General information | Industry | Foreign economic activities
Investment policy | Tourism

Foreign and Interregional Relations

Foreign Relations

International and interregional activities is the most significant factor of favorable and profitable presentation of the Republic of Karelia both abroad and in Russia. The Government of the republic views establishment and functioning of international contacts as a resource of attraction additional extrabudget means to the social sector, to different industries, to the research potential development, and exchange programs.

About 120 projects were being accomplished in the republic during the year, with the total funding 170 mln Rbl.

Principal partners are Finland, Norway, è Sweden, involved by Barents and Baltic region cooperation.

The projects look most promising in the public health care and social defense of population sectors, preserves development, land cadastre development.

Euroregion "Karelia" has been finally established in 2000.

The Republic of Karelia was the first in Russia to adopt the Program of Cross-Border Cooperation, last October.

In 2000 investment attraction of the republic has been growing rapidly.

The Government Program "Principal Trends of International Cooperation for 1999-2002" envisions effective export of the Karelian commodity producers and promotion of the Karelian businesses abroad.

For the fist time since 1995, the trade turnover has been grown; export by 17% ($600)and import by 25% ($176). .

Karelian export price constituent was rather favorable in 2000. Newspaper average contract prices went up 11%, craft-paper - 12%, pulp - 28%, iron granules - 40%, aluminum - 4%.

Unfortunately, the timber prices went down 2%, round timber 9%..

The Government of the republic keeps working with the federal center to decrease and abolish export duties, and finally the decision has been adopted to abolish duties on aspen wood export. Karelian representatives are included to the Russian group presenting the timber exporters interests at negotiations with Western producers, in particular, with Finland. .

The Government keeps working on increasing export efficiency.

The address work is being conducted with the exporters, allowing selling price decrease with return currency return.

In February 2000, the Government approved of the Program of Car Check-in Points at the frontier. Being accomplished, the Program allows to decrease the number of the simplified check-in points from 15 to 8. They serve the needs of 10 large businesses of timber complex and the interests of cross-border districts of the republic.

The joint efforts of federal and republican structures led to decrease more than by 10% of foreign employees, to arrange registration and taxation of the foreign businesses working in the republic.

The principal goal of foreign economic activities is to strengthen positive trends to increase export volume and keep prices at reasonable level.

Interregional Relations.

Interregional relations development is a very important trend of social economical policy of the republic.

The Government of the Republic of Karelia considers that underestimation of cooperation vistas with other regions of the country will lead to the lack of investment, decrease of the sales market, unreasonable regional competition.

In 2000 interregional relations developed with the Moscow Government, Administrations of St.Petersburg, and Leningradskaya oblast, Governments of the republics of Adigea è Belarus.

The second stage of the Complex development program of stone processed factory "Karelian Granit" is being accomplished within the frames of the Agreement between the Moscow Government and the Government of the Republic of Karelia.

The Program of joint cooperation work between the Government of the Republic of Karelia and the St.Petersburg Administration has been accomplished in the sectors of construction materials, fish products, public health care, culture, and tourism. An agreement was achieved with the holding company "Leninets" on radioplant revival. The agreement envisions new jobs creation and the increase of the production is to grow three times more than in 2000.

According to the agreement between the Government of the Republic of Karelia and the Government of the Republic of Belarus, a leasing company "Karelinvestleasing", has been founded. Delivery of trail-tractors is going on for the Karelian timber industry. In its turn, "ÎÒZÇ" delivered 69 trail-tractors for Belorussia (44% more than in 1999).

A new agreement was signed between the Government of the Republic of Karelia and the Government of Leningrad oblast on trade-economic, research and cultural cooperation.

In 2000 the Government of the Republic of Karelia signed the frame agreements with administrations of Voronezh and Nizhny Novgorod oblasts. The projects with Lipetsk and Vladimir administrations, and also with the Government of the Republic of Bashkortostan are being considered.

1999

General information | Industry | Foreign economic activities
Investment policy | Tourism