Kyiv City is located in the center of Eastern Europe and has attractive geographical location and natural conditions. Kyiv is located on the both banks of Dnipro river, lowest of inflow of left flow – Desna. North part of the city is located on Polisskiy lowland, southwestern (right bank) – on Prydniprivsky highland, south-eastern (left bank) – on Prydniprovsky lowland. Exceeding of relative highland on right bank is reached to 100-105 m. Left bank part of Kyiv is melted terrace, weak shared plain with over heights to 35 m.
Climate in Kyiv is moderate continental, with relative soft winter and warm summer. Average temperature in January is -6,0°C, -6,1°C and in July is +19,1°C, +19,2°C. Average annual level of sediment is 600 mm a year (from 551 to 628 mm). Humidity of wind is 51-52% in May and 94-95% in December. Number of hours of sunny days is 1843 a year.
Influence of Kyiv and Kanev reservoirs is explained the strengthen of breeze circulation, changes of wind speed and sum of atmosphere sediments.
Area of Kyiv in administrative borders is 83,6 thous. ha (836 sq.km.), including 33,8 thous. ha are built up or 40%, and including 6,2 thous. ha are built up by living houses. The industrial objects possess 6 thous. ha of land, public built up – 6,7 thous, ha, streets, squares and embankments – 5 thous. ha, objects of transport – 2,2 thous. ha. Forests, green plantation of general usage and reservoirs possess more than half of the city territory. The basic of green plantation of the city is a unique water and green diameter with length for 30 km and width of 1,5-5 km, which includes area of water of Dnipro with islands, coastal parks and meows parks.
The main water resource of the city is Dnipro. The width of Dnipro is 400-600 m, depth is 6-12 m: on shallow water, the width is 800-1000 m, the depth is 4-5 m in the boundaries of the city. The freezing-over lasts from the end of November till the beginning of March. Following rivers as Lybid, Syrets, Vita (right inflows of Dnipro), Gorenka, Nyvka (inflow of Irpen) run on the territory of Kyiv. The water objects on the territory of the city possess about 6,7 thous. ha of area at whole.
Kyiv has rich recreation resources. The city is surrounded by continuous circle of forests practically. The Coniferous and big-leafs forests are located on the North, northwest and west (zone of mixed forests), and in forest-steppe zone – big leafs forests. The considerable natural and artificial forest parks and parks are located in the boundaries of the city. The allocation for green plantation is more than 200 sq.m. per inhabitant of area.
The attractive natural conditions of Kyiv are assisted to establishment and development of two climatic resorts: Pushcha-Vodytsya and Koncha-Zaspa (resort of general state significance). 37 sanatoriums and boarding houses with treatment, houses of rest and besides 27 sanatorium-dispensaries are functioned on the territory of the city.
41 objects of natural-reserve fund, including 14 of state significance are located on the territory of the city. Among it area Botanic garden named after Academic Fomin O.V., Central Republic Botanic Garden of NAS of Ukraine, Syrets dendropark, zoo and parks-monuments of garden and park art.
HISTORY OF KYIV
Kyiv is a historical city with glorious past. It is officially determinated, that the foundation of the city was more than 1500 years ago. For this period of time, city lived through upwards and down wards, Kyiv is a capital of Rus, a state establishment of eastern Slavs and Russians from Ix till the beginning of XIII century. The fast development of Kyiv was stopped by Tatar and Mongol piled up, as a result, the city was destroyed and rubberized in 1240.
The economical rehabilitation of Kyiv was started in XIV century and it became the heart of Ukrainian nationality formation. The gradual incorporation of Ukrainian lands to Lithuania State “Great Principality of Lithuanian” took place. From 1362 Kyiv is under power of Lithuania and in 1470 Kyiv Principality was re-organized to Province in the membership of Lithuania State, Kyiv City increased and developed as economical center of Ukraine.
Kyiv received Magdeburg Law in 1494-1497 and it gave Kyiv an opportunityto perform self-governing in the city. It was progressive act, which assisted to all – round social and economical development of Kyiv.
Lithuania united with Poland into Rich Pospolita by Lublana Union in 1596. From this time, Kyiv was under power of Poland. The next one hundred years were characterized of liberated fighting of Ukrainian people against Polish Shlyahta. As a result it was announced of Ukraine as a State and further it unification With Russia (caused of several political reasons).
Kyiv became the member of Russia in 1654, and from 1708 the city became the center of Kyiv Guberniya. The further historical period is characterized by considerable successes of the city in economical development, that positive reflected on general social and economical condition of all Russian Empire. Kyiv was a member of Russia till 1917.
