The Ukrainian company is interested in exporting their products – bottled refined deodorized winterized sunflower oil and refined deodorized winterized sunflower oil in liquid bulk. Kosher certificate is available. The sunflower oil of this plant is sold in Europe, North Africa, Ukraine. Also, the company can prepare other products for export – mayonnaise, ketchup, mustard, tomato paste.
Indicators of Ukraine’s export potential. Sources: Readiness for the Future of Production Report 2018 and Ukraine. Time to invest (Davos2020)
Ukraine’s industry ranks 60th in terms of production among all countries of the world: 22 billion dollars or 0.15% of the world’s industry. Most of the country’s economy involves agribusiness, mining, as well as food, light, chemical and metallurgical industries. About 30% of the produced products are exported. The technological base is largely obsolete and requires modernization. This determines the necessity for collaboration with international partners in the implementation of technologies related to Industry 4.0.
In this article we will take a look at five branches of industry in Ukraine, analyzing the following points:
Metallurgical industry of Ukraine: key facts, structure and export directions. Source: State Statistics Service of Ukraine
Current state. The metallurgical industry in Ukraine provides up to 17% of the total volume of industrial products sold, a fifth of merchandise exports and 4.7 billion dollars of export revenue, 200 thousand jobs and about 10% of the total average number of full-time employees in the industry.
Almost all production is accounted for by large enterprises such as: “Azovstal Iron and Steel Works”, “Dniprospetsstal”, “Donetsk Iron and Steel Works”, “Zaporizhstal”, “ArcelorMittal” and “Dniprovskyi Iron and Steel Works”. Together, they produce 25.5 million tons of cast iron, 21.1 million tons of steel, 11.3 million tons of rolled products and 1.1 million tons of pipes, tubes and hollow profiles made of steel.
Advantages οf Ukraine. Ukraine as a platform for starting-up metallurgical enterprises in comparison with other countries has following competitive advantages:
One more non-obvious advantage of Ukraine is the obsolete technological base (the share of outmoded equipment is 50-70%). If you start a new production with modern equipment, you can get a local advantage over existing enterprises in Ukraine and the ability to cover part of the domestic and foreign markets.
In addition, Ukraine began to apply the provisions of the pan-Euro-Mediterranean Convention in 2019, which allows, for example, an Israeli manufacturer to purchase raw materials in Ukraine, import them at a reduced or zero duty rate and then sell the finished product to the EU countries, maintaining the status of preferential origin.
Chemical industry of Ukraine: key facts, structure and export directions. Source: State Statistics Service of Ukraine
Current state. The share of the chemical industry in total production volume of Ukraine is 4-5%, which is significantly lower than in other countries (for comparison, the share of chemical products in developed countries is from 8 to 13%). Reason for the gap:
As for the structure of production, it is mainly goods with low added value: fertilizers and nitrogen compounds, synthetic rubber and plastic. The fallowing largest enterprises are concentrated in this segment:
These enterprises account for about 22% of total production and 37% of the employed workforce in the chemical industry of Ukraine. Considering the industry as a whole, small businesses account for 16% ($156 million), medium-sized enterprises for 72% ($936 million), and large for 12% ($208 million). This is generally a normal ratio that meets the criteria of a competitive market.
Advantages οf Ukraine. For potential investors considering the possibility of transferring chemical production to Ukraine, the advantages would be:
Rubber and plastic production in Ukraine: key facts, structure and export directions. Source: State Statistics Service of Ukraine
Current state. As for the production of rubber products, Ukraine mainly produces tires, pipes, insulation materials, gaskets, hoses, shoes, crumb rubber, tiles, rubber compounds, and so on. Leading enterprises for production of tires: “Dniproshina” in Dnipro and “Rosava” in Bila Tserkva. For example, “Rosava” has capacities to produce more than 6 million tires a year. Industrial rubber goods are manufactured at small and medium-sized enterprises in Lysychansk, Sumy, Zaporizhzhia, Odessa, Kharkiv and Donetsk.
Plastic manufacturing is scattered throughout Ukraine and is mainly focused on packaging goods, accessories, metal-plastic products, parts for various devices and vehicles.
Advantages οf Ukraine.
Primary advantages:
Precision engineering in Ukraine: key facts, export structure. Source: State Statistics Service of Ukraine
Current state. This industry is almost undeveloped. There are three reasons: the first is the legacy of the Soviet Union, which relied on heavy engineering, the second is the lack of investment, and the third is the cheap import of computers, phones, cameras, and other gadgets. All that is available in Ukraine in terms of precision engineering is the production of photodiodes, phototransistors, semiconductors, cables, and measuring devices.
