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LUGANSK REGION, UKRAINE

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Луганск

Total area – 267000 sq.km4,4% of the territory of Ukraine

The border – 776 km

land: 642 km

water: 134 km

Geographical positionAverege temperature: (+)7.3С

Wed: summer (+)15.2С, winter: (-)3.9С

Rainfall: 459-505 mm per year

Borders with:Belgorod, Voronezh and Rostov regions of Russia Federation, Kharkov and Donetsk regions of Ukraine

Included in the Euroregion "Donbass"(area - 154,000 sq. km.)

GENERAL INFORMATION

ADMINISTRATIVE-TERRITORIAL ADMINISTRATIVE-TERRITORIAL STRUCTURESTRUCTURE

Cities of regional subordination – 14

Districts – 17

Townships – 109

Settlements – 109

Villages – 683

POPULATIONPOPULATION

Total population – 2272,7 thousand people, including:

urban – 1971,6 thousand people.;

rural – 301,1 thousand people.;

working population – 1012,3 thousand people.;

Number of pensioners – 750,8 thousand people.

MINERAL RESOURCESMINERAL RESOURCES

Mineral resources base of more than 50% consists of fuel and energy resources (coal, free gas, methane gas coal deposits, condensate).An estimated total reserves of methane at a depth of 500-1800 m, reaching 12 trillion cubic meters

Luhansk region - the only in Ukraine, the resources which allow to increase production capacity of coke and steam coal and methane from coal deposits.In the depths of the Lugansk region concentrated 34.7% of total coal reserves. Of these, coking coal - 28.4%, hard coal - 66.9% of total reserves.

ECONOMIC POSITION IN ECONOMIC POSITION IN UKRAINUKRAIN

In terms of salesIn terms of sales – – VV placeplace In terms of export transactionsIn terms of export transactions - - II placeplace

As for issue of industrial products region provides in UkraineAs for issue of industrial products region provides in Ukraine::

- - 33%33% coal productioncoal production;;

- - 38%38% gasolinegasoline;;

- - 28%28% diesel fueldiesel fuel; ;

- - 14%14% cokecoke;;

- - 13%13% steelsteel

- - 12%12% finished productsfinished products..

PRIORITY SECTOR DEVELOPMENTPRIORITY SECTOR DEVELOPMENT

engineeringengineering

combined heat and powercombined heat and power

ecologyecology

energy conservationenergy conservation

and alternative energyand alternative energy

creation of industrial and science parkscreation of industrial and science parks

agro-industrial complex (creation of centers agro-industrial complex (creation of centers

of the storage and processing of of the storage and processing of

vegetables and cerealsvegetables and cereals

COAL INDUSTRYCOAL INDUSTRY

The share industryThe share industry – – 113,13,1 %. %.

Number of Number of businessesbusinesses - - 189 189

BusinessesBusinesses :: 108108 - subject to Ministry of Coal Industry, including: - subject to Ministry of Coal Industry, including:

48 mine48 mine15 concentrators15 concentrators45 other companies45 other companies

8181 - non-state enterprises of property: - non-state enterprises of property:41 mine41 mine44 processing plants processing plants11 subsidiary companies11 subsidiary companies25 other companies25 other companies

ENGINEERINGENGINEERING

The share the industry - 8.0%.The share the industry - 8.0%.Number of firms - 146Number of firms - 146The leading companies:The leading companies:

JSC "Holding" Luganskteplovoz "JSC "Holding" Luganskteplovoz "JSC "Stakhanov Wagon Works"JSC "Stakhanov Wagon Works"JSC "Machine-Building Plant Krasnoluchskaya"JSC "Machine-Building Plant Krasnoluchskaya"JSC "Pervomaysk Electromechanical Plant"JSC "Pervomaysk Electromechanical Plant"Of "Thermo"Of "Thermo"

The main products are:The main products are:locomotives,locomotives,freight cars,freight cars,mining equipment,mining equipment,heating equipment,heating equipment,motorsmotors

AGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTION

The share the industry - 2.5%The share the industry - 2.5%

Number of companies:Number of companies:Agricultural enterprises of all forms of ownership - Agricultural enterprises of all forms of ownership - more than 2,569more than 2,569

Specific Gravity:Specific Gravity:crop production - 63%crop production - 63%livestock products - 37%livestock products - 37%

Area of land:Area of land:Agricultural - 1 million 909,4 thousand hectaresAgricultural - 1 million 909,4 thousand hectaresincluding arable - 1 million 279,7 thousand hectaresincluding arable - 1 million 279,7 thousand hectares

TRANSIT CAPACITYTRANSIT CAPACITY

The international highway - 2The international highway - 2 M-03 Kyiv - Kharkiv - p.p.DolzhanskyM-03 Kyiv - Kharkiv - p.p.Dolzhansky M-04 Znamenka - Lugansk - p.p.IzvarinoM-04 Znamenka - Lugansk - p.p.Izvarino

International railway linesInternational railway lines          Kharkov - VolgogradKharkov - Volgograd     Lugansk - Moscow     Lugansk - Moscow

Airports - 2Airports - 2 Luhansk AirportLuhansk Airport SeverodonetskSeverodonetsk

The international crossing points:The international crossing points:     Road - 10     Road - 10     Rail - 3     Rail - 3          ААviation - 1viation - 1

FOREIGN TRADEFOREIGN TRADE

Number of enterprises engaged in foreign trade activities - Number of enterprises engaged in foreign trade activities - 795795

Number of countries with which the foreign economic Number of countries with which the foreign economic relations established - 110relations established - 110

The foreign trade turnover – The foreign trade turnover – U.S. $U.S. $ 5,75,7 billion billion (as of (as of 01.07.2012)01.07.2012)               

The volume of foreign investments - U.S. $ The volume of foreign investments - U.S. $ 808,6808,6 million million (as of 01.07.2012as of 01.07.2012)

SUPPORT FOR INVESTORSSUPPORT FOR INVESTORS

Regional Agencyinvestment Promotion

- informative support of investors; - the organization of the investor investors with controllingand the licensing authorities on the principle of "single window";-preparation of investment projects and proposals;- support investment in all stages, includingpre-and post-project.

Regional fund of enterprise support

GGREENFIELDSREENFIELDS

To create an industrial and science parks developed by the withdrawal of land from the

presence of energy and transport infrastructure

Luhansk 31,0 hectare Alchevsk 97,0 hectare Rubezhnoye 10,0 hectare Lisichansk 101,0 hectare Perevalsk 29,7 hectare Bryanka 72,5 hectare

FORM OF CROSS-BORDER FORM OF CROSS-BORDER COOPERATIONCOOPERATION

exhibitions, fairs, forums the opening of offices and work area businesses and

organizations in other countries and regions, foreign missions in the area

holding of the Days of Economy and Culture Days meetings of working groups to implement the inter-

regional agreements on cooperation meetings of business and economic missions work of the Euroregion "Donbass"

www.loga.gov.uawww.loga.gov.ua

LUHANSKLUHANSK OPEN FOR OPEN FOR COOPERATIONCOOPERATION