Autonomous Republic of the Crimea

The population of the Autonomous Republic of the Crimea makes up 2 018 400 of people.

The economy of the Autonomous Republic of the Crimea has been shaped by the peculiarities and riches of its nature, as well as beneficial geographical location of the peninsula. The Crimea has advantageous natural conditions for development of agriculture, recreational industry, and certain extractive industries, such as gas extraction, iron ore and fluxing limestone mining, construction materials, soda and bromide production.

The Crimea is also known as supplier of food industry equipment, TV sets and radio equipment, pneumatic devices, electric welding equipment and agricultural machinery, tankers, floating cranes, and hydrofoils.

The Crimean economy’s special profile is in labor-intensive engineering and metal-working.

Historically, agriculture in the Crimea has focused on plant farming. It specializes in viticulture, horticulture, growing of tobacco, essential oil crops, and grain. The republic’s animal husbandry includes dairy and meat cattle breeding with well-developed livestock breeding, and such a special sector as poultry industry.

The factories manufacturing consumer good occupy a special place in the Crimean economy. They specialize in the production of clothing, footwear and knitted garments, haberdashery and furniture. The Crimean steel mills, machine building factories, and chemical plants contribute significantly to the production of consumer goods. The Kerch Integrated Steel Plant produces enameled steel kitchen utensils; machine building factories in Simferopol and Sevastopol produce telecommunications equipment; chemical plants in Krasnoperekopsk and Saky – textile dyes, potassium permanganate, chemical plant in Simferopol – detergents.

Well known on world markets are the products of Crimean wine-makers, such as vintage dessert and sparkling wines. The Crimean essential oils enjoy a well-deserved authority.

The Crimean recreational sector has 632 sanative and preventive healthcare facilities. Sanatoriums are concentrated mainly at the Crimea’s South coast and the Yevpatoriya resort. The Crimea’s South coast specializes in treatment of adults, whereas Yevpatoriya is intended for recreation and treatment of children. The mountainous Crimea has a network of tourist bases and camps. Hotels Yalta, Oreanda, and camping motel Fairytale Glade are located at the peninsula’s South coast.

In order to implement radical transformation in the national economy a comprehensive long-term program of socioeconomic development and restructuring of the economy of the Autonomous Republic of the Crimea has been developed covering the period until 2010.

Proceeding from the problems of republic’s socioeconomic development, its climatic and resource potential, peculiarities and specialization of the region, and its place in the social division of labor, and approaches to structuring the economy, the program identifies the following long-term priorities:
- development of the resort and recreational complex, its shaping as the key industry within the economic complex;
- development of the fuel, energy, and water economy sectors to the levels that would allow to provide for the needs of the population and the whole economy;
- reforming and developing the agricultural and processing sector in order to satisfy the needs of residents and guests in foodstuffs, and provide the processing industry with raw materials, so as to increase the traditional Crimean exports;
- further development of all means of transportation, including sea ports, and expanding the transport and distribution functions;
- creating a high-tech competitive industrial complex, adapted to market conditions and capable of satisfying the needs of the region and participate in economic relations of Ukraine and other countries;
- reception and resettlement of the deported peoples returned to the Crimea for permanent residence.

The measures applied to all areas include the requirement of establishing environment-friendly production, minimizing technological pressures on the environment, assuring the transition to a balanced use and restoration of recreational and other natural and resource factors for providing basic services.

INDUSTRY

The Crimea’s key manufacturing industries are represented by machine building, metalworking, food, and chemical industries.

Machine building plants staffed with stable and skilled workforce are highly technology-intensive. They supply, abroad included, the shipbuilding products, equipment for food-processing industry, electrical and pneumatic devices, electric welding equipment, and agricultural machinery.

The Open Join-Stock Company “Zaliv Shipbuilding Plant” produces vessel hulls. The level of production equipment and processes conforms to the European standards. The high quality of workmanship has been recognized by such international ship quality and classification companies as German Lloyd’s and others.

The Feodosiya Production Association “More” has launched the production of an innovative design of the high-speed 200-seat catamaran “Superfoil-30” with titanium hydrofoils and a system of interceptors.

