Programul Operațional Comun România – Ucraina – Republica Moldova 2007 – 2013

Granițe comune. Soluții comune. www.ro-ua-md.net

Descriere / istoric regiune Cernauti

HISTORIC REVIEW

The city of Chemivtsi is the centre of Chenivetska oblast, the smallest oblast in Ukraine. The oblast consists of two historic regions - North Bukovyna and Besarabia. Chernivtsi was first mentioned on Octobers, 1408 in the decree of Moldavian Master Alexandru cel Bun (The Good) when a customs point was founded here.

The territory of the district has been a part of different lands (Bucovina, Besarabia, Pokuttia, Halychyna and Hutsulshchyna) and different countries (Kyivan Rus, Halytsko-Volynske and Moldova principalities, Turkish Empire, Austria and Austria-Hungary. Romania, Russian empire and the USSR). Currently Chemivtsi is an important economic, scientific and cultural centre, the heart of Bukovyna district. The citv is working, studying. creating, building and carrying on its business life.

Web site: chenivtsy.eu

PRIORITY SECTORS FOR INVESTMENT IN CHERNIVTSl

In Chernivtsi the following priority sectors for investment are determined:

  • Industrial development
  • Land-lots market development
  • Investment in small and medium entrepreneurship
  • Tourism and recreational infrastructure development
  • Electronics and equipment industry revival
  • Assistance for investors in privatization of public property
  • Innovative investment development

GEOGRAPHIC LOCATION

Chernivtsi is situated in south west of Ukraine on the Prut river. The aria of the city is 153 sq. km and its elevation in 248 meters above sea level. The city is divided into three districts: Shevchenkivskyi, Pershotravnevyi and Sadhirskyi. A geographic advantage for Chernivtsi is its close location to the borders and important transport intersections.

The distance to Chernivtsi from major Ukrainian and European cities:

Kyiv

538 km

Prague

700 km

Ivano-Frankivsk

140 km

Bucharest

574 km

Ternopil

140 km

Moskow

1380 km

Khmelnytskyi

190 km

Kishinev

330 km

Dnipropetrovsk

891 km

Warsaw

640 km

Donetsk

1140 km

Vienna

980 km

Lviv

270 km

Budapest

780 km

 

 Distance to closet borders:

Country

Border crossing

Distance

Romania

Porubne

40 km

Poland

Mostyska

340 km

Hungary

Chop

464 km

Slovakia

Uzhorod

444 km

Moldova

Mamalyha

58 km

 

On January 1, 2007, Chernivetska oblast became a neighbor of the European Union (distance to the border with Romania in only 40 km).

Visas. To enter Ukraine a visa and passport are needed (citizens of Russia, European Union, Switzerland and USA need no visa). One can get a Ukrainian visa at the embassy or consulate. When entering a customs declaration should be filed.

Local time. Two hours ahead of Greenwich Mean Time. Transfer to the summer time occurs in the first week of April (ahead 1 hour) and to the winter time in the last week of October (back 1 hour).

CLIMATE

Favorable climate. The climate is moderately continental, moist, warm in summer and mild in winter. The average length of the frost free period is 260-265 days and the vegetation period is 215-220 days. The yearly rainfall amount is 650-750 ml.

Average seasonal temperature:

January -5 C

July +19 C

April +9 C

October +9 C

 

POPULATION

The population of Chernivtsi is 251,8 thousand people.; Chernivtsi is a multinational city represented by 65 nationalities. Spoken languages are Ukrainian, Russian and Romanian.

Chernivtsi is a city inhabited by young, educated and dynamic people. In 2009 inhabitants between the ages of 14-60 represented 71,8% of the total population.

EDUCATION

Labour resources can be described as highly educated. Chernivtsi has the tradition of being a well- educated city. Total amount of higher educational institutions in Chernivtsi is 25 (12 of 1II-IV accreditation level and 13 of f-II accreditation level). Chernivtsi National University is one of the oldest universities in Ukraine and since 1875 has been Chenivtsi’s leading higher educational institution.

BUILDING AND HOUSING

94 houses were built in 2009 with the total area of 89.8 thousand square meters.

Finished Housing buildings accepted in exploitation in 2006-2009

 

Description

Years

2006

2007

2008

2009

1

Apartment buildings accepted in exploitation, including apartments in department submission

Quantity

13

15

51

16

Total square, 1000 sq. m.

33,4

43,4

71,9

68,8

2

Individual buildings accepted in exploitation, housing estates, separed apartments (flats)

Quantity

297

366

236

78

Total square, 1000 sq. m.

