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Social and Economic development of the Republic of Karelia in 2009

  Public
  Administration


  Economic Policy

    Industrial Policy

    Industrial Policy

    Timber Industry Complex

    Mining Complex

    Industry

    Energy Complex

    Agroindustrial Complex

    Services

    Natural Resources
    and Ecology


  Cooperation

  Results of 2009

Industrial Policy

In the context of continued financial and economic crisis, adverse market condition, price growth of natural monopolies' services, high cost and low availability of credit resources activity of the Government of the Republic of Karelia in the field of industrial policy was focused on realization of anti-recessionary measures for stabilization of production and minimization of expenses; introduction of modern energy-saving technologies and modernization of the process equipment; dynamic response to occurrence of negative tendencies in economy.

Despite of difficulties with planning the revenue side of the budget of the republic, property tax exemptions for organizations engaged in production of machines, equipment for timber industry, timber processing and production of wooden products, logging, construction and repair of boats, manufacture of ready-made clothes were reserved.

Taking into account conciderable power rate growth for industrial consumers, the Government of Karelia has addressed to the First Deputy Prime Minister of the Government of the Russian Federation Igor Shuvalov with the request to consider increase of average power tariffs in 2010 and influence of this factor on development of economy of the Russian Federation under disadvantaged economic conditions at the commission of the Government for increase of stability of development of the Russian economy.

Taken anti-recessionary measures have allowed to prevent sharp increase of the cost price and unprofitability of production, employment layoffs and reduction of wages, to reduce the number of temporarily idle enterprises from 13 (4654 employees) in the beginning of 2009 to 6 (181 employees) at the end of the year. The number of workers sent on mandatory leave or working shortened working day has decreased by almost 20%.

Within 2009 Segezha Pulp And Paper Mill, Ltd., Karelsky Okatysh, Ltd., Wärtsilä Hardware Plant JSC, the Branch of NAZ-SUAL, Petrozavodskmash Foundry, Ltd., Swedwood-Karelia, Ltd., and a number of other enterprises switched from shortened to full operating schedule.

It has enabled both to admit no further decrease in volumes of production from the beginning of 2009 caused by the crisis, and to increase production of the major kinds of products by the end of year considerably. Thus, monthly average production of iron-ore pellets in the second six months in comparison with the first half-year has increased by 44 %, production of saw-timbers - by 47% and paper sacks - by11%.

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Created: April 26, 2010. Last updated: June 9, 2010.
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