The Open-end Stock Company “SELMA” is persistently working towards improving the competitiveness of its products. The performance of its welding equipment conforms to international standards and is exported to many countries throughout the world. The company has introduced and certified the quality-assurance system ISO 9001.

In order to develop state-of-the-art and perspective technologies in electric welding, the company is collaborating closely with the leading foreign manufacturers of welding equipment, including Polish OZAS, Swedish ESAB Concern, and Finnish KEMPPI.

The Open-end Stock Company “Factory Fiolent” is the leading Ukraine’s and CIS producer of control systems for the technical and navigational facilities for commercial and naval vessels, precision micro-machinery, sensors and indicators, controlling security systems for nuclear power industry, and the leading Ukrainian manufacturer of household and industrial power tools.

The Crimea’s most promising industries are related to the use of its natural resources.

The scope of reserves and the share of the fields prospected allows to use only natural gas as technological fuel at present. Natural gas fields began to be explored in the Crimea from mid-80s at the Tarkhankut peninsula, on the Arabat point, and near the city of Dzhankoi. The fields on the continental part of the Crimean peninsula were jointed in the late 70s, by the shelf reserves of natural gas at the Black Sea and Azov Sea reservoirs. The Golitsyn gas condensate field is the largest supplier of organic fuel. The field is located at the Black Sea, 72 km off the Tarkhankut peninsula at depths of 40 m. In general, the recoverable reserves of gas and gas condensate in the Crimea are as follows: gas – 8,948 bn m3; gas condensate – 2.12 bn tons.

The oil deposits in the Black Sea and Azov Sea aquatory, as well as in the vicinity of the Kerch peninsula present a promising group of Crimean resources. The prospected oil reserves amount to 1.492 mn tons.

The Saky State Chemical Plant and Open-end Research and Production Association “Iodobrom” use local raw materials. Two plants in the town of Krasnoperekopsk – the Open-end Stock Company “The Crimean Soda Plant” and the Open-end Stock Company “Bromine” use the brine drawn from the Syvash bay and from salt lakes. These enterprises are monopolists on the Ukrainian and CIS markets, and produce unique products, being quite competitive on the European and world markets.

The Mining and Concentration Works “Titan” produces more than a half of the country’s titanium dioxide and ammophos. The Open-end Stock Company “The Crimean Soda Plant” produces 90% of soda salt in Ukraine. The OSC “Brom” is the only domestic producer of liquid bromine, iron bromine, dipropanebromide, and bromine salts. The Saky State Chemical Plant occupies the monopoly position on the CIS market in the production of potassium permanganate and methyl bromine.

The metallurgy in the Crimea is represented by the OSC “The Kerch P. Voikov Metallurgical Plant”, which manufactures steel enameled kitchen utensils, and railway points.

The construction materials industry in the Crimea is represented by well-developed facilities based on abundant reserves of non-ore raw materials (about 200 deposits): saw limestone (45% of Ukrainian reserves), cement stock, including marls. The annual output of construction materials approaches 13 mn m3. The leading role in the industry is occupied by the production of wall materials made of the saw limestone mined at the Inkerman, Bodrak, and other deposits.

The Crimean cement industry is based on well-explored marls of the Bakhchysarai deposit, which features significant reserves and uniformity of composition. The production of facing tiles is concentrated at the Alminsk, Inkerman, and Prymorsk Plants. The production reject is used to make gravel, shall-and-concrete wall panels, and asphalt concrete.

Bottling of natural mineral water is one of the promising areas of the Crimean food industry. The Crimea enjoys a great variety of mineral waters, including table and curative water with a wide range of applications.

The most promising food industry enterprises are wine-making enterprises and distilleries, such as the Industrial-Agricultural Association “Massandra”, Sparkling Wine-Making Plant “Novy Svet”, State Farm Plant “Koktebel”, and company “Soyuz-Victan LTD”.

From the moment of its founding in 1894, the IAA “Massandra” has been producing only high-quality wines for over 100 years now. Starting in 1900, the Massandra wines have been taking part in international exhibitions and wine-testing competitions.

