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Cities of Ukraine: Donetsk

Also spelled DONECK, formerly (UNTIL 1924) YUZOVKA, or (1924-61) Stalino, city and administrative centre of Donetsk Region (province, “oblast” in Ukrainian), southeastern Ukraine, on the headwaters of the Kalmius River.

Donetsk at the Ukraine’s MapIn 1872 an ironworks was founded there by a Welshman, John Hughes (from whom the town’s pre-Revolutionary name Yuzovka was derived), to produce iron rails for the growing Russian rail network. Later steel rails were made. The plant used coal from the immediate vicinity, and both coal mining and steel making developed rapidly. By 1914 there were 4 metallurgical plants, 10 coalpits, and a population of about 50,000.

After the October Revolution (1917), Yuzovka was renamed Stalino and, in 1961, Donetsk. Heavy destruction in World War II led to postwar modernization and an increase in the scale of industry. Subsequent growth has been rapid and sustained. There are now more than 40 coalpits within the town limits. A major integrated coking, iron-smelting, and steel-making plant makes modern Donetsk one of the largest metallurgical centres of Ukraine. Coke by-products are the basis of a chemical industry producing plastics. There are several heavy-engineering works, which produce, in the main, mining equipment. Refrigerators are manufactured, and there are other light industries.

The necessity of avoiding areas subject to subsidence caused by mining has led to a patchy development of the densely built-up residential and factory areas and open spaces over the extensive area of the town’s administrative limits (162 square miles [420 square km]). The principal street, from the railway station to the steelworks, is 5.5 miles (9 km) long, with the main shops, hotels, and administrative buildings. There are a university; polytechnic, medical and trade institutes; and more than 30 scientific research establishments, including a branch of the Academy of Sciences of Ukraine. Cultural amenities include several theatres and a philharmonic hall.

American Embassy to Ukraine

AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY OF THE USA TO UKRAINE

H.E. Mr. William Taylor

Chancellery of the Embassy of the United States of America

Yuria Kotsubynskoho St., 10, Kyiv 01901, Ukraine

Telephone: (044) 490-40-00

Fax: (044) 490-40-85

Office hours: 8:30-17:30

CONSULAR SECTION

Pymonenka St., 6, Kyiv 04050, Ukraine

Telephone: (044) 490-44-22

Fax:

  • (044) 484-42-56 (non visa issues)
  • (044) 486-33-93 (visa issues and appointments)

Office hours: 8:00-17:30

NATIONAL HOLIDAY

Independence Day, 4 July

Angola’s Embassy to Ukraine

AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY OF  THE REPUBLIC OF ANGOLA TO UKRAINE

