The Official Karelia
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Social and Economic development of the Republic of Karelia in 2010

  Modernization of the Economy

    Investment
    and Construction


    Small And Medium
    Enterprises


    Industrial Policy

    Agroindustrial Complex

    Services

    Transportation

    Tourism

    Natural Resources
    and Ecology


  Cooperation

  Public
  Administration


Development of Infrastructure and Service Industries

In modern conditions the share of service in social production industries grows steadily. In total regional product of the republic this sector has more than 50%. Taking into account that arrangement of conditions for social and economic development of the region, life support and improvement of quality of life of the population in many respects depends on the infrastructure, the Government of the republic considers these issues to be of paramount importance.

Transportation and Road Facilities

One of the tasks confronting the Government of the Republic of Karelia is to provide effective functioning and further development of freight and public passenger transportation in the republic.

In the field of railway transportation work was conducted according to the Agreement between the Russian Railways, Inc., and the Government of the Republic of Karelia on cooperation for the period of 2009-2011.

All obligations of the parties are basically fulfilled. Issues of provision of main senders of freight of the republic with a rolling stock was solved on a timely basis that has allowed to reduce the number of complaints.

In 2010 stations of the Petrozavodsk branch have shipped 18,66 million tons of cargo, that is 1 million 415,000 tons, or 8% more than last year.

Within the scope of implementation of the investment program the Petrozavodsk branch of Octyabrskaya railway worked on 21 objects, the limit of volume of investments has made 1,4 billion roubles, application of funds in 2010 has made 94.2%.

Thanks to joint efforts, it was possible to increase resort to low-density lines of the railway. Thus, to load the site of Jushkozero-Suojärvi railway it has been issued 18 subsurface management licenses, including 16 — to produce production of road metal in Suojärvi and Muezersky regions. Commissioning of new enterprises extracting and processing building stone has allowed to increase loading of the specified railroad line. As a result, concerning low-density lines of the Petrozavodsk branch of Octyabrskaya railway in 2010 total positive financial result amounting to 230 million roubles was obtained.

The Government of the republic together with the administration of Octyabrskaya railway solved issues of suburban railway passenger traffic.

The budget of the Republic of Karelia annually assignes funds for the state support of railway transportation, in 2010 for these purposes it has been assigned 5,5 million roubles.

Measures were taken to partially indemnify for losses of the carrier, in particular, reduced power rates were established for electric energy consumed for electric traction of trains, tariff for railway suburban transportation of passengers was on the average increased by 26%. The interest rate in the rent of suburban rolling stock owned by the Republic of Karelia has been reduced. Besides, a reduced organization income tax included in the budget of the Republic of Karelia was kept in 2010 for railway transportation organizations.

However, measures taken have not allowed to provide complete indemnification of increasing suburban transportation expenses of passengers and to achieve a break-even level of suburban transportations. It has led to reduction of traffic of suburban passenger trains from 13 to 10 pairs of trains with introduction of additional days for some trains since January 1, 2010. Average daily traffic of suburban trains were reduced from 5 to 3 train pairs.

When suburban train ticket cosrs were growing reduced fares were introduced for students and schoolchildren out of the funds of the federal and republican budgets. Therefore, the order of the government of the Republic of Karelia on establishing reduced fares for the specified categories of passengers was adopted, agreements were concluded with the carrier (Octyabrskaya railway) on transportation of schoolchildren and compensation of means for spent on transportation with the Northwestern territorial office of Russian Railways — on assignment of funds from the federal budget.

Considering, that to support socially important suburban passenger railway transportations since 2011 the federal budget provides recovery of expenses, the Government of the Republic of Karelia has prepared a substantiation report and an application for 131,8 million roubles for these purposes.

The motor transport in 2010 provided demand of economy and population of the republic for motor transportation services to the full. Small and medium business entities prevail in the market of freight autotransportation of the republic. Large industrial and trading companies build their system of transport on the basis of their own vehicle fleets.

The Government of the republic constantly controls issues of effective functioning and development of public passenger transportation.

Organization of suburban and intermunicipal public transport service within the territory of the republic, and with the neghbouring entities of the Russian Federation is carried out according to the Law of the Republic of Karelia On the Organization of Public Transport Service by Motor, Rail, Internal Water, Air Transport.

In order to improve public transport service of the republic new traffic schemes of passenger transport were studied, the routing network is formed, preparation and approval of the schedule of suburban intermunicipal buses is conducted, procedures of tendering processes are improved and competitions to grant intermunicipal passenger transportation services are held.

Upon cancelling of suburban passenger train transportation from Petrozavodsk to Suojärvi the bus transportation of passengers was organized. As a result of modification in the traffic schedule of suburban and intermunicipal buses the quantity and capacity of vehicles transporting passengers on this route has increased. More than 11 trips are accomplished daily that has allowed to provide transport availability of Suojärvi municipal region and nearby municipal formations.

