INVESTMENT PASSPORT of Poltava oblast

ukrproject.gov.ua investukraine.com

STATE AGENCY FOR INVESTMENT AND NATIONAL PROJECTS OF UKRAINE POLTAVA REGIONAL STATE ADMINISTRATION

POLTAVA REGIONAL CENTER FOR INVESTMENT AND DEVELOPMENT2013

COMPETITIVE ADVANTAGES OF THE REGION

• Poltava region occupies a highly favourable econom ic and geographical position in the centre o f Ukraine on the crossroad o f im portant international transport tracks.

• The industrial growth rates o f the region are higher than the typical indices o f other Ukrainian regions.

• Significant scientific and technical potential can easily secure the development o f the main econom ic and social sectors o f the region.

• Highly developed is also the agro-industrial complex that is being characterized by the high level o f cereal and industrial crops production, as well as o f livestock farming.

• Positive m acroeconom ic rates and perm anent growth o f demand make Poltava region a practically ideal place for entering the Ukrainian market.

• Poltava region has significant scientific and technical potential that can easily secure the development o f the main econom ic and social sectors o f the region.

• Favourable business climate created by the developed network o f inform ation and consulting centres with modern technical equipment together with the small business being supported by the government authorities.

• There are 64 vocational colleges and higher education institutions in Poltava region, that provide professional education in more than 200 specialities thus graduating highly professional personnel for the enterprises o f the region.

• Developed network o f medical and cultural institutions, sport and recreation centres provide an opportunity for harm onious personality development o f each citizen o f Poltava region.

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CONTENTS

SECTION 1. DESCRIPTION OF THE REGION1.1. Geography and clim ate.................................................................................................................................. 81.2. Demography...................................................................................................................................................... 91.3. Human resources............................................................................................................................................. 91.4. Education...........................................................................................................................................................101.5. Property.............................................................................................................................................................111.6. Economic potential........................................................................................................................................111.7. Success stories.................................................................................................................................................151.8. Transport and com m unications.............................................................................................................. 161.9. Socio-cultural sphere................................................................................................................................... 181.10. Rating............................................................................................................................................................... 20

SECTION 2. INVESTMENT OFFERS2.1. Priority spheres for investm ent............................................................................................................... 222.2. National projects in the region............................................................................................................... 222.3. Strategic regional pro jects......................................................................................................................... 222.4. Industrial property and land plots......................................................................................................... 23

SECTION 3. CONTACTS...........................................................................................................................................26

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THE FOLLOWING INFORMATION AND SOURCES WERE USED WHILE DRAFTING THE INVESTMENT PASSPORT

• Ukraine’s Regions Competitiveness Report 2012 (http://www.feg.org.ua)• State Statistics Committee of Ukraine (http://www.ukrstatgov.ua)• Main Administration of Statistics in Poltava Region (http://www.poltavastat.gov.ua/)• Poltava Regional State Administration (http://www.adm-pl.gov.ua)• Poltava City Council (http://www.rada-poltava.gov.ua)• Ecology and Natural Resources Department of Poltava Regional State Administration

(http://www.eco-poltava.gov.ua)• Data Portal «Geography of Poltava Region» (http://www.geo.pnpu.edu.ua)• Regional expert-consulting centre «Poltava Consulting»• Ukraines Investment Atlas 2013, State Investment Project

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InvestUkraine DEPARTMENT FOR INVESTMENT POLICY AND REGIONAL DEVELOPMENT

POLTAVA OBLAST Investment passport of the region

Section 1. DESCRIPTION OF THE REGION

1.1. Geography and climate

MAP OF THE REGIONUrenhoi-Pomary-Uzhhorod

,ru ! Ê̂ÊlUTÊàLokhvytsia

0 ® °^ Chornukhy

Hrebinka / **

° ^ «Lubny * ' » ^ Myrhorod E ij- i

* ° ® ir—irv-lA m # '\ Shy shaky ■ û

Khorol /_\ \ >—1\ Dykanka

Orzhytsia L J Velyka \

oQ Reshetylivka*

Legend

Hlobyno

d i • ojO O o oKarlivka

• Mashivka

° © ©

Kozelshchyna

Ukrtatnafta (Kremenchuk Refinery)

Motorway Mineral resources

Railway Crude oil

© Railway junctions © Peat

© Airport o GasGas pipeline — Mineral waters

- □ — Oil pipeline o Gas conensate

>A> Sites of historical and cultural o Iron oresvalue, monuments e BischofiteResorts © Brown coal

m Land plots suitable for industrial parks establishment o©

QSandClayBrick-tile raw materials& Hydropower station

□ Refinery•o©o

GypsumGraniteSaltsDolerite

Kyiv, Lviv, EU

Luhansk, Russia, Kazakhstan

AREA OF THE REGION - 28.8 thousand km2

ALTITUDE ABOVE SEA LEVEL47.6% of the territory — below 100 m 38% of the territory — 100-150 m 14.4% of the territory — 150-200 m

PRECIPITATIONFrom 480 up to 580 mm per year. The most rainy months are July and June.Moderately continental climate.

AVERAGE TEMPERATUREJanuary: - 3.7 C°, July: + 2 1 .4 C°

SUNNY DAYS PER YEAR - 105

WATER RESOURCES OF THE REGIONPoltava region is situated in the basin of the Dnipro river. There are approximately 150 rivers and 70 water-storage basins in the region. On its southern and south-east borders the region is washed by the waters of Kremenchuk and Dnipro- dzerzhynsk water-storage basins.

