Occupying 5% of the territory, where 2.6% of population of Ukraine lives, the region provides production 70% of total Ukrainian output of woolens, 80% of wallpapers, 34% of chemical fibres and 13% of extraction of oil. Chernihiv Region, unique in Ukraine, produces cord fabric, fire trucks, protein coats, pianos, separate types of equipment for branches of agroindustrial complex.
The industry sustainable works with growth, there is a rise of technical level and technological updating of its leading industries, which function on the internal market mainly and satisfy the demands of consumers. These are food industry and processing of agricultural products, light and woodworking industries. The production of science-intensive goods for demands of defence and aerospace industry is increased.
The special attention is paid to achievement of stability in work of leading enterprises, which determine the rates of social and economic development of the region, increasing a level of competitiveness of production and export products.
Lately the efforts are put for solution of problems of re-orientation of production into the technological updating, further development and more effective use of home material-resource base and advantageous geographical location of the region. The innovation development of the sphere of material production is accelerated; the number of innovation active enterprises is increased, including such public corporations as Avtodetal, CheZaRa, Siveryanka, Brewery "Desna", Koryukivskiy Plant of Technical Papers and Gnidyntsivskiy Gas-Remaker Plant.
The Scientific and Technical Council has been established in the structure of the regional state administration for co-ordination of works in this direction and successfully functions here. The plan of measures on stimulation of scientific-technical and innovation activity in the region is consistently developed that provides introduction of ten newest resource conversation technologies and mastering of many hundred new types of products annually.
The positive changes are taken place in the agrarian sector. Beginning from 2000 the sustainable tendency to growth of gross products of agriculture has been shown. Today Chernihiv Region provides 35.9% of national production of flax fibre, almost 7% of potato and 5% of milk.
The changes of property forms on land took place; the problem of providing citizens with land plots has been solved; the pre-conditions for market development of land were created. The leasing relations are being developed. The reformation of agrarian sector is accompanied with the further development of infrastructure of agrarian market, increase of sale volumes of agricultural production through stock exchanges, introduction of market mechanisms in the system of providing village with material and technical resources.
It positively influences on economic indicators of the branch. The region has overfulfiled the programme tasks of the year 2002 on production of grain, sugar beets, vegetables, eggs, cattle and poultry in living weight.
The investment activity in the region is directed in realization of tasks of the regional programme of investments attraction in economic development of the region and rows of measures oriented in acceleration of development of production and social infrastructure. As well as for the last time, the main efforts are concentrated on updating of production funds in industries of material sphere, where 80% of investments are attracted. The special attention is paid to providing effective use of facilities on development of social sphere. Therefore such investments are foremost directed in commission of starting objects, which have the primary value. The rates of housing building are accelerated. The main accent is done on solution of problems of youth housing building crediting within the framework of the programmes «Own House» and «Available Habitation for Young Family of Chernihiv Region».
The inflow of investments on the territory of priority development becomes more intensive. Today 10 projects with the total cost of USD 40 million are developed on territories with the special regime of investing that gave possibility to provide production of goods to the amount of 129 million hryvna in 2002 only, including 90 million hryvna for export as well as to create and keep more than one thousand working places. It is foremost projects on mastering and manufacturing of new types of wallpapers, arrangement of production of seeding potato and growing and processing of flax, woodworking, making of starch and others. The calculations testify that the volumes of investments on development of territories of priority development will make almost USD 190 million till 2010 with additional creation of 6.8 thousand new and saving 8.2 thousand working places.
The circle of enterprises with foreign investments is extended. There were registered more than 40 such enterprises in different spheres of economy. Among them there are JSC "Tobacco Company of "Pryluky" (Ukrainian-English), JSC "Chernihiv Brewery "Desna" (Ukrainian-Belgian), "Cheksil-Ariadna" (Ukrainian-American) – trade in woolens, JV "ChNGG" with PE "Regal Petroleum Corporation Limited" – boring of mining holes. More than USD 61.3 million of foreign capital was invested in development of the regional economy on the whole.
The region supports the external economic relations with 81 countries of the world and carries out export to 58 countries of the world. It gave possibility to increase the foreign trade turnover to the amount of USD 326 million in 2002 with positive balance to the amount of USD 7.6 million. The region traditionally exports the products of food group, wood and wood wares, chemical fibre, paper wares, transport vehicles and equipment. The raw material, which directly provides production processes in the industrial complex, is imported mostly.
Russia, Germany, Lithuania, Brazil, USA and Byelorussia are the most trading partners of the region.
The signing of agreements about trade and economic, scientific and technical and cultural collaboration between Chernihiv and Moscow regions, Chernihiv, Bryansk and Gomel regions assist in further development of foreign economic relations; the agreement with Tatarstan Republic is prepared for signing.
The business communities of Chernihiv Region closely co-operate with the representatives of Gomel, Moscow and Mogilev regions, Poland and Hungary.
The preparatory works on creation of the Euroregion "Dniepr" proceeds on territories of Chernihiv, Gomel and Bryansk regions.
The great results were achieved in production of commodities of public consumption and the region occupies leading positions in Ukraine by growth rates of its production.
The positive changes in forming of internal market and its satiation by commodities of domestic production were taken place; its share makes 90% of the general volume of retail commodity turnover.
The conducting of traditional exhibitions-fairs in the region between Ukrainian regions and in every district assists in propaganda of production resources of enterprises and expansion of internal and external relations. The problems of trade in excisable goods, development of network of firm shops of wholesale-retail link is under the permanent control.
Due to the extension of volumes of high-quality and competitive products, realization of protectionism measures on protection of home commodity manufacturer and growth of real incomes of population the internal market has been considerably enlarged and the volumes of retail commodity turnover are gradually extended.
The activity of sphere of services came alive. The special attention in providing development of this important sphere is paid to creation of servicing, public utility enterprises and cooperative societies with granting priorities to revival of this sphere at village.
The sphere of small business gradually activates the activity. Only in 2002 600 small enterprises were created in the region and its operating number made 4,4 thousand items. Today they cover 6% of total production volumes of confectionary, 7% of meat, 13 % of groats, 25% of furniture, 22% of joiner's wares, 60 % of wares of folk trades, 40% of book-magazine products, and also such unique products as wires and cable, band saws, domestic clock, metal-cutting and woodworking machine-tools.
Today 73 thousand persons work in the sphere of regional business. The small business covers more than 20% of all incomes in local budgets.
The important attention is paid to providing support of businessmen, which start own business. For reduction of regulation procedures the registration by the principle "One Office" is introduced. The well-developed infrastructure for business development assistance has been created in the region. These are Business Supporting Regional Fund in Chernihiv Region, business-center founded by assistance of the International Financial Corporation, regional consulting center, Chernihiv local innovation business-incubator, Center of woman business support and 16 credit unions.
The Chernihiv Regional State Administration continues activity on development of the Strategy of Social and Economic Development of the Region till 2011 began by participation of the Council of Ukrainian Productive Forces Study of the NASU at the end of 2002. The Strategy will define basic priorities of development for long-term prospect and will be directed on solution of complex of primary social and economic problems of Chernihiv Region development.