The breakdown of Russian Empire in 1917 gave an opportunity to Ukraine to receive independence. Kyiv was a capital of Ukrainian People Republic fro this non-long period of time (1918-1919).
After finishing of public war and establishment of USSR, Kyiv City became the capital of Ukrainian SSR. It was written a tragic and glorious pages in the history of Ukraine during it membership in USSR. The outstanding specialists of Ukrainian science and culture, representatives of technical, creative intelligentsia, military leaders and specialists were disparaged by different reasons. Kyivers were in this mass at whole.
But at this time due to efforts of Ukrainian people, Ukraine became the second one after Russia, economically developed republic of USSR, and Kyiv took the powerful place among prominent cities with developed economical and social sphere.
During Seconf World War, Kyiv was fully destroyed practically. The hero defense of Kyiv lasted 72 days in 1941. And the city was liberated on 6 November 1943.
Kyiv was awarded an honoured title of “city-hero” for heroism of city inhabitants during the war, it strong resistance against enemy and economical contribution to the victory. It was expressed in Law Of Ukraine “On capital of Ukraine – city-hero Kyiv”.
Supreme Soviet of Ukraine announced the Declaration on Independence in 1991 and Kyiv became the capital of one of the biggest countries of Europe – independent Ukraine. The city not only kept, but also improved those positions, which had in Soviet Union. Kyiv is stayed a center and symbol of sovereign for Eastern Slavs, an evidence of it historical identity, that confirmed by numerous historical and architectural and other monuments irrespectively on reasons. And the city look likes the same for all Ukrainian society at the present time.
Capital of Ukraine – Kyiv City, on the modern stage of own development, is:
1. Political; and administrative center of the state, place of location of:
- residence of the State Head – President of Ukraine;
- Supreme Soviet of Ukraine;
- Cabinet of Ministries of Ukraine;
- Constitutional Court of Ukraine;
- Other central state authorities.
2. Economical center of Ukraine
The powerful economical potential is concentrated in Kyiv, consisted of multi branch industry, building complex, developed systems of branches of public economy, transport means, systems of modern connection and the like.
More than 485 biggest industrial enterprises and thousands of small and joint ventures, building organizations, transport organizations, connection and the like are located and worked in Kyiv. The considerable building potential is formed in the capital: more than 200 contract building and assembling organizations, numerous number of project and search enterprises, about one and a half thousands small building enterprises and cooperatives work. Wide net of local transport is functioned in Kyiv.
The location on the crossing of numerous transport highways is promoted to economical development of Kyiv: water, railway, automobile, air. It passes from west to east (from countries of Western and Central Europe to Russia, and to Caucuses), and from North to South (from Russia to Baltic States and Scandinavia to Southwestern Europe). The transformation of Kyiv into great junction of air transport is on by rapid tempo for the last time. Airport “Kyiv” (Zhulyany) and closed to it – largest international airport of the country – Boryspil, are located in the boundaries of the city.
3. Religious, cultural, historical, scientific and educational center of Ukraine
A great number of historical, cultural and architectural monuments are located in Kyiv and carefully saved, rehabilitated and reconstructed by local authorities. The capital of Ukraine is to full by institutes of science, education, and, art than other cities of the country.
Kyiv is one of the largest scientific centers in Europe. The following establishments are located in Kyiv: National Academy of Science and numerous of it institutes, which has world famous scientific schools, 277 independent scientific and research and 38 independent design organizations, and also 18 prominent high schools of Ukraine. 457 of general educational schools.
The capital of Ukraine has a great cultural potential, including 31 museums, 33 theatres, 36 movie theatres, numerous number of constant working art exhibitions. The most well known museums are National museum of history of Ukraine, Museum of Ukrainian image form art, Museum of western and eastern art.
Historical building of the city is about 6 thous, ha. In the central – historical part of Kyiv 3 state reserves are located: State historical and architectural reserve “Starodavniy Kyiv”; National reserve “Sofia Kyivska”; Kyiv and Pechersk national historical and architectural reserve. Besides, on the territory of the city there are 6 architectural and 8 archeological reserves. There 3736 monuments of archeology, history, architecture and town planning, monumental art are under state protection. Among it: 243 monuments have a status of monument of state significance, including 51 monuments of international significance bu UNESCO classification.