With residence in Moscow


Chancellery of the Embassy of the Republic of Angola

Uloph Palme St., 6, Moscow, Russian Federation

Telephone: (+7095) 143-63-24, 939-99-56

Fax: (+7095) 956-18-80

Е-mаil: angomosc@garnet.ru

NATIONAL HOLIDAY

11 November (1975) - Independence Day

Australian Embassy to Ukraine

AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY OF AUSTRALIA TO UKRAINE

H. E. Mr. Robert Tyson

With residence in Moscow

Chancellery of the Embassy of Australia

Podkolokolnyi Lane, 10A/2, Moscow 109028, Russian Federation

Telephone: (+7 495) 956-60-70

Fax: (+7 495) 956-61-70

Е-mаil: austem@comail.ru, postmaster@australienembassy.ru

Office hours: 9.00-12.30, 13.15-17.00

CONSULAR SECTION

Tel/Fax: (+7 095) 956-61-62


HONORARY CONSULATE OF AUSTRALIA IN UKRAINE

Chancellery

Komintern St., 18/137, Kyiv 01032, Ukraine

Telephone: (+38-044) 235-75-86

Fax: (+38-044) 235-75-86

NATIONAL HOLIDAY

26 January (1788) - The Day of Australia

Embassies of Foreign Countries in Ukraine

EMBASSIES OF FOREIGN COUNTRIES IN UKRAINE

A

The Islamic Republic of Afghanistan

Republic of Albania

People’s Democratic Republic of Algeria

Republic of Angola

Argentine Republic

Republic of Armenia

Australia

Republic of Austria

Republic of Azerbaijan

B

People’s Republic of Bangladesh

Republic of Belarus

Kingdom of Belgium

Republic of Benin

Republic of Bolivia

Bosnia and Herzegovina

Republic of Botswana

Federative Republic of Brazil

Brunei Darussalam

Republic of Bulgaria

Burkina Faso

C

Canada

Central African Republic

Republic of Chad

Republic of Chile

People’s Republic of China

Republic of Columbia

Republic of Congo

Republic of Cote D’ivoire

Republic of Croatia

Republic of Cuba

Republic of Cyprus

Czech Republic

D

Kingdom of Denmark

E

Republic of Ecuador

Arab Republic of Egypt

The Republic of Equatorial Guinea

State of Eritrea

Republic of Estonia

Federal Republic of Ethiopia

F

Republic of Finland

French Republic

G

Gabonese Republic

Georgia

Federal Republic of Germany

Republic of Ghana

United Kingdom of Great Britain and Northern Ireland

The Republic of Guatemala

The Guinean Republic

H

Hellenic Republic (Greece)

Republic of Hungary

I

Republic of Iceland

Republic of India

Republic of Indonesia

Republic of Iraq

Islamic Republic of Iran

Ireland

State of Israel

Republic of Italy

J

Japan

Hashemite Kingdom of Jordan

K

Republic of Kazakhstan

Democratic People’s Republic of Korea

Republic of Korea

Republic of Kenya

State of Kuwait

Kyrgyz Republic

L

Lao People’s Democratic Republic

Republic of Latvia

Republic of Lebanon

Great Socialist People’s Libya Arab Jamahiriya

Republic of Lithuania

Grand Duchy of Luxembourg

M

Republic of Macedonia

Republic of Madagascar

Malaysia

Republic of Mali

Republic of Malta

Republic of Mauritius

United Mexican States

Republic of Moldova

Mongolia

Kingdom of Morocco

Republic of Mozambique

Union of Myanmar

N

Republic of Namibia

Republic of Nepal

Kingdom of the Netherlands

New Zealand

Federal Republic of Nigeria

Kingdom of Norway

P

Islamic Republic of Pakistan

Palestine

Republic of Panama

Republic of Peru

Republic of Philippines

Republic of Poland

Portuguese Republic

Q

State of Quatar

R

Romania

Russian Federation

S

The Republic of San-Marino

Kingdom of Saudi Arabia

Republic of Serbia

Republic of Seychelles

Republic of Sierra Leone

Republic of Singapore

Republic of Slovakia

Republic of Slovenia

Republic of South Africa

Kingdom of Spain

Sri Lanka

Republic of Sudan

Sultanate of Oman

Kingdom of Sweden

Swiss Confederation

Syrian Arab Republic

T

Republic of Tajikistan

Tanzania

Kingdom of Thailand

Tunisian Republic

Republic of Turkey

Turkmenistan

U

Republic of Uganda

United Arab Emirates

United States of America

Uruguay

Republic of Uzbekistan

V

Vatican (the Holy See)

The Bolivarian Republic of Venezuela

Socialist Republic of Vietnam

Y

Yemen Republic

Z

The Republic of Zambia

Republic of Zimbabwe

The Background to the relations between the EU and Ukraine

Following the breakup of the Soviet Union, Ukraine declared independence in 1991. The construction of the new Ukrainian state was anything but simple. The separation of Ukraine out of the integrated Soviet economy posed considerable problems. Politically too, the development of a democratic form of government with the creation of political parties and the development of an independent judiciary were major challenges. Unfortunately in Ukraine, unlike in Poland, there was no complete break with the past. Essentially the same people with many of the same institutions which had governed Ukraine as part of the Soviet Union, headed the new independent state. The 1990s therefore became largely a lost decade for Ukraine, in which there was a major decline in real GDP, an increase in poverty and during which the seeds of crony capitalism were sown.