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DESCRIPTION OF THE MAIN RIVERS W ITHIN THE REGION

Dnipro’s basin stretch, km water intake area, km2

Psel 350.0 11018

Khorol 241.0 3870

Vorskla 226.0 5970

Sula 213.0 19600

Oril 79.6 748

Kolomak 73.1 1650

Hovtva 36.0 1680

• 1.2. Demography

THE LARGEST CITIES

Major cities | thou.pers.

Poltava 296.9

Kremenchuk 225.9

Komsomolsk (City Council) 54.3

Lubny 47.6

Myrhorod 41.1

POPULATION — 1467.8 thousand people (as of 01.01.2013)

AGE STRUCTURE

GENDER4 Male — 45.9% # Female — 54.1%

• 1.3. Human resources

WORKABLE POPULATION (% )

Younger than employable 14%

Employable69%

Elder than employable 17%

EMPLOYABLE POPULATION - 1006.6thousand people

REGISTERED UNEMPLOYMENT RATE2.8% (to the employable population)

AVERAGE WAGE - UAH 2850.0 (for 2012 as of 01.01.2013)

DIVISION OF EMPLOYEES BY ECONOMIC ACTIVITIESemployees total — 240.5 thousand people

industryagriculture, forestry, fishing industry

wholesale and retail; auto and moto repair transport, warehousing, mail and messenger' service

constructionadministrative and subsidiary services

professional, scientific and technical work real estate operations

health care, social assistance information and telecommunication

temporary placement and catering other services

art, sport, recreation, leisure financial and insurance activities

education

44.7%23.3%

10.4%6.0%

] 5.4%3.3%

1.9% 1.8%

0.9%0.8%0.7%

0.3%0.2%0.2%0.1%

0 20 30 40 50

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1.4. Education

There were 730 comprehensive schools with 128.4 thousand pupils in 2 0 1 2 /2013 school year. Vocational technical schools amounted to 42 units with 12.4 thousand students. Training o f personnel with higher education by professional orientation is carried out in 21 higher education institutions (HEI), among which 14 HEI have I-II accreditation levels, 7 HEI have III-IV accreditation levels.

HEI are divided into types in the following way:• 5 technical secondary schools • 5 specialized schools • 3 colleges • 2 academies • 5 universities • 1 institute

57.2 thousand people have got an education in HEI o f all the levels o f accreditation.

LEADING HIGHER EDUCATION INSTITUTIONS o f III-IV levels o f accreditation Faculties

Trainingdomains Students

- Higher education institution of Ukoospilka «Poltava University of Economics and Trade»

6 16 15000

- Poltava State Agrarian Academy (PSAA) 7 9 14000- Poltava National Technical Yurii Kondratiuk University

(PNTYKU)8 39 10000

- Poltava V. H. Korolenko National Pedagogical University (PNPU)

7 30 8000

- Poltava Institute of Economics and Law HEI «University «Ukraine»

4 8 1500

- State higher education institution of Ukraine «Ukrainian Medical Stomatological Academy»

5 6 3700

- Private higher education institution «Poltava Institute of Economics and Management «Svitoch»

1 6 500

- Poltava Law Institute of the National University «Yaroslav the Wise Law Academy of Ukraine»

1 1 800

- Private enterprise «Academy of Liberal Arts Education Development» Kremenchuk

5 7 370

- Branch «Kremenchuk Institute of the Private Higher Education Institution «Alfred Nobel University Dnipropetrovsk» (KI ANUD)

8 7 2000

- Mykhailo Ostrohradskyi Kremenchuk National University (KNU)

7 17 10000

- Private Higher education Institution «Kremenchuk University of Economics, Information Technologies and Management» (KUEITM)

6 9 4000

GRADUATES in 2012 LEADING COLLEGES AND SPECIALISEDSCHOOLS- Agrarian college of management and law of

Poltava State Agrarian Academy- Agrarian-economic college of Poltava State

Agrarian Academy- College of Poltava Institute of Economics and

Management «Svitoch»- Municipal Higher Education Institution of

Poltava Region Council «M. V. Lysenko Poltava Musical School»

- Municipal Higher Education Institution of the I level of accreditation «Poltava Basic Medical College»

Educational institutions thou. people

HEI

I-II levels of accreditation 2.6

III-IV levels of accreditation 12.8

Technical schools 7.4

Comprehensive

II degree 14.6

III degree 10.8

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- Poltava Construction Vocational School of Transport Construction

- Poltava Commercial Technical Secondary School

- Poltava Cooperative Vocational School of Poltava Region Consumers Association

- Separate structural subdivision Poltava Oil Geological Prospecting Vocational School of Poltava Yurii Kondratiuk National Technical

University- Poltava Politechnic College of National

Technical University «Kharkiv Politechnic Institute»

- Poltava Professional Lyceum of Service Industries

- Poltava Vocational School of Food Techno­logies of National University of Food Technologies

• 1.5. Property

HOUSING25.1 m2 per one resident of the region

HOUSING STOCKTotal housing stock — 36810.6 thousand m2

AVERAGE HOUSING COST (houses)in the city of Poltava equals (considering the cost of a land plot) 600 — 1,200 $/m2

AVERAGE HOUSING COST (apartm ents)primary market — 500-1500 $/m2 secondary market — 600-800 $/m2