4. Location place of diplomatic representatives of foreign states and international organizations in Ukraine
The embassies and consulates of more than 70 world states are located n the city, including an honoured consulate. Besides, there are representatives of several international organizations as UNO, European Union, IMF, Association of red cross and read half-moon, other numerous organizations and associations.
5. Location place of Kyiv Region Council and Kyiv Region State Administration and it sub-units
In accordance with Article 133 of Constitution of Ukraine, Kyiv City is an separated administrative unit in the system of administrative and territorial system of Ukraine, and it means, that city has not own region, than other all regional centers of Ukraine. At the same time, Kyiv is place of location of all main structures of Kyiv Region governing. The mutual relations of local and regional authorities in Kyiv City are determinated in Article 25 of Law of Ukraine “On capital of Ukraine – city-hero Kyiv”.
Kyiv is one of leading industrial centres of Ukraine. In city works the greater 400 large industrial enterprises of different patterns of ownership (in general – almost 650). Besides some thousand small enterprises of an industrial structure work in the city.
The industry of Kyiv is a unique industrial complex, which comprises the enterprises practically of all areas except for the enterprises of an extractive industry. As an industrial centre, Kyiv has already known by manufacture of such competitiveness in the world market of production as planes, sea and river vessel, electronic computer facilities, devices of high accuracy, radio equipment, dredges, process equipment for many areas of an industry, chemical and pharmaceutical production, building materials, cable production and the like for some decades. A unique behind the characteristics of the enterprise on servicing of military – industrial complex (MIC). Most known of them are factories: "Arsenal", "Bilshovyk", "Kvant", named after Antonov, named after Artem placed in Kyiv. For the enterprises of MIC characteristic, there is a presence of a significant part of modern equipment, precision machines and mechanisms, advanced infrastructure and highly skilled staff – designers, technologists, engineers and workers.
The enterprises of Kyiv City carry out the foreign trade operations with the partners from more than 160 countries of the world.
The main trading partners on the Euroasian continent are Germany and Turkey, and on American – United States of America. The main trading partners are the Russian Federation, Byelorussia, Turkmenistan and Lithuania.
Kyiv City State Administration builds own industrial policy and guides that at all enterprises, which located in city, the city inhabitants work, and the local authority should care for well-being of them first of all. Therefore in a field of sight of local administration there is an activity of all enterprises, irrespective of their form of ownership.
Proceeding from this concept, Kyiv City State Administration has acted by the initiator of transfer of all industrial enterprises located on territory of city, to operation of local authority. According to the Decision of Government of Ukraine, the enterprises of state form of ownership is gradually transferred to sphere of operation of KCSA , which was in operation of the branch ministries. Already, at the first stage of work with the help of local authority, the majority of these enterprises have improved the work.
TRANSPORT AND COMMUNICATIONS
The enterprises of transport and connection have strong important significance for development of a social and economical complex of city of Kyiv.
Such types of transport as air, river, automobile, railway, developed system of communication, advanced engineering and transport network are functioned in Kyiv. The air communication of Kyiv is provided with two international airports: "Boryspil", located for 30 km from city, which serves mainly international airlines and connects capital with more than to 40 capitals of the countries of the world and "Kyiv", that is on the municipal property, located in borders of city and serves the airtransportation on Ukraine mainly. The river of Dnieper, connects of Kyiv to northern and southern regions of Ukraine and ports of the Black and Azov seas, with 15 European countries of Danube and Main, and also with Russia, Poland and Byelorussia. The railway ways connect capital of Ukraine practically to all capitals of the countries of Western and Central Europe, Baltic States, large cities of Russia, Byelorussia and Ukraine. From nine international transport corridors authorised at the second Pan-European conference, through Kyiv passes three: "Berlin – Vrotslav – Lviv – Kyiv", "Helsinki – St.Petersburg – Moscow – Kyiv – Chishenau – Bucharest – Alexondropolis", “Triest – Lublana – Budapest – Kyiv”. One of main transeuropean highways “Milan – Budapest – Lviv – Kyiv” passes through the capital of Ukraine.
Last years, Kyiv became a key part in development of telecommunication networks, which should connect Western Europe to the countries of CIS and Asian continent, and has appeared at the centre of realisation of the greatest telecommunication projects of Ukraine. Constructed South, North and West optical and fibre lines of the communication in a complex with the international projects (ITUR, TEL, TAE, BSFOCS), in last years within the framework of the projects, provide an exit of Kyiv on digital telecommunication networks of the countries of CIS and Baltic States, Europe, Near East, and also in system FLAG (round-the-world optical and fibre line). In Kyiv there are headquarters and work all greatest telecommunication companies of Ukraine, the majority from which is the enterprises with the foreign investments.
