubrovytsia 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 Volodymyrets in . Zdolbyniv station has direct Sarny Rokytne connection with 9 regions of Ukraine and capitals of such Е373 Kovel · Warsaw Е373 neighboring states as , Belarus and Russia. Kyiv · Moscow Rail junctions: Rivne, Zdolbyniv, Sarny, Dubno, Radyvyliv

VOLN Berezne REGION BUS TERMINALS ZHTOMR There is RIVNE Bus Terminal in the city of Kostopil REGION

Rivne (40 Kyivska St.) with the capacity of 600 trips Lutsk · Warsaw a day and CHAIKA Bus Station (16b Haharin St.) H-22 with the capacity of about 290 trips a day. Korets RIVNE Kyiv International, interregional and intercity traffic E 85 E 40 Hoshcha is carried from bus terminal. Intraregional Mlyniv E 40 Zdolbuniv traffic is carried from bus station. Demydivka Dubno P-05 E 85 Ostroh

Khmelnitsky · Odessa · Simferopol Regional center Motorways E 40 KHMELNITSKI LVIV District center Motorways name Radyvyliv REGION REGION State border Railway Ternopil · Bucharest Regional border Rail junctions Lviv · Krakow · Budapest TERNOPIL District border Airport REGION

4 NATURAL RESOURCES

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.

LAND RESOURCES – 21.1 thousand km2 STRUCTURE OF THE REGIONAL SOIL RESERVES The soils of the southern part of the region are mostly Agricultural land gray forest podsolized and low-humus black earths. Soils 46.4% • 30.0 thousand ha of the Northern part are mostly of sod-podzolic type. Forest sheltered area 40.1% • 03. thousand ha

Waterlogged lands WATER RESOURCES 5.2% • 0. thousand ha • Availability of water resources is twice Built-up lands 2.9% • 57.7 thousand ha higher than the national average Water 2.2% • 3.3 thousand ha • 171 rivers (general length – 4,459 km) Lands without vegetation the largest of which are – , Stir, with insignificant vegetation cover 1.6% • 32. thousand ha , Goryn, , Stygva, L’va Other lands 1.6% • 32.7 thousand ha • 130 lakes (floor area – 33.3 km2) 0 25 50 the largest of which are – Nobel (4.99 km2), Bile (4.53 km2), Ostrivske (1.12 km2) BELARUS REPUBLI MINERAL RESOURCES Zarichne 600 mineral deposits of 18 types of minerals explored in the region: Dubrovytsia • Amber – the only industrial deposits explored in Ukraine • Basalt – unique deposits of feedstock Volodymyrets for heat-insulating and facing materials • Building sand  – 54 million m3 Sarny Rokytne • 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 VOLN Berezne REGION ZHTOMR The Region is rich in wood, the stocks REGION Kostopil of which amount to 112.8 million m3

Incredible volumes of wild berries are annually RIVNE Korets

harvested in the Nothern part of the region Hoshcha (bilberry, cranberry, wineberry, blueberry) Mlyniv Zdolbuniv Demydivka Dubno Ostroh KHMELNITSKI REGION Amber Carbonate raw material Peat Quartz sand LVIV Radyvyliv REGION Basalt Building stones (granite, diorite, granodiorite) Mineral Brick-tile raw materials TERNOPIL water REGION

5 HUMAN RESOURCES

WORKABLE POPULATION

12.2% Employable

19.4% ounger than employable

68.4% Older than employable

833.5 thousand people 25% 43.8% 56.3 thousand people USD 200 Employable Population with Population with Registered Average population higher education vocational education unemployment rate salary

DIVISION OF EMPLOYEES BY ECONOMIC ACTIVITIES, thousand people

4.2 Financial activity and insurance 6.8 Arts, sports, entertainment and recreation 9.8 Hotels and restaurants activity 21.0 onstruction 23.4 Public administration and defence, compulsory social insurance 26.5 Transport 32.3 Health care, social assistance 47.9 Education 63.8 Industry 85.5 Agriculture 120.9 Trade 136.8 Other economic activities 0 30 60 90 120 150 6 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.