In 2010 39 carriers of which two are the state unitary enterprises, have passed tendering procedures and worked on communal passenger suburban intermunicipal routes of the republic.

In order to improve quality of passenger service issues of renewal of the bus fleet of the republic were decided. In 2010 14 buses were bought, including one LiAZ bus was bought from federal and republican budget resources and 13 buses of various capacity — with the support of entrepreneurs and organizations.

For transportation security together with the traffic police department of the Republic of Karelia and the Administration of State Vehicular Control for the Republic of Karelia spot-checks of observance of the current legislation by carriers are held, and normative documents regarding development of the transport complex of the Republic of Karelia are prepared.

As a result of the measures taken tension was removed in passenger transportation of the population, complaints about work of public motor transport reduced, the operating network including more than 120 intermunicipal and 15 inter-regional routes was preserved, a new route from Petrozavodsk to Murmansk was introduced.

Among the most serious problems constraining further transport development thethere is unsatisfactory quality of motorroads. Therefore, the Government of the republic pays special attention to road facilities.

In 2010 stretch of motorroads of regional significance has made 6755 km and reduced in comparison with 2009 by 3 km. Work on transfer of the motorroad from Vologda to Medvezhyegorsk, the motorroad of regional significance to the island of Valaam, motorway of the Approach to the Settlement of Wärtsilä into the federal ownership continued.

Due to the road equipment purchase subsidy from the federal budget (5,8 million roubles) and funds of the republican budget (2,5 million roubles) it has been purchased 5 units of equipment for road maintenance and repair. With a view of supervision of work of road-building equipment and maintenance of motorways the state unitary enterprises of road facilities introduce systems of GPS-navigation.

To continue construction of the site of the Kochkoma-Tiksha-Ledmozero-the State Border motorroad, kilometers from 44 to 64, 322,2 million roubles was allocated from the budget of the Republic of Karelia last year.

Major overhaul of the Kem-Lonka through Kalevala motorroad on the site from the 75th to the 86 km continued, the site of the main monastic road in the entrance zone of the Monastic bay on the island of Valaam (0.520 km) and the Olonets-Sortavala motorroad, kilometers from 65 to 124 (selectively with sites stretching to 3.7 km) were repaired financed in the amount of 101,5 million roubles from the Development of Road Facilities of the Republic of Karelia through 2015 program.

At the same time, unlike in recent years, since 2010 no allocation of subsidies to subjects of the Russian Federation from the federal budget for construction, reconstruction and repair of motorroads of regional significance was provided, that, accordingly, has caused decrease in financing of road facilities of the republic.

In order to draw funds of the subsidy from the federal budget to repair and overhaul roads in the city of Petrozavodsk in 2010 the Government of Republic has concluded the Agreement with Federal Road Agency concerning provision of a subsidy to the budget of the Republic of Karelia amounting to 264,4 million roubles that has allowed to repair asphalt covering of the city on the area of 135,000 sq.m.

Besides, on purposes referred to above the budget of the republic had allocated 104,3 million roubles; therefore, asphalt covering was repaired on the area of 21,900 sq. meters, reconstruction of the road of the city value between the districts of Kukkovka and Drevlyanka continued.

Inland Water Transport. In order to organize navigation in 2010 the open competition to accomplish social passenger transportations on routes of Petrozavodsk-Shala-Petrozavodsk and Petrozavodsk-Sennaya Guba-Velikaya Guba-Petrozavodsk (the intermunicipal communication) has been held, a contract was concluded with the Kizhskoye Ozherelie Travel Agency Ltd. The Government of Karelia has provided 1,1 million roubles to support transportations on these lines. In view of these means social tariffs and boat timetable were coordinated.

To increase the number of trips to the settlement of Shala (since July 10, 2010 trips became daily) the republican budget has in addition allocated 4,5 million roubles.

Besides, the Government of Karelia continued work with federal structures on reconstruction of hydraulic engineering constructions of the White Sea-Baltic Canal. The limit of federal means in 2010 has made 318,2 million roubles.

Air Transport. In 2010 the Government of the Republic of Karelia paid special attention to measures of support of the air transport. Taking into account complex financial position of the Petrozavodsk Airport Autonomous Institution of the Republic of Karelia carrying out the airport activity, the Government of the republic has provided funds to render its assistance to it.

As a result for air traffic control, arrangement of conditions for all-the-year-round and twenty-four-hour aircraft maintenance with observance of the Russian and international standards the runway lighting was replaced and the civil sector was fenced, equipment for winter maintenance of the airport was purchased.

For further development of the air transport amendments were made to the tax laws of the republic providing the decreased property tax rate concerning the sound and visual signal equipment at airports in 2011.

Besides, work on involvement of air carriers to the republic was conducted, expansion of flight route networks, both on local service lines, and the inter-regional transportation was negotiated with proprietors.

As a result, regular flights the from Petrozavodsk to Moscow were introduced on November 2, 2010.

Technical support
Created: May 23, 2010. Last updated: July 11, 2010.
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