Taking into account, that the development of Kyiv provides its integration with the European countries, the need for development of a modern communication facility and qualified transport services in one hour will be increased. And it gives additional opportunities for realisation of favourable capital investments in the field of transport and communication. This conclusion proves to be true in particular that in our city already was realised some large investment projects both domestic and foreign investors for the last time.
SPHERE OF CIRCULATION
Spheres of circulation, among which greatest share (more than 90%) are owing to trade and public catering, will play the important role in formation GDP. So in 1997-98, the fourth part of total regional product created was formed in capital. Appreciably it was connected to those by structural changes, which in the middle of 90 years were held in local economy: reduction of industrial manufacture, flow of the capital to areas with insignificant term of a circulation (less than one year). The important meaning has influence of such factor, as achievement of positive results without the large capital investments.
Kyiv is a centre of science of Ukraine. In city National academy of sciences of Ukraine and majority of its branch institutes, which have world well-known scientific schools are located. Among them are the institutes of electric welding, powder metallurgy, cybernetics, synthesis of composite materials, laser technology and the like.
Besides, the various branch and departmental research and design institutes and organisations, and also prominent higher educational institutions of Ukraine work in Kyiv.
In total in Kyiv, about 380 organisations are engaged in scientific activity (almost 25% of their quantity in Ukraine). Almost 57% of scientific organisations of city is concentrated in branch sector of a science, 36% are owing to academic sector, 5% – to high school, 2% – to scientific and research subsidiaries of the industrial enterprises.
ENGINEERING AND TRANSPORT INFRASTRUCTURE
Kyiv are a greatest air gate of independent Ukraine. Two international airports serve the city. The airport "Boryspil", located for 30 km from cities serves mainly international airlines. It connects of Kyiv with more than 40 capitals of the countries of the world. The airport "Kyiv" is in the municipal property and located in city boundaries. Main offices of the greatest airlines of Ukraine are also located in Kyiv: "Airlines of Ukraine", "International airlines of Ukraine", "Aerosvit", and also considerable part of private passenger and cargo airlines.
The works concerning a modernisation last for several years with the aim that the airport "Boryspil" answered all international requirements. The gradual updating of the airport is carried out by own forces with attraction of the credits of the European bank for reconstruction and development. Already some years work the modernised main terminal. The works on creation of an additional flying and landing strip of the international level are now conducted.
The airport of "Kyiv" specialises, mainly on realisation of internal airtransportations.
The railway roads connect Kyiv practically to all European capitals, with the majority of large cities of Russia, Byelorussia and with all large cities of Ukraine. Developed length of railway ways on territory of city exceeds 400 km. A cargo turnover is provided 9 commodity stations in Kyiv City. The central railway station is located in city centre. The structurally railway network, which serves capital, is included into structure of the Southwest railway. In Kyiv there are headquarters of the Ukrainian railway company "Ukrzaliznytsya". A convenient location of city, its industrial and commercial potential assist to constant revival of business activity of a railway transportation, increase of volume of passengers and freight transportation.
The river of Dnipro, on which both coasts located Kyiv, is an important transport junction of Ukraine. It connects Kyiv not only to northern and southern regions of Ukraine, ports of the Black and Azov seas, but also with 15 European countries of pools of Danube, Main and Rhine, and also Russian Federation, Poland and Byelorussia.
In Kyiv, there are river cargo and passenger ports. In capital of Ukraine, the headquarters of the joint-stock company "Ukrrichfleet", greatest Ukrainian company of cargo carriages by water are located. The company "River walking and excursion agency", carried out river passenger transportation, is located in Kyiv.
Kyiv is on a crossroads of automobile ways in East Europe. Routes from here run which connect city both to the countries of Central and Western Europe and with Russia, Byelorussia, Armenia, Georgia and other countries of CIS.
The passenger transportation, including international, are carried out by the central road service station of city, and also 7 auto stations, which are in the different parts of Kyiv.
The complex ramified network of municipal passenger transport functions in Kyiv. The transportation of the passengers in city is carried out by underground, tram, trolley bus, bus, microbus and automobile taxi of different forms of ownership. There are 3 lines of underground function in Kyiv: Svyatoshyno-Brovarska, Kurenivsko-Chervonoarmiyska and Syretsko-Pecherska lines.
