Interregional Relations

Inter-regional cooperation of the Republic of Karelia in 2003 was characterized by expansion of geography of cooperation, especially in the Northwest, establishment of new mutually advantageous trade and economic contacts between managing subjects of Karelia and other regions of Russia and the countries of the CIS.

In 2003 agreements on trade, economic, scientific, technical and cultural cooperation of the Republic of Karelia with administrations of the Archangelsk, Murmansk, Yaroslavl, Kaliningrad areas and the Odessa regional state administration of Ukraine were signed. In total as of January 1, 2004 by the Government of the Republic of Karelia agreements on trade, economic, scientific, technical and cultural cooperation with 20 regions of Russia, Autonomous republic of Crimea and the Odessa area of Ukraine, and Byelorussia were signed and are under realization. The agreements containing protocols and stating special actions for their realization are the most effective. From the signed agreements there were working protocols with 10 regions of Russia and Byelorussia. In 2003 realization of protocols to Agreements with the Republics of Adygeya, Bashkortostan, the Saratov area were finished. The Government of the Republic of Karelia has achieved arrangements with administrations of the given regions on continuation of work through defining actual spheres of cooperation and proceeding from this establishing expediency of signing new protocols.

In the sphere of inter-regional cooperation in 2003 the volume of investments in the economy of the Republic of Karelia has made more than 100 million roubles. The greatest economic benefit is obtained by the republic through cooperation with Moscow, Saint Petersburg, and Leningrad region. Within the framework of the Agreement between the Republic of Karelia and Moscow in 2003 investment in development of extraction and processing of mineral raw material to the sum of 50 million roubles has been accomplished, besides, construction of a 81-apartment house in Pitkaranta is financed, 20 million roubles has been allocated for construction of the second part of the embankment of Onego lake.

Due to inter-regional cooperation delivery of Karelian fish and fish products to Saint Petersburg and Moscow, and young fish (trouts) from Leningrad region to Karelia is accomplished, which has allowed to improve characteristics of the trout bred. Leningrad region and the Republic of Karelia actively cooperate developing interterritorial transport corridors. Teamwork on development of the road-transport route from Saint Petersburg to Petrozavodsk through Sortavala and Pryazha is carried out, the road segment from Pryazha to Lemetti is under construction now .

In order to brisk up the bilateral trade and economic cooperation between the Republic of Karelia and Byelorussia visit of the official delegation of the Government of the Republic of Karelia and delegation of business circles of the republic to Minsk was held in 2003. During the visit such trends of cooperation, as expansion of joint cooperative manufacture of Onego Tractor Plant Open Society and Byelorussian enterprises; cooperation in the sphere of peat use and processing; assistance to increase mining complex production deliveries from Karelia to Byelorussia, and deliveries of Byelorussian equipment for Karelian mining enterprises, etc., were considered.

On results of the visit:

• Onego Tractor Plant Open Society, Bellesbumprom concern abd Borisovsky Repair and Engineering Works (Byelorussia) have signed the report on intentions on opening Onego Tractor Plant 's service centre in Byelorussia;
• aspects of creating a joint venture with Beltopgaz concern on peat extraction and processing in Karelia are studied;
• volumes and conditions of delivery of production of Chupinsky Ore Mining and Processing Enterprise Joint-Stock Company to Byelorussia in 2004 were coordinated;
• Social Sphere Joint-Stock Company started to conclude contracts on delivering consumer goods to Karelia directly with the Byelorussian manufacturing factories.

As a whole export of Karelian goods to Byelorussia in 2003 has 9% growth in comparison with 2002 ($0.2 million) and has made $2.5 million.

Forming new agreements on inter-regional cooperation and working protocols to them the Government of the Republic of Karelia faces the task of deeper preliminary studies of trends of cooperation which will allow to receive the greater effect from realization of inter-regional agreements.