Poland was the first state to recognize Ukrainian independence and, in spite of the history of complex relations between the two countries, became a major sponsor of Ukraine in the West. However in the 1990s Poland and the other states of central and eastern Europe were concentrating on their preparation for integration with the European Union and had little time or inclination to deviate from this course, until the accession treaty was signed in 2002.

For the European Union too, policy during the 1990s was essentially absorbed with the creation of a Monetary Union and with the preparation for the fifth enlargement of the Union. Following the breakup of the Soviet Union, Eastern Europe had disintegrated into chaos, but a chaos which did not directly threaten the European Union. The EU’s response therefore to the challenges posed by state-making in the East was rather weak.

Economically the 1990s were a disastrous period for Ukraine. At the time of the 1998 economic crisis Ukraine’s economy was only approximately 40% of the size it had been in 1990. While these statistics may be somewhat dubious, it is clear that the economy contracted severely during this period. As one of the key industrial regions of the former Soviet Union with a considerable share of its heavy industry, Ukraine was particularly hard hit both by the break-up of the Soviet Union and by the closure of a considerable proportion of its industry. Although it recovered from the 10,000% inflation in 1993, the economy did not start growing again until the year 2000.

The basis for economic recovery was set partly by the policies which were adopted as a result of the 1998 financial crisis. Ukraine’s new currency, the hyrvnia introduced in 1996, was devalued, tighter fiscal policy was introduced and an economic reform programme, under Prime Minister Yushchenko, was put in place from 2000. Recovery was also fostered by an improvement in Ukraine’s terms of trade, with international prices for metal products rising strongly. However the period between the financial crisis and the Orange Revolution was also marked by the blooming of the insider economy fostered by President Kuchma.

Machine-building, instrument-making and metal-working

Machine-building is the largest Ukrainian industrial sector. It accounts for over one-third of the employed and about a quarter of the total cost of industrial main assets.

Machine-building in Ukraine arose long ago. Back in the 1860s agricultural machinery was manufactured in Kyiv, Odesa, Kharkiv and other cities. Later, transport machine-building, manufacturing of equipment for mining, metallurgic and food-processing industries gained in strength. The Donbas and Prydniprovia formed into centers of mining and metallurgic machinery. In Mykolaiv and Kherson, ship building developed. Odesa, Kirovohrad and Kharkiv became centers of agricultural machine-building.

The rapid development of machine-building in the next historical period proved Ukraine’s ability to develop and manufacture complicated science-intensive and highly technological machines and equipment. Among the examples are development of the rocket and space industry, aircraft building (AN-70, AN-140, “Mria”), production of advanced tankers and large-tonnage vessles, fabrication of turbines for nuclear power plants, highly-efficient gas-pumping installations, equipment for high-voltage power transmission lines, etc.

The largest machine-building subsectors in terms of their employment are instrument-making, tractor and agricultural machinery building, electric enginering, automobile building, chemical and petrochemical engineering, and machine-tool construction. The largest heavy engineering centers are Novokramatorsk Machine-Building Plant, Kramatorsk Plant “Energomashspetsstal”, Mariupol Heavy Engineerinf Plant, Kharkiv Turbine Plant, etc. The major electric engineering facilities are concentrated in Kharkiv, Zaporizhzhya, Kyiv, Donetsk, and Dnipropetrovsk. Transport machine building, including railway transport, automobile, aircraft and ship building, is gaining momentum as a priority development sector in Ukraine. This concerns development of new generations of aircraft (AN-70 and AN-140), rocket and space industry (“Sea Start”), new types of vessels, etc. Its main centers include Zaporizhzhya, Kyiv, Kharkiv, Lviv, Dnipropetrovsk, Mykolaiv, Kherson, and Odesa. Advanced are agricultural machine-building and instrument making, automation and computer equipment fabrication.

Support provided within the national policy framework to domestic manufacturer and encouragement of the sector restructuring will condition machine-building development as a priority strategic sector, whose role is to ensure progress of other sectors of the national economy.