“Massandra” can boast the largest wine-collection worldwide. Its cellars contain about one million bottles of various wines. This collection is also one of the oldest.
The “Massandra” museum fund stores Jerez de la Frontera of the 1775 vintage, which is still a living wine. There are also other wines, which are over a hundred years old and continue getting top grades for their quality. The company Internet site is: http://www.massandra.crimea.com/

AGROINDUSTRIAL COMPLEX

The main vector in the development of the Crimean agroindustrial complex lies in its orientation towards the best possible utilization of the peninsula’s unique natural and bioclimatic potential.

The climatic conditions and fertility of soil in the republic are conducive for the development of diversified agriculture.

The Crimea’s agricultural and climatic resources allow growing of numerous crops of the temperate and even subtropical zone. The annual total of active temperatures in the flatland Crimea is 3300-3600 degrees, whereas the South coast indicator exceeds 4000 degrees; the frost-free period duration in the flatland Crimea is 170-200 days, and 240-270 days at the South coast. The abundance of warmth and sunshine, however, is accompanied by insufficient precipitation. The average annual precipitation amounts to 300-400 mm in the most of the Crimea. During arid years, the amount of precipitation declines twofold, which has an extremely negative impact on agriculture. Therefore, irrigation projects are being implemented in the region. Every hectare of irrigated area yields four times more crops than a dry one. The main irrigated areas are located in the North-Crimean Canal area.

The current agricultural priorities are grain, horticulture, viticulture and wine-making, poultry industry, and food-processing industry.

The Crimea is also famous for its essential oils. Lavender, sage, and rose are grown commercially.

Private farms produce over 70% of meat and milk, over a half of eggs, and nearly all potatoes.

The formation of a socially-oriented economy requires a powerful food industry to be developed in the Crimea, capable of ensuring normal life of the population, restoration and preservation of its health, and expanding the Crimean exports.

Meat, dairy, and canning factories have a significant potential, which consists, specifically, in establishing close collaboration with agricultural producers in order to expand the raw material base.

Integration processes will be facilitated by reforming the land and property relations, which would develop real owners of land and means of production.

The Crimean network of fruit and vegetable canneries could satisfy the wide needs of the population in various types of canned fruit and vegetables, provided the plants are modernized and upgraded.

The Closed-end Stock Company “Maybel” produces six types of juices made of Crimean fruits and various nectars of exotic fruits. The company is interested in expanding its exports to the Russian Federation.

The production of a wide range of baby-food is increasing, with the OSC “The Simferopol Cannery Named After the 1st of May” being the main producer. Various fruit juices prevail: apple, plum, apricot, grape.

The republic’s agricultural producers need agricultural machinery, mineral fertilizers, pesticides and herbicides.

RECREATIONAL AND TOURIST COMPLEX

The present tourist and recreational potential of the Crimean peninsula can be described as follows:

- historical and cultural resources:
There are over 11,500 historical, cultural, and architectural monuments in the Crimea, related to various historical epochs, civilizations, peoples, and religions. The most unique of them, e.g., the complex of cave towns and monasteries, Genoa fortresses, sacred places of various denominations, and others are used as tourist attractions.

- landscape resources:
Five state reserves, 33 game reserves, including 16 national ones, 87 natural monuments, including 13 national ones, 10 reserved tracts, etc.

- curative and mineral resources:
The Crimean peninsula has an extremely rich recreational potential. The Crimean mineral (mud-bath) resources, its beaches, and coastal plots of land are very highly rated according to the world standards.

The peninsula has 26 deposits of curative mud and brine, as well as over 100 mineral water springs of various chemical composition. 15 mud deposits and 13 major mineral springs have been recognized as curative by a special decree of the Ukrainian Cabinet of Ministers.

- territorial resources:
Over 90% of recreational facilities are concentrated on a narrow 3 km coastal strip. Inland territories (mountains and foothills) have only small (less than 100 beds) facilities with only basic amenities, even though this “Crimean Switzerland” has all the necessary conditions and resources for a high-level recreational development.

In addition, prospective business partners will be impressed by the opportunities of developing the infrastructure of rural ecological and social tourism; systems of resort service in the new coastal areas of recreational development; system of service for non-organized vacationers; show business and entertainment industry; developing the infrastructure for the elite kinds of sport; and introduction of unique treatment methodologies.

The Crimea is presently providing a third of tourist services in Ukraine for the foreign tourists who arrive for rest and a half of the provided excursion services.

