1.        SOCIAL & ECONOMICAL CHARACTERISTIC OF KHARKOV & DONETSK OBLASTS

2.1.            GEO ECONOMIC & CLIMATIC LOCATION, BRANCH STRUCTURE & INDUSTRIAL INDICATORS

During the last few centuries Kharkov region has become not only traditional centre of eastern part of Ukraine, but also one of the most highly developed agricultural & industrial regions of Ukraine & south of Eastern Europe. In 1781 queen Ekatherina II has granted to Kharkiv region new emblem: “on green field are criss-crossed cornucopia with fruits & flours & Mercury’s wand, symbolising both plenty of countries trading with this city & trade on local big fair…” (P.P. von Vinkler “Emblems the Russian Empire”, S-Petersburg, 1899). Kharkiv region has become & holding position of big centre of crafts & trade & produce turnover of kharkiv fairs was 50% of total turnover of all Ukrainian fairs.

Kharkiv oblast – one of the most developed agricultural & industrial regions & major part is played by engineering (agricultural machinery production) & metal-working enterprises, energetic, processing & building industry. Oblast agricultural production features developed structure, including many branches:

Area – 31418.5 km², Kharkiv – 1521.4 km²

Population – 3024.4 th people

Cities – 17, towns – 60, villages – 1718

Kharkov oblast is surrounded by Sumy, Poltava, Dnepropetrovsk, Donetsk, Lugansk and Belgorod (Russia) oblasts.   As for natural and climate conditions Kharkov oblast is located in the forest-steppe and middle-forest zones unlike neighbouring Dnepropetrovsk and Donetsk oblasts. Kharkov oblast is not remarkable for its natural resources, however there are resources of natural gas and oil. Bitumen, glass sands, chalk, brick and cement clay, stone salt and phosphorous ore represent the rest of natural resources. Unlike Donetsk oblast, where low-humus soil and thin black earth (up to 40%) predominate and the rest are soddy (cespitose) carbonated and break-stone ground, 100% of Kharkov oblast consist of the black earth, that includes 70% of typical middle humus soil, 25% of deep humus soil and 5% of low humus soil.

The ecological situation in Kharkov region also is healthier, as 60% of soil is classified according to the report in 1995 as "moderate clean", and 40% of neighbouring to Donetsk oblast soil is considered as "polluted". Whereas, in Donetsk oblast only 30% of land is considered as "polluted" and 70% is referred as "very polluted" and "extremely polluted".

The region has the unique geographical and economic situation; it borders with Russia (Belgorod oblast), which is the main importer of food produce from Ukraine; there is the largest transport (automobile and railway) point at the territory of oblast that relating to the importance and traffic capacity is equal to the one in Kiev, Odessa, Lvov; the trade arterial roads - "south-north" (Simpheropol-Moscow) and "east-west" (Caucasus-Rostov-Kiev-Warsaw). Due to this the storage capacity and depot for produce and raw materials are developed.

Table 3

Manufacture of the most important kinds of industrial produce in Kharkov oblast

            The industrial potential of the oblast is characterised by high density of the highly technological machine building manufacture and metalwork (37,5% within entire structure), where over 50% of working population of industrial centre is occupied, and also the number of enterprises do not have the counterparts in Ukraine. Due to this peculiarity the oblast is outstanding among the other oblasts of the eastern Ukraine (Lugansk, Donetsk, Dnepropetrovsk, Zaporozhie) where the mining branches and metallurgy predominate. The processing industry is well developed that holds 20,9% in the structure of the region.

            Among the enterprises of Kharkov oblast there is the number of manufacturers that are specialised in production of agricultural machinery, such as Kharkov Tractor Plant, Kharkov Tractor Engine Plant, the plants "Porshen", "Serp and Molot", UkrElectroMach (Ukrainian Electic Machinary), the Turbo Compressor Plant, Engine Plant named after Malishev, the "Tractor Part" Plant, Pipe Plant, etc. the scope of manufacture of industrial produce in oblast contributes the remarkable part into the net industrial production of Ukraine (see the table 3). In 1999 the number of industrial enterprises of the region increased the output and realisation of its produce – e.g. Kharkov Tractor Plant increased the tractors manufacture by 30% in comparison to the scope of work in recent years.

            The turnover of foreign trade in the oblast constituted the sum of $582.000.000. The turnover of foreign trade increased by 94,5% against the respective period in 1996. The oblast exports:

Ø                machinery and equipment (40,6% of entire amount of export);

Ø                land, air and water transport (21,6%);

Ø                metal and metalwork (8,4%);

Ø                chemical industry produce (8,7%);

Ø                food processing industry produce (4,3%);

Ø                tools (3,3%).

The segment of export in the turnover of international trade of the oblast constituted 31,3%. The largest export supplies were made to the Asian countries ($74.900.000 or 59,7%), to Europe ($44.900.000 or 35,8%) and to America ($4.050.000 or 3,2%). The entire amount of import within 1997 constituted the sum $275.100.000. The segment of import in the turnover of international trade of the oblast constituted 68,75%. Supplies from European countries ($212.500.000 or 77,24%), Asian ($42.700.000 or 15,52%), America ($15.600.000 or 5,67%). The credit balance with other countries estimated $149.700.000.

The oblast has a great scientific potential (about 20 educational, research and project organisations referred to agriculture). Here in 1851 one of the first agrarian institution in Russia Empire was established and it functions now – this is Kharkov Zoo-veterinarian Institute. In 1898 first time in Russia in Kharkov Technological Institute (now polytechnic university) the faculty "Agricultural machinery" was opened.

Traditionally Kharkov region is the centre of development and active implementation of knowledge-intensive technologies into agricultural production – starting with new crop varieties, cryopreservation technology of reproductive cells of the animals and transplantation of embryos of agricultural animals to manufacturing of agricultural machinery and tractors.