Chemical and petrochemical industry of Ukraine

The multi-branch chemical sector of Ukraine includes chemical, petrochemical and chemical-pharmaceutic sub-sectors with over 1,600 enterprises and structural units. The sector accounts for nearly 10% of industrial fixed assets and over 5% of all those employed by Ukrainian industrial sector. About 90% of the capital assets and about 80% employees involved in the industry are concentrated in chemical sector. Petrochemical and chemical-pharmaceutic sub-sectors account for the remaining production potential.

The chemical industry provides the basis for an extensive use of chemical technologies and man-made materials by the national economy. This sector ensures scientific and technical progress, and increases the efficiency of many industrial sectors, agriculture and construction. In Ukraine, manufacturing of various kinds of chemical products (niter, salts, alkali, etc.) was established long ago. However, the sector began developing as an industry only in the late 1800s. At that time, the industry was represented by plants manufacturing dyes, soda, superphosphate, etc. At present, the chemical industry is a developed multi-branch industrial sector.

Until 1990, Ukraine was producing 16% of the total of mineral fertilizers in the former Soviet Union, 24% plant-protection chemicals, 18% sulfuric acid, 25% soda ash, 16% caustic soda, and 13% chemical fiber.

The structure of the chemical sector includes two groups of enterprises – chemical and petrochemical ones. Within the structure of the industry, predominant are asset- and energy-intensive basic chemistry enterprises. This sector is represented by production of mineral fertilizers, non-organic acids and soda. Nitric fertilizers are manufactured in Donbas (Severodonetsk, Horlivka) and Prydniprovia (Dniprodzerzhinsk). Rivne and Cherkasy enterprises use natural gas in their production. Phosphate fertilizers are manufactured in sugar-beet producing areas (Sumy, Vinnytsia) and in Odesa and Kostyantyniv (Donetsk oblast). Production of sulfuric acid is concentrated in the regions where it is consumed and in the centers of phosphate fertilizers production. Basic chemistry is concentrated in the Crimea and comprises production of bromine, magnesium and iodine.

Enterprises of the organic synthesis industry manufacturing synthetic resins, plastic masses, chemical fiber, man-made caoutchouc and threads are located in Donetsk, Zaporizhzhya, Kyiv, Chernihiv, Cherkasy, etc.

The petrochemical industry manufactures a variety of products, of which the most important are car and motor-cycle tires (Dnipropetrovsk, Bila Tserkva), hoses, and consumer goods. The regions where petrochemical and rubber-asbestos enterprises are concentrated are Donbas, Prydniprovia, Prysivashia and Prykarpattya. The major centers of the sector are Kyiv, Cherkasy, Chernihiv, Shostka, Sumy and Rubizhne.

Considerable structural changes are under way in the chemical industry. State-owned enterprises are less than one-fifth of the total number of chemical industry enterprises manufacturing about one-third of the products. The remaining enterprises are in collective ownership, with open and close joint-stock companies being the predominant form.

Iron ore mining

Ukraine was the world’s seventh-leading producer of iron ore, and continued to be a major world producer of coal, ferroalloys, ilmenite, steel, and manganese ore (with 75% of the former Soviet Union’s reserves). The mining and metallurgical industry employed 500,000 persons; 270,000 worked in ironmaking, steelmaking, and ferroalloys enterprises. In 2000, metal products accounted for $6 billion worth of exports, 63% of the country’s total exports; ferrous metals, whose production increased by 17% in 2000, accounted for $4.7 billion in exports. Ferrous and nonferrous metals were Ukraine’s top export commodity in 2002, and their production ranked third among the country’s industries; coal production ranked first, and chemicals manufacturing ranked fifth. Fuel and petroleum products were the country’s second-leading export commodity.