Advantages οf Ukraine. Primary advantages:
Woodworking and paper industry of Ukraine: key facts, structure and export directions. Source: State Statistics Service of Ukraine
Current state. The share of woodworking in the country’s industry is low – from 3 to 4%. This industry does not cover the needs of the domestic market for most types of products. This is mainly due to the limited resource base: low forest cover (forests occupy only 14% of the territory of Ukraine), dominance of forests with limited operational value and low level of logging. The main sources of raw materials cover the needs of the industry only by a third, the rest is imported (mainly from the Russian Federation).
The main export articles of Ukraine are raw wood, or roundwood (2.5 million tons) and fuel wood (2 million tons), which is exported to the EU. Having said that, it should be noted that the official data of the fiscal services of Ukraine do not coincide with the data from the EU importers. The actual export volume may be much higher.
Key directions of the woodworking industry in Ukraine:
Overall, the industry produces more than $ 1.6 billion worth of products. There are 2,600 active enterprises, among which are only 3-4 large ones (their share is 0.1% of the total number of enterprises in the industry), 145 medium-sized (5.6%) and 2440 small enterprises (94.3%), which corresponds to the conditions of safe competition.
The pulp and paper industry of Ukraine has about 100 enterprises that produce paper, cardboard and goods made of this materials, and more than 300 processors, traders and other accompanying enterprises. The volume of production is about 700 million dollars, 25% of which is exported.
Advantages οf Ukraine. Primary advantages:
In addition, according to the RCA indicator in 2016, Ukrainian wood products were twice as competitive as the global average (2.14). By this indicator, it was ahead of world exporters such as China (0.67), the United States (1.20), Germany (1.11), Russia (1.38), Malaysia (0.89), and slightly behind Poland (2.19).
Against the backdrop of the trade war between the United States and China, as well as rising wages in the traditional manufacturing hubs of East Asia, Ukraine has all the conditions and potential to become an alternative for the placement of industrial capacities in most sectors of the world economy. The factors contributing to this are as follows:
The Chamber of Commerce and Industry Israel-Ukraine will be glad to assist Israeli business representatives in establishing and developing trade and economic ties with Ukraine. If you have any questions, you can contact us using the contact details provided on our website.
On June 23, 2020, the Chamber of Commerce and Industry Israel-Ukraine signed a Memorandum of Understanding with the Lviv Regional State Administration, the Lviv City Council, the Lviv Polytechnic National University and the Scientific park of Lviv Polytechnic National University. The main goal of the Memorandum is to cooperate on projects in the field of IT, technology and biotechnology.
The Chamber of Commerce and Industry Israel-Ukraine is grateful to all partners for cooperation and is convinced that this Memorandum will serve to consolidate effective bilateral cooperation between Israel and Ukraine, in particular the Lviv region.
The Chamber of Commerce and Industry Israel-Ukraine is an Israeli non-profit organization which main goal is to develop trade and economic relations between Israel and Ukraine. The Chamber serves as a platform for interstate dialogue and bringing together representatives of the business communities of our two countries. In connection with the new world realities emerging after the Covid-19 pandemic and its global economic consequences, we would like to familiarize the international business community with relevant information on the resource base available in Ukraine, its state and prospects.
Ukraine is one of the most mineral-rich regions. For example, there are 120 types of mineral deposits consumed by a human, and almost all of them (117 types) are extracted in Ukraine. In addition to the minerals themselves, their components and industrial minerals are actively developed here. Iron, manganese, ilium-zirconium, and uranium ore mining, coal mining, development of kaolin, clay, graphite, sulfur, lead, rock salt, cement, and construction raw materials, as well as facing stone are the most active in the country. It is introduced new technologies of extracting main energy resources – natural gas, oil, and turf. Along with mining Ukraine exports manganese iron, mercury, graphite, clay, sulfur, cadmium and various raw materials for the production of building materials and glass to meet its own needs. The natural resources of Ukraine make it one of the high potential regions for investing in the resource-extracting industry.
Ukraine is actively engaged in the development of projects in the energy sector, due to which in the country there was made the modernization of production of combustible minerals, hydropower resources, biofuels, and nuclear raw materials.
Ukraine is known as a country where there are quite large deposits of all types of oil and gas resources: oil, peat, natural gas, shale, and condensate. There are several oil and gas regions in the mining industry:
The most favorable area for discovering new hydrocarbon deposits is in the south of Ukraine in the Black and Azov Seas area. There are also deposits at great depths in the east and west of Ukraine. The energy potential of the country is connected not only with oil and gas but also with the development of coal deposits in Donetsk (currently, coal production is minimal) and Lviv-Volynsk basins, where coal deposits contain more than 80% of methane.
