Powerful industrial Donetsk Region is situated in the steppe zone of the south-eastern part of Ukraine. It was established on July 17, 1932. The area is 26.5 thousand square km, or 4.4% of the total territory of Ukraine. By number of the population (about 5 million people) Donetsk Region is the biggest one in Ukraine.
There are 28 cities and 17 districts of regional value, 134 settlements of urban type and 1122 rural settlements in the regional administrative-territorial structure.
The regional economic potential is 822 industrial, 16 thousand small and almost 600 agricultural enterprises of all forms of property, over 500 specialized construction organizations and 2132 farm facilities. Donetsk Region provides the one fifth part of national industrial production and takes the leading places in Ukraine on making basic types of industrial and agricultural products.
The area of the regional agricultural land makes almost 2 million ha, including 1,6 million ha of plough-land. The realization of main directions of agrarian reform is lasting in the region. 1460 thousand ha of lands are shared. On the base of 426 collective agricultural enterprises there were formed new 612 agricultural enterprises.
The active forming of the agrarian market infrastructure began in 2000. 3 commodity stock exchanges, 29 agro-trading houses, 125 wholesale markets, 55 service cooperative societies, 935 purveying points, 11 credit unions and 1074 other new structures are functioning in the region.
In the industrial production the most increase has been made in industries manufacturing the finished products such as machine-building, food and processing industry. The production output of the regional food and processing industry has been increased by 20% in comparable prices. In particular, the production of sausages made 34.8% as well as products from whole milk – 43.6%, confectionary – 6.1%, oil – 62.4%, food salt – 12.8% and mineral water – 9.6%.
The production of vodka and liqueur-vodka products has been increased by 2,5 times as well as Champaign – 28,7% and beer – 19.8%. Over 160 new types of competitive products were mastered. Following enterprises are successfully functioning such as JSC "A.V.K.", JSC PA "Kyiv-Conti", JSC "Europroduct", LLC "Kolbiko", LLC "Cargill Works", SPA "Artemsil", LLC "Donetsk Meat Processing and Packing Plant", JSC "Donetsk Macaroni Factory", JSC "Slovmoloko", JSC "Donetsk City Milk Factory № 2" and JSC "Sarmat".
The production volumes of machine-building by comparison with the proper period of 2002 were extended by 60,7% and it makes 2,8 billion hryvna in operating wholesale prices. The production volume increase was provided by the machine-building production growth in following public corporations as Azovzagalmash, Mariupol Plant of Heavy Engineering, Topaz, Donetskgirmash, Gorlivka Mashynobudivnyk, Druzhkivka Machine-Building Plant, Donbaskabel and Novy Kramаtorsk Machine-Building Plant.
The production increase of blast-furnace and steelmaking equipment made 3.5 times as well as stocked rolling – 15.5%, freight trunk cars– 2.6 times, metal-cutting machine-tools – 24%, tunnelling machines – 47.4%, cutter-loaderes and plough systems – 27.8%, mining cars – 3 times, mine electric locomotives – 3.5 times and dressing equipment – 9 times. Due to mastering of new types of competitive products and increase of its manufacturing volumes the machine-building enterprises exported 53.5% of its production.
In the metallurgy and metal-working the production volume was extended by 15.7% by comparison with the proper period of 2002. The production of cast-iron has been increased by 10.3% as well as steel – 8.2%, rolling of ferrous metals – 6.6%, 6% humidity coke – 21.2% and steel pipes – 1.8 times. The subsequent technical rearmament and modernization of productions of this industry is lasting.
The production volume in chemical and petrochemical industry has been extended by 13.2% and it makes 770,9 million hryvna in operating wholesale prices. The output of polystyrene and co-polymers has been increased by 6.1 times as well as synthetic hydrogen nitride – 11% and mineral fertilizers – 5.3%.
The production volume and distributing of electric power in comparable prices to the level of the first half-year of 2002 has been extended by 23%. The thermal power stations and block stations produced 13.7 billion kW of electric power that is by 24.1% higher than for the proper period of 2002. The generating capacities of TPP were used by 37% on average (in 2002 – by 30%). In the Novy Azov wind power station two modern Belgian windmills with the capacity of 600 kW respectively were commissioned. These powerful mills are put into operation not only in Ukraine but also in the countries of CIS for the first time.
