Territory
The territory of the region occupies 40 thousand square kilometers. This is 19% of the territory of Belarus. The region is inferior only to Minsk and Gomel regions in the area.

The region has plentiful reserve of timber. 25% of the region’s land area are occupied with forests; its reserves are estimated as 185 million cubic meters.>

Population
1.3 million people reside in the region. Density of the population makes 32 people per 1 square kilometer.

Table 1. «The population of area»
Table 2. «Manpower»
Table 3. «Distribution of the population by ownership patterns»

Transport corridors
The region has a direct railway and automobile communication with Moscow, St. Petersburg, Kiev, Baltic countries, and Eastern Europe.

The route of Crete Transport corridor No. 21 (Berlin-Warsaw-Minsk-Moscow) through the main transport junction in Orcha, and the route of Crete Transport corridor No. 9 (Helsinki-Vitebsk-Gomel-Kiev-Plovdiv) run across Vitebsk region.

International air routes to Moscow pass over Vitebsk. The airport of up to 200 aircrafts per-day-capacity functions in 12 km from Vitebsk.

Jamal-Europe gas branch-pipeline, Druzhba gas pipeline pass across the region to connect eastern regions of the Russian Federation with the Baltic countries.

Economics of the region
At present, more than 260 industrial enterprises are operating in the region; their production output made over 8380 billion roubles in 2004.

Table 4. «Indices of the main social and economic indicators»
Table 5. «The main industrial performances»
Table 6. «Indices of total production volume by branches of industry»
Table 7. «Indices of production volume in agriculture»
Table 8. «The main investments and construction indicators»

ВVitebsk region in ranked the third in the Republic by its production volume (12-13% in the Republican division of labour). The regional industrial complex is represented by almost 40 branches and sub-branches, science-intensive industries, including such enterprises as Naftan, Polymir, Polotsk-Steklovolokno, Vityaz, large machine-building enterprises and light industry enterprises.

There are more than 4400 stores (409,000 square metres), 1665 cafes and restaurants, 33 trading centres and 61 markets in the Vitebsk oblast.

There are 88 chain stores in the region. Mainly, they sell goods produced in the Vitebsk oblast. Over the three years, 106 stores (27,700 square metres) including six stores with the sales premises more than 650 square metres have opened in the Vitebsk oblast. In the period under review, the investments in the fixed assets made up more than Br116 billion.

The share of supermarkets in the total number of the stores in the oblast makes up 47%. Some 75% of Vitebsk oblast’s stores operate without lunch break, 65% of them - without weekends.

The provision of sales premises in the Vitebsk oblast is 329 square metres per 1,000 inhabitants (the state social standard is 260 square metres per 1,000 inhabitants).

The consumer market of the Vitebsk oblast is stable. The local authorities pay special attention to the trade in domestic goods. The share of the goods produced by Belarusian manufacturers makes up 84.7%.

Owing to the successful investment policy of a number of the local companies, the stores, which meet the highest requirements in terms of servicing and sales technologies, were opened in the Vitebsk oblast. These are stores Vitebsk Foodstuffs, Vesta, Nika, Omega in Vitebsk, stores Merkom and Ranitsa in Orsha, Polotsk-Torg and Resttrade in Polotsk, store Bazis in Novopolotsk.

Some 134 trading and catering facilities are equipped with the special computer systems which allow them to computerize goods traffic records, read bar codes.

The local trading industry actively works on introducing the non-cash payment system using plastic cards. Some 907 trading and servicing facilities of the region use terminal equipment.

Vitebsk oblast’s trading and public catering industry employs more than 39,200 professionals.

