The Republic of Karelia has favorable economic-geographic location, it is situated near central highly industrially developed Russian and Western regions, has a developed water transportation system, and significant natural resources.

The place of Karelia in industrial Russian complex is determined in the first place by the branches of industry, using local natural resources (forest, wood-processing, pulp and paper, ferrous metallurgy, construction materials industry), and also by the industry branches using imported raw materials (machinery making and non-ferrous metallurgy).

The republic makes 9,2% of the total amount of iron ore got in RF, 21,5% of total amount of paper produced in RF, 7,3% - of pulp, 7,3% - of industrial wood, 4% of sawlog, about 60% of paper bags.