Characteristic of Autonomous Republic of Crimea

Geography and natural potential
Autonomous Republic of Crimea is located on territory of the Crimean peninsula, which is situated on the south of Eastern Europe between 44о23’- 46о15’ latitude North and 32о29’–36о39’ latitude East.
Capital is Simferopol
Area is 26,1 thousand square kilometers
Length: from west to east - 360 kilometers, from north to south -180 kilometers
It border on: Kherson and Zaporozhye, Krasnodar Territory of Russian Federation
Across the territory there is a frontier of 821-kilometer length, including maritime boundary of 292 kilometers.
Climate of Crimea can be described as modifies between temperate and subtorrid zone causing a mild climate of the peninsula and more sunlight hours (2180-2470 hours a year)
The relief of the Crimean peninsula has three unequal parts: the flat Crimea, Kerch peninsula and mountain areas Crimea, which consists of the Main ridge of the Crimean mountains with a Southern coast of Crimea, and also Internal and External submountain ridges. The Crimean peninsula is washed by the Black and Azov seas.
Administrative and territorial units
There are 14 areas. Cities of republican submission are 11, including Alushta with 53,0 thousands people, Simferopol with 364,0 thousands people, Sudak with 28,3 thousands people, Yalta with 143,6 thousands people.
The population on January, 1st of 2003 (one thousand people) altogether is 2018, including city’s - 1266, rural population - 752.
Employment of the population (average-annual figure for 2002): people engaged to economy of republic were 459 thousands, from them: in the industry - 17,2 %, in agriculture - 17,3 %
The major seaports - Evpatoria, Yalta, Feodosia, Kerch and Sevastopol

Industry

The industry of Autonomous republic of the Crimea has a wide spectrum of kinds of economic activities. The main among them are food industry, chemical and petrochemical, manufacture and distribution of the electric power, gas and water, mechanical engineering. The structure of the industry of Autonomous republic of the Crimea for 2002 is presented on Fig. 1.

Fig. 1. Structure of Crimean industry in 2002.

The enterprises of the food-processing industry produce meat products, sausage products, dairy products, cottage cheese, sunflower oil, canned food, confectionery products, groats and a flour, liqueur-vodka products, bread and bakery products, mineral waters and cool drinks, vines, tobacco products, etc.
The enterprises of light industry produce cotton fabrics, hosiery, leather haberdashery, knitwear, garments, leather footwear, and furniture.
The greatest chemical enterprises are located in the North Crimea. They are monopolists in Ukraine and in the CIS countries and they produce a unique production that is competitive in the European and World markets (soda ash, titanium dioxide, bromine, synthetic washing-up liquids, etc.).
12 scientific institutes and 67 enterprises submit the branch of mechanical engineering. They produce a wide assortment consumer goods, a various equipment and devices for agriculture and food-processing industry.

Agriculture

Climatic conditions and resources of the Crimean peninsula зкувуеукьшту agrarian-industrial development of the region.
There are 370 large agricultural enterprises in the Crimea, including non-state 335 ones. They are agricultural co-operatives, societies with limited liability, private enterprises, open joint-stock companies, etc.
In 2002 in Crimea there were gathered 1106,0 thousand tons of grain crops, 49,4 thousand tons of rice; 150,6 thousand tons of potato; 159,5 thousand tons of vegetables; 84,0 thousand tons of grapes. Volumes of output of meat were 116,3 thousand tons, milk - 434,0 thousand tons, eggs - 582,6 million pieces, wool - 562 thousand tons.
As a result of reforming of 220 collective agricultural enterprises in agriculture of Autonomous republic of the Crimea 611 new agricultural formations were created.

Small business

In small business of Autonomous Republic of the Crimea there are 11,3 thousands small enterprises, 1986 farms, 78,2 thousands individual businessmen. In total 163 thousand persons in sphere of small business of republic over work, which make 27,3 percents of engaged in economy of Crimea. There are 56 small enterprises for every 10 thousands of people. The structure of number of small enterprises by kinds of economic activities in Crimea is shown on fig. 2

Fig.2 The structure of number of small enterprises by kinds of economic activities
in Crimean Autonomous Republic in 2002

The main parameters of economic development of Crimea in 2002 are seen on fig. 3.

Fig. 3. The main parameters of economic development of Crimea in 2002.

 

Foreign-economic activity

For a stable development of foreign-economic activities certain conditions are created in Crimea. Due to these conditions the autonomy has reached a fixed accretion of an export volume, reduction of an import volume and volume of commodities exchange /barter/. During many years the autonomy has positive balance on volumes in foreign trade transactions.
Since 1999 in Crimea the tendency of increase in volumes of the foreign trade turnover of the goods and services has been observing.

Today Crimea is one of ten regions in Ukraine where foreign investments are the most actively involved. Unit weight of direct foreign investments of republic in total amount across Ukraine makes 3,8 interests. According to Central Administrative Statistics Board of in Autonomous republic Crimea on January, 1st, of 2003 in Crimea 194,8 millions dollars of USA of direct foreign investments function. It is necessary 95,8 dollars per capita in Autonomous republic of the Crimea.

The foreign trade turnover of Autonomous republic of the Crimea

1998 year	368,9 million dollars of USA
1999 year	334,8 million dollars of USA
2000 year	408,6 million dollars of USA
2001 year	424,6 million dollars of USA

 

Volumes of export	Volumes of import
1998 year– 201,8 millions dollars of USA	1999 year – 137,4 millions dollars of USA
1999 year – 197,4 millions dollars of USA	1999 year – 137,4 millions dollars of USA
2000 year – 250,4 millions dollars of USA	2000 year – 158,2 millions dollars of USA
2001 year – 293,6 millions dollars of USA	2001 year – 131,0 millions dollars of USA
2002 year – 331,7 millions dollars of USA	2002 year –128,5 millions dollars of USA

Recently export in commodity composition are dyes and pigments, products of inorganic chemistry, a product from ferrous metals, ferrous metals, copper and products from it, electric machines, mechanical machines and the equipment prevailed. In commodity structure of import of the goods the main part are machines and the equipment, means of transportation, floating means, plastics and products of them, products of ferrous metals, devices and apparatus.

