Gomel Region
Gomel Region is situated in the south-eastern part of Belarus and borders on
Bryansk Region in Russia and Kiev, Chernigov and Zhitomir regions in
Ukraine. Territory – 40,400 square kilometers or one fifth of the Republic's
territory.
The region includes 21 districts and 4 districts in the city of Gomel, 17
cities, 18 towns, and 2,636 villages.
The climate in the region is moderate continental, with warm summer and mild
winter. Vegetative season is one of the longest in Belarus (191-209 days).
Such climate is favorable for growing sugar beet, corn, short-season grapes
varieties and other crops.
The major navigable rivers in the region are the Dnieper, Sozh, Berezina,
and Pripyat. There are numerous lakes, and one third of the territory is
covered with forest. Gomel Region has favorable natural conditions for any
life activities.
Gomel Region has approximately 1.5 million population. The region's
administrative center is the city of Gomel, second only to Minsk by
population (500,000).
Most important for the national economy are the fuel and power resources
discovered in the region. There are almost 1,500 deposits of peat which
accounts for 30% of the energy balance of the republic and is used as a
construction material and fertilizer. Commercial oil was discovered in 1964
near Rechitsa. Since then more than 100 million tons was extracted.
Gomel Region has a significant industrial potential and is one of the
technologically advanced regions in Belarus.
More than 300 large and medium industrial entities are located in the
region. Their share in the total industrial output of the republic is 17%.
The leading industries are: fuel and energy, chemistry, ferrous metallurgy,
oil, food, forestry, woodworking and pulp and paper industries. The share of
mechanical engineering, instrument making and metal working industries is
also quite significant.
The region is the only oil and gas extracting region and the only producer
of rolled stock, fodder choppers, glass panes, and linoleum in Belarus. The
region also produces more than 85% of steel, 53% of automobile gasoline,
over 45% of diesel fuel, almost 47% of fuel oil, 46% of cardboard, about 31%
of wood chipboards, almost 25% of plywood, paper and metal-cutting tools.
The agro-industrial complex can meet the main food requirements of the
people and provide raw materials for the processing industries. The main
agricultural sectors: beef and dairy husbandry, vegetable farming and potato
growing, and also flax growing (in the eastern part of the region). The
farms located near big cities supply milk, vegetables, potatoes, poultry,
pork and eggs.
The region is a grain growing area (49% of all cultivated land). Potatoes
occupy about 12% of cultivated land in all types of farms, vegetables and
technical crops – 4.2%, fodder crops - 34%. Almost 1,000 milk farms supply
milk.
15 commercial pig farms keep 73% of all pig stock. Pork produced by these
farms accounts for about 86% of all pork production in the region. There are
also 10 poultry farms and 9 farms specializing in egg production.
Gomel Region conducts export and import operations with more than 70
overseas countries which account for over 25% of overall foreign trade
turnover in the region.
The most dynamic is the development of trade with Germany, Poland, Egypt,
Italy, Belgium, Austria, and Latvia. The volume of foreign trade is steadily
growing.
The region imports machines and equipment, ready made foods, and chemical
products from overseas countries. Commodity exports are dominated by metals
and metal products, as well as mineral products.
The main foreign economic partner of the region is still the Russian
Federation. Ferrous metals and products account for nearly one third of the
export of goods. The region also supplies mineral products, textile and
textile products, machinery and equipment, wallpaper, cardboard, and white
ware.
Contact information:
oblisp-uip@mail.gomel.by
www.gomel-region.gov.by
INVESTMENT APPEAL OF THE GOMEL REGION
Traditionally the Gomel Region occupies one of the first places in the
Republic of Belarus according to volume of investments into basic capital.
In 2003 this index was approximately equal to 560 mln. USD, which allowed
the region to rank second according to volume of investments after Minsk
City.
In 2003 realization of a number of big investment projects was completed at
regional enterprises. A complex of catalytic oil cracking was put into
operation at the Public Joint Stock Company “Mozyr Refinery”, it allowed to
considerably increase the depth of its refining. Investment volume into this
project amounted to more than 120 mln. USD. The Republican Unitary
Enterprise “Byelorussian Metallurgical Works” invested 6.5 mln. USD into
measures on technical reequipment and production modernization in 2003. On
the whole volume of investments into basic capital within the indicated
period grew in comparison with 2002 for 14.6%.
In 2004 implementation of a number of large-scale investment projects is
going on.
The Gomel Region is interested both in domestic and in foreign investments
and has favourable conditions for capital investment.
MAIN FACTORS OF THE GOMEL REGION’S INVESTMENT APPEAL
1. Social peace, economic stability, government guarantees.
The Gomel Region as the Republic of Belarus on the whole is stable enough
region socio-economically and politically. There are not and have not been
any conflicts on economic, political, national and any other basis here.
Local authorities render their assistance to organizations realizing
investment projects.
Legislation guarantees investment protection and also right for free command
of profit received as a result of investment activity.
2. Favourable climatic conditions and advantageous geographical position.
The Gomel Region has comparatively favourable conditions for development of
all spheres of human vital functions. Temperately continental climate
promotes agriculture, and plain character of relief – settlements
development, industrial enterprises and main traffic arteries functioning.
