Kim: ports provided 40% of Mykolaiv region's economy

Port of Olvia in Mykolaiv, archive photo by NikVesti

Prior to the full-scale invasion, the ports of Mykolaiv region played a key role in the region' s economy, accounting for about 40% of its gross regional product.

These data were voiced by the head of the Mykolaiv Regional State Administration, Vitalii Kim, in an interview with «Ukrinform».

«Compared to 2022, the pace of economic recovery is quite high, but this does not mean that we have healed normally and everything is fine. Turnover is increasing, but profits are not. The main reason is that the ports, which account for 40% of the region's economy, are not working, and the basic logistics are disrupted. We are doing everything we can to attract money to the region from international partners, which helps a little, but it is not clear how long it will last,» said Vitalii Kim.

Prior to the full-scale invasion, four major seaports were actively operating and developing in Mykolaiv: Before the war started, four seaports were operating in the region: Mykolaiv Commercial Sea Port, the specialised port of «Olvia» (formerly «Oktiabrsk»), «Nika-Tera» and the Dnipro-Bug Sea Port. A significant portion of Ukraine's exports, including agricultural products, metals, and industrial goods, passed through these ports. Among the companies operating in the ports were Bunge Ukraine, Nibulon, COFCO Agri Ukraine, and Glencore Agriculture.

In addition, the Mykolaiv Alumina Plant (MGZ) was one of the largest enterprises in the region, employing about 5,000 people. The plant produced up to 1.7 million tonnes of alumina per year, much of which was exported through the port. After the outbreak of war, the plant's operations were suspended and the number of employees was reduced to 400 people who support critical processes and infrastructure.

The Russian army's occupation of the Kinburn Spit and constant shelling from its territory have significantly affected shipping in the region. The Kinburn Spit is strategically important as its location allows for control of shipping routes, including access to the Dnipro-Bug Estuary. Russian troops use this area to shell the southern districts of Mykolaiv and Kherson regions. This further complicates the recovery of the region's economy and makes it impossible for ports to operate properly.

Earlier it was reported that local budget revenues from payroll tax from businesses in Mykolaiv region increased by a third. This is the highest figure among the regions of Ukraine over the past year compared to 2023, excluding Kyiv.

At the same time, 289 companies in Mykolaiv region relocated to another region last year.