Industrial Policy

Pursuance of uniform state industrial policy was conducted within the scope of the Basic directions of state policy of industry of the Republic of Karelia development and has been directed on creation of conditions for steady growth of the basic categories of economic activities.

Major directions in the field of industrial policy were solution of the following primary tasks:

• enforcement of indicative growth parameters defined by Basic directions of activity of Government of the RK for social and economic development of the Republic of Karelia for the period from 2002 to 2006;
• monitoring of fulfillment of lease obligations by forest exploitators regarding investment in wood processing in order to provide of investment growth in timber sector of economy;
• preservation of already achieved rates of development of extracting industries, increase of efficiency of using available production facilities and their transition from raw orientation to processing development ;
• creation of basis for commissioning new enterprises processing nonmetallic building materials;
• maintenance of realization of measures directed on preservation and further development of categories of activity of engineering industry, increase of their competitiveness.

Activity of the Government has been directed on rational use of wood resources, structural reorganization of a timber industry complex for maintenance of maximal reception of added cost in territory of the republic.

Arising problems became a subject of serious consideration at sessions of Economic Council attached to the Head of the RK, sessions of the Government of the RK, meetings in the Ministry of Economic Development fo the RK and the Ministry of the Industry and Natural Resources of the RK, at exit meetings in regions at participation of heads of the republic, working groups and commissions.

Within the framework of development of Strategy of social and economic development of the Republic of Karelia till 2020 and Program of social and economic development of the Republic of Karelia for the period till 2010 there have been developed offers on creation of 9 thousand new workplaces due to expansion of operating productions and creation of new enterprises in 2006-2010.

To solve the task of maintenance of performance of indicative parameters of production volumes growth, there proceeded work with the largest extracting and processing enterprises on increase of efficiency of using production facilities and tax allocation growth.

For these purposes monthly monitoring and analysis of fulfilment of terms of concluded earlier General Cooperation Agreements between the Government of the RK and Pitkäranta pulp mill, Inc., Kondopoga, Inc., Segezha Pulp and Paper Mill, Inc., Petrozavodskmash Corp., Karelsky Okatysh, Inc., Värtsilä Hardware Plant Joint Stock Complany were held. Undertaken commitments are being fulfilled.

Also in 2006 there have been concluded Agreement on Cooperation and interaction between the Government of the RK and administrations of Segezha metropolitan district, Segezha urban settlement and Segezha Pulp and Paper Mill, Inc., Agreement on Cooperation and interaction between the Government of the RK Sibirean-Urals Aluminium Company, Inc., administrations of local self-governments of Segezha region and Nadvoitsy urban settlement, NAZ-SUAL branch, within which framework in 2006 budget of the RK additional revenue and direction of additional means for development of Segezha metropolitan district territory and Nadvoitsy urban settlement is provided.

Changes are made to the Law of the Republic of Karelia On Dues and Fees (Tax Rates) in the Territory of the Republic of Karelia regarding establishment of lowered property tax rate for enterprises, producing machines and equipment for forestry and engaged in logging, that allowed enterprises to reduce their expenses.