1. SUCCESSFUL CRIMEA IN SUCCESSFUL UKRAINE
K. Yurchenko, Deputy Chairman of the Council of Ministers of the ARC - Minister of Economic Development and Trade of the ARC
October 7-8, 2011 Yalta II International Black Sea Economic Forum www.ark.gov.ua

2. The Autonomous Republic of Crimea is the only autonomy within
Ukraine, which has its own Constitution, government and parliament
Overview Map
• Area: 26,1 thousand sq. km
• Population: 2 million people
• Average life expectancy: 67 years
• Official language: Ukrainian
• Capital: Simferopol
• Administrative and territorial 11 towns and
division: 14 regions
• Coastline length: 914 km
Economy
• Currency (code): Hryvnia (UAH)
• Gross regional product, 2010, billion € 3,1
• GRP per capita, 2010, thousand € 1,6
• Real GRP, 2010: 105,8%
• GRP share of ARC in GDP of Ukraine: 3%
• Income to consolidated budget,
2010, million € 688,4
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3. The Black Sea countries
International transport
routes
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4.  Regional disparity of socio-economic development of regions
CHALLENGES  Intense competition in the Black Sea region in health resort
and tourist complex
 Low competitiveness of the agricultural market
 High level of volatility of autonomy’s economy
 Raw materials export oriented industry
 5 climatic zones
 Year-round work due to the health sector
 Organic and ecological agricultural sector
 Development of alternative energy production
 Activation of interregional cooperation
POTENTIAL  Introduction of innovations in industry
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5. The Strategy for economic and social development of the ARC for 2011-2020 years was
developed jointly by Crimean government, the National Institute for Strategic Studies under the
President of Ukraine, leading scientists and international experts.
The strategic goal of the ARC development is to achieve sustainable growth in level and quality of life
of Crimeans, dynamic economic development of economy and implementation of strategic interests of
Ukraine in the Black Sea region
KEY PRIORITIES FOR DEVELOPMENT OF CRIMEA
Economic potential of Crimea 1. Reformation of health resort
and tourism industry
2. Formation of agricultural sector of the
XXI century
3. Modernization of sectoral structure of
industry
4. Development of transport capacity
5. Creating an environment conducive to life
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6. Financial instruments for implementation of the
Strategy of Crimea 2020
3 state programs: 19 republican programs
- Water of Crimea
- Transport infrastructure
- Environmentally friendly Crimea Amount of funding –
Funding - 3.5 billion Euro for 10 years 40 million Euro per year
Operating Plan for Phase 1
2011-2013 years
912 measures for the sum of
4.5 billion Euro
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7. Mass commissioning of new facilities. Active involvement of international organizations’ funds,
Attracting global hotel networks. including from EU
Georgia. About 1500 hotel rooms will be built in the free Georgia. 4 million € were allocated by EBRD for water supply
tourism zone of Georgia "Kobuleti" in the next two years system of towns
Bulgaria. The European Commission will allocate 50 million €
Turkey. There is an increasing number of commissioned hotels of
the highest category, that indicates a transition of the tourist for waste processing plant in Sofia.
business to elite segment. Romania. EU will invest 150
million € in reconstruction of
Crimea. Radisson a Hyatt Projects Tourism and Infrastructure beaches
recreation Crimea. 5 million € will be
Medical Tourism allocated for the social
Turkey. Revenues from medical infrastructure under the
tourism in 2014 will amount to 2 Programme "Support to joint
billion $ per year
Priorities of cooperation initiatives in Crimea"
the Strategy of
Emphasis on production Crimea - 2020 Boom of "green technologies“
of ecologically clean food in Turkey, Romania and Georgia
Romania. French investment
Russia. Kuban region began Agricultural "Green power fund Hanalei Finance will build a
production of Russia's first bio- wind farm and a hydropower
wine. sector industry" station. The project cost - 35
Crimea. The project for production of environmentally million €
friendly baby food is under development. Georgia. The entire national auto park is planned to be
Turkey. The project for rehabilitation of the watershed of replaced by electric cars.