Despite mentioned above, Ukraine’s fuel resources are still scarce, covering only 20% of its own needs in gas, 10% in oil, and 20% in coal. Every year there is a decrease in reserves in the investigated areas, which is connected including other things, with exhaustiveness and deterioration of oil and gas development conditions, increase in the depth of mine workings, decrease in the capacity of productive coal layers and complication of mining and environmental conditions of field development. On the one hand, because of the decrease in the number of extracted fuel resources in Ukraine, this type of activity may seem unprofitable and not promising, but it is possible to start developing in new areas, which are still little explored and require investment by applying modern technologies. As a result, it can be achieved the intensification of production to meet the needs of the domestic market and exports.
Powerful hydroelectric stations have been built in Ukraine since Soviet times including Dnestrovskaya (which is considered the largest and most powerful in Europe) and Kievskaya. The planned installed capacity of already existed hydroelectric power plants for the next few years is 14.5 million kW, and the planned electricity production is 17 billion kWh, including the Dniester River and Transcarpathian region. Besides, the government looks into the possibility of production increasing by modernizing existed Hydroelectric stations and attracting middle-size river resources (at the end of 2019 the hydro potential of small and medium rivers in Ukraine amounted to about 30% of the total hydro potential of the state). The hydro potential of small rivers is 4 times higher than that of large waterways, so with their competent use and investment in hydropower, it is possible to achieve huge savings in fuel and energy resources (FER), and also export it.
Recently Ukraine has started to pay attention to renewable power resources which not only promote energy improving security and decreasing negative affect on the environment but enable to produce alternative power raw material (energy resources) for export. There are the following materials and natural resources for biofuel:
Ukraine is known all over the world as a nuclear state, where, also, the tariff for uranium energy is the lowest – about 2 cents. And that is even though Ukraine has carried out several works and adapted the Soviet units for the American fuel, after which the neighboring countries decided to re-develop the project of diversification of supplies.
Ukraine has everything for nuclear power development: the largest uranium deposits, high-capacity nuclear reactors, repositories, and machine-building corporations for the production of special machinery and equipment, specialists. It is not surprising that nuclear power engineering is a strategic sector that provides half of the country’s electricity production.
Prospective uranium deposits are located in the Mykolaiv, Kirovograd, and Dnepropetrovsk regions, and the potential for concentrate production varies from 250 to 300 thousand tons, while currently there are no more than 16 thousand tons produced.
Mineral resources base in the country is one of the richest in the world and includes 7500 explored fields, where one can find manganese ore, clay, metallurgical raw materials, salt, sand, etc. Ukraine has one of the largest manganese ore reserves in the world (up to 20% of the planet’s resources is located in Nikopol) – it ranks second by this indicator, as well as iron ore (up to 7% of the world reserves can be found in the Kryvyi Rih basin, Kryvyi Rih and Kremenchuk). Nickel, titanium, and aluminum can also be found in these areas. Ukraine also has deposits of gold, which have not yet been explored – in the Transcarpathia region (except active gold mining in Muzhiyevskiy deposit) and Donbas. Deposits of mining and chemical feedstock meet the country’s demand in building materials and allow them to organize the export of resources – according to statistics, each fourth standard unit received by the country’s budget is earned through metallurgy and related industries.
And this is not surprising, as the planned volume of steel production for this year is more than 22.3 million tons and most of it is exported. Besides, Ukraine is known all over the world as a supplier of titanium (90% of more than 9 thousand tons of titanium products and the raw material itself is exported), aluminum (about 80% of production is sold abroad) and nickel (the main buyer is Greece, where more than 8 thousand tons of ore are supplied).
Ukraine is one of the leaders in sulfur mining and its exporting, as well as in the exploration of places with large deposits of rock salt (there are 9 billion tons of the explored reserves, but there are also new deposits, so the reserves can be called almost unlimited), which is necessary for various types of industries, including light, chemical, and food. It is elaborated in the halite of the Donbas and Transcarpathia region, as well as in highly mineralized underground waters of the Pre-Carpathian region and estuaries of Black and Azov Sea.
Refractory and bentonite clay, flux limestone, dolomite, dry sand, graphite, and zeolite are produced for the metallurgical and chemical lines of industries. Deposits are scattered all over Ukraine – in Donbas and the Dnieper region, Transcarpathia, and south-eastern region. The country has also explored deposits of structural (over 8 billion cubic meters) and facing (250 million cubic meters) stone. They are granite, basalt, labradorite, marble, tuff, sandstone, and limestone, the rational extraction of which can bring real profits.
Resources of semiprecious and precious stones in Ukraine are not yet sufficiently explored and studied, but some mineralogical findings allow us to conclude that there are prospects with topazes, crystals, amber, rhodonite, shale, opals, amethyst, and other gems.