The Gomel Region (as the Republic on the whole) is situated in the centre of
Europe that has predetermined passage of international railways, highways,
air routes, river means of communication and pipelines along its territory.
3. High skilled potential and educational level of workers and employees.
The Gomel Region has a skilled potential of specialists and workers in
different fields of activity. Number of labour resources constitutes 900
thousand people (or 60% of region’s population), about 100 thousand people
have higher education and about 145 thousand – secondary special one.
The Gomel Region has a developed scientific and technological sector – the
second one according to its potential after Minsk, the capital of the state.
There are 3 institutes of the National Academy of Sciences of Belarus, 8
higher educational institutions, more than 20 sectoral scientific and
planning institutes, special design bureaus, about 700 general educational
and vocational schools.
4. Availability of resources for development of an agrarian-industrial
complex.
Total area of the Gomel Region’s lands is about 4,000 thousand ha,
agricultural lands account for 35% of them.
Here in the region there is commercial production and processing of such
minerals as peat, commercial oil, petroleum gas, coal, slate coal, brown
coal, clay, rock salt, potassium salt, chalk, building stone, glass-making
and molding sand.
Prospecting and evaluation works of diamond deposits are going on in the
region; there are prerequisites for detection and preparation for industrial
development of new types of raw materials, namely gypsum, basalt fibres,
mineral sorbents, iodide-bromine brines.
Intensive modernization of the agrarian-industrial complex is carried out
lately. A number of legislative acts promoting investment into agriculture
is adopted.
5. Economic potential.
The Gomel Region has a high potential in different spheres of economy. About
15% of all gross domestic product of the Republic of Belarus is produced
here.
More than 300 big and medium industrial enterprises are situated on the
territory of the region; leading branches of industry are fuel,
metallurgical, machine-building and metal-working, woodworking and pulp and
paper, chemical.
There are over 380 collective enterprises for output of agricultural
products, hundreds of farms and numerous personal subsidiary plots of
citizenry in the region. Main agricultural branches are meat-and-milk cattle
breeding, vegetable and potato growing, and also flax growing (in the
eastern part of the region).
Construction industry of the region is represented by 8 planning institutes,
112 construction-and-mounting organizations, 14 repair-and-construction
ones, 2 house-building factories, 27 enterprises manufacturing construction
materials, structures and parts.
About 3,400 shops, 1,450 public catering establishments, 9 wholesale and
retail enterprises, 62 markets and 46 public service establishments work in
the region.
Branch system of institutions of commercial banks of the Gomel Region
includes 83 banking establishments (4 offices and 79 branches).
The State Enterprise “Gomelobltelekom” and the State Enterprise
“Gomeloblpochta” render communication services in the region; systems of
personal radio call (paging) and systems of tracking type according to
protocol MRT 1327 are operating, three operators of mobile communication
“Mobile TeleSystems” (MTS), “Mobile Digital Communication” (VELCOM) and
BELCEL are working.
6. Foreign economic potential.
Economic entities of the Gomel Region carry out export-import operations
with 84 countries of the world, first of all with Russia, Great Britain,
Germany, Poland, Ukraine, Italy, the USA, Latvia.
The volume of foreign trade turnover according to results of 2003 amounted
to approximately 2.8 milliard USD that exceeded the corresponding index of
2002 for 34%.
The main export articles are oil and oil products, ferrous and non-ferrous
metals and their articles, equipment and mechanical devices, glass, textile,
foodstuffs. Maximum weight in import volume occupy crude oil and
iron-and-steel scrap.
The location of the Free Economic Zone “Gomel-Raton” and the Euroregion
“Dnepr” on the territory of the Gomel Region promotes widening of
foreign-economic relations.
7. The Free Economic Zone “Gomel-Raton”.
The Free Economic Zone “Gomel-Raton” created in March 1998 by the Decree of
the President of the Republic of Belarus No.93 for 50 years occupies a 43
sq.km-area and includes engineering services, production spaces, other
necessary infrastructure. The Zone has exit for all kinds of transport:
railway, motor, air, water.
The preferential taxation procedure: profit and income tax constitutes 15%
(on the whole in the Republic – 24%), value-added tax – 10% (on the whole in
the Republic – 18%), is in effect on the territory of the Zone.
Profit received by residents of the Free Economic Zone “Gomel-Raton” due to
sale of products and services of domestic origin is exempted from taxation
for a 5-year period from the moment of its declaration including the first
profitable year.
Such compulsory measures as nationalization, requisition, confiscation or
similar ones concerning investments are not allowed. When importing foreign
and domestic goods to the territory of the Free Economic Zone “Gomel-Raton”
customs duties (except fees for customs clearance) and value-added tax are
not collected.
At present 40 investment projects with participation of capital from 15
countries are realized in the Free Economic Zone “Gomel-Raton”. Total volume
of attracted investments has constituted more than 55 mln. USD since the
moment of its activity. Over 68 thousand square meters of production spaces
are bought out by the investors.
