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Slavutych 2110: Social and Economic Status

by V. P. Udovychenko, Mayor of Slavutych
January-September 2001


During ten months of 2001 Executive Committee jointly with enterprises, institutions and organizations of the town directed its activity on keeping the realization of measures and tasks defined in the Program of activities of Ministry of Ukraine, on performing Program of social, economical and cultural development of Slavutych in 2001, and Program on Early ChNPP shutdown problems.

Slavutych is the youngest city of Ukraine. Its population is 24 911 people, 6 921 of them are children under 16.

During ten months we can observe the tendency to demographic setting stabilization. The situation was getting worse due to ChNPP early shutdown. Thus, in 2000 mechanical migration amounted (-) 1 283 persons, while during nine months of 2001 it amounts (-) 170 persons.

Employment rate makes up 13,9 thousand people, 70,6 % out of them are employed at state enterprises, 10,9 % at budgetary institutions, 0,4 % at banks, 18,1 % at non-governmental sector.

Analysis of fixed labor market displayed that during nine months of the current year number of unemployed registered at Employment Center increased slightly.

Number of inhabitants having unemployed status amounts 631 persons against 823 persons at the beginning of the year.

Growth trend of the people who are not able to compete on equal terms at labor market with other layers of population and need social protection is kept.

Unemployment rate in the city during nine months of the current year amounts 4,64 %, as compared with 5,09 % last year.

Building of housing and objects of social and cultural life was carrying on during the reported period. During nine months of 2001 three dwelling houses for 116 apartments with total area of

6 867 m2, and cooperative house of 2 058 m2 were put into operation. Activities on completion International Radioecology Laboratory total area of which is 10 962 m2 were performed. In addition, highway 3,4 km long was put into operation. Large scale of construction and assembling operations were performed concerning Program of Lisne inhabitants resettlement. Thus, 15,7 mln hrvn of investment were used, and construction and assembling activities on 14,7 mln hrvn were performed by October 1, 2001.

During nine months of the current year industrial enterprises of the town produced commercial output for 1 679 thousand hrvn in comparative prices. It is 96 % less than last year rate (the reason is that electricity is not produced).

National consumption goods to the amount of 7 530,1 thousand hrvn were produced at the reported period. National consumption goods production growth rate makes up 152,3 %.

Analysis of general retail turnover rates during nine months of the current year indicated that heavy part of commercial structures in total volume of retail turnover increased and makes up 46 % as compared with 32,6 % during nine months of 2000.

As compared with the corresponding period of the last year volume of paid services realization to the population in established prices increased 53,8 %.

In the course of nine months of 2001 everything necessary for stabilization of housing and communal services operation and more complete satisfaction of population in housing and communal services was provided.

Activities aimed at improvement of housing and communal services management system by way of its restructuring and introducing contractual relations between consumers and services providers and assuring their legal protection were carried out in Slavutych.

One of the main directions of activities is creating new and compensating job opportunities. This is the reason why Slavutych authorities involved themselves in addressing the problems of Slavutych economy diversification as early as in early 90-s.

Organization and economic mechanism was established in Slavutych. The objective is to support and develop entrepreneurship. The Law of Ukraine "About Special Economic Zone "Slavutych" was adopted in 1999. It envisages some immunities for SEZ "Slavutych" subjects, which are in force till January 1, 2020.

"Slavutych XXI Century" International Center for Business Development was established in Slavutych. Offices of SEZ "Slavutych" administration, Business Development Agency, Business Incubator, "ChNPP Slavutych Development" Fund and other organizations are located there.

Furthermore, ChNPP Trade Union Business Incubator, Union of Business and Services Producers operate in the town.

Thanks to support of President of Ukraine L. D. Kuchma "ChNPP Slavutych Development" Charitable Fund started its activities in Slavutych. Total sum of micro credits granted by the fund to create 126 job opportunities is Hrvn. 1.0 mln (in the form of credits).

European Micro Finance Bank operates in Slavutych. It granted (in the form of credits) Euro 58,000; US $ 148, 000; Hrvn.250,000 to support 18 investment projects.

Favorable economic mechanism was created in Slavutych to increase rate of business activities subjects creation. During the period under report the following figures stand for business activities subjects registration:

Total:

239

Including:

With legal entity establishment

176

Without legal entity establishment

56

Branch offices (divisions, local units)

7

The following general tendencies took place during 10 months of the year 2001:

There is an increase in quantity of companies, involving foreign investors: "Sin Shytszi", Ltd. (Peoples Republic of Korea), which is the subject of Special Economic Zone "Slavutych", "Flamteko" Close Corporation (Germany), "Quintet Ukraine", Ltd. (Czechia).