Anatolia. The global objective is introduction of agricultural Crimea. Investors from the UK, Germany, France, Portugal,
practices that will reduce dumping of agricultural fertilizers in the United States have started construction of wind farms
surface and ground waters of the Black Sea watershed. with a total capacity of over 5.5 MW worth 8 billion euros
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8.  With comparable natural resources and tourist flow, Crimea
receives significantly less revenues than the Black Sea resort
regions (in 5-10 times)
CHALLENGES  Short active season and priority of beach tourism
 Low level of staff qualification in the tourism sector
 Uncompetitive pricing policy of Crimean tourism industry
 Lack of consistent image policy
 High level of the sector shadowing - private accommodation
facilities provide about 80% of tourism revenues
 Resort and tourist complex forms only 7% of the region’s GRP
(169 million euros)
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9.  30% of the recreational resources of Ukraine
 914 km of coastline, 343 km of shoreline suitable for beaches
 More than 600 sanatorium and resort facilities and 13 resort regions;
POTENTIAL each one has its own characteristics, specificity and medical
resources
 26 deposits of curative mud, brine and about 100 mineral sources
 Significant (with a coefficient of 3.5-4.0) multiplier effect: the resort
and tourism and related areas of activities generate 25% of income
of the republic’s consolidated budget
 McKinsey’s research: potential of the tourism on the Western Coast
of Crimea - 2 million people. The average cost of recreation –
1000 euro, potential earnings of the ARC’s economy - 2 billion euro
of questioned Crimeans marked the tourism and recreational
complex as the basis for the Crimean economy
for of adult population of the autonomy, servicing tourists is a major and
additional activity
Razumkov Center
for of Crimeans, servicing tourists is a major source of income
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10. One of the main Holiday season - all
budget filling sectors year round
High-quality,
competitive tourist Black Sea center for
product health rehabilitation
and tourism
Crimea-
resort 2020
Ecologically clean region Spatially even use of tourism
of the Black Sea potential
The world-famous tourism brand
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11. The PROGRAM
for development and reformation of
the recreational complex of Crimea
Reformation and Status of the international year-round resort center
modernization of Establishment of the University Hospital
health centers Opening of rehabilitation centers
Expanding the The project "Crimean velvet season - a season of health"
holiday season period Introduction of SPA-technologies and wellness-tourism
Business tourism
Staff Training Implementation of training programs
New image policy Recognizable tourist brand
Logo and brand book of Crimea
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12. The Project for support for joint
cooperation initiatives in Crimea
CRIMEA –
WORLD FAMOUS
RESORT
 New level of service in
Crimea
 Expert support to  Modern promotion
 Creating a Center for
reformations
training programs and of tourism products Amount of
education coordination funding
 Introduction of  Branding
 Development of
international best
practices
methodological 5 million €
foundations for  Developing new
development and training markets, capturing
 Institutional free tourists flows
 World tourism standards
optimization of the
in Crimea
sector
INSTITUTIONAL PRODUCT EFFECTIVE
DEVELOPMENT QUALITY/SERVICE SELLING
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13. Structure of agricultural
Agro potential of Crimea production, 2010, %
agricultural areas
Forage crops Other crop
resort areas 0,4% products
Total crop
Fruits and production
grapes 0,2%
Potatoes, ve 9,9%
 2/3 of the territory- agricultural areas getables and
 Area of farmland - 1824.1 thousand hectares, melons
Growing
19,5%
900 thousand hectares are under major crops livestock and
 Unused land - more than 360 thousand hectares Livestock
poultry
 Production of environmentally friendly 34,5%
products
agricultural production, including for export 51,3%
Milk
 Promising industries: wine, vegetable and fruit 9,4%
growing, sheep and dairy cattle breeding, Industrial
poultry keeping crops
2,9%
Eggs
of Crimean population believe that 5,8%
agriculture must be a sector of Cereals Other
15,8% livestock
Razumkov Center
Crimea’s specialization
products
of revenues of Crimean population 1,5%
are formed by agriculture
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14. Rating of Crimean agricultural potential among Black Sea countries
Agricultural land, % of area
Integral criteria for use of agro potential in the Black
0,304 Gross value added of agriculture,% of GDP
0,547 Sea countries 235,5