LEADING HIGHER EDUCATION INSTITUTIONS

Training Students, Educational institution Faculties domains thousand people

National University of Water Management and Natural 9 institutes 40 8.073 Resources Use

2 institutes, Rivne State Humanitarian University 49 7.898 9 faculties

1 institute, The National University of 19 2.862 5 faculties

International university of economics and humanities 1 institute, 22 4.364 named after academician Demianchuk 8 faculties

INTERNATIONAL PARTNERS OF HIGHER EDUCATIONAL INSTITUTIONS OF THE REGION

• Poland 59 • France 3 • Portugal 2 • Latvia 1 • USA 14 • Sweden 3 • Italy 2 • Estonia 1 • 11 • Spain 3 • Greece 2 • Finland 1 • United Kingdom 5 • Slovakia 2 • Croatia 2 • Czech Republic 1 • 5 • Hungary 2 • Norway 1 • Australia 1 • China 4 • 2 • Belgium 1 • Israel 1

GRADUATES in 2017 EDUCATIONAL INSTITUTIONS – I-II levels of accreditation 3,843 – III-IV levels of accreditation 10,442

TECHNICAL SCHOOLS 5,785

COMPREHENSIVE – II degree 12,653 – III degree 9,035

7 ECONOMY

ECONOMIC COMPLEX Sectoral structure of GVA of the Region, million UAH OF THE REGION 8,186 Industry There are 4,697 enterprises in Rivne region including 3 large, 285 middle and 4,409 6,300 Agriculture, forestry and fisheries small enterprises. The main type of eco- 4,732 Wholesale and retail trade; nomic activity in Rivne region is industry. repair of vehicles Basically the region is rated as industrial 2,301 Education and agrarian one with developed services Transport, warehousing, 1,696 postal and courier activities sector showing the highest growth dy- 1,103 Health care and social assistance namics over the recent years. 584 Construction

414 Financial and insurance activities

5,701 Other types of economic activity 0 2000 4000 6000 8000 10000

INDUSTRY Key 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.

Products manufactured in the region

5,728 Matches, tonnes 115.4 Plywood, thousand of m 655.9 Glass bottles, million pieces 527.9 Wood chipboard, thousand of m 17.5 Electricity, illion kh (generated y nuclear power plants) 4,185.8 Molded fabric 6.9 Break-stone, million tonnes Ratio of the region 982.2 ement, thousand tonnes Ukraine

Structure of the sold industrial products 42.8 % Power production and distribution 14.4 % Food industry 13.1 % onstruction materials and glassware 9.4 % Woodworking industry 6.5 % hemical industry 5 % Other 2.9 % Tetile industry 2.6 % Mechanical engineering 2.3 % Mining 1 % Metallurgy 0,0 42,8

8 ECONOMY

AGROINDUSTRIAL COMPLEX Structure of areas under crops Agroindustrial 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- 16.5% Grain ultures ity of agricultural cultures (rape, wheat corn, sugar beet, flax, cereals). Development of agriculture in the region is facilitated by the presence Technical cultures of two major producers of mineral fertilizers in Western Ukraine. 14.8% 47.0% Potatoes In the structure of gross agricultural production (by all categories of and vegetables farms) the livestock sector accounts for 33.8%, plant growing – 66.2%. Forage crops The priorities for development of the regional agriculture include 21.7% 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.

25 Structure of agricultural production Grain (20., 300. thousand tons 20.1% 20 18.7% Potato (.7, 2. thousand tons 16.2% 15.9% Milk (6.2, 37.3 thousand tons 15 13.6% Other (5. 10 8.3% Meat (3.6, 5. thousand tons Vegetables (.3, 236.2 thousand tons 5 4.0% 3.2% Eggs (.0, 50. million pieces Sugar beet (3.2, 53. thousand tons 0

Provision of internal needs of the region in the main types of agricultural products in 2016-2017 marketing year

Over the past 5 years significant growth of grain Grain harvest volumes has been observed, in particular Eggs in 2016 gross grain production increased by 64.2% Vegetables in comparison to figures of 2011. Milk Potato Meat 0 200