In its state Crimea is considered to be a powerful exporter of the chemical industry production - dyes, products of inorganic chemistry, and also a supplier of fish and fish products, and electric machines.
The most significant exporters for today are Open Society “ Crimean soda factory ”, “Titan”, Open Society “ Bromine “, Open Society “ Firm “ SELMA “, firm “ the Union - Viktan “ LTD., Open Society “ Masandra “.
In 2002 the greatest volumes of export deliveries were carried out to the Russian Federation, the USA, Turkey, and Austria.

An important part in the foreign trade turnover of the Republic ranks export of services. The main enterprises - exporters of services, as before, there are seaports in Kerch, Yalta and Feodosia, and resort-tourist businesses.
The main trading partner is the Russian Federation which share is about 40 interests of foreign trade turnover of services in Crimean Autonomous Republic.

 

Resorts and Tourism

Resort-recreational potential of Crimea is caused by a variety of natural landscapes - from steppe in the north up to the Crimean mountains covered with woods in the southern part. The riches of Crimea are its climate with a lot of sun, heat and light, which is typical of it. Features of air circulation in connection with impact of the Black, Azov seas and Crimean mountains form three basic climatic areas: steppe, mountain and southern - coastal.
A variety of microclimatic conditions, evergreen vegetation of mountains and heights, deposits of a medical dirty and sources of mineral waters - have caused some types of resorts: such as climatic (Sudak, Stary Crym), (Yalta, Alushta), balneotherapy and sea ooze treatment (Eupatoria, Feodosia, Saki).

Due to its geographical position, ecological and historical conditions, Crimea has become for a long time an original crossroads of different tribes, peoples and cultures.
The Crimean peninsula has the richest recreational potential. According to the world standards there is highly estimated market value of mineral-raw resources, the broad beaches and the coastal ground areas in Crimea.
Today in Crimea there are 26 deposits of medical dirties and brine, and also more than 100 sources of mineral waters of a different chemical compostion, 15 mud deposits and 13 big deposits of mineral waters which are known as medical ones.
More than 90 percents of recreational objects are concentrated on a narrow 3-kilometer sea coastal line. In deep territories (mountain - foothill) only small (up to 100 places), not so comfortable objects are placed though in this “ Crimean Switzerland “ there are all necessary conditions and resources for recreational development of a high level.
Presence of tourist resources, peculiarities of an available infrastructure enable to develop non-traditional kinds of tourism in Crimea such as speleological, rock-climbing, equestrian, bicycle, hang-gliding, hiking, wine and hunting tours, helicopter excursions, yachts trips, diving with an aqualung, scientific and autotourism.
Along with tourism, priority branch in Crimean Autonomous Republic is a recreation zone. It is based on the use of mineral waters (with potential debit in 14 thousands cubic meters a day), medical muds (with balance stocks 22,4 millions cubic meters), beaches (517 kilometers length), climatic and landscape resources, sea and mountain air, etc.

Regional Investment and Industrial Policy

In order to attract investments into economy of Autonomous republic of the Crimea since December, 2000 the Law of Ukraine number 2189-III operates “On Special Investment Activity regulations in the Territories of Priority Development and the Special Economic Zone "Port Krim" in the Autonomous Republic of Crimea”.
This Law defines the order of a special treatment of investment activity application on territories of priority development and the order of creation, functioning and liquidations of a special economic zone “ Port Crimea “ in Autonomous republic of the Crimea.
The law created new economic conditions, which made an investment climate in Crimea to be the most attractive throughout entire history of the Autonomy existence.
The purpose of introduction of a special regulations of investment activity on TPD and creation of a special economic zone “ Port Crimea “ in Autonomous republic of Crimea is an attraction of investments into productive sphere, public health services, rest and tourism, agriculture for preservation existing and job creation, introduction of the hi-technologies, developments of external economic links, increase in volumes of the high-quality goods and services, creation of a modern industrial, transport and market infrastructure, preservation and natural resources effective utilization .
To territories of priority development of the Crimea are : “ The big Yalta “, “Alushta”, “Sudak”, “Feodosia”, “Sivash” (in administrative-territorial borders of Krasnoperekopsk, Armyansk cities and area of Krasnoperekopsk), “Kerch”, “ East Crimea “.
Enterprises which are involved in activity within TDP during investment projects realizing are given the privileges provided by this Law as to payment of import duty, value added tax, the profit tax of the enterprises and a land tax.

The special regulations of investment activity are introduced on territories of priority development for the period of 30 years for certain priority kinds of economic activities. For each territory of priority development list of economic activities is defined by the Council of Ministers of Autonomous republic of the Crimea as agreed with the Cabinet of Ukraine.

To support the interests of an enterprise activity in case of a special regulations of investment activity change, Ukraine established the guarantees of stability of a special regulations of investment activity on territories of priority development during 30 years.In case of legislation of Ukraine change concerning a special treatment of investment activity upon request of the payer of taxes, the features of the taxation are applied which are active at the moment of the contract conclusion on realization of the investment project.

In case of legislation of Ukraine change concerning a special treatment of investment activity upon request of the payer of taxes, the features of the taxation are applied which are active at the moment of the contract conclusion on realization of the investment project.