Following state enterprises as Selydivvugillya, Makiyivvugillya, Shakhtarskantratsyt and Production Works "Krasnoarmiyska-Zakhidna № 1" worked with the increase of coal mining volumes.
The enterprises of motor transport and subjects of entrepreneurial activity carried 171.2 million passengers that is by 4.5% higher than for the first half-year of 2002. The volume of cargo transportation has been extended by 19.1% and it makes 12.6 million tones. The goods turnover was increased by 45%.
The volume of the delivered freight in the Donetsk railway by comparison with the proper period of 2002 has been extended by 5.9%. The passenger transportation has been increased by 2.4%. The Donetsk State Airline «Donbas Eastern Airlines of Ukraine» increased the passenger transportation volumes by 55% and it made 80.7 thousand people.
The enterprises of Donetsk Region provided the increase of 22.6% of commodities of national consumption by comparison with the first half-year of 2002, including food – 15.9% and non food – 28.6%, alcoholic beverage – 46.0%. The production of household washing-machines, refrigerators and freezers, coloured TV sets, leather footwear and toilet soap has been increased.
The production volumes of non food consumers goods due to stable work of the JSC «Nord», Ukrainian-Russian JSC "Druzhkivka Gas Equipment Making Plant", "Donbas" Donetsk Production and Trade Enterprise JSC, JSC "Elektropobutprylad", LLC "Ukrainian Industrial Resources", LLC "Donbas Plus", LLC "Furniture Factory "Ergotechnologies" and others.
The enterprises of retail trade, which network has been extended by 297 units, and restaurant economy sold the commodities of public consumption to the amount of 1840.5 million hryvna that is by 19.6% higher than for the first half-year of 2002 in operating prices as well as in comparable prices – 15%.
For 6 months of 2003 the regional foreign trade commodity turnover made USD 2842.3 million that is by 47% higher than for the proper period of 2002. The export volumes were extended by 50.6% as well as import – 34.5%. More than 57% of industrial products made in the region, is exported. The Russian Federation covering over 22% of the general foreign trade turnover volume is the main partner of Donetsk Region in foreign economic activity. The export to the countries of Africa has been increased by 1.9 times as well as Europe and Asia – 1.6 times and to the countries of America – 19%.
For the first half-year the volume of investments in the fixed assets (capital investments) at expense of all sources of financing in construction of new, expansion, reconstruction and technical rearmament of operating objects of all industries of economy made 1702 million hryvna.
The main source of investment activity (68.9% of the general volume) is the personal funds of enterprises and organizations. For construction of habitation they invested 73.7 million hryvna. The dwelling-houses with the general area of 109.4 thousand square m were put into service.
For the first half-year of 2003 the Council of special economic zones and special regime of investment activity in Donetsk Region approved to development 19 investment projects with the general cost of USD 246,3 million.
The regional economy is served by 137 banks and banking institutions, 17 insurance companies and 24 stock exchanges. The interests of enterprises and organizations of production, commercial, agroindustrial, scientific-technical, insurance and bank-financial spheres of the region in Ukraine and abroad are represented by the Donetsk Chamber of Commerce and Industry.
In the field of small business 159.4 thousand people are employed that makes 5,6% of total number of capable working population of the region and 14% of the total number employed in the regional economy. In 2002 the enterprises of small business made the products, executed works and rendered services to the amount of 2265.7 million hryvna that makes 4.4% of the regional production volume.
The new facilities on processing of wastes of coal dressing in Dobropollya, polymeric wastes (second line) in Druzhkivka and literary garbage in Donetsk were commissioned. The assembling of equipment for development of rock dump of the mine "Shakhtarska-Glyboka" in Shaktarsk has been performed; the construction of waste processing plant is lasting and the assembling of plant on utilization of hard domestic and technogenic wastes in Kramatorsk has been started. The incomes in the regional aggregate budget made 1897.6 million hryvna for the first half-year of 2003 or 60% to the year prognosis. By comparison with the proper period of last year the actual incomes were increased by 26.8%.
The social orientation of use of budgetary money is kept. Over 80% of charges of general fund of local budgets is directed on maintenance of establishments of education, health protection and social security.
Having powerful industrial potential and insistingly working, the representatives of Donetsk Region are confidently looking forward.
An anti-terrorist operation is being conducted on the territory of the separate Donetsk region oblasts as to address the terrorist threat and contaion the territorial integrity of Ukraine.