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The mineral base is made by over 50% from fuel and energy raw materials (anthracite coal, gas of coal deposits and condensate).
In the bowels of the earth of Lugansk Region there are concentrated 34,7% general supplies of coal, including, coke coal – 28,4% and anthracite – 66,9% of general supplies.
The region is single in Ukraine, which resources enable to grow capacities of coke and energy coal mining, and also methane of coal deposits. The region has industrial deposits of gold sulphide ores, small supplies of gold, and also deposit of silver.
The bowels of the earth in the region are used for creation mineral fertilizers from agricultural chemical ores (phosphate and glauconite), and for extraction of mineral pigments (ochre).
On the whole there are 82 perspective sites for conducting searching works of different types of non-metallic raw materials in the region. The bowels of the earth in the region are characterized by considerable resources of underground spring and mineral waters. The balance supplies of mineral waters make almost 2,6 mln. cube m a day.
Lugansk Region has powerful economic potential and enters five biggest industrial economic regions of Ukraine. On its territory there is concentrated 4,6% of capital assets of Ukraine and 5% of labour resources.
Favourable geographical location, closeness of sources of raw materials and markets of production sale, multi-branch industry, developed network of transport communications, high closeness of population provide irrefutable advantages to the region in comparison with other regions of Ukraine.
The leading role in the regional economy belongs to the industry.
In the state division of labour the region ensures 8,7% of sold industrial products of Ukraine and takes third place among regions by it volumes. By output of many types of industrial products the region occupies leading monopolistic position in Ukraine providing 33,9% of anthracite coal mining, 32,8% of primary refining of oil and output of oil products, 37,5% of petrol, 27,9% of diesel fuel, 14,0% of coke and coal, 12,7% of steel and 12,0% of rolled stock.
The regional industry is the multi-branch complex, where leading positions are occupied by processing industry representing enterprises on production of coke and products of oil refining, machine-building, chemical, petrochemical, food, cellulose-paper, light and building industry. Three large industrial junctions are organised in the region.
Specialization of Lugansk junction is determined by enterprises of machine-building, metal working and light industry; Alchevsk–Stakhanîv enterprises of coal, metallurgical and machine-building; Lisichansk–Rubezhne–Siverskodonetsk – enterprises of chemical and petrochemical industry.
Leading enterprises in separate industries are follows as OJSC «Alchevskkoks», OJSC «Impulse», OJSC «Pervomaysk Electrical Plant», OJSC «Stakhaniv Car Building Plant», CJSC «Pervomaysk Mechanical Plant», CJSC «Termo», CJSC «Lugansk Pipe Factory», JV «Intersplav», CJSC «Siverskodonetsk Association »Azot«, Rubezhne Public Factory «Zorya», OJSC «Lissoda» etc.
Agriculture takes important place in the economic complex of Lugansk Region. 4% of Ukrainian plough-land is concentrated in the region. Production volume of agriculture is 3,2% of general Ukrainian volume.
The region pays special attention to the process of integration in structure of Ukraine into world economic community that opens new strategic prospects and additional capacities for regional development.
The foreign trade turnover of commodities and services in the region made $ 5789,6 mln. in 2006 and increased by 24,3%. The volumes of export of commodities and services increased by 38,1% and import – by 12,1%. 726 enterprises and natural persons performed foreign trade operations of commodities with partners from 112 countries of the world.
Metallurgical industry of the region is represented by enterprises on production of rolled stock, ferrous metals, pipes, primary steel working and scrap working.
About 100 brands of low-alloyed low-magnetic stainless steel are exported to the enterprises of CIS countries, Eastern Europe, India, Iran and Turkey.
The enterprises of metallurgical industry ensured almost 22,9% of regional gross industrial product. On the whole 211 enterprises of different property perform production activity (three state companies), in particular five large enterprises manufacturing over 90% of production volumes in the industry.
Leading enterprises of the branch are follows as OJSC «Alchevsk Iron and Steel Works», OJSC «Stakhaniv Works of Ferro-Alloys», CJSC «Lugansk Pipe Plant», JV «Intersplav» and Lutugino State Scientific-Production Complex of Roll Manufacturing.
The chemical complex of Lugansk Region differs by high concentration of biggest Ukrainian multi-profile and specialized enterprises among other regions of Ukraine which products are known abroad. It is mineral fertilizers and chemical facilities of plant protection, plastic, dyes, high-pressure sleeves and wedge straps, various detergents.
Oil refining industry is represented by OJSC «Alchevsk Coke-Chemical Plant» and CJSC «LINIK».
Machine-building makes almost 5% in the structure of regional economy. 159 enterprises of different property belong to the machine-building complex. The complex has huge scientific and technical potential and human capitals for high-quality development of future machine-building.
Coal industry presents a production complex of 76 enterprises with 56 mines, 20 concentrating factories and service enterprises.
Over 43% of Ukrainian energy coal is mined in Lugansk region. 103 900 persons are employed in enterprises of coal industry
The developed supplies of natural gas are estimated approximately in 11,7 bln. cube m. Basic supplies are Markivske and Olkhivske.
The building complex of Lugansk Region is about 1400 contract organizations and enterprises of building industry of different property.
Light industry is represented practically by all subindustries: knitting, sewing and shoe. More than 80 enterprises perform production activity in the region, including 30 leading, out of them 26 enterprises of sewing production and four of shoe production.
Commodities with Lugansk trade mark are known and acknowledged in many countries of the world, have prestige rewards and diplomas. The export makes 80%.
Aviation transport is represented by OJSC «Lugansk Airlines» and International Airport Lugansk. The network of motor roads covers all cities and districts of the region.
They care about century experience, customs and keep traditions of commercial relations and business in Lugansk Region.
Lugansk is open to cooperation with all business partners and is always ready to offer necessary support and help for achievement successes with regional subjects of management activity.
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