Foreign economic activities in the region
Foreign trade indices for Vitebsk region:

Table 9. «The main indices of foreign trade»
Table 10. «Foreign trade with certain countries outside CIS»
Table 11. «Foreign trade of the region with CIS member-countries»

In 2008 foreign trade turnover with CIS countries was formed in the volume of 2596, 4 million dollars (rate of 129,9%), including exports of 860.9 million dollars (rate 130.8%), import -1735, $ 5 million (rate of 129,5%).
Of the total exports to the CIS countries the share of Russia had 84.3 percent, Ukraine - 11,1, Kazakhstan - Moldova 2,0 - 1,5, Azerbaijan, 0,4, Uzbekistan - 0,2, Tajikistan - 0, 05 per cent.
Foreign trade turnover with Russia for January-December 2007 amounted to 129.5 per cent against the same period in 2006 and 2,395.9 million dollars. Exports increased by 29.1 percent over the same period of 2006, import - by 29,5 percent. 77 per cent of total imports from Russia accounted for mineral products (crude oil, gas condensate, straight run gasoline), received for processing at JSC Naftan, Polymir Joint Stock Company and a number of commercial enterprises ( "Interservice", "Block", "LLK + Naftan, etc.).
The volume of external merchandise trade for January-August 2008 amounted to 5,190.5 million dollars, including export - U.S. $ 2,541.8 million, imports - 2,648.7 million. The value of exports compared with January-August 2007 increased by 22,6%, imports grew by 90,1%.
Exports of goods to Russia in January-August 2008, was formed in the amount of 579.4 million dollars, or with the growth of 129,2% compared to January-August 2007. The volume of imports of goods from Russia in January-August 2008 amounted to 2,214.6 million dollars, or 205.7% against January-August 2007.
Except for the growth of oil imports by more than 2 times there is an increase of import from Russia of such products as wire, fabric, plastic, glass, hides, metals, due to raw material supplies, equipment and goods not produced in the country or produced in insufficient quantities.
The largest supply in trade with Russia in 2008 accounted for Moscow - 125,7 million dollars, the Moscow region - 172,3 million dollars, Smolensk-67.3 million, St. Petersburg-51.4 million . U.S. $, and Samara-9.4 million, Yaroslavl-8.4 million, Bryansk. - 7,7 million, Pskov region - 5.5 million
Given that 22 per cent of exports to Russia accounted for the city of Moscow, cooperation with this region oud is of special attention.
About 18 percent of all deliveries to Moscow accounts for rural-hozproduktsiyu and food, 8 - products of the company petro-chemical complex, 22 - Textiles, 11 - building materials, 13 - Footwear, more than 20 per cent of other goods.
On the territory of Moscow filed a joint commercial ventures with the participation of joint-stock companies "Milk", "Vitebsk meat-packing plant", "Glubokskiy Milk Factory", as well as of meat and dairy associations.
Market Moscow remains the most in demand for all types of products manufactured by enterprises of the region. Have been established mezhho-agricultural relation to wholesale consumers of products registered by their own trading facilities, co-signed bilateral agreements on cooperation with 7 of Northern administrative regions of the second district of Moscow, the Moscow branch of Commerce and Industry Chamber, the Council of industrialists and entrepreneurs-lei, between the committees and offices of the executive committee and the Prefecture of the Northern Administrative District of Moscow.