Gross grain collection by all categories of farms The major agricultural companies of the region include: 2000 in 2011-2017 Agro-Expres-Service, Private Enterprise; Krupets Agrocorpora- tion; Agricultural enterprise named after Vilovikov, LLC; Agro- holding Zorya, LLC; Kamaz-Agro, Agricultural Enterprise; Idna, 1299.3 Agricultural LLC; Demetra, Private Enterprise; Vlada, Farm En- 1222.7 1230.0 1108.5 1101.5 terprise; Hliborob, Private Agricultural Enterprise; Pyatuhirske,

Thousand tons 918.3 Farm Enterprise; Nyva, Farm Enterprise; Rozvazke, Private Ag- 790.5 ricultural Enterprise; Serpanok, Farm Enterprise; Majak, Private Agricultural Enterprise; Myrohoshchanskyi State Hippodrome, 207 600 20 202 203 20 205 206 epected State Enterprise; Shpanivske, Private Agricultural Enterprise.

9 EXPORT-IMPORT

EXPORT OF GOODS In 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.

Structure of export of goods 27.8% Wood and wood products 21.6% Other goods 21.1% Plant products 13.1% Construction materials and glassware 11.2% Furniture 5.2% Live animals, animal products 0 25 50 75 100 IMPORT OF GOODS The 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.

Structure of import of goods 23.9% Machines, equipment and mechanisms; electrical equipment 20.1% Other goods 16.8% Products of the chemical or allied industries 12.6% Equipment for surface transport except for rail 9.9% Plastic, polymeric materials 6.8% Textiles and textile products 5.1% Articles made from stone, gypsum, cement 5.0% Paper and cardboard 0,00 16,25 32,50 48,75 65,00 Export of services 59.2 Transport services EXPORT OF SERVICES Services for goods Services were basically exported to Switzerland (30.2%), 38.2 processing abroad Canada (26.5%), Russian Federation (8.9%), Germany (7.5%), Italy (5.3%) and Poland (4.1%). The largest unit weight was 1.0 Travel related services made up by transport services (58.6%) and services on 1.1 Business services processing of physical resources (37.8%). Services in the field of 0.5 telecommunications, computers and IT

Import of services 31.7 Transport services IMPORT OF SERVICES 28.1 Business services The major partners in the import of services were Poland 27.4 Travel related services (18.8%), Italy (16.8%), Hungary (12.8%) and Germany (11.4%). Repair and maintenance, 12.0 In the imports the largest unit weight was made up by not included in other categories Royalty and other services related 0.6 transport services – 29.3%, business services – 26.0% and to the use of intellectual property travel-related services - 25.3%. Services in the field of 0.2 telecommunications, computers and IT

10 INVESTMENTS AND CONSTRUCTION

INVESTMENT ACTIVITY Major countries-investors to the region Rivne region has a long-standing tradition of cooperation with foreign investors from over Netherlands 20 different countries. Successful operation of these companies in the region and implement- Great Britain Poland ed reinvestment projects are the best proof for Germany favorable investment climate and respective business environment. Rivne is one of the few regions nationwide where foreign capital flight France did not take place even during the last years that were extremely difficult for Ukrainian economy. Total volume of foreign direct investment (stock Italy 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.

Major foreign investors operating in the region:

Verallia (France) Sorbes + (Switzerland) Dyckerhoff (Germany) Lafarge (France)

Glassworks Woodworking Construction materials Construction materials

ODEK (Netherlands) Basalt AG (Germany) Fapomed (Portugal) Morgan Furniture (USA)

Plywood production Construction materials Medical accessories Furniture production

CONSTRUCTION During 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.