Russia and Ukraine account for the greatest part of the CIS tourists. The Crimea is visited by tourists from non-CIS countries. The main partners, as before, are Germany and Turkey.

The availability of tourist resources, the specifics of the existing infrastructure provide opportunities to develop in the Crimea some non-traditional forms of tourism, such as: speleology, rock-climbing, horse-riding, hang-gliding, mountain hiking, wine and hunting tours, helicopter rides, yachting trips, scuba-diving, scientific and motor tourism.

The Aquasport tourist company is working in the area of underwater tourism in the Crimea. The extracurricular training and educational institution “Diving Center” is intended for children of 6 to 16 years old, Onyks-Tour and Kizil-Koba organize speleological tours, Karyer and Burulcha offer horseback tours.

All these tours can be combined with other activities and intended both for groups of tourists and individuals, be accompanied by a wide range of additional services, various classes of accommodation, transportation, and service.

Of late, the pilgrim tourism is developing in the Crimea rather rapidly. One-day tours have been developed and prepared, including visits to all the renewed holy shrines of the Crimea: monasteries, temples of Simferopol, Sevastopol, and Greater Yalta.

Tours have been developed for the German, Bulgarian, Greek, Crimean Tatar, and Czech citizens whose ancestors used to live in the Crimea to come to their historical motherland with visits to architectural and religious monuments of the peninsula.

The green (rural) tourism is a new and promising trend in the development of the Crimean tourist industry. The Crimea has all the conditions for this: a combination of picturesque mountains and wide plains, forests, steppes, seas, lakes, unique flora and fauna, a wide-ranging network of natural, historical, and ethnographical monuments. Each of the Crimean cities has its own monuments and presents a tourist region in itself.

Sevastopol. Founded in 1783. Population: 378 000 of people. Navy port.

Sights: A memorial to commemorate the heroic defense of Sevastopol in 1941-1942. Count’s Quay, monument to perished sailors of the destroyer “Svobodny”, communal grave of the defenders of Sevastopol, Konstantynivsky and Mykhailivsky forts, aquarium of the Institute of Biology of Southern Seas of the Ukrainian National Academy of Sciences, cape Crystal with an obelisk in honor of the hero-city, St. Volodymyr’s Cathedral, Museum of the Black Sea Fleet, Panorama “Defense of Sevastopol 1854-1855”, Malakhy’s Hill.

Museums:
- Museum of the Heroic Defense and Liberation of Sevastopol. Tel.: 52-29-26, 52-05-16.
- Panorama “Defense of Sevastopol in 1854-55”. Tel. 52-40-06, 52-05-15.
- Diorama “Storming of the Sapun Hill on 7 May 1944"
- Museum of the Black Sea Fleet. Tel. 522-289.
- National Reserve “Khersones Taurica”. Tel. 24-14-15.
- Sevastopol Art Museum.

Yevpatoriya – an ancient town with a history extending for 25 centuries. A major seaside resort in the Western Crimea. Distance from Simferopol 65 km. Population: 106 000 people.

Sights: remains of a fortress wall of the ancient Greek town of Kerkinitida, Greek and Scythian settlement site, medieval Dzhuma-Dzhami mosque, Turkish bath of XVI century, dervish takiye of VI-XV centuries, Karaim kenassa of XVIII century, St. Nicholas Cathedral, Yevpatoriya Regional Museum, Tel. 312-80.

Feodosiya – a cultural and tourist center of south-eastern Crimea, one of the oldest European towns. Feodosiya celebrated her 2500th anniversary in 1971. Population 74 000 people. Distance from Simferopol 120 km.

Sights: monument to the landing party of the Kerch-Feodosiya operation in 1941-1942, St. Constantine’s Tower, Quarantine Hill, Greek Church of Introduction, Armenian Church of St. Serge (Sury-Sarkiz) XIV century, Mufta-Dzhami mosque of XV century, former Stamboli’s dacha.

Museums:
- The I.K. Aivazovsky Feodosiya Picture Gallery, Tel. 302-79;
- The A.S. Grin Literary and Memorial Museum, Tel. 352-20;
- The State Museum of Hang Gliding and Paragliding, Tel. 320-28;
- The M. Voloshin Museum (settlement Koktebel).