To the development of underground is raised an attention for the last years, as to the most perspective, reliable, ecologically friendly kind of municipal passenger transport. The underground has replenished for 15 km of a underground and 8 stations for eight years. On today, Kyiv underground has three working lines, which operational length makes almost 50 km, 40 stations, 57 halls, 105 escalators with length of a linen almost 17 km. Developed length of a rail track makes almost 140 km, including 103 km – main track. Developed length of tunnels makes more than 160 km, length of a contact rail – more than 120 km. The maximal sizes of movement of trains at hour of "peak" loading reach 40 pairs trains per hour.
The construction and put into operation of new site of “Syretsko-Pecherska” line of underground with length of 2,85 kms, from station "Lukyanivska" to station "Dorogozhychy" is completed.
It is planned to increase an operational length of lines of underground up to 100 kms, first of all, at the expense of continuation of existing lines in directions of housing districts Bilychi, Vynogradar, Teremky and construction of a new fourth line of the underground from the airport of "Kyiv" to an housing district Troeshchyna for 2010.
Length of trolleybus lines makes about 325 km, tram track – 285 km.
The enterprises of ground municipal transport served 328 routes, including the bus routes total – 117 local, 43 suburban, 83 taxi, 16 inter-local and 2 international, also 31 tram and 36 trolleys routes work in city.
The inventory park of the rolling-stock of the municipal transport enterprises consists from: 623 trolley buses, 612 tram cars, 564 carriages of underground, 2 carriages of cable car, 1990 buses of different spaciousness, marks and updating, including 435 microbuses.
Road network of. Kyiv is about 1600 kms of roads, almost 100% from which have the advanced firm covering. Besides, the road network includes about 140 bridges and overpasses, 200 underground foot transitions, and also numerous auxiliary objects. It is planned to put into operation about 70 underground transitions, thus 40 of them will be developed on those highways, which reorganisation is supposed by the program of construction and reconstruction of road and transport objects (the construction of transitions will conduct in parallel with reconstruction of all highway) during the next years in Kyiv.
The operation and repair of working road objects is carried out by the specialised municipal enterprise "Kyivmiskhydroshlyahmit" in Kyiv, which also acts as a customer on construction and reconstruction of new road objects.
100% of a road network of city is practically illuminated. It is established over 114 thousand fixtures in streets of city.
The favourable geographical location of the capital of Ukraine assisted that Kyiv became a key part in development of the international telecommunication networks, which should connect Western Europe to the countries of CIS and Asian continent for the last years.
Headquarters of all big telecommunication companies of Ukraine, the majority from which is the enterprises with the foreign investments are located in Kyiv. The ministry of the finance of Ukraine and KCSA is put many efforts for stimulation of development of competition on the basic segments of the market of telecommunication services of city. "Ukrtelecom", OJSC provides the development and operation of local telephone nets. "UMC", "Ukrainian radiosystems ", "Bancomzvyazok", "DCC", "Kyivstar" work in the sphere of cellular telephone communication (NMT and GSM systems), and "Ukrainian paging net", JV, "RADIOCOM", JSC and " BEEPER PAGING " work in the sphere of communication.
The active re-structuring of post communication and transformations of the Ukrainian state post enterprise of communication "Ukrainian poshta" in joint-stock company with participation of the state will be carried out.
The provision of city by the electric power, hot water and heat-carrier for the central heating is carried out mainly by "Kyivenergo", JSC, the share of holding is in the municipal property.
General level of electrosupply in city is rather high at whole. In the current year eventually There was decided a problem of electrosupply of the central part of city in current year, where it was carried out from old substations constructed in middle 60 of years for the last time. And that is why, it was put into operation a new electrical substation, that has removed problems in power supply of the central part of city with participation of World Bank.
The provision of city by gas is carried out by the municipal enterprise "Kyivgas".
It is necessary to implement the new technologies for increase of quality service the population by gas: assemble of anti corrosion polyethylene pipes in construction of new underground networks and modern systems of gas meters in the enterprises and in housing and municipal sector. Kyiv City State Administration is interested in joint realisation of the investment projects in this sphere together with the foreign investors.
Water supply and drainage
Provision of Kyiv by drinking water and drainage is carried out by the municipal enterprise "Kyivvodocanal". The capital has the ramified network of the centralised water supply and independent of sources of drinking water supply, that as a whole provides needs of city for drinking water. The single length of city water supply networks (without water carriers and drainage) is about 2700 km, and the single length of waterpipe, which delivers water in a network of water supply, is about 260 km.
The retail trade play an important role in development of a social and economical complex of city.