65,1

79,1

55,8

21

3

Housing buildings accepted in exploitation of ail kinds of property (total square, 1000 m2)

98,5

122,5

127,7

89,8

 

INFRASTRUCTURE

            Transport. Chernivtsi has a favourable geographic location and has a developed transport system. Chcmivetska oblast is connected with Ivano-Frankivska, Ternopilska, Khmelnytska and Vinnytska oblasts, borders on Romania, the Republic of Moldova, other European and CIS countries by air, railway and motor transport.

            Municipal Transport. Public transportation in the city consists of 46 bus and 10 trolleybus routes.

            Bus Station. Holovna Str., 219, Chernivtsi, 58018 Info bureau: 38 (03722) 4 1635 Phone: 38(03722)4 1630

            Railway transport. There is direct railway service to Kyiv, Moscow, Minsk, St.-Petersburg, Bucharest, Sofia and Warna, and scrvice through Lviv to Berlin, Budapest, Prague, Bratislava, Warsaw. Krakow and Wroclaw.

            Railway station: Haharina Str. 38, Chernivtsi, 58000 Info bureau: 38(0372)5921 90 Booking office: 38 (0372) 59 28 28 Phone: 38(03722)055

            Air Transport. Chernivtsi International Airport accepts passenger aircraft with capacity less than 120 passengers and cargo aircraft with tonnage less than 20 tons. Main flight destinations are: Turkey. Itah and Greece. There are flights through Lviv connecting to Warna, Warsaw, Vienna, Moscow, Naples, Rome, Frankfurt. Munich and other European cities. Currently an airport reconstruction and infrastructure improvement project is being developed {with plans for the flight-line prolongation). The airport is situated near the city limits at distance of 5 kilometers from the city centre. Hie airport is a municipal property.

International Airport: Chkalova Str.. 30, Chernivtsi. 58009 Info bureau: 38(03722)4 32 21 E-mail: chernovtsiairpori

Water supply. The system of water-supply includes 8 pumping facilities and water filtration systems. The length of water-supply networks is 390 km, of sew age systems is 266 km.

Electricity. The length of external illumination networks in Chernivtsi is about 597 km and the number of light-points is 17 thousand units. The municipal enterprise „Misksvitlo” maintains the illumination network of the city.

Heating. The municipal enterprise „Chernivtsiteplokomunenergo” provides heating and operates 43 boiler rooms, 45 thermal points and 102 km of thermal networks.

Recycling. Waste is collected, taken out and recycled by the municipal enterprise “Chernivtsispetskomuntrans” as well as by the “Altvater-Chernivtsi” company. A waste disposal factory' is planned to be built.

Telecommunications. Chernivtsi has the ramified telephone network; mobile communication systems are actively being developed.

ECONOMY

Chernivtsi has 90 industrial enterprises that represent 10 branches.

Currency. The national currency of Ukraine is the Hryvnia. Developed finance and credit system is established in the city. Exchange rates are available at:www.bank.gov.ua

WAGES

Average monthly wages in Chernivtsi in 2013 is 206 USD.

BUSINESS

The number of entrepreneurs in Chernivtsi is about 30,000 natural persons or 94 small enterprises per 10,000 residents.

TRADITIONS

The name of the city is said to come from the city-castle at the border of the Halytska State named Chern or Chorne City, which was built on the left side of the Prut river. Probably this name comes from the castle’s black oak walls made with black soil. In 1259 it was completely destroyed by the Mongolian conqueror Burundai and inhabitants moved to the right bank of the Prut river. In 1359 the city be came apart of the Moldavian state.

City Day is celebrated every year on the first weekend of October. In 2008 Chernivtsi celebrated its 600th anniversary.

Fairs and exhibitions have been traditionally held in the city. ()ne of them is Petrivskyi Fair (held annually in July on Petro and Pavlo holiday) it attracts lots of tourists. A great many architectural monuments, which made Chernivtsi famous, were built between the middle of the IQ“1 century and the early 20th century: City Hall (1848), Post Office (1855), Armenian Cathedral (1875), Complex of former Bukovynian Metropolitans, the University (1875), Jewish Synagogue (1877), the Drama Theatre (1905), Palace of Justice (1906) and Railway Station (1908). The city became self-governing in March 1864, when City Hall deputies were first elected.

CULTURE

The literature and art chronicle of Chernivtsi is filled with names of artists who lived and worked here or came here to get inspiration in the wonderful world of Bukovyna.