AVERAGE RENT - HOUSING1-roomed flats UAH 1000-1600 per month2-roomed flats UAH 1200-1800 per month3-roomed flats UAH 1500-3000 per month

AVERAGE RENT - OFFICE SPACE -UAH 90 per m2

Rental charge of office facilities depending on a facility category:• Category «A» — UAH 120-150 per m2• Category «B» — UAH 110-130 per m2• Category «C» — UAH 80-100 per m2• Category «D» — UAH 60-80 per m2• Category «E» and «F» — UAH 50-60 per m2

AVERAGE RENT - PRODUCTION FACILITIES — UAH 15-40 per m2

AVERAGE RENT - STORAGE SPACE, WAREHOUSES — UAH 10-40 per m2

1.6. Economic potential

PRIORITY SECTORS OF ECONOMY IN THE REGIONOver 300 manufacturing plants are being located in Poltava region. Industrial production sector of the region is dominated by such industries, as mining, coke and oil products industry, food, drinks and tobacco industry, mechanical engineering — there part in the total output of sold products being 88 %.

EXPORT/IMPORT, COUNTRIES, BALANCEIn 2012 the region carried on foreign trade with more than 115 countries of the world. The total output of exported goods and services of the region was $3,445.0 mln, of imported goods — $2,133.9 mln. In comparison with the year 2011 export rate has risen for 1.6% , import rate — for 38.7%.

Foreign trade surplus constitutes $1,311.1 mln.

M ajor partners in export o f goods M ajor partners in im port o f goods

RussianFederation

China

Kazakhstan

Austria

Belarus

30.2%

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The following services dominate in the structure of exported services by economic activities:- transport and communication services — 56.4%- real estate services — 14.4%- educational services — 11.0%- services in processing industry 6.7%

The biggest market share of the import was constituted by the services connected with financial activities (3 1 .3 % ), state administration (2 5 .2 % ), real estate operations (2 2 .2 % ), transport and communication services (7 .7 % ).

M ajor partners in export o f services

Virgin IslandsRussian

FederationSwitzerland

Great Britain

Germany

M ajor partners in im port o f services

25.4% Great Britain

Switzerland

Russian Federation

Denmark

Poland

39.4%

0 10 15 20 25 30 0 5 10 15 20 25 30 35 40

Foreign business of services was carried out with the partners from 117 countries of the world.

Goods exportedmeans of surface transport, aircrafts, boatsmineral productsother goodsfoods of plant origininputs, equipment and machinery; electrical machinery

6.1% 4.3%

Goods importedmineral products other goodsmeans of surface transport, aircrafts, boats inputs, equipment and machinery; electrical machineryferrous metal and metal works prepared foods

48.6%

14.4%

PRODUCTS MANUFACTURED IN THE REGION

M anufacturing o f particular industrial products Unit weigh of the region in the economy of Ukraine, %

Gas condensate 49.4

Natural gas 36.7

Cocoa-free confectionery including white chocolate 25.2

Fat cheese 21.0

Granular white sugar 18.9

Sausage goods 13.1

Fresh-killed or refrigerated pork 12.5

Dairy butter 12.1

Crude oil 11.5

Cultured milk foods 7.7

Fresh-killed and refrigerated beef and veal 7.6

Knitted underwear 6.8

Sunflower unrefined oil 5.7

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Ceramic non-fire-rated construction brick 4.9

Knitted outerwear 4.8

Chocolate and other final foods containing cacao, in blocks, plates

and bars

4.8

Liquid processed milk 4.5

Bakery products 3.3

Fresh non fermented cheese and cultures cheese 3.2

Building blocks from cement, concrete or granolith 3.1

MAJOR COMPANIES LOCATED IN THE REGION

Name Location I Type o f activity

Poltavaoblenerho, PJSC Poltava production, supply and distribution of energy

Transnational financial-industrial oil company Ukrtatnafta, PJSC

Kremenchuk production of oil-refining products

Poltavanaftohaz, OGPD Ukrnafta, PJSC

Poltava raw oil and natural gas production

Branch of Poltavahazvydobuvannia, GPD Ukrhazvydobuvannia, PJSC

Poltava raw oil and natural gas production

Poltava Ore-Dressing and Compressing Enterprise, OJSC

Komsomolsk iron ore production

Kremenchuk Carbon Black Plant, OJSC

Kremenchuk production of chemical substances and chemical products

AutoKrAZ, PJSC Kremenchuk production of autos, trailers and semitrailers

Kremenchuk Auto Assembly Plant, Ltd

Kremenchuk production of autos, trailers and semitrailers

Poltavkhimmash, PJSC Poltava production of train locomotives and rolling stocks

Kremenchuk Auto Plant, PJSC Kremenchuk manufacturing of machinery and equipment for mining and construction industries

Kremenchuk Wheel Production Plant, PJSC

Kremenchuk production of assemblies, parts and equipment for transport facilities

Kriukiv Rail Carriage Production Plant, PJSC

Kremenchuk production of train locomotives and rolling stocks

Motor Sich Lubny Machine-Tool Plant, PJSC

Lubny production of metal-working machines and benches

Poltava Turbo-mechanical Plant, PJSC Poltava production of common application machines and equipment

Poltava Adamantine Instrument, PJSC Poltava production of abrasive agents

Poltava Auto-Aggregate Plant, PJSC Poltava production of assemblies, parts and equipment for transport facilities

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Electromotor, PJSC Poltava production of machines and equipment for agriculture and forestry

Karlivka Machine-Building Plant, PJSC

Karlivka production of machines and equipment for agriculture and forestry

Haleshchyna Machine-Building Plant of Agriculture and Forestry Machines, PJSC

Kozelshchyna district, N.