There is enough water in Ukraine and it can deliver this resource to neighboring countries, as the annual water demand of the population and industry of the country is about 15 billion cubic meters, and the total amount of water reserves available for use – 88 billion cubic meters (in dry years, this figure dropped to 50). The water-economic complex consists of more than 1,000 reservoirs, 50,000 ponds, 20,000 lakes, 60,000 rivers, 5 main canals to supply dry regions, and more than 5 million hectares of reclaimed land. Also, the country is implementing State targeted programs for environmental rehabilitation and water sector development
In terms of land resources, Ukraine holds leading positions in the world, as the total area is 60 million hectares, more than 70% of which is developed. Most of the land is occupied by agricultural land, which grows grain, vegetable, and fruit crops, as well as cattle breeding and grazing. Cropland is represented by three types of black earth: common, typical, and southern. The bio productivity of this land is very high and it ensures high crop yields.
Forest areas cover about 13% of the country’s total area (10 million hectares), with most of it located in the west and the Carpathians, where relict forests grow. In other regions, forests are created artificially, so the trees are young or middle-aged. There are such trees as pines, spruce, oak, and beech, which are suitable for use both as wood building materials, fuel resources, and raw material.
Ukraine is a major agricultural power and a leading supplier of food around the world. This is due not only to the renewal and modernization of agricultural methods but also to the excellent climate and the availability of resources for the development of agro-industry.
Climatic conditions in Ukraine, humidity, and temperature are the determining factors for high and stable yields of various crops.
Soil and land resource potential of Ukraine is huge. The country takes the leading place in the world in terms of the number of fertile soils per person – there are 1.4 hectares of land per one Ukrainian, half of which is arable and one third – black earth. For comparison, the average land area per person all over the world is less than 0.2 ha of arable land and 0.05 ha of black earth.
Ukraine is rightfully one of the most fertile countries, where the agrarian complex and agriculture are actively developing, including foreign investment. Besides, Ukraine is attractive as an energy-resource county. The huge resource potential of Ukraine allows to develop production, as well as to extract raw materials for export (nickel, aluminum, building materials, manganese, iron, rock salt, minerals, land, water and fuel, and energy resources, etc.) It can be stated with confidence that Ukraine is one of the richest countries in the world in terms of land, mineral, natural and recreational resources.
The Chamber of Commerce and Industry Israel-Ukraine will be glad to assist Israeli business representatives in establishing and developing trade and economic ties with Ukraine. If you have any questions, you can contact us using the contact details provided on our website.
The largest producer of paints and varnishes from Ukraine invites distributors and wholesalers in Israel to cooperate. The company has been working on the market since 1995 and offers the following products to potential distributors: enamels, water-based paints, paints in aerosol cans, putties, primers, alkyd and acrylic varnishes, glue, colorants. It provides a wide range of products, consistently high quality products, competitive prices, marketing support, an individual approach to each of our partners, the ability to provide exclusive, the ability to work on Private Label. The technological capacities allow to produce more than 60,000 tons of products per year. All products are manufactured on modern technological equipment from raw materials from leading European manufacturers. The company exports its products to Moldova, Georgia, Azerbaijan, Uzbekistan.
The Ukrainian company, that specializes in the production of automatic mineral water pump rooms and juice-bar pump rooms, is interested in cooperation with Israel. Pump rooms of this trade mark have been in demand in the market for more than 40 years. Equipment successfully operates at the best resorts of Ukraine and abroad. It is successfully applied in the field of enhancing the efficiency of people’s health improving in sanatoriums, health centers, rehabilitation centers, boarding houses, recreation centers, hotels, child care facilities, etc.
In early June 2020, the Chamber of Commerce and Industry Israel-Ukraine held the online conference “Digital health as a future of global health care. Israeli innovations in digital health”.
At the webinar, participants were able to learn how digital medicine is developing in the current environment, what effective innovative solutions are being developed in Israel, and how the Ukrainian healthcare system and business can use telemedicine and other innovative solutions at home.
The webinar was moderated by Vlad Cherkassky, CEO of the CCI Israel-Ukraine.
The conference was attended by representatives of the Embassy of the State of Israel to Ukraine, the Embassy of Ukraine to the State of Israel, the Ministry of Health and the Ministry for Development of Economy, Trade and Agriculture of Ukraine, as well as local government officials from various regions of Ukraine, specialists from leading medical universities, management of private medical centers and companies.
The full video of the webinar can be found here
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The Chamber of Commerce and Industry Israel-Ukraine thanks the Embassy of the State of Israel to Ukraine and the Embassy of Ukraine to the State of Israel for their support, and also expresses gratitude to all the speakers and participants of the webinar.
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