Yuriy Fedkovych, one of Ukraine’s most outstanding writers and poets initiated development of Ukrainian literature. Writers and poets such as Olha Kobylyanska, Sydir Vorobkevych, Iryna Vilde, Dmytro Zahul, Mihai Eminescu, Paul Celan, Eliezer Steinbarg and others worked here.

Wonderful tenor Joseph Schmidt, honoured singer of Ukraine Sidi Tal, national singer Nazariy Yaremchuk and composer Volodymyr Ivasyuk also lived and worked here. Dmytro Hnatyuk, Sophia Rotaru, Vasyl Zinkevych, Yan Tabachnyk, Ivan Mykolaychuk started their creative careers in Chernivtsi.

The most beautiful pearl of architectural jewels of Chernivtsi is the architectural complex of former Bukovynian metropolitans. Visitors to Chernivtsi are also impressed by the Drama Theatre, Post Office, building of the former Chamber of Industry and Commerce, Palace of Justice, Railway Station and Ship-House, as well as by streets and parks of the city.

SPORTS

A network of sports institutions operates in the city:

  • 8 stadiums;
  • 64 sports gyms;
  • 3 swimming pools;
  • 18 football fields;
  • 187 outdoor sports gyms;
  • 2 equipped ice rinks;
  • I motorcycle route;
  • 1 archery range.

TOURISM

Chernivtsi one of several cities ot Ukraine with city building such quality and value. I irst ot all tourist potential of the city caused by presence of considerable quantity of monuments of architecture from different epoch and the ethnic cultures, by a rich palette of local customs and the ceremonies, traditional national crafts.

In 2009 more than 60,000 tourists visited Chernivtsi. Tourism services were provided in an amount of UAH 33.9 million. 97 tourist companies work in Chernivtsi (including 29 touroperators and 68 tourist agencies).

There is a developed network of hotels in Chernivtsi. Hotel capacity is 1,500 beds. One can enjoy Ukrainian, Romanian, Italian, German, Turkish, Georgian, Chinese and Korean cuisine in Chernivtsi.

The state register of monuments of architecture totals 689 monuments and objects of the cultural heritance, 24 of national significance.

Partner Cities. Chernivtsi has partnership relations with Salt Lake City (USA), Saskatoon (Canada). Klagenfurt (Austria), Konin (Poland), Nazareth Illit (Israel), Suceava (Romania) and Podolsk (Russia).

CHERNIVTSI COMPETITIVENESS DEVELOPMENT STRATEGY

What are the conditions for developing business and attracting foreign investments?

Strengths:

  • Favourable geographical and geopolitical location (closeness to borders, transit territory)
  • Old traditions of industry: production of exclusive types of products
  • Diversified industrial complex
  • Advanced scientific, education and research sector
  • Availability of skilled labour resources
  • Low average monthly wages, in 2009 UAH 1643 (equivalent USD 206)
  • Land lots available for industrial needs
  • Presence of establishments for investors: notary, Land Department, Investment Department, Chamber of Commerce, license and registration chamber, permission centres.

Opportunities:

  • Export oriented governmental policy
  • European Union(EU) border country
  • Integration of Ukraine into the EU, World Trade Organization and NATO, new markets for Ukrainian goods and services
  • Improved taxation system for small and medium enterprises
  • Holding a final part of the European championship on football "EURO-2012" in Ukraine

UKRAINIAN LEGISLATION REGARDING FOREIGN INVESTMENTS

Foreign investment protection.

According to the ukrainian legislation in force investors get state guarantees of investment protection and income receipt transfer.

The Law of Ukraine "On the Regime of Foreign Investments" from 1996 specifies the basic features concerning foreign investments:

  • Foreign businesses can invest any activity unless prohibited by Ukrainian legislation.
  • Foreign investments in Ukraine can not be nationalized and the bodies of the state power have no legal right to foreign investment requisition.
  • In the case of leaving the market a foreign investor is guaranteed an investment restitution as well as profit without duties.
  • The state guarantees transfer of profits and other costs which were received legally as a result of the investments.

According to the Law of Ukraine "On property" foreign investors have the right to own houses, buildings and other property for a social, cultural or industrial purpose.

The sale of non-agricultural land-lots for enterprises with foreign investments is stipulated by Presidential decree.

The Parliament of Ukraine has ratified the agreements regarding mutual investment protection and avoidance of double taxation with the majority of the European countries, and many countries of Asia and America.

Customs policy and licensing. Customs regulations in Ukraine are based on the Customs Code of Ukraine, other laws and international agreements. Customs payments are due at the time of export, import and transit of goods.