Universal shops and garments with trade area from 400 up to 2000 sq.m. prevail in sphere of trade of consumer goods. Supermarkets have begun to develop with a privatisation in trade, and during last several years some retail and wholesale supermarkets such as " Cash and Carry " have appeared. All of them are created for capital of the foreign investors. In particular, three "Billa" supermarkets were put into operation, they are enterprises with 100% of the foreign investments "Billa-Ukraine" (investor – Austrian company "Billa").
The greatest metropolitan enterprises in sphere of trade of non-consumer goods are the department stores (trade area from 3500 up to 22000 sq.m.). The largest among them are “Ukraine”, “CUS” and “Children's world”. Except for them, in city, the network of smaller by area modern shops for sale of non-consumer goods functions.
There is an absent of brightly expressed shopping center, because the objects of trade were in regular intervals placed on all territory of city irrespectively of the majority of cities of Europe and America in Kyiv. The high level of concentration of establishments of trade objects in the central street of city – Khreshchatyk is reached for the last time, but the question of creation of trade area by western standards remains open, and the investments in this direction are necessary.
The sphere of public catering consists of restaurants, bars, cafe and dining’s.
The specialised enterprises focused on a large circle of the clients, in particular, of a fast-food establishment successfully develop. The example of such development is activity of system of restaurants and snack-bars “McDonald’s”, “Mister Snack”, “Shvydko”, “McSmak”, “Rostics” for the last time.
Kiev is a financial centre of Ukraine. There is a well-advanced network of financial establishments in the city: banks, stock exchanges, investment funds and insurance companies. The accelerated development of it began from the moment of a reception by Ukraine of independence. The financial system of Kyiv serves needs of all state, acting by financial basis of economic reforms of independent Ukraine today.
The largest national banks – National bank of Ukraine and Ukrainian export-import bank are located in Kyiv. About 74 commercial banks are counted in the city. The majority of it with headquarters in Kyiv have the developed network of subsidiaries and representations on all Ukraine and define the financial, investment and industrial policy in all regions of the country.
The headquarters of all banks with 100% of the foreign capital, and also representation of foreign banks, which have not received yet that the licenses for activity in Ukraine, are located in Kyiv. Among foreign banks, which have high-grade branches (classified, as the Ukrainian banks with 100% of the foreign capital) are "Societe General Ukraine", "Credit Lione Ukraine", "ING Bank Ukraine","Credit Swiss First of Boston (Ukraine)", "Incombank Ukraine", "Creditanshtaltd Ukraine", "Citibank Ukraine", "Raiffeisenbank Ukraine". It activity on territory of Ukraine strengthens leading positions of Kyiv as financial centre of the state.
There is registered more than 200 insurance companies in Ukraine, including 50% of which are in Kiev. Besides, Sea and Air bureau, which are engaged in insurance sea, river and air transportation, are located in Kyiv. The share of Kyiv insurance companies, which enter in list of thirty of the first insurance organisations of Ukraine, makes more than 40% of volume of receipts of insurance payments.
The transition of economy of Ukraine to market conditions has caused burst of demand on various consulting services (legal, audit, and advice from management, research of the market, expert estimation). Arrival on Ukraine of the foreign companies, development of foreign trade activities of the domestic companies have created the market for foreign consulting firms, both very known, and medium and small. The considerable quantity of it works in Ukraine. Headquarters of foreign consulting firms and the majority of Ukrainian firms are located directly in the capital od state. In particular, the offices of Pricewaterhouse Coopers, Barents Group LLC, Alliance Consultancy Limited, Robertson&Blums Corporation, B.C. TOMS&Co Work., Baker&McKenze, White&Associates work in the capital.
The general area of office centres of the international level is more than 100 thousand sq.m. at the present time. The majority of modern office complexes were constructed for capital of the foreign investors. The foreign partners together constructed some popular business centre in the city, with local authority in frameworks specially created for these purpose joint ventures. Among it is Business centre "Europe", Kyiv – Donbas, International office and hotel centre.
With the purpose of stimulation of innovation activity directed on satisfaction of needs not only Ukrainian, but also foreign industry, it is created six technological parks in the capital of Ukraine: "Semi-conductor technologies and materials, optical electronics and touch engineering " (Kyiv City), "Institute of electric welding named after E.O. Paton" (Kyiv City). Both technoparks are organised on the basis of prominent institutes of National Academy of Sciences, which represented powerful scientific and industrial complexes.
