Business In Depth, 11/07/2017

Where Does Kharkiv Export Capacity Stand?

Kharkiv is a city that concentrates the scientific and production capacity of Eastern part of Ukraine.

Kharkiv continuously develops. Its contribution ranges from space research to the penetration of agriculture and genetics fields. The legendary T-34 battle tank, the best tank of the Second World War, was created in Kharkiv. The nuclear era in the USSR started from Kharkiv when the atom nucleus was split in the Institute of Physics and Technology in 1932.

Presently, Kharkiv is a major cultural, scientific, educational and industrial center of Ukraine, with 60 research institutes, over 30 universities and higher education institutions. Its industry specializes primarily in high-tech areas: energy, electrical engineering, transport and agriculture, engineering, electronics, aerospace industry. The products of many enterprises are known in the world market, including modern battle tanks, airplanes, and turbines.

Overall in January-April 2017, Kharkiv Oblast exported goods amounted to $365 million. In comparison with January-April 2016, exports increased by 14.2%. Foreign trade operations were conducted with partners from 139 countries. Most goods were exported to the Russian Federation – 27%, Egypt – 9.1%, Japan – 6.2%, India – 4.4%, China – 3.9%.

Exports to the EU countries equaled $67.8 million and decreased compared to January-April 2016 by 7.7%. The services export decreased by 1.4%; the business of Kharkiv region provided services in the EU for $257.7 million.

The basis of exports’ commodity structure was food products – 25.3%, machinery, equipment and electric machinery – 21,4%, products of vegetable origin – 16,7%.

There are hundreds of machine building companies in the city and region. They include Kharkiv Tractor Plant, Kharkiv Bearing Plant, the only company in CIS that has received the status of an approved component supplier for the global giant Schaeffer Group, Lozova Machinery, and HELZ. The last ones are so scrupulous in search for new clients that even have announced entering Albanian market this year.

Electrovazhmash and Turboatom are the largest enterprises in Ukraine developing and manufacturing generators and turbines for nuclear power plants, thermal power plants, and hydropower plants. Kharkiv enterprise FED produces high-precision fuel and hydraulic control equipment for the aerospace industry and serves other branches of engineering and railway transport.

Now, Kharkiv is intensively engaged in military-industrial conversion in connection with military operations in Eastern Ukraine and its close location to the ATO zone. The well-known in armor manufacturing, Morozov Design Bureau and Malyshev Plant have developed new tanks, and supply them to Thailand and National Guard of Ukraine, as well.

It is in Kharkiv, one of the largest Ukrainian IT clusters located. There are more than 300 IT companies and about 25,000 IT specialists in Kharkiv region. That makes 25% of all IT industry in Ukraine.

Kharkiv is a huge city with a large number of companies capable of manufacturing goods, from light industry to tanks, as well as companies providing all kinds of services. Welcome to Kharkiv, the Ukrainian research and technology giant, looking for new ways to apply its outstanding capacity.

Text: Anastasia Mitrofanova

Photo: SQ