Production outputs for 2000 included: marketable iron ore, 55.88 million tons (47.6 million tons in 1996); manganese, mined in the Nikopol’ and Bol’shoy Tokmak basins (metal content), 930,000 tons (675,000 in 1999, 1.03 million tons in 1997); rock salt, 2.29 million tons (2.8 million tons in 1996); and potash (at the Stebnik and Kalush mines), 30,000 tons (76,000 in 1996). In addition, Ukraine produced alumina, mercury, titanium (ilmenite and rutile concentrates), zirconium (the FSU’s only ore producer), cement, clays (bentonite and kaolin), graphite, nitrogen, and sulfur (from the Rozdol and Yavoriv deposits). Iron ore production—concentrated at seven mining and beneficiation complexes in the Krivyy Rih (Krivoy Rog) Basin, and at the Poltavskiy complex—fell by 50% in 1990–95. Explored iron ore reserves totaled 33 billion tons, including 28 billion tons of industrial reserves; total capacity was 108.5 million tons per year. Manganese reserves totaled 2.2 billion tons, and annual capacity was 6 million tons. No antimony, cadmium, lead, nickel, tin, zinc, zircon, dolomite, limestone fluxes, quartz, soda ash, talc, or uranium was mined in the past several years, the Ukraine having sharply reduced or ceased producing a number of these commodities as a result of the large reduction in demand following the breakup of the Soviet Union.

At the end of the 1980s, Ukraine mined 5% of the world’s output of mineral products. After the breakup of the Soviet Union, production fell precipitously, and recovery of the mining sector was considered critical for the country’s economic recovery. A 1999 law provided tax benefits for mining and metal industry firms for two and a half years. By 2000, the privatization of small-scale enterprises was virtually completed. The mining industry was a major source of waste, having accumulated 30 billion tons of mineral wastes.

System Capital Management or SCM

System Capital Management or SCM (Ukrainian: Систем Кепітал Менеджмент) is a big Ukrainian financial and industrial holding company with the headquarter based in Donetsk in the east of the country. The business is controlled by a Ukrainian businessman Rinat Akhmetov who owns 90% of the company shares. According to recently published figures the group has revenues of over $17 billion and has assets worth over $26 billion.

SCM was set up in 2000 and now includes over 90 businesses in metals and mining, power generation, banking and insurance, telecommunications, media and real estates as well as in some other spheres. The biggest company in the SCM Group is Metinvest, which is a mining and steel business and is generally agreed to be Ukraine’s largest private business and is one of the bigger steel businesses in Europe. It is also the largest Ukrainian producer of iron ore. Metinvest also has assets in Italy, UK, Bulgaria and Switzerland. The second company of the Group is DTEK which mines coal and owns and operates a number of power stations in Eastern Ukraine. SCM also owns two large banks and an insurance company. In telecommunications, SCM has a fixed line business, Farlep-Optima and a big share in mobile operator, Life:). The Group’s media interests include the newspaper Segodnya and the TV station TRKUkraina. The group is also in the real estate business and owns two five star hotels - one in Kyiv and one in Donetsk.

  • Metinvest Holding
    • Krasnodonugol Coal Company
    • Severniy Iron Ore Mining and Processing Works
    • Central Iron Ore Mining and Processing Works
    • Ingulets Iron Ore Mining and Processing Works
    • Avdeyevka Coking and Chemical Plant
    • Azovstal Steel Works
    • Yenakievo Steel Works
    • Khartsizsk Pipe Works
    • Metinvest International (Switzerland)
    • Ferriera Valsider (Italy)
  • DTEK
    • Pavlogradugol Coal Company
    • Komsomolets Donbassa Mine
    • Vostokenergo Power Generation Company
  • Financial Business
    • First Ukrainian International Bank
    • Dongorbank
    • ASKA Insurance Company
  • Telecommunications
    • Farlep-Invest Telecommunications
    • Astelit Mobile Communications
  • Sarmat Brewing Group
  • TRK Ukraina Broadcasting Company
  • Segodnya-Multimedia Publishing Group
  • Donbass Palace Hotel (Donetsk)
  • Opera Hotel (Kiev)

The business and Rinat Akhmetov are possibly best known for being the owners of the Ukrainian Shakhtar Donetsk Football Club, which plays regularly in European competitions.

The company declares its plans to become an international business and is expanding into Europe and recently raised $545 million to help fund future expansion. The group has announced plans to invest $6 billion over the next 4 years.