11 SUPPORT FOR INVESTORS

INVESTINRIVNE Foreign 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 SUPPORT Regional 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 CENTRES Thanks 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 PROPERTY More than 15,000 hectares of Greenfields and 500,000 2m 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 Sarny – 17 hectares • Industrial zone Radyvyliv – 39 hectares • Industrial zone Dubrovytsia – 32 hectares • Industrial zone Dubno – 41 hectares • Industrial zone Mlyniv – 11 hectares

12 PROPERTY

HOUSING 22.3 m2 per one resident of the region

HOUSING STOCK Total 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

13 AFTER HOURS

Vast natural and landscape advantages of Rivne region which Rivne is a green city, as it has 8 large parks 3 of which are are frequently among unusual (and unique) places in Europe located in central part of the city. The Ustia River, the left trib- make it one of the most fascinating areas of Ukraine. Land area utary of the River, flows through Rivne. The city strives in the region that is forested covers 40% of it, and the level of to offer sporting opportunities for all as its sport teams are its conservation is one of the highest in the country. The area of widely known outside Rivne; these include a football club local nature conservation and landscape designations is about NK Veres Rivne, a speedway team SPS Rivne, a basketball 170 thousand ha (8.3% of the region’s territory which is two club BC 93 Pulsar, a mini football team MFT Rivne, and a times higher than the national average). The country’s largest volleyball club Regina. 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.

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 The city of Rivne is a significant cultural centre; here one can at- • International Salon of Art Photography tend theatres (the Regional Music and Drama Theatre, the Pup- Pokrova Photovernissage pet Theatre, and several studio theatres), a philharmonic hall, an • All-Ukrainian Festival-Fair Bulba-Fest organ and chamber music hall (with one of the best organs in Comfortable hotels, cosy cafes, restaurants, and 12 night clubs Europe), a number of museums, palaces and houses of culture, will satisfy even the most demanding tastes of visitors and 3 cinemas, numerous libraries, and a zoo which is considered guests of the city, as well as provide diverse selection of excit- to be one of the best in the country. ing leisure time activities.

14 SPORTS AND LEISURE

Name, contacts Services Avanhard Stadium Football matches and athletics competitions. 34 Zamkova St., tel. +38 (0362) 22-32-27 Capacity — 20,000 people Olimp Stadium Rugby, football and athletics competitions 1 Naberezhna St. Manhattan Fitness Club Gym, fitness classes, massage room, boxing room 112 Soborna St., tel. +38 (0362) 45-09-99 E.G.O. Club Fitness Center Gym, massage room, fitness classes, boxing room, sauna 10 Kyivska St., tel. +38 (0362) 46-03-46 Fitness Port Sports Club Gym, boxing room, swimming pool, massage room, fitness 6A Kniahynia Olha St., tel. +38 (0362) 43-05-15 classes, yoga, sauna, fresh-bar Aqua Ruy Health and Beauty Center Gym, boxing room, swimming pool, aqua aerobics, sauna 15/17 Melnyka St., tel. +38 (067) 325-76-15 Sky UP Family holiday park 3,000 m2 of various leisure-time entertainments 1B Konovaltsya St. tel. +38 (097) 107-80-80 Rivne Zoo (State Zoological Park) 150 animal species and natural forest area of 4.7 hectares 110 Kyivska St., tel. +38 (0362) 28-84-83 Climbing centre Climbing centre which resembles the head of a Cossack, 420 Soborna St. repeats relief rock and has a height of 10 meters UKRAINE Kinopalats, Modern cinema that has 3 cinema halls and enters 2 Maidan Nezalezhnosti, tel. +38 (068) 800-55-88 the all-Ukrainian network of cinemas Kinopalats ERA Kinocenter One of 17 multicinemas entering the largest 51 Haharina St., tel. +38 (0362) 68-05-13 Ukrainian network «MULTIPLEX» Ekvator Shopping mall Ekvator is a national network of shopping malls holding various 23 Makarova St., +38 (0362) 68-33-59 shows, circus performances, exhibitions, concerts ZLATA PLAZA Shopping mall Shops, shopping halls, children’s entertainments center Leopark, 1 Korolenka St., tel. +38 (0362) 67-11-11 cafes, etc. Chaika Shopping mall One of the best shopping malls of the city holding an area of 16 Haharina St., tel. +38 (0362) 24-64-35 18,000 m2 Kant Beer Restaurant Ukrainian and European cuisine, brewery, dishes on the grill, 9 Kopernika St., tel. +38 (067) 200-06-06 banquet hall Vinograd Restaurant Georgian cuisine 2B Vydumka St., tel. +38 (097) 779-86-70 Gusto Gastro Salon Restaurant European and Japanese cuisine, banquet hall, cocktail bar, 10 Prospekt Mira, tel. +38 (095) 471-00-31 delivery New York Street Pizza Restaurant European and Japanese cuisine, pizza, banquet hall, delivery 1A Kniahynia Olha St., tel. +38 (068) 007-00-72 La RIVA Restaurant-pizzeria Italian pizza 1 Naberezhna St., tel. +38 (0362) 45-28-28 Barmaky Restaurant Ukrainian cuisine, vegetarian menu, lunch menu, barbecue menu 41 Kostromska St., tel. +38 (068) 876-58-76 Catarsis House of Emotions Nightclub, karaoke, bar, sheesha, disco, restaurant 9 Kopernika St., tel. +38 (067) 200 06 07 ZOV Nightclub Karaoke, pole dance, bar, sheesha, cuisine 9 Vidinska St., tel. +38 (096) 557-07-07