Haleshchyna

production of machines and equipment for agriculture and forestry

Ltava Plant, PJSC Poltava production of wiring devices

Poltava Machine-Building Plant, PJSC Poltava production of common application machines and equipment

Poltava Medical Glass Plant, PJSC Poltava production of glass and glassware

Poltava Firm Vorskla, PJSC Poltava garment production

Kremenchuk Manufacturing-Retail Firm Kremteks, PJSC

Kremenchuk garment production

Kremenchuk Leather Plant, LLC Kremenchuk leather manufacturing

Hadiachsyr, LLC Hadiach production of dairy products

Hlobyno Meat Processing Factory, LLC

Hlobyno production of meat and meat products

Kremenchukmiaso, PJSC Kremenchuk production of meat and meat products

Khorol Milk-Canning Factory of Baby Food, PJSC

Khorol production of baby food and dietary products

Lubny Milk Factory, LLC Lubny production of dairy products

Poltava Oil-Extracting Plant Kernel Group, PJSC

Poltava production of oil and animal fats

Poltava Alcoholic Beverage Plant, PJSC

Poltava distillation, purification and blending of alcoholic drinks

Kremenchuk Alcoholic Beverage Plant, PJSC

Kremenchuk distillation, purification and blending of alcoholic drinks

Poltavacondyter, PJSC Poltava production of cocoa, chocolate and sugar confectionery

Kremenchuk Confectionary Roshen, PJSC

Kremenchuk production of cocoa, chocolate and sugar confectionery

Poltavpyvo Firm, PJSC Poltava production of beer

JT International Ukraine, PJSC Kremenchuk production of tobacco goods

Myrhorod Mineral Water Plant, PJSC Myrhorod production of soft drinks, mineral water and other bottled waters

Pyriatyn Cheese Producing Plant, PJSC

Pyriatyn production of dairy products

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MAJOR FOREIGN INVESTORSIn 2012 foreign investors contributed 244.4 mln USD into the economy of the region in the form of direct investments (stock capital). Volume of the investments contributed from the beginning of contributing period of the direct foreign investments (stock capital) for December, 31 2012 was 942.8 mln USD.

Investments were granted from 46 countries of the world. The main investing countries, who contribute 97% of the total volume of direct investments, are:

Switzerland — 521.7 mln USD Cyprus — 143.1 mln USD Netherlands — 108.2 mln USD Great Britain — 62.7 mln USD

Russian Federation — 46.8 mln USD Panama — 14.8 mln USD Britain Virgin Islands — 12.4 mln USD Azerbaijan — 9.8 mln USD

Switzerland 55.Cyprus 15.2%

Netherlands 11.5%Great Britain 6.7%

Russian Federation 5.0%Panama 1.6%

Britain Virgin Islands 1.3%Azerbaijan 1.0%J 1 1 1 1 1 1

10 20 30 40 50 600

INCOME OF FOREIGN INVESTMENTS (stock capital) DURING THE LAST 3 YEARS2010 - 96.7 mln USD2011 - 178.6 mln USD2012 - 244.4 mln USD

• 1.7. Success stories

P roject’s specifics Project’s initiator Inform ation on initiator

Condensed propane-butane producing plant in Sokolova Balka village of Novi Sanzhary district. The volume of investments into the new project is approximately 10 mln USD. Estimated capacity of the new enterprise will allow the company to produce 36 thousand tons of condensed propane- butane mix a year.

Poltava Gas-Oil Company, JE (JKX

Oil & Gas plc, Great Britain)

Poltava Gas-Oil Company, JE is the biggest and the most successful British investment in Ukraine. It occupied the 24-th place in the Rating «100 Best Net Income Volume Companies of 2006».

Construction and putting into opera­tion a swine complex for 2.5 thousand sows with full cycle in Bilyky village of Kobeliaky district. Realisation of investment project allowed to create approximately 100 new working places and provide additional money flow to the budgets of different levels.Capacity of the enterprise is approximately 7 thousand tons of pork a year. General cost of the project is150 mln UAH.

BEZRK-Belgrankorm Agricultural Holding (Russian Federation)

BEZRK-Belgrankorm Agro-industrial holding is one of the biggest diversified, vertically integrated structures of agri­cultural sector of Russian Federation.

Putting into operation of logistic seed complex in Stasi village of Dykanka district.

Stasi Seeds, LLC (DuPont Pioneer,

USA)

Pioneer Hi-Bred International, Inc — American company, subdivision of DuPont, specialising in selection of new breeds of maize, sunflower, soya,

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and some other crops. The company was founded in 1926 by Henry A. Wolles as a Hi-Bred Corn Company. It currently runs its business in more than seventy countries of the world.

The leaders of the concern decided to build a waste recycling plant that handles 150-160 thousand tons of waste a year in Kremen-chuk city. In June 2009 German Development Bank KfW (Germany) gave 650 thousand Euro to support a pilot project of domestic waste ground sanitation in Kremenchuk city. At the beginning of 2010 100 thousand Euro were given for the plant pro­jecting. At the moment six gas wells have been drilled and gas generator was placed on the ground.