Over the years, maintained a steady growth of trade turnover with Kazakhstan, which is associated with increased exports of ovarian cancer, but companies in the region. In 2001 to 2003. exported to pre-inantly Flooring JSC "Vitebsk Carpets" (55% of all sales in Kazakhstan), glass (10%), lnotkani (6%), then in 2006-2008. renewed supply of products "Vitebskmiasomolprom" (50% of all sales). They are supplied as fiber-boards, veterinary, ak-rilovye fiber, ironmongery.
Trade area with Kazakhstan in 2007 amounted to 22,2 million or 111,6% to 2006, including export - 17,0 million (115,6%), imports - 5.2 million . dollars (192.6%).
In January-August 2008 exports to the region-by WHO grew in 1,2 times and amounted to 13,7 million dollars, imports in comparison with January-August 2007 was reduced by 65 percent and amounted to 1,8 million dollars.
In order to promote products and increase export volumes Glubokoye Milk Factory "in 2007 in Kazakhstan created Ltd. JV Glubokskiy ICC (Aktobe, st. Ryakhov, 94a) and dealer structure - JSC" West Bank ".
During the first 9 months of this year Glubokoye ICC, through its commodity distribution network in Kazakhstan shipped dry milk and milk cans worth 6.5 million dollars, which is 1,9 times higher than for the corresponding period last year.
It is currently completing work on the allocation of "BTA Bank loan for the representation Glubokoye ICC registered in Kazakhstan, for the purchase of packaging lines for packaging UHT milk in Tetra-Pak, worth about 2 million euro.
Vitebsk oblast during the 1993-2004 period were entered into the Agreement on Cooperation with the six regions of Ukraine: Odes-tion (1993), Dnepropetrovsk (1995), Volyn (1995), Cherkas-tion (1998), Vinnitsa (2004 ), Chernivtsi (2004).
Agreement with the Chernivtsi Regional State adminis-ADM was signed on July 7, 2004 during the visit of the delegation of Chernivtsi region in the Vitebsk region.
In Ivano-Frankivsk region the agreement is not signed, but pro-usual exchange of information about products offered for supply and investment projects, which are interested in the implementation of the region.
At the interregional level contact is maintained with the adminis-ADM Vinnitsa region. Repeatedly at the invitation of adminis-ADM in the region of the delegation traveled to participate in various special events and discuss options for cooperation.
Ukraine occupies a leading place of the 10 CIS countries - partners (except Russia).
In 2007. Trade with Ukraine amounted to 150.1 million or 134% to the corresponding period of 2006, of which the ex-port - 95,5 million dollars (137%), import - 54,6 million dollars (128%).
In January-August 2008. Trade with Ukraine amounted to 153,6 million or 174,9% to the corresponding period in 2007, of which exports - 105,9 million (187,1%), import - 47,7 million United States (152.9%).
Major exports accounted for petroleum products (di-diesel fuel, gasoline, car, road bitumen, oil, sulfuric ki-slot) - 58,7 million dollars, their share in total exports to Ukraine 50%, and Polyethylene - 24,6 million dollars (the proportion of 22%).
Enterprises of Ukraine constantly invited to participate in inter-regional exhibitions: "Small businesses in the festival Viteb-NEC", "Slavonic Kaleidoscope," "Our House", "Investment Forum" Investments for the development of business and regions ". As part of the Slavonic Bazaar Ukrainian master of pottery participate in the Fair City of masters.
January-December the foreign trade turnover with countries outside the CIS was formed in the volume of 2,749.4 million dollars (rate of 132,9%), including the export of 2,303.3 million (rate of 134,3%), import - 446 , $ 1 million (rate of 126,2%).
For 2007, sales to the EU countries amounted to 2,121.5 million dollars, mainly in the Kingdom of the Netherlands (57,5% of all deliveries to the EU), United Kingdom (17,3%), Latvia (7,2% ), Poland (5.0%), Lithuania (3.8%).
Main sales volume falls on enterprises Belneftekhim concern, but the geography of deliveries can significantly IU-Revisions occur during the year, due to the changing conditions in prices and sales of US-friendly environment.
In addition, deliveries to these countries produce sewing business, doing business on tailoring products. Accounting and predict the volume of such deliveries hampered by the company's evaluation only to the cost of services provided, rather than price woode-ly.
For subordinate companies key sales on these markets accounted for the supply of hides of cattle, casein, dry of milk products, clothes and wood.
During January-August 2008 exports to countries outside the CIS amounted to 1,828.5 million (rate of 118,7%), imports - increased 1.4 times and reached 380 million
Following 8 months of enterprises of all forms of property Wee-tebskoy of products exported to Germany at 29.2 million, or 111.9 per cent to the corresponding period last year.
Over 35% of sales in Germany accounted for the products of concern Belneftekhim (glass fiber, fiberglass, acrylic fabrics, lubricating oils), but the volumes and areas of supply of these products depend on the results of electronic trading enterprises of the concern and is not tied to the region, but to purchasers, offer the best conditions for procurement.
In addition, 15 percent on the supply of wood products, casein (the products made by enterprises subordinate Provincial Executive Committee), the sale of which is carried out under the terms of exchange trade.
Exported more than 400 groups of commodities in 81 states of the world, as well as in all countries outside the CIS.
The largest sales volume falls to the Netherlands, Great Britain, Latvia, Lithuania, Ukraine, Estonia and Poland. Increase the supply is provided for all commodity groups except fats, paper products, transportation.
The largest volume of sales occur in polyethylene (delivery in 32 states), lnotkani (31 States), glass (19 states), optical instruments, binoculars (16 states), hardboard plates (8 countries), milk powder, peat machines (by 6 States).
It also exports products, which are not manufactured by enterprises of the region (nuts - in Germany and in Lithuania, lactose - in Switzerland)

Foreign investments
Last year the average for the area drawn 60-90 million of foreign investment in the form of credits, loans, commercial loans guaranteed by foreign partners and banks.