15 TOURISM

Numerous historical, cultural, and architectural monuments, Seekers of romance and great impressions will be delighted by phenomenal natural creations, and distinctive objects which natural wonders: the famous Tunnel of Love which is included do not have equivalents either in Ukraine, or worldwide make in Top 10 most romantic places in the world, unique deposits of Rivne region unique and attractive for every tourist. History basalt which form gigantic octagon-shaped columns, and mag- lovers will be fascinated by the glory and mystery of the pat- nificent 1,300-year-old Yuzefin Oak which is one of the oldest rimonial castles of the most powerful princely families in Eu- trees in Ukraine. rope, namely princes Ostrozky and , as well as one of the world’s most special authentic fortification construc- tion – Tarakaniv Fort.

Tunnel of Love 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 Tarakaniv Fort dishes of Ukrainian cuisine cooked according to ancient reci- Those interested in the sole and heroic past of Ukrainian people pes. Bicycle tour lovers will be impressed by interesting histor- will be inspired by a journey to – the birthplace of ical and natural objects of picturesque Polissia, if they partic- the well-known Peresopnytsia Gospel on which nowadays the ipate in Poliska Sich randonnée (brevet). For nature and sport elected presidents of Ukraine take their oath of office, and Pli- lovers, a “green” way Medove kolo is the ideal place to explore asheva where one of the most fabulous battles in Europe was as it provides an opportunity to get acquainted with honey hunt- fought – the Battlefield of Berestechko. Tourists driven by nos- ing – an ancient form of authentic beekeeping preserved only in talgia can make a trip into the past by the longest narrow gauge the territory of Rivne region. railway functioning in Europe which has been operating since 1895 and is known as Polissian Tram.