There is a tendency to change directions of activities, planned by subjects of business activities at the moment of their state registration. Number of subjects of business activities, which plan to provide sales and intermediary services is reducing: 20.3% - with legal entity establishment, 58,2% - without legal entity establishment. During previous years these figures were as following: 49.8% - with legal entity establishment, 76.5% - without legal entity establishment. More subjects of business activities direct their efforts towards industrial production: 11.8% - with legal entity establishment (7.0% - during previous years). Quantity of business activities subjects, which plan to provide everyday services and perform construction activities, is rather stable: 18.4% - without legal entity establishment (23.1% - during previous years) and 11.9% - without legal entity establishment (8.29% - during previous years).

The number of business activity subjects is increasing; they are planning to be engaged in scientific and implementation activities and to grant the information services: 31.7% with legal entity formation (1.5% of last years) and 8.5% without legal entity formation (0.62% of last years). Nowadays, over 3,000 persons are engaged in business.

As on October 1, 2001, there are registered 26 subjects of "Slavutych" Special Economic Zone with investment projects of total amount of USD 27,702,000 (including foreign investments of USD 1,328,000); projects implementation provides for the creating 1,632 new job opportunities and keeping 30 job opportunities.

From the beginning of the investment projects implementation, the investments were attracted in "Slavutych" SEZ at amount of USD 7,314,810 (Hrvn 39,695,840), USD 548,300 of which are foreign ones. 388 new job opportunities were created.

As on November 1, 2001, total amount of imputed payment charge (privileges) granted to "Slavutych" SEZ subjects was Hrvn 7,614,250, including VAT is Hrvn 2,670,400, import duty is Hrvn 3,294,020, profit tax is Hrvn 1,578, 030. Total amount of budget income was Hrvn 490,080, including VAT is Hrvn 132,480, citizen profit tax is Hrvn 350,200.

As a result of investment projects implementation, the output was produced by "Slavutych" SEZ enterprises at total amount of Hrvn 13,362,900.

Most of the investments obtained by "Slavutych" SEZ subjects was aimed at the development of production activity.

Production branches, as manufacturing industry, pulp-and-paper industry, etc. were the priority direction of investment.

A number of Slavutych enterprises are interested in search both of Ukrainian and foreign associates to extend the scope of existing industry, new industries implementation, and market entry. The information can be given to the parties concerned.

Activities Planning joint project among Ukraine, EU and USA on social problems of Chornobyl NPP staff and Slavutych citizens, as well as strategic plan of city development up to 2002 and other programs were developed and approved in Slavutych.

Overall results of social and economic development of Slavutych point that in spite of difficult financial conditions all directions of social and economic infrastructure of the town were developing (summary data are applied).

 


Summary indicators of economical and social development of the town in the course of 9 months of 2001

Indicators

Unit of measurement

9 months of 2001

9 months of 2000

% 9 months 2001

9 months of 2000

1

2

3

4

5

Population and manpower resources

       

Population size

persons

24911

25846

96,4

- natality

persons

+ 51

+ 107

 

- mechanical increase (decline)

persons

-367

- 988

 

Number of employed personnel

persons

13921

13511

103,1

Number of unemployed persons as on 01.10

persons

631

692

91,2

Building

       

Capital investments

thous. hrv.

15782

3147

by a factor of 5

Construction-and-assembling operations, negotiated price

thous. hrv.

14736

2560

by a factor of 5,8

Bringing accommodation into use

       

- total area

m2

6867

-

 

- flat

units

116

-

 

Industry

       

Marketable products, comparative prices, total

thous. hrv.

1679,7

360397,1

0,4

- including:

       

- "Chornobyl NPP"

thous. hrv.

164,8

359386,0

0,04

- grain plant

thous. hrv.

977,8

574,5

170,2

- close corporation, knitting factory "Elena"

thous. hrv.

528,1

436,6

121,0

Consumer goods

       

Production of consumer, total

thous. hrv.

7530, 1

4941,9

152,3

Commercial business

       

Retail turnover, established prices, total

thous. hrv.

21733,8

26859,2

80,9

- state sector

thous. hrv.

11756,5

18103,6

64,9

- private sector

thous. hrv.

9977,3

8755,6

113,9

Paid services

       

Volume of paid services in established prices, total

thous. hrv.

10571,1

6875,1

153,8

- including personal services

thous. hrv.

289,3

295,0

98,0

Development of market structure

       

Quantity of registered enterprises as on 01.10

units

1262

1177

107,2

- Private enterprises

units

169

159

106,3

- Ltd. companies

units

241

207

116,4

- Joint-stock companies

units

86

82

104,9

Quantity of registered enterprises in Special Economic Zone "Slavutych"

units

5

11

45,5

Development of enterprise infrastructure

       

- Business development agency

units

1

1

 

- Business-incubator

units

2

2

 

- Notary's office

units

2

1

 

- Law office

units

1

1

 

- Banks

units

4

4

 

For additional information, please contact:
Alla Okomaniuk, Press Secretary
310 Somerset Street West, Ottawa, ON K2P 0J9
Tel. (613) 230-2961, fax (613) 230-2400
E-mail: ukrembassy@on.aibn.com


2002 01 03