The basic advantage of created technoparks is an opportunity of granting to the projects, carried out in it, a special regime of investment and innovation activity. The necessary conditions for granting a preferential regime is the project, with foremost direction implementation and also it total cost.
Modern Kyiv is an educational centre of the country. The existing system of education is more than 1,2 thousand establishments: from a children gardens to establishments of post-diploma education. More than 750 thousand children, schoolboys and students, and also considerable number of the practical workers, which raise the qualification, are in educational establishments of Kyiv.
The system of preschool education in Kyiv countes about 700 establishments. The quantity of general educational establishments in city exceeds 400 units. The activity from preparation of personnel with maximum qualification for work in modern conditions of market economy in Kyiv is carried out by more than 100 higher educational institutions of I, II, III and IV grades of accreditation, 44 secondary professional educational institutions, and also by system of improvement of professional skill of the specialists. All this causes that fact, that there is a skilled staff, capable works to provide the implementation of scientific and technical progress (STP) in the economy of city and to assist the decision of industrial and social tasks, practically of any complexity.
Kiev is one of the prominent centres of health care in the country. 100 stationary hospital establishments, about 250 out-patient – policlinic establishments function in the city. The number of the doctors of all specialities makes more than 20 thous. persons., or 80 per 10 thousand population. The significant attention in city is payed to preventive maintenance of diseases, development of physical culture and sports. 24 stadiums (including National Olympic stadium with 82,5 thous. seats and Palace of Sports), 25 swimming pools, 486 sports halls, numerous sports grounds function in Kyiv.
There are advisory polyclinics, female advices, polyclinics at stationary establishments, dyspansesr, independent polyclinics, dantist polyclinics in the system of Head Department for health care (HDHC) in Kyiv City.
Important attention is payed to work of branches ambulance. Their total number makes 28 items for the adult and 17 items for children in Kyiv.
Chemist's network of the city is provided by sufficient assortment and quantity of medical means for organization of medical process of the Index out-patient and stationary patients.
INVESTMENT POLICY OF LOCAL AUTHORITIES
The management of investment activity is one of the important functions of local authorities in the capital of Ukraine. Thus the main task is stimulation of increase of volumes of investments in priority directions. The system of priorities reflects the profile, which achievement or, at least, aspiration to which, will provide to a maximum extent an integrated approach and constancy of social and economical development of Kyiv. That is why the priorities with respect to investments constitute an "answer" to problems of this or that disproportions (branch, territorial, resource etc.).
The local authorities consider to take appropriate measures in the following priority directions:
1. Development of the most perspective branches of industrial complex of Kyiv, among which are light and food industry, manufacture of medicines, medical preparations and machinebuilding related thereto, aircraft- and shipbuilding, as well as industry of building materials. The development of these spheres can be based on the modern technologies of production of new composite materials, biotechnologies, newest technologies of physics of low temperatures, technologies of energy saving and energy supply, nuclear physics, electric welding, space technologies and the like.
2. Increase of export potential in any kind of economic activities. The solution of this problem is a separate important direction of modern investment policy of the city directed at priority and the most competent development of those subjects of enterprise activity, which produce competitive products by using modern technologies and need certain impulses for confident and long-term entrance to the world market, including the CIS’s market.
3. Development of municipal economy and social sphere. Kyiv needs to modernize objects and networks of water- and heat supply, water drain, electric and gas networks, local transport infrastructure, reconstruction of existing housing fund, increase of volumes of production and the like.
4. Solution of number of ecological and social problems. The plans of long-term development of Kyiv, as the capital of the independent state, provide gradual removal of the city’s borders, reconstruction of the enterprises by changing their basic activity, which pollute the environment, reduction of toxic emissions in the atmosphere by motor transport, creation of an effective system of health care of population, and in first instance, of children. The solution of these tasks demands significant volumes of investment, however not all funds should come from the budget. The part of demand can be covered at the expense of non-state sources.
5. Finishing of formation of the international business infrastructure in the Kyiv City, for organisational and technical maintenance of circulation of the capital, including foreign investments, and also goods and services meeting world standards. In order to achieve this purpose it is necessary to finish the formation of a network of the rationally located business-centres of classes A and B, to finish large scaled of hotel network, to create and complete available objects, several five star hotels, to build modern objects of logistic system, to provide the accelerated development of telecommunication systems and information technologies.