Polissian Tram

16 HOTELS, HEALTH RESORTS AND RECREATION FACILITIES

Name, contacts Services HOTELS Ukraina Hotel 4* Hotel, restaurant, sauna, fitness center 112 Soborna St., tel. +38 (0362) 64-91-41 Myr Hotel 3* Hotel, restaurant, office center, conference room 32 Mitskevich St., tel. +38 (0362) 63-63-02 Optima Rivne Hotel 3* Hotel, restaurant, conference room 9 Slovatskogo St., tel. +38 (0362) 42-03-10 Khutir Hotel and Entertaining Sports Complex Hotel, restaurant, karaoke, bowling, golf, tennis, sauna, Velika Omelyana, Rivne district, tel. +38 (096) 444-04-48 swimming pool, artificial lake, playground Aivengo Hotel and Restaurant Complex Hotel, restaurant, tennis courts, sauna, hammam, Kolodenka, Rivne district, tel. +38 (0362) 20-89-52 swimming pool, billiards, banquet hall, catering Melrose Hotel Hotel, restaurant, sauna, hammam, swimming pool, 59 Kostromska St., tel. +38 (099) 248-89-86 spa complex, billiards Hotel, restaurant, banquet hall, water tanks, sauna, hammam, Sofia Hotel and Restaurant Complex swimming pool, gym, tennis courts, padel tennis, Velika Omelyana, Rivne district, tel. +38 (050) 840- 87-68 children’s playground, billiards, conference service 4Х4 Hotel and Restaurant Complex Hotel, restaurant, pool, sauna Kolodenka, Rivne district, tel. +38 (0362) 20-88-00 Park-hotel Switzerland Hotel, restaurant, lake with sandy beach, karaoke club, Obariv, Rivne district, tel. +38 (0362) 61-93-00 conference room HEALTH RESORTS AND RECREATION FACILITIES Hotel, therapeutic and diagnostic pavilion, sauna, beach, catamarans, Chervona Kalyna Sanatorium cinema, library, café, bars, billiards, badminton, volleyball, football, Zhobryn, Rivne district, tel. +38 (097) 736-00-98 basketball, tennis, beautiful nature Khrinnyky Sanatorium Catamarans, beach, fishing, sports grounds, tennis Khrinnyky, Demydivka district, tel .: +38 (096) 137-40-88 Elektronik-Rivne Sanatorium and Health Improvement Complex Recreation camp, scene, dining room, playgrounds Oleksandriya, Rivne district, tel. +38 (0362) 26-74-33 Kraina Mriy Children’s Complex 18 two-storey houses, library, video and computer games room, Mezhyrich, Ostrog district, tel. +38 (095) 419-00-23 swimming pool, karting, rope parks and school tourism Monte Carlo Recreation Center Hotel rooms and chalet, bath-house, water tanks, kayaking, Reshutsk, Rivne district, tel: +38 (098) 081-25-19 fishing, playground, bicycle rentals, alcoves, café-bar Voronukha Recreation Center Comfortable lodging houses, delicious Ukrainian cuisine, Mala Sovpa, Korets district, tel. +38 (097) 293-88-76 bathhouse, fishing Myslyvska Khata Wellness Entertaining Complex Bath-house, sauna, swimming pool, billiards Tarakaniv, Dubno district, tel. +38 (093) 354-83-20 Farm House Rest Complex Hotel rooms, alcoves, volleyball court, sauna, eco-farm Myrohosshcha, Dubno district, tel. +38 (068) 377-34-83 Harmony Tourist and Health Center Sauna, swimming pool, wellness massage, restaurant Ozhenin, Ostrog district, tel. +38 (097) 274-00-79 Khutir Kasen Farmhouse A house for 2 rooms, a sauna with Tibetan salt, cycling, gym, fishing, Povcha, Dubno district, tel. +38 (067) 763-83-11 excursions, mushrooming, berries, herbs

17 LOGISTICS

GENERAL DESCRIPTION OF THE INDUSTRY Favourable 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 – Klaipeda Vilnius Dubno Bucharest Alexandroupolis the Black Sea (Е85)

Europe – Asia Krakovets Lviv Rivne Kyiv

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

4.1% Vehicle transport 59,085.9 thousand passengers 24.2%

Trolleybuses 19,969.7 thousand passengers

71.7% Railway transport 3,369.3 thousand passengers

Average growth in passenger transport in the region is 11%.

Structure of freight (goods moved by mode) in the region, thousand tonnes

20.2% Railway transport 5,927.7 thousand tonnes

Vehicle transport 1,496.4 thousand tonnes 79.8%

Average growth of freight in the region is 33.8%.