Foreign investors who invest assets into enterprise are released from paying customs duties (if assets are not subject to excise tax). Customs duty is calculated according to the following rates: preferential, privileged or full. Customs duty is calculated as an established monetary amount per kg, litre and item or as a percentage of the customs value. The rates of duty are defined in the Customs Tariffs of Ukraine.

A proper license is needed for certain kinds of economic activity. A license is a document which certifies the right of the licensee to work in the area of economic activity indicated in the license for a certain period of time upon implementation of the license terms.

Licenses are granted by the proper authority in regional centres or Kyiv. Payment, necessary documents and term of license are different depending on the type of activity. The Law of Ukraine "On Licensing of Certain Types of Economic Activity" defines

61 types of economic activities which are subject to licensing and describes the specific procedures for obtaining a license.

Taxation in Ukraine. Two systems of taxation operate in Ukraine: general and reductive. The reductive system is created for small businesses. It could be applied to:

•Legal Entity with less than 50 employees and with volume of profit yields less than UAH 1 million per year.

Natural person with less than 10 employees and the volume of profit yield less than UAH 500,000 per year.

Reductive taxation system:

 

Unitary tax

Value added tax

Legal

Entity

6 % earnings

(VAT registered entity)

20%

12 % earnings

Not applicable

Natural

person

From UAH 20 to UAH 200

Not applicable

50% united tax per each employee

Not applicable

 

An alternative to use the unified taxation and accounting system can be accepted no more than once a calendar year. The taxpayer is obligated to maintain accounting records for income and expenses.

 

General taxation system:

Tax type

Rate

Object of taxation

Tax payer

Value added tax

20%

Sales for commodities (services)

Seller, importer

Excise tax

Different rates for different goods

Sales for excisable goods

Producer, seller, importer

Profits tax

25%

Enterprise net profit

Enterprise that earned profit

Land tax

Land tax - 1 % of allotment monetary assessment

Rent- not more than 12% of alloment monetary assessment

Allotment monetary assessment

Land owner, tenant

Pension fund contribution 

33,2 % - of employer

2 % - of employee

Employee renumeration

Employer, employee

Temporary disability

contribution

1,5%-of employer

0,5% or 1% - of employee

Employee renumeration

Employer, employee

Unemployment insurance contribution

1,3%- of employer, 0,5% - of employee

Employee renumeration

Employer, employee

Accident (at work) insurance

Different rates for different professional risks

Employee renumeration

Employer, employee

 

Local taxes and payments:

Tax type

Rate

Object of taxation

Tax payer

Communal tax

10%

United profit minimum * list of employees

Enterprise, legal entity 

Ads tax

0,1% cost of single advertising allocation services;

0.5% cost of advertising allocation services for period from 2 days to one month

Cost of advertising allocation services

Advertising

agencies

Market fee

0,260-0,472 part of the exemption limit of profit for legal entity ; 0.069-0.150 part for natural person

Cost of market place

Salesperson in the market

Local symbols usage fee

0.1% of cost of goods and services produced for legal entity;

5 exemption limits for natural person

Cost of goods and services with lосаl symbols

Producer of goods and services

Permit fee for trade objects allocation

From 3 up to 20 untaxed profits of citizens

Trade and service object

At opening object of trade and services

Permit fee on local auctions and lotteries

0,1%

Cost of goods offered on auction, cost of lottery tickets

 

Legal entity, natural person

CONTACTS

Chernivtsi City Council

Central Square. I, Chernivtsi, 58002.
Tel.: 38 (0372) 52 22 15 Tel/fax: 38 (0372) 55 35 39
www.citv.cv.ua www.chemivtsv.eu

 

Investments Department of the City Council
Tel.: 38(0372)57 5913 Id I ax: 38(0372)52 0886
E-mail: invest@rada.cv.ua

 

International and Public Relations Office
Tel.: 38 (0372) 55 36 47.52 56 92
E-mail: mcl@rada.cv.ua

 

Department of Economics of the Citv Council
Tel.: 38 (0372) 52 48 70
Tel/fax: 38 (0372) 52 66 50
E-mail: economic@rada.cv.ua

 

Information Department of the City Council
Tel.: 38(0372)5225 79
E-mail: press@rada.cv.ua

 

Chernivtsi Chamber of Industry and Commerce
Tel/fax: 38 (03722) 3 53 97
www.chcci.org.ua
E-mail: chcci@chcci.org.ua

           

Tourism Information Centre
Tel: 38 (0372) 55 36 84
E-mail: zerm@ukr.net

 

Telephone information bureaus:

City phone info bureaus                                09
City business info bureaus                            068
City info bureaus                                           +380372525531
Address bureaus                                           +380372236298

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