Haase Energietechnik AG Concern (Germany)

Haase Energietechnik AG started its activity in 1980. Today this company is one of the world leading engineering systems supplier in the sphere of waste disposal technologies and filtration systems.

Development of iron ore deposit in Yerystivka. Constant level of ore production is approx. 28 mln tons a year.

Ferrexpo AG (Switzerland)

LLC Yerystivka Ore-Dressing and Processing Enterprise ( Komsomolsk city) is the assets of Ferrexpo AG, which was founded in May 2008 with the purpose of Yerystivka deposit development.

HAKA.UA Poltava Swine Complexes, LLC — a subsidiary company of the German firm HAKA planen.bauen GmbH, started the implementation of investment project from the swine complex construction in Vatazhkove village of Poltava region. Project costs equals 10-12 mln Euro.

HAKA planen.bauen GmbH

Firm (Germany)

For 50 years HAKA planen.bauen GmbH has been functioning as an innovative enterprise in the sphere of agriculture, as well as ventilation and ecological engineering industries.

• 1.8. Transport and communications

Transport complex is one o f the most important parts o f production and social infrastructures o f Poltava region, that includes railway, automobile, aircraft and river transport.

MAJOR MOTORWAYSPoltava region occupies a favourable transport-geographical place on the crossroad of international tracks. Its proximity to the borders of industrially developed regions of Ukraine such as Kyiv and Kharkiv regions makes the region attractive for the placement of production enterprises. The distance to the western borders of Ukraine (with Poland, Hungary), is 600 — 900 km, that allows to transport goods into Europe at a reasonable transport charge.The network of public roads of the region constitutes 8,875.5 km. They include: international roads — 377.2 km, state roads — 890.9 km, local roads — 7984.6 km. The territory of the region is being crossed by the following motorways: Kyiv — Kharkiv — Dovzhanskyi (M -02/E-40), Poltava — Oleksandriia (M -22/E-584).

RAILWAY NETWORKRailway transport is one of the main constituent parts of the transport system of the region. South railway stably holds its position of the leading enterprise of the region passenger and cargo transportation.

• Rail interchanges: Poltava, Kremenchuk, Hrebinka, Romodan.

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AIRPORTSPoltava Regional Municipal Enterprise Airport-Poltava is located in the distance of 7 km off Poltava city.

RIVER AND SEA PORTSKremenchuk river port is situated on the river Dnipro in Kremenchuk city. It can dispatch and accept cargoes by means of river, automobile and railway transport. Seven docks are subordinated to the Kremenchuk port (4 on the Dnipro river and 3 on the Siverskyi Donets, the Sula and the Vorskla rivers), as well as other river ports in Kremenchuk, Svitlovodsk and Komsomolsk.

The port’s resource base includes: fleet, cargo place, dock, dockyards. The port is open for «river-sea» ship types (up to 120 m long with the draught level up to 3.5 m ). It also provides a possibility to dispatch cargoes in five-ton containers and international 20-feet containers. Cargo handling is being done by dockside cranes of carrying capacity of 5-20 tons by means of transhipment from one type of transport to another (including railway, automobile and river transport). To keep these cargoes the port has special open and closed warehouses.

BUS TERMINALSBus service in Poltava is carried out by the central bus terminal (local, regional and international tours) and two bus stations (suburban routes).

In Kremenchuk there is a bus terminal that functions as a centre of interurban bus service. There are also international routes.

BUS ROUTES DIAGRAM from Poltava

Chernihiv •• Sumy

• Kyiv

Chisinau Poltava Kharkiv

Cherkasy • Dnipropetrovsk„ . . . . LuhanskZaporizhzhia •

• Donetsk

► Volgograd

TRANSPORT MAP

Karlivka

Mashivka

Legend

MotorwayRailway

O Railway junctions © Airport

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1.9. Socio-cultural sphere

MAJOR HEALTH CARE INSTITUTIONSFor the end of 2012 88 hospitals worked in Poltava region with the total number of 12.9 thousand beds. The number of outpatient departments equalled to 337 units.Including:- State higher education institution of Ukraine «Ukrainian Medical Stomatological Academy» (Poltava,

Shevchenko Str., 23)- Perinatal Centre of Sklifasovskyi Poltava Regional Clinical Hospital (Poltava, Zalizna Str., 17-a)- Regional Clinical Hospital of medical rehabilitation and diagnostics together with the regional centres

of family planning and human reproduction, medical genetics (Poltava, Shevchenko Str., 10)

CULTURE, SPORT, TOURISMFor the end of 2012 809 libraries worked in Poltava region, including 44 children libraries, 858 clubs, 6 centres of culture and recreation, 3 parks of culture and leisure (Poltava, Kremenchuk, Lubny). The following professional art institutions function in the region: Regional Ukrainian Gogol Opera-and-Drama Theatre, regional Puppet Theatre and Municipal enterprise of art and culture «Poltava Regional Philharmonic Society», recreation palace «November» with auditorium for 1200 people, equipped with modern sound and light technologies, that can make a good competition not only for Ukrainian but also for European concert halls.

M ajor leisure and recreation spots

Name I Description

Sports complex Dynamo (Chervonoarmiiska Str., 2-a)

Is being used for holding competitions in game sports (volley­ball, handball, football, basketball, tennis). International sport competitions can be held in the sports complex, the height of the sports hall is 12.5 m. There is also an equipped conference hall for 360 people, weight rooms, locker rooms, working cabinets, rooms for referees, coaches and an ambulance room.