18 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 AIRPORT The operating airport RIVNE International Airport boasts a Rivne to Poland. In 2016, the Consulate General of the Repub- close proximity to the city of Rivne. It was designed for accom- lic of Poland issued 300 thousand visas; there were 15 million modating, servicing, and dispatching all types of aircrafts with Ukrainian-Polish border-crossings. 1,200 thousand the maximum permissible take-off weight of 210 tonnes. Total work and study in Poland. airport area is 165 ha. The runway is 2,626 m long and 42 m wide. The carrying capacity is 500 passengers per hour. Top-priority actions planned for the development of Rivne The airport is located at the crossroads of international air International Airport include the following: routes and roads, in close proximity (1 km) to the internation- • Purchase of machines and equipment (new approach lighting al highway E 40, the longest European route, more than 8,500 system (ALS) for the runway, precision landing system that kilometres long, connecting Calais in France via Belgium, Ger- uses instrument landing system (ILS) equipment) necessary many, Poland, Ukraine, Russia, Kazakhstan, Uzbekistan, Turk- for servicing В737 and А320 aircrafts and performing interna- menistan, and Kyrgyzstan, with Ridder in Kazakhstan near the tional air carriages. border with Russia and China. • Modernisation and winterisation of airport facilities and Today the airport operates: it receives medium-range aircrafts terminal. 24 hours a day. There is a summer charter programme Rivne – • Project development and construction of a transport-and-lo- Antalya and a winter charter programme Rivne – Hurghada / gistic complex at the site of the Rivne International Airport, Sharm El Sheikh. The airport serves as a base for Vulkan Air An- Regional Municipal Enterprise. 26 and Universal-Avia An-12 aircrafts. Negotiations are being • Project development and construction of a hotel complex at held with nine international air companies about establishing the site of the Rivne International Airport, Regional Municipal regular flights. Enterprise. The potential number of passengers is 5 million people from • Reconstruction of the 550-m runway for small aircrafts. Rivne, Volyn, Zhytomyr, Khmelnytsky, and Ternopil regions of • Organisation and development of non-aviation services (stor- Ukraine and from Belarus. At the same time, 40% of the to- age room, Duty-Free, Tax-Free, catering, shops/supermar- tal number of Ukrainians who cross the border throughout a kets, car rental, cash machines/payment terminals, pharma- year go to Poland. About 14 bus trips per day pass through cy, currency exchange, tourist office etc.).

19 ALTERNATIVE ENERGY

GENERAL INFORMATION Renewable 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 (region) till 2020; • Regional Programme of Loan Interest Reimbursements for Physical Persons Implementing Energy Efficiency Measures 2015-2018; • Complex Energy Efficiency Programme of (region) 2018-2025.

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).

20 ALTERNATIVE ENERGY

WIND ENERGY Average 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: $ 20,000,000 Payback period: 7.6 years

21 WOOD PROCESSING INDUSTRY

The forest reserves of the region occupy 780 thousand ha or Woodiness Zarichne district almost 40% of its territory. By percentage of forest land Rivne of Rivne region by districts, Dubrovytsia region ranks third in Ukraine after Zakarpattia and Ivano- district Volodymyrets Rokytne Frankivsk regions. Pine, oak, and aspen mainly grow in the district district less than 0 region. The total reserve of timber stand is 120.5 million m3, of Sarny district which 65.8% is occupied by pinewood, 10.7% – by hardwood, from 0 to 30 and 23.5% – by softwood. The average age of timber stand is from 30 to 0 Berezne district 52 years. Kostopil district

Forest land spreads unevenly around the territory of the region, over 0 Korets and it is mainly concentrated in its northern districts. Rivne district district Hoshcha Total annual reforestation and afforestation covers over Mlyniv district district Zdolbuniv 5 thousand ha in the region. Demydivka district Ostroh district district Dubno district Wood processing industry plays an important role in Rivne region Radyvyliv economy, for it traditionally shows steady annual growth rate. district

Key Characteristics of Wood Processing Industry Industry Share in Growth Rate (%) Sales Volume (million UAH) 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

PRODUCTS Gross 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

22 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 Ukrainian Match Factory, LLC Matches Berezne Evroshpon-Smyga, Closed JSC Sliced veneer Smyha Furniture board, lamella, flooring, tables, Ukrainian Wood Processing Company, LLC Kostopil windows Eskada-M, LLC Veneer panels Rivne Kostopil Plywood Plant, LLC Plywood Kostopil Wooden / millwork building materials, Ukrainian Lumber Company, LLC Ostky doors, lining Olisma, LLC Furniture Rivne

INVESTMENT ATTRACTIVENESS OF THE INDUSTRY The 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.