Hero-City Kerch was founded in the VI century BC. Distance from Simferopol 300 km. Population: 157 000 people. The city is located on the Black Sea and Azov Sea coast.

Sights: Mountain Mitridat, Church of John the Baptist, Royal Burial Mound of IV century BC, Melek-Chesmen Burial Mound of III century BC, Scythian Burial Mound Kul-Oba, remains of the ancient town Panticapei, Turkish fortress Eni-Kale, Eltigen.

Museums:
- The Kerch History and Archeological Museum, Tel. 216-136.
- Picture Gallery.
- "The Heroic Defense of the Adzhimushkai Quarry in 1942"
- The Museum of the Eltigen Landing Party.

Yalta – an international resort and tourist center at the South coast of the Crimea. It is a popular Ukrainian resort known world over. It is also a large Black sea port. Distance from Simferopol 86 km. Population: 81 000 people.

Sights: bell tower of the St. John the Evangelist, Memorial of Glory with Eternal Flames, Memorial at the Polikurovsky Hill, Armenian church, Uchan-Su waterfalls, Massandra park, Pear-tree glade, Botkin recreational trail, Nikitsky Botanical Gardens, Children’s Camp “Artek”, Baidarsky Gate, the Ascension Church, Roman fortress “Kharaks”, the Devil’s Ladder pass, Mountain Koshka, Bear Mountain, Mountain Ai-Petri, Cross Mountain.

Museums:
- The Yalta State Combined History and Literature Museum. Tel. 32-55-25; "Fairytale Glade";
- The A.P. Chekhov Memorial Home. Tel.. 32-50-42.;
- Livadia – a residence of the last Russian emperor, venue of the Crimean (Yalta) Conference conducted on 4-11 February 1945;
- The Massandra Palace of Alexander III;
- Massandra wine-testing hall.

Alushta – a well-known resort and tourist town. Distance from Simferopol 45 km.

Sights: tower of medieval Alushta fortress, settlement Partenit, Mountain Chatyr-Dag with the Marble Cave, Mountain Demerdzhi with the Valley of Ghosts and Dzhur-Dzhur water falls.

Museums: The S.N. Sergeyev-Tsensky Literary and Memorial Museum.

Bakhchisarai ("Garden palace") – a former residence of the Crimean Girey khans.

Sights: the khan palace Khan-Sarai, Dilyary-Bikech Mausoleum, khan mosque Biyuk-Khan-Dzhami, Fountain of Tears celebrated by A.S. Pushkin, the Assumption Monastery, cave cities of Mangup-Kale, Chufut-Kale, and Tepe-Kermen.

Museums: the Bakhchisarai Historical and Architectural Reserve.

Simferopol – the capital of the Autonomous Republic of the Crimea, an administrative, cultural, and scientific center, founded in 1784. Population: 343 000 people.

Sights: obelisk in honor of V.M. Dolgorukov, Kebir-Dzhami Mosque, Chokurcha cave – a site of the Mustyr culture man, settlement Scythian Neapolis, Red and Marble caves.

Museums: the Crimean Republic Regional Museum, Simferopol Art Museum.

Alongside with the tourist industry, the sanatoria and health resorts present another priority for the Autonomous Republic of the Crimea at present. This sector is based on using mineral waters (with a potential capacity of 14,000 m3 per day), curative mud (with reserves of 22.4 mn m3), beaches (517 km long), climatic and landscape resources, sea and mountain air, etc.

There are a total of over 600 sanatoria and resort facilities used for both year-round and seasonal treatment and recreation. The sanatoria and rest-homes providing treatment services are located predominantly at the Crimean South coast, as well as within resorts of Yevpatoriya and Saky. The South coast specializes in treatment of adults, whereas Yevpatoriya is a children’s resort.

All the Crimean sanatoria have a certain specialization, depending on the peculiarities of curative factors of their location.

According to their specialization, the sanatoria are divided into tuberculosis, respiratory, locomotoric, neurological, gynecological, ophtalmological, cardiovascular, general therapeutical, and multipurpose sanatoria.

The Crimean Tourism Development Center was set up with the support of the international TACIS program. The Center has become a link between the tourist enterprises, the government, and customers. Publication of booklets, newsletter, an active collaboration on a number of joint publications, building of an information network, these are just some examples of Center’s promotional activities. Financial support has been granted to 31 tourism development projects. The majority of these projects have already been successfully completed.