Spartak Sports club (Maidan Nezalezhnosti, 24-A)

The longest swimming pool in the region — 50 m long, weight rooms, ping-pong, fitness club, a sports hall for children, saunas.

Ltava Sports-technical complex (Komarov Str., 1)

According to its characteristics the go-cart track of Ltava complex is considered to be one of the best in Ukraine and former CIS countries. The 1,050 m long and 9 m wide track meets the international standards. Stands are designed for 2,500 people audience. Bellow the stands there are special boxes for equipment keeping and its preparation for trainings and competitions, working rooms, shower cabinets and ambulance room. There is also a room for press-conferences, commentators booths, platforms for cameras.

Vitam in Fitness-club (Paryzkoi Komuny Str., 40)

Aerobics, aqua aerobics, children club, sauna, swimming pool, relaxation capsule, group programs studios, ambulance room, cafe.

Kyiv REC(Zinkivska Str., 6A)

Total area of 100 thousand m2: concert hall, children entertainment centre with royal-manage, merry-go-round, roller rink and children play room, laser shooting gallery, 4D-cinema, billiards club, bowling, rock-climbing wall, restaurants and cafes.

Concord REC (Frunze Str., 60-A)

Total area of 10 thousand m2: three-hall cinema Concord-cinema and multimedia shooting gallery of the new generation Ranger, numerous cafes etc.

Equator REC (Kovpak Str., 26) Total area of 30 thousand m2: Turbine entertainment centre with 24 tracks bowling and billiards. The best city skittles alley, holding city and Ukrainian competitions, tournaments, championships in sport bowling; all-year-round skating ring, the best ice arena of Poltava and children entertainment centre Play-land, providing simulators and sports amusements, various development games attractions, cafes, restaurants.

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MUSEUMSPoltava region is a place with the ancient traditions and culture.The rich history of the region is carefully kept for the future generations. For the end of 2012 36 state museums saved more than 527 thousand artefacts of Ukrainian Museum Collection.The best in the region is Poltava Local History Museum, founded in 1891 under the rule ofPoltava province territorial council, its main exposition being a collection of soils and herbarium gathered by the expedition of a well-known soil scientist, professor V. V. Dokuchaev. Nowadays 40 museum halls and depositories contain more than 200 thousand exhibits. Annually, more than 140 thousand sightseers visit Poltava Local History Museum.Poltava Art Museum which depositories contain collections of local and foreign masters, is well-known far beyond Ukraine. In 2004 museum celebrated its 85-th anniversary.Nowadays State historic-cultural reserve «The Field o f Poltava Battle» became a significant cultural and scientific centre for the exploration of Ukrainian history of the XIV-XVII centuries in the context of European history. The reserve is a part of the International Organisation of national military parks IAMAM (under auspices of UNESCO) and is included into the world tourist route.Unique historical artefacts and valuable collections are kept in local history museums of Kremenchuk, Lubny, Myrhorod, Dykanka, Khorol, Karlivka, Komsomolsk.Zinkivtsi district is notable for the National Culture Preserve o f Ukrainian Pottery in Opishnia village — the only Ukrainian specialised ethno-art, research-and-development, cultural and educational institution, that plays the role of the main Ukrainian centre for exploration, preservation and popularisation of Ukrainian pottery heritage.There is also Poltava Museum o f Aviation and Astronautics, that holds creative heritage of the well-known specialists in the field of rocket production, aeronautics, aviation and astronautics, who were born or spent some years of their life in Poltava region.

NATURAL RESERVESNatural-reserve fund (NRF) of Poltava region holds 387 territories and objects of total area of 142 thousand hectares, that constitute approx. 5% of the total area of the region. 29 have national status: 2 national parks (Pyriatyn National Park, Nyzhniosulsk National Park), 20 wildlife preserves, 1 botanic memorial (Parasotsk Hole), Khorol Botanic Garden, Ustymivka Arboretum, 4 park memorials of land design (Berezovodsk, Khomutets, Poltava parks).

SANATORIUMSFor the end of 2012 1 recreational vacation house, 13 sanatoriums and 5 after work sanatoriums were functioning in Poltava region. The most well-known:

• Spa, water and mud cure resort «Myrhorod» (Myrhorod), widely known in Ukraine and beyond its borders. Consists from sanatoriums «Poltava», «Birch Grove», «Myrhorod», «Khorol».

• Sanatorium «Pine Forest» (Vlasivka village of Zinkivtsi district). Specialises in disease treatment of locomotor apparatus, respiratory system and kidneys.

• Sanatorium «Novi Sanzhary» (Novi Sanzhary) well known for its medicinal water «Novosanzhar- ska Dzherelna» close by its structure to «Yesentuki».

NATIONAL SOROCHYNTSI FAIR

Every year in the last week of August 16.2 hectare fair square in Velyki Sorochyntsi village of Myrhorod district in Poltava region sees the biggest Ukrainian fair —NATIONAL SOROCHYNTSI FAIR.

This fair is really unique as it dates back to the XVIII century when it was colourfully portrayed by one of the world’s best writers Mykola Hohol in his story «Fair in Sorochyn» («Sorochynska Yarmarka») (from the story cycle «Evenings on isolated farmstead near Dykanka»

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(«Vechory na khutori bilia Dykanky»)).

In the conditions of today’s development of Ukraine, its market being full of goods and services, the role of this fair is in its being the centre of national culture. Preserving its old traditions, the fair manages to combine them with the new trends and styles, thus combining history and modern culture.