Food industry Index, % (2001=100)
0,589 0 - high efficiency 191,0
0,604
0,612 1 - low efficiency 151,0
0,626 123,0 130,0
0,628 107,0 119,0 105,0
0,698 69,7 61,4 57,6 76,0 83,0
0,703 66,0 7 5,6
0,765 47,6
98,9 50,8 36,3 71,3
0,865 20,7 35,9 13,2
9,7 8,2 5,6 7,2 1 0,0 3,1 9,6 1 0,0 8,2
4,7
Viticulture, horticulture, fruit
growing, thousand tons
Vegetables 398,4 398,7
Fruits and berries
Grapes 286,1
210,0
160,3
127,9 118,6 116,9 125,3 111,9
116,3 58,7
105,7 115,6
58,6 77,1
37,3 55,0
2005 2006 2007 2008 2009 2010
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15. Environmentally Cluster principle of
friendly agricultural agricultural production
technologies organization
Development of
environmentally clean
baby food One of the Black
production Sea leaders on
cultivation of
Agricultural fruits, berries, gra
sector of the pes and oil-
Developed bearing crops
XXI century
agrarian market
infrastructure Advanced
winemaking and
wine tourism
Growth of rural
people’s income and
well-developed social Industrial
infrastructure of a growing of
village seafood
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16.  Creating and financial support to agro  Creating a farm for production of virus-
clusters free planting material
 Creating wholesale agriculture markets
 Construction of republican closed-loop
elevator ("Crimean grain elevator")
 Master classes on use of innovative
 Construction of vegetable-and fruit storages technologies based on advanced
agriculture enterprises
 Subsidized support to dairy cattle  Creating web-portal "Agricultural sector of
breeding the 21st century"
 Popularization of cultivation of durum
 Financial leasing of agricultural machinery wheat and its processing, determination of
prospects of dogwood and hazelnut
growing
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17.  Lack of diversified forms of industrial production
CHALLENGES
 Industrial production is characterized by low gross added value
and insufficient competitiveness
 Low level of high-tech industry, innovation activities of industrial
enterprises
 High degree of deterioration of equipment and use of outdated
technologies
 Generates 16-20% of the GRP
 Provides 37% of income to the budget
 Provides employment for 17% of the population
 Powerful potential of "green energy"
POTENTIAL
 Significant reserves of hydrocarbon resources of the Black and
Azov Seas
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18. Widespread use of High-tech industrial
alternative energy sources products
CRIMEAN Innovative structures:
industrial
INDUSTRY parks, technology
2020 towns, business incubators
Energy-saving
technologies in
industry
Satisfying needs of domestic
Diversification of industrial production market, efficient import
and exports substitution
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19. High-speed railway
Transport crossing
transport
through the Strait of
Kerch
85 million Euro
more 1,2 billion Euro
Transport - Modern airport
Modern electric facilities
transport
2020
568 million Euro
130 million Euro
Developed road Small aviation and Modern port
network yacht tourism facilities
2,3 billion Euro 260 million Euro 240 million Euro
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20. 1 Political and economic stability
• Political stability and inter-ethnic harmony were gained
• Administrative reform was carried out
• The Strategy for economic and social development of the ARC until 2020 was
adopted
• Draft government programs: Water, Transport and Environment of Crimea
were developed
2 Creating conditions for investors
• The package of legislative initiatives was developed
• The sale of land through public auctions was introduced
• The interactive map Investment was created
3
Effective institutional cooperation
• The Agency for Regional Development was created - a "single investment
window"
• The Unified Republican permit center is functioning
• Deregulation of business was conducted
4 Creating a positive image of Crimea
• The logo of Crimea was designed and the brand-book was released
• The presentations of the ARC in Brussels, London, Moscow, Riga and
Vienna were conducted
• Conducting the International Black Sea Economic Forums
• In November 2011 - presentation of Crimea in China
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21. High social standards
Environmental protection of
Quality health care
territory
Social protection
Program of the ARC State target program
"Health of Crimean Decent Culture "Environmentally safe
people" Crimea“
education development
Education Development Social protection and
Program in the ARC employment Program of the
ARC
Program on increasing the
Program for cultural
prestige of a teacher
development and cultural
Program "Youth of heritage preservation
Crimea"
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22. WELCOME TO CRIMEA!
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