Ukraine’s Rivne region is a dynamic and promising investment location. Its excellent geographical location, highly skilled labour force and quality of life make the Rivne region an excellent regional and international business hub.
Its prime location is one of the many advantages that Rivne has over its competitors. Located in north-west Ukraine, the region and city of Rivne are situated at the crossroads of international motorways and railways connecting Europe with Asia, and the Baltic Sea with the Black Sea. The city of Rivne also boasts an international airport. The region is located 100km from the EU border, and 250km from the Ukrainian capital of Kyiv.
Positive macroeconomic indicators and a strong growth in demand make the Ukrainian market an attractive choice for investors, and the Rivne region is the perfect place for entering the market.
Regional industry growth rates are markedly higher that the national average (13.2% in 2005), and economic development in the region is driven by the energy, chemical, food production and wood processing industries.
The total volume of FDI in the region’s economy was $76m in October 2005. Industry attracted the largest share of investments ($35.8m), then transportation and communication ($28.5m), trade ($8.1m), and agriculture ($2m). The UK, the Russian Federation, Switzerland and the US are the largest investors.
Rivne offers a large number of excellent investment opportunities and business propositions. Business partnerships from more than 23 countries currently enjoy the region’s many advantages.
Rivne has the most modern glassware factory in the entire Newly Independent States (NIS) region in Consumers-Sklo-Zorya, which is owned by France’s Saint-Gobain Group. Another example of large-scale foreign investment is the acquisition of the controlling share in Joint Stock Company Rivneazot, one of eastern Europe’s largest fertiliser producers, by Austria’s Raiffeisen Investment.
Also, the US-based AES Corporation has acquired and made several strategic investments in Rivne’s regional electricity distribution company.
Victor Chaika, mayor of the city of Rivne, says: “Rivne is open for business and confident in the prospects for the future. Our professional workforce, excellent geographic location and high standard of living are just a few of the reasons why Rivne is rapidly transforming from a regional centre into an international business hub. Rivne’s rapid development and commitment to creating a favourable climate for business demonstrates the region’s high potential for further integration into Europe’s growing economy.”
The Rivne region holds a wealth of local talent. Workers are highly qualified, productive and driven to develop their professional skills. Of the region’s 1.2 million people (2.3% of Ukraine’s population), more than 50,000 are studying in one of the region’s 33 universities or institutions of higher education. Each year in Rivne region, more than 5000 students graduate as economists, lawyers, banking specialists, managers, marketers and engineers. Universities and businesses in the region have a history of cooperating to ensure that the workforce retains its competitive advantage.
Rivne is also a centre of scientific research. There are 17 research institutions employing more than 800 staff educated to PhD level. Twenty-three vocational institutions also produce highly qualified workers for industrial production, transportation, logistics, communication and sales.
Dr Volker Frobarth, senior project officer at the Organisation for Security and Co-operation in Europe (OSCE), says: “A dynamic and growing economy, low operating costs, a competitive and highly skilled labour force, and close proximity to EU are just a few of the advantages that Rivne and Ukraine have to offer to foreign investors.”
The residential real estate market in Rivne has also grown rapidly in recent years. The city of Rivne is one of the friendliest and cleanest cities in Ukraine. New residential buildings are being constructed rapidly throughout the city and buyers have a choice between condominiums or private houses. Prices for prime residential space in the city centre averages at €800 per square metre. The cost of leasing a flat with more than 60 square metres averages at €250 a month.
Culture and history
The Rivne region is widely known for its hospitality, and the culture of the city and region is versatile and rich. Festivals, art events and concerts are regular features of the region, and its large number of restaurants, coffee shops and clubs provide plenty of choice for places to relax or socialise.
Mr Chaika says: “Rivne is not just the political and economic centre of Rivne region, it is also the spiritual and cultural heart. Its people are renowned for their hospitality, openness and rich culture.”
The area boasts considerable recreational possibilities. The region is home to two historical and cultural state reserves in the form of the ancient cities of Dubno and Ostroh, whose 15th and 16th-century architecture and landmarks provide a glimpse into the region’s history. The region is also home to three historical museums and seven of local lore. Unique landscapes, wildlife preserves, basalt columns, amber deposits and activities such as hunting, flying and rafting are just a few of the amazing attractions that the region has to offer.
InvestInRivne Agency is a specialised investor and business support agency for Rivne region. It provides a wide range of professional services to investors and businesses wishing to set up or expand their presence in Ukraine.
InvestInRivne acts as a one-stop-shop for foreign investors and facilitates and expedites investment approval, company registration, acquisition of required licenses and other permits needed to start operations.
InvestInRivne Agency director Serhiy Rusnak says: “InvestInRivne’s goal is to make foreign investors aware of the exceptional opportunities in Rivne and to offer a great location in eastern Europe when you look at costs and growth potential.”
Interested parties should contact: Mr Taras Zhuravel a InvestInRivne Agency Tel: +38 0362 221 565
Fax: +38 0362 222 549
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