HOTELS

Gallery Hotel 4 * (Poltava, Frunze Str., 7) www.galerea-hotel.org.ua

Palazzo Hotel 4 * (Poltava, Hohol Str., 33) www.palazzo.com.ua

Alleia Grand Hotel 3* (Poltava, Zhovtneva Str., 57) www.alleya-grand.com.ua

Kyiv Hotel 3* (Poltava, Sinna Str., 2/49) -

Tourist Hotel 2 * (Poltava, Myru Str., 12) www.tourist-poltava.com.ua

Riviera Hotel (Poltava, Rybalskyi All., 16) www.riviera.poltava.ua

Gold Hotel (Poltava, Pershotravnevyi Ave., 176) www.gold-hotel.com.ua

Almaz Hotel 1* (Poltava, Kyivske Shose Str., 60) www.almaz.poltava.ua

European Hotel 4 * (Kremenchuk, 50 Rokiv Zhovtnia Ave., 35) www.gotel.pl.ua

Ontario Hotel 4 * (Kremenchuk, Butyrin Str., 15) www.hotel-ontario.com.ua

Grace Hotel (Kremenchuk, Zhovtneva Str., 29) -

1.10. Rating

RATING OF COMPETITIVENESS OF REGIONS - 9th place

City of Kyiv Kharkiv oblast

Dnipropetrovsk oblast Donetsk oblast

Kyiv oblast Odesa oblast

Zaporizhzhia oblast City of Sevastopol

Poltava oblast Lviv oblast

Ukraine (average by regions) Volyn oblast Rivne oblastSumy oblast

Mykolaiv oblast Vinnytsia oblast

Chernivtsi oblast Zakarpattia oblast

Cherkasy oblast Autonomous Republic of Crimea

Luhansk oblast Ivano-Frankivsk oblast

Khmelnytskyi oblast Ternopil oblast

Chernihiv oblast Zhytomyr oblast

Kirovohrad oblast Kherson oblast

4,37

4,144,12

4,10

4,074,02

4,024.00

4.00

3,983,97

3,973,95

3,95

3,943,94

3,933,93

3,92

3,87

3,873,84

3,82

3,2

Source: «Effective Management» Fund, 2012 .

3,4 3,6 3,8 4,0 4,2 4,4

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POLTAVA OBLAST Investment passport of the region

Section 2. INVESTMENT OFFERS

2.1. Priority spheres for investment

1. Agro-industrial production 3. Manufacturing of electric products2. Machine-building (including automobile 4. Production of construction materials

construction)

• 2.2. National projects in the region

- «NEW LIFE» — opening of Region Perinatal Centre (2012).

- «OPEN WORLD» — providing comprehensive schools of Poltava region with information-computer technology and multimedia equipment, access to Internet network (computer hardware was installed in two education institutions of the region).

- «GREEN MARKETS» — creation of modern wholesale market of agricultural products in Poltava region.

- «CLEAN CITY» — provision of the necessary documentation for the implementation of the national project and construction of firm domestic wastes recycling complex.

- «INDUSTRIAL PARKS» — worked out a concept of an industrial park creation.

• 2.3. Strategic regional projects

Name of the project

initiator cost term of implementa­

tionimplementa­tion stage

expected results

«Construction of waste recycling plant in Poltava city» as a part of National project «Clean City» realization

Poltavastate

executivecommittee

(SEC)

242 mln UAH

(according to Annex 5

to the Cabinet of Ministers

of Ukraine resolution

from august 8,2912. # 695-p)

3 years priordevelopedtechnical

expertevaluation(feasibility

study)

Up to 100 new created jobs.

«Creation of industrial park «Central» in Kremenchuk city as part of National project «Industrial Parks of Ukraine» realization

Kremen- chuk SEC

approx. 4,012 mln

UAH

up to 50 years

working out of the

concept of industrial

park, busi­ness plan

preparation

Approximate number of new created jobs — 4,225.

Bridge construc­tion across the river Dnipro in Kremenchuk city

Kremen-chukSEC

5,263.5 mln UAH

7 years feasibilitystudy

Increase of transport throughput capacity, removal of transit traffic flows beyond the borders of the city, construction of logistic infrastructure, boosting international cooperation.

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2.4. Industrial property and land plots

Area Location B rief description

INDUSTRIAL PROPERTY

54 ha Hrebinka, Hrebinkivtsi district

Territory of the former military base. Possible use: industrial construction. Near the land plot there is a local road with hard surface. Distance to the motorway Kyiv — Kharkiv (E-40) — 12 km. Availability of engineering networks: electricity, gas and water on the land plot.

9 ha Rudenkivka, Novi Sanzhary district

Territory of the former Novosanzhar Canning Plant, LLC. Possible use: canning production. Available infrastructure: water supply, drainage system, gas, electricity on the territory of the enterprise. Distance to the motorway Poltava — Kremenchuk — 12 km.

7.8 ha Kremenchuk Possible use: construction of an enterprise of food, processing and mining industries, wholesale trade, construction, transportation and warehousing. Available infrastructure: water supply, drainage system, gas, electricity on the territory of the enterprise. Close to the motorway Poltava — Dnepropetrovsk.