Regarding legal aspects, the formation and realization of investment policy are based on:
- observance of nation-wide rules, which regulate the activity of investors and power of local authorities concerning the control over investment activity;
- maximal use of opportunities given by legislation for stimulation of investments in priority directions;
- use of general powers of local authorities and special powers stipulated by the Law of Ukraine "Our capital of Ukraine - city-hero of Kyiv", for directing and supporting investments in priority directions.
There are two approaches to management of investment activities in the capital: general (regional macroeconomic) and address. In the first case the measures are directed to the creation of general favorable investment climate and formation of positive investment image of capital of Ukraine. That is why, the general approach provides the improvement of social and economical conditions for all investors.
The address approach is a direct continuation of strategy of priorities. It provides active direct participation of local authorities in realization of certain projects, which have importance for cities within the social and economical meaning. The cooperation with investors and their support by the cite can have various forms depending on scale, branch orientation, relations of the property and land relations and the like. The minimal scheme of support includes the centralized coordination of actions of all local bodies of power and their structural subunits involved in the procedure for approving of construction projects, registration of various sanctions (licenses) necessary for conducting this or that economic activity. More complex schemes of support of the investment project can provide the investor with municipal guarantees, privileges under local taxes and duties, including the land fee, and also direct participation in the project by municipal property, capital or other assets.
All actions of local authority carry program character and directed to the achievement of basic tasks, which are determined in sphere of investment activity in the Kyiv City. The investment policy is realized on the basis of the plans of measures stipulated for short and the long-term periods.
The investment policy of local authority has an open "public" character. Each interested investor may address to the Kyiv City State Administration to state the estimation of efficiency of policy, which will be carried out, and also to submit appropriate offers for its improvements. Several constantly working mechanisms of "reverse connection" are stipulated: meetings of the city heads with ambassadors, trade attache and large investors, which occur on the basis of certain periodicity.
The investment policy of local authority is general for all investors irrespective of the country, to which they owing to, their form of ownership and the like. Restrictions can be possible only in connection with international obligations of Ukraine.
The investment policy of local authorities does not provide differentiation in any questions between the internal and external investors. The national regime works for non-residents, except for specific issues, too.
BASIC INDEX OF ACTIVITY OF FOREIGN INVESTORS IN THE KYIV CITY
Total sum of foreign investments
In the sphere of investment activities of foreign companies Kyiv leads among other regions of the country for several years and gets one third of the total foreign financing of Ukraine.
The leading role and positive dynamics in foreign investment is explained appreciably by capital status of city, that Kyiv City is a business, financial centre of the state. Thus, certainly, not all investments of foreign companies registered in the capital of Ukraine are directed to creation of new objects on the city’s territory. Despite of considerable flows of investments passing through the Ukrainian capital, the city badly needs capital investments practically in all areas of its economy.
Countries, from which foreign capitals come
With respect to the geographical plan the structure of foreign investments in economy of the city is characterized by rather stable data. The list of the biggest countries – investors remains constant during the last three years. The leaders are such highly developed countries as the USA, Germany, Great Britain, Benilux countries, and island countries, which have on their territory offshore zones (basically – on Cyprus). However, the stability of geographical structure does not mean its absolute static character. Annually there are new countries – investors, which make considerable investments.
Types of the investments
During the last years the positive tendencies in the structure of registered foreign investments under forms of their implementation are observed:
1. The share of foreign investments in the form of property, in particular of furniture, computers, office equipment and other non-productive property, continues to be reduced.
2. The share of the investments made in the form of a currency is increased.
3. The share of re-investments grows which testifies satisfactory financial and economic results of the enterprises with foreign capital and their desire to further work at the Ukrainian market.
Branch structure of investment
During all years of independence of the state the branch structure of the investments is characterized by presence of stable group of the most attractive types of economical activity, by which the basic share of the foreign investments is directed. Internal trade, finance, industry and construction are leading branches where foreign investments are attracted. 70-75% of foreign investments are directed to the city.
- ASTERTECH LLC
- AGT Company
- Kyyanytsya private enterprise
- UP Logistics Group LLC
- Zernosvit LLC
- ALUKA Company
- GT Race Company
- ARCHITECTORIA Company
- Studio Evolution Company
- Morgan Furniture LLC
- PRODENERGO LLC
- NOVYI SAD, LLC
- AGROFIRMA VIKTORIA, DP
- GOLSKI SWEET COMPANY Limited Liability Company
- VITALII TRON Private Entrepreneur
- Indychka LLC
- ALUKA Ukraine Chemical and Software Co.
- BLITZ, LLC
- AGRO-SOUZ, LTD
- AGRO-PLUS1, LLC
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