Banks of the region to support investment projects each year for around $ 8 million in resources, including through the European Bank for Reconstruction and Development to support investment projects of business structures.

In 2008, the region is realizatsiya320 projects, including through the development of small urban settlements - 306 of them with an innovative orientation - 24, and most important priority for the region - 11.

The largest volume of investment is in the footwear industry (23%) and food products (44%), wood processing, have started investing in industrial production.

Perhaps the participation of interested foreign companies in commodity distribution network (for example, registration offices in Vitebsk, and subsequent operation as a Belarusian entity in Russia). In general, Belarusian entities have lower costs for energy and manpower payment.

Key major projects that are implemented in the present and planned for implementation in the future:

upgrading of petroleum refining processes at JSC Naftan (investment of about $ 170 million)

construction of a new polyethylene - ethylene plant and organization of production of fiber Nitron - D at Polymir Joint Stock Company (about 120 million dollars)

replacement by large equipment for the production of glass fabrics and the construction of a new glass furnace at the JSC "Fiberglass" (36 million).

OJSC "Lepel Butter" on the project "Construction of shop and purchase an automatic line for production of cheeses with the processing of 180 tons of milk a day" completed construction and installation work, mastered 14,5 billion rubles of investments.

With the participation of foreign capital have been built and put into operation a number of objects:

venture for the production of chocolate glaze (Vitella Foreign)

produces gasoline (IE "Chess Bel)

plant fiber-optic cable (JV Soyuz-Cable)

plant for production of water purification stations (JV "Fortex-Water Technologies")

factory for sewing children's clothes ( "Bel-Bimbo plus").

V2008 year on two major investment projects included in the Republican list, mastered 22,1 billion rubles.
JSC "Orsha combine building materials" was put into operation II and foremost II starting complex object "Reconstruction of timber production." Until the end of the year construction of the second start of the complex will be completed. This year has mastered 7,6 billion rubles.

With the use of foreign direct investment continues to implement a project "Building Cafe FLLC Kofetun", "Creation of production of fuel chips" JV "AI-SI-EL-Bel", "Creation of an enterprise for the production of hosiery, underwear" IP "Devold ", technical re-equipment" JV "LTP Bellevue", formed by the authorized funds SOOO Passatstroyindustriya "JV" LLK-Naftan. Using the loan for a foreign partner under construction hypermarket JSC "Cooperation", technical re PTPUE "Торгтехносервис", the creation of logistic center receiving, sorting, packing and temporary storage of agricultural products ICHUSHPP "Detskoselskiy - Campus".
In January-September, held talks with the delegations of China (Province Heylundzyan), Norway (firm Devold "), Denmark (production of modern livestock farms), Italy (Province of Mantova, Board of Industrialists), Sweden (support organization for regional development SIPU and SIDA). The North Branch of the Moscow Confederation of Industrialists visited Gorodots'kyj poultry and KUSHP "North" in order to explore the possibilities of recycling of organic waste. FEZ "Vitebsk" conducted negotiations with Goodmorning Shinhan Securites (Korea), together with a committee of the economy took part in the contact-cooperation exchange with representatives of South Korean companies, under the auspices of the Korean Trade and Investment.
Regularly held meetings with representatives of the Ministry of Regional Development of Latvia and the Ministry of Economy of Lithuania on joint participation in the Program Neighborhood ENPI ( «Lithuania-Latvia-Belarus", "The Baltic Sea Region"). With the participation of Chamber of Commerce organized a visit to the Vitebsk region of the Austrian business circles, in June in Vitebsk conducted large-scale exhibition of industrial products manufacturers in India, during which explored investment opportunities.

With the representatives of Austria and Germany to continue negotiations on the project of OSB on the basis of one of the woodworking industries of Vitebsk region.