NGO Crimean Association of Travel Agencies (CATA) was founded in January 1997. The NGO’s main objective is advertisement and promotion of the national tourist product. The Association presently has a membership of over 120 members.

In April 1999, the Yalta and Yevpatoriya NGOs established the Crimean Republican Resort Association “Krym-Kurort” aimed at coordinating efforts of the Association members to improve competitiveness of the resort and recreational complex at the domestic and foreign markets. “Krym-Kurort” is a non-profit organization for social protection of the resort.

The executive branch of the Autonomous Republic of the Crimea undertakes concentrated efforts to improve the quality of the Crimean tourist product and resort services, to promote them on the international market, implements improvements of resort areas: embankments and beaches are improved, the network of retail, service establishments, and other infrastructure facilities is expanding.

CRIMEA’S SCIENTIFIC, RESEARCH, AND TECHNOLOGICAL POTENTIAL

There are about 100 various scientific, research, and design institutes and offices, experimental stations, independent research departments and branches, including 40 higher educational institutions, of which nine are state-owned institutions.

The most representative groups of scientific institutions are as follows:
- Agrarian science. This includes the Crimean State Agrarian University;
institutes: “Magarach”, Institute of Essential Oil and Medicinal Plants; Institute of Horticulture; “Plodmashproekt”; the National Research Center “Nikitsky Botanical Gardens”; a number of pilot stations, etc.
- Medical scientific institutions: the Crimean Medical University; Institute of Physical Treatment Methods and of Climatology named after Sechenov; and the Ukrainian Institute of Children’s Balneology.

The group of design and research institutes and offices includes about 30 organizations, branches or independent departments. The largest of these are: KrymNIIproekt, Krymproektrekonstruktsia, the Crimean Branch of the Institute UkrGINTIZ, the Crimean Branch of the Institute UkrNIIGIM, KrymGIPROVODKHOZ, the Crimean Branch of the Institute “Ukrzemproekt”.

The Crimean Branch of the State Geological Prospecting Institute, NIPIShelf, and others are involved in the research of natural resources and problems of their utilization.

The Institute of the Biology of South Seas named after Kovalevsky, the Marine Hydrophysical Institute, the Southern Research Institute of Marine Fisheries and Oceanography, the Kerch Marine Technological Institute, the Sevastopol Research and Production Enterprise “Yugrybtekhtsentr”, and others are involved in researching the problems of seas and fisheries.

Over 20 organizations are involved in the research and design for the machine-building and instrument-making industries, including the major institutions, such as: the Sevastopol State Technical University; NPP “Orgtekhavtomatizatsia”, NPO “Selection Equipment”, Design Office “Domen” of the Tavria National University named after V.I. Vernadsky, the Simferopol Central Design Technological Office, NPO “Iodobrom”, and others. In addition, these problems are addressed by nearly all state higher educational institutions, numerous agricultural, civil engineering, and other organizations.

A large group of shipbuilding research and design organizations is based in Sevastopol. These are the Black Sea Scientific and Research Institute of Shipbuilding, the Black Sea Scientific and Research Institute of Shipbuilding Technology, Central Design Office “Chornomorets”, Central Design Office “Tavria”. Design Office “Sudokompozit” is based in Feodosiya.

In addition, one should also mention large former defense industry research institutions: the Scientific and Research Institute of Aeroelastic Systems, Sevastopol Institute of Nuclear Energy and Industry, State Aviation Research and Testing Center, Scientific and Research Center “Vertolet”, and others.

In recent years, the largest contribution in the development, dissemination, and use of scientific and technological knowledge in all areas of science and technology was made by the Institute of Grapes and Wine “Magarach”, Nikitsky Botanical Gardens, Institute of Essential Oil and Medicinal Plants, OSC Research and Production Association “Iodobrom”, Crimean Astrophysical Observatory, State Enterprise KTB “Sudokompozit”, YUGNIRO, which ccount for about 65% of the scope of research and design services.

The fundamental research is implemented by 20 organizations. A significant part of these studies has been implemented by the Crimean Astrophysical Observatory, Institute of Grapes and Wine “Magarach”, and YUGNIRO.