23 CONSTRUCTION MATERIALS AND GLASSWORK

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 Industry Share in Growth Rate (%) Sales Volume (million UAH) 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

PRODUCTS Production 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, 1.0 thousand tonnes artificial stone, or concrete

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 EXPORTS During 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

38.6 38.9 41,666667 36.5 32.9 31.9 33,333333 29.5 29.4 25,000000 16,666667 8,333333 0,000000 20 202 203 20 205 206 st half of 207

24 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 Production of high-quality glassware for Consumers-Sklo-Zorya, Private JSC (Verallia brand) Zoria food industry Rokitnovskiy Glass Work, Private JSC Production of high-quality glassware Rokytne Rivne Home-Building Factory, Additional Liability Production of ferro-concrete and Rivne Company (Rivne DBK) concrete

INVESTMENT ATTRACTIVENESS OF THE INDUSTRY For 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. Capital Investment Dynamics in Construction (million UAH) The structure of capital investments is as follows: 54.1% – personal 3,000 finances of legal entities, 23% – financial assets held by individuals (for 2,00 housing construction), 6% – state and local budgeted public expendi- Engineering tures, and 4.7% – credits and loans of financial institutions. million UAH constructions ,00 Last year Verallia company invested EUR 12 million into modernisation Non-residential and increasing capacity of a glass factory located in Rivne district of ,200 buildings the region. The owners of the enterprise plan to invest EUR 35 million Residential into its development in the nearest three years. 600 buildings

0 200 20 205 206 INVESTMENT PROJECTS

PRODUCTION OF MAG-BE MAGNESITE SLABS The 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: $ 8,020,000 Payback period: 31 months

PRODUCTION OF AGGLOMERATE PANELS The 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: $ 15,750,000 Payback period: 51 months

25 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 Ratio of industry in Growth rate, % Sales volume, mln. UAH 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 INDUSTRY Production 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 Chocolate and ready-made food products that (pasteurized, sterilized, homogenized, baked, 12046 contain cocoa (except sweetened cocoa powder), 1835 peptonized) in packages not exceeding 2 kg

Sugar confectionary (including white chocolate) Butter 2027 2207 that does not contain cocoa

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 2016 Milk products (UAH 02.6 mln. Sugar (UAH 60.2 mln. Meat and meat products (UAH 550. mln. Other foods (UAH 502. mln. Bread, baked products, and flour products (UAH 77.6 mln. Oil and animal fats (UAH 33. mln. ocoa, chocolate, and sugar confectionary (UAH 237.3 mln. Processed fruits and vegetables (UAH . mln. 26 FOOD INDUSTRY

Leading players in Rivne region Name of company Products/services Location Milk processing and production of butter and cheese; Dubnomoloko, Public JSC Dubno Wholesale trade of milk products, eggs and edible oils and fats Radyvylivmoloko, LLC Milk processing and cheese production Krupets Production of eggs, meat of poultry, growing of corn, Krupets Agrocorporation Krupets wheat, sugar beet and brewing barley Production of wheat and rye flour, purchase and sale Rivne-boroshno, Public JSC Rivne of grain crops, storage of grain crops Polissiahlib, Public JSC Production of bread and baked products Rivne Wholesale deliveries of beef, blocks of meat, Company Zeus Ltd, LLC Dubno meat half-finished products and by-products 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 Production of mineral water and other Ostroh mineral water plant, LLC Ostroh non-alcoholic beverages

INVESTMENT PROSPECTS OF THE INDUSTRY Grain 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.

Meeting the region’s domestic needs INVESTMENT PROJECTS in main types of agricultural goods in 2016-2017 marketing year BUILDING WHOLESALE AGRICULTURAL MARKET “SHELEN” Grain 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 hicken eggs 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. Vegetables Project cost: $ 12 000 000. Payback period: 5 years

Milk DEEP FREEZE OF FRUITS, VEGETABLES AND BERRIES Establishing innovative production of “shock” freeze of fruits, vegetables and berries Potato for their year-round consuming, substituting existing imports and making export supplies. Meat Project cost: $ 7 600 000. Payback period: 3,5 years 0 50 100 150 200

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