5.8 ha Karlivka, Karlivka district

Territory of Karlivka Dried Milk Plant, PJSC. 16 buildings are situated on the plot of the total area of 15,734 m2. Possible use: to change the line of business. Distance to the place of water supply is 800 m, designed water supply from private wells. Gas and electricity are connected. Distance to the motorway — 2.5 km. Distance to the airport — 65 km.

3.9 ha Karlivka, Karlivka district

Territory of the former Karlivka Furniture Factory, PJSC. Possible use: production of soft and cabinet furniture. Available infrastructure: water supply on the territory, centralized water supply system, sewerage and drainage systems. Gas is supplied to the factory boiler room. Furniture factory transformer substation has the capacity of 1,000 kW. Located on the motorway.

Area Location B rief description

LAND PLOTS

131.5 ha Zhovtneve, Hrebinkivtsi district

Possible use: onstruction of an industrial enterprise or logistic centre. Electricity is on the land plot. The territory is near the road. Distance to the motorway Kyiv — Kharkiv (E-40) —4 km.

50.76 ha Industrial area «Zanasyp» of Chervonoznamiansk village administration, Kremenchuk district

Possible use: industrial enterprises construction. Road Poltava — Oleksandriia (E-584) is on the border of the land plot. Distance to the railway road — 1 km. Available infrastructure: water supply, drainage system, gas and electricity supply are on the land plot.

33.4 ha Derevky, Kotelevsk district

Possible use: recreation centre construction. Distance to the national motorway H-12 — 5 km. Electricity supply — 0-500 m, gas, water — 200 m.

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30 ha Hrebinka, Hrebinkivtsi district

Land plots o industrial use. Engineering networks: electricity supply is on the territory, centralised water supply. The territory is near the road. Distance to the motorway Kyiv — Kharkiv (E-40) — 12 km.

25.5 ha Hradyzk, Hlobyno district

Possible use: industrial construction. Distance to water supply: 250 m, gas supply — 500 m. Distance to the motorway —0.5 m.

21 ha Zinkiv, Zinkivtsi district

Possible use: industrial construction. Available infrastructure: electricity, gas and water supply — 100 m.

19.4 ha Holoborodkivske, Karlivka district

Possible use: cattle-breeding production. Available infrastruc­ture: electricity — 200 m, gas — 500 m. The land plot is located 3 km off the motorway Poltava- Simferopol. Electricity — 200 m, gas — 500 m.

16.9 ha Davydivka, Pyriatyn district

Possible use: cattle-breeding complex construction. Distance to the road — 0.25 km. Distance to the motorway Kyiv — Kharkiv (E-40) — 15 km.

16.1 ha Bodakva, Lokhvytsia district

Possible use: cattle-breeding complexes construction. Distance to the road — 50 m. Electricity — 50 m.

15.9 ha Maiachka, Novi Sanzhary district

Possible use: cattle-breeding complex construction. Available infrastructure: Electricity — 1 km, gas — 10 m, water supply -; there is an abandoned well on the territory. Motorway is near the land plot.

15 ha Zapsillia, Kremenchuk district

Possible use: cattle-breeding farms construction. Available infrastructure: Electricity — 500-700 m, gas — 2,000 m. Distance to the motorway — 100 m.

10.2 ha Burty, Kremenchuk district

Possible use: cattle-breeding farms and recycling enterprises construction. Electricity — 100 m, gas — 250 m, water — 200 m. Distance to the motorway — 50 m.

8.4 ha Rymarivka, Hadiach district

Land plot of industrial use.Hard surface motorway leads to the land plot. Distance to the motorway — 465 m, to the highway — 5.6 km. Distance to engineering networks: electricity — 100 m, gas — 100 m, water - 100 m.

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POLTAVA REGIONAL STATE ADMINISTRATION

Zhovtneva Str., 45, Poltava, 36014Tel.: + 3 8 (0522) 56 90 56, fax: + 3 8 (0532) 56 53 14E-mail: oda@adm-pl.gov.ua Website: www.obladmin.poltava.ua

POLTAVA REGIONAL COUNCIL

Zhovtneva Str., 45, Poltava, 36014 Tel./fax: + 3 8 (0532) 56 24 01 E-mail: info@oblrada.pl.ua Website: www.oblrada.rv.ua

POLTAVA REGIONAL CENTER FOR INVESTMENT AND DEVELOPMENT

Shkilnyi All., 4, r. 41, Poltava, 36003 Tel.: + 3 8 (0532) 50 08 64E-mail: poltava.rcid@ukrproject.gov.ua Website: www.investinpoltava.gov.ua

POLTAVA CHAMBER OF TRADE AND COMMERCE

Avtobazivska Str., 7, Poltava, 36008Tel.: + 3 8 (0532) 59 40 21, + 3 8 (0532) 50 50 87E-mail: cci@tpp.pl.ua Website: www.tpp.pl.ua

POLTAVA STATE COUNCIL RECREATION CENTRE

Zhovtneva Str., 36, Poltava, 36000Tel.: + 3 8 (0532) 60 63 70, 27 53 05, 22 05 65, fax: + 3 8 (0532) 60 63 70E-mail: dozvolu@rada-poltava.gov.ua Website: www.dc.rada-poltava.gov.ua

26

f NATIONAL " PROJECTS

ukrproject.gov.ua

J Invest Ukraine iinvestukraine.com

Department for Investment Policy and Regional Development

11 Velyka Zhytomyrska str., Kyiv, 01601 tel. +38 (044) 270 63 05

www.investukraine.com/uk/regions e-mail: region@ukrproject.gov.ua