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Foreign relations and interregional connections

In 1999 foreign relations policy was oriented to the following purposes:

• ņontrol system creation over export activities of enterprises, primarily over forest production;
• target work with experts to prevent currency losses from export and decreasing of the lost currency profit volume, accumulated before;
• representation and promotion the interests of Karelian enterprises abroad;
• forming of united regulations and construction of border - customs infrastructure on the territory of the republic

In 1999 new regulations of accounting and examination of export contracts were approved. The control system includes banks, customs bodies, currency and export control service, MHA, migration service and some of the ministries of the republican significance.

During the year activities of 228 exporters carrying out 1007 contracts with the total volume 4,8 cubic meters of forest production applied for export were under control.

There are about 80% forest exporters now, and it's necessary in 2000 to establish overall export control.

On the whole in1999 oversea trade turnover made 665 mln USA $ which makes 11% less than in 1998.

One should mark the increase of natural export volume of the most important Karelian production. Timber export increased by 140 cubic meters (137% to 1998), newspaper export - about 100 thousand (134%), kraftpaper - 19 thousand (135%), pulp-15 thousand tons (161%), aluminum - 5 thousand tons (108%), fish production - 9 thousand tons (117%).

In 1999 the Program of construction automobile check in points on the border line was worked out. The order of interaction between customs and frontier guards bodies, administration of local power of cross-border regions and executive power of the republic.

Late December the Program of International activities until 2002 was approved by the Government of the republic.

A very important trend of social-economic development of the republic is interregional relations development. In 1999 coordination activities of the Government of the Republic of Karelia with the governments of Moscow, St. Petersburg, the Republic of Adigea, the Republic of Belarus.

As a result of cooperation with the Moscow government, beneficial for both sides in 1999

"Complex program of stoneprocessing factory OOO "Karelian Granit" and stone mining enterprises RK".
• was worked out and is being implementing now. In 2000 30 mln rbl will be released by the Moscow government for the reconstruction of the enterprise.
• The installation of the equipment of Pitkyarantsky quarry has been completed (project output is 450 cubic m per year);
• the equipment was received within the frames of the quarry development program "Nyrin-Saari-P" GUP " Pitkyarantsky quarry management";
• the program of shungite deposits development of the republic is being worked out. It will serve as an impulse to further development of mining industry, will lead to creating new jobs.

To implement the Cooperation Program with the Administration of St. Petersburg for construction of a round road of the city the agreements about supply of cubic detritus in the volume of 150 thousand cubic m of Karelian quarries were achieved.

Under active participation of the Government of the Republic of Karelia in St. Petersburg preliminary negotiations with potential investors of airport complex "Besovets" were held. Trade cooperation was also developed (opened a new shop"Karelochka" in Kirovsky district of St. Petersburg, fish production supply to Petersburg market was increased), cooperation in culture, tourism and health public care was also developed, spas "Marcial waters" and "Kivach" are very popular among residents of St. Petersburg). Partnership with St. Petersburg in investment sphere within frames of Association "Severo-Zapad" was more active.

In the course of implementation of the Agreement of the Government of the Republic of Karelia with the Government of the Republic of Belarus in 1999 AO "Onego tractor plant" supplied 48 trailer tractors for the Belorussian enterprises. At this point a new model of diesel motor with power 120 h.p. for the trailer tractors produced by the Petrozavodsk enterprise is being worked out by engineers of Minsk motor plant.

Within the frames of Agreement between the Government of the Republic of Karelia and the Government of the Republic of Adigea the bilateral cooperation decision on reconstruction and upgrading of paperboardmaking machines between AO "Petrozavodskmashquot; and AO "Kartontara" was achieved.

Alongside we don't use to the full extent potential resources within the frames of interregional cooperation, especially in further widening of goods markets, progressive technologies invasion, additional investment attraction.

That's why we put forward a goal of more effective interaction of ministries and departments of the republic with the executive regional power bodies. In this connection the increase of the role of the representations of the republic in Moscow and St. Petersburg is of great importance.

Guide-lines of International Co-operation Development by the Government of the Republic of Karelia, 1999-2002

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