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Investment

One of the priorities of the Government activities is practical accomplishment of the program governmental investment policy. The main goal of the program is to ensure favorable and stable terms for investment growth into the real sector of the republican economy.

To promote investment activities, the set of legislative acts regulating the governmental enterprise support were adopted last year. For example, the Law of the Republic of Karelia "On investment activities in the Republic of Karelia " gives a priority to investment projects that meet the adopted criteria.

The Law of the Republic of Karelia "On the republican development budget" envisions the mechanism of the governmental guarantees, provided by the development budget, and by that, it lessens the investment risks. As a result, 28 investment projects has been competed, and only 10 of them were approved by the interdepartmental commission.

Some changes were carried in the Law of the Republic of Karelia "On the republican taxes and tax collection in the Republic of Karelia". They envision the privileged terms for investors carrying out investment projects.

The data base on vacant industrial sites for strategic investors including those provided with engineering infrastructure is being accomplished.

Therefore, the legislation basis of the republic encourages investment activities in the Republic of Karelia.

Measures, taken by the Government of the Republic of Karelia, have promoted investment activity growth in the Republic of Karelia. The volume of investment in fixed capital in 2000 made up 6 mlrd rubles, in comparison with the previous year the growth makes up 142%. The largest investment growth is in the pulp and paper industry - more than twice, the sixth part of total investment went for the railroad Ledmosero-Kochkoma construction. Foreign investment made up $20 mln last year (12-14% investment in the real economy sector), which has been the highest factor since liberization of foreign activities in 1991. The largest foreign investment were invested into AO "Kondopoga", "Pegas International"(Prionezhsky district), "Bumex" (Lahdenpohya), "Karelribflot", and others.

Within the frames of investment program-2000, the republican budget funded 55 objects for the sum of 80 mln rubles (63% of annual limit).

Considering the importance of fulfilling the mandates -in Russian governmental system, list of desecrate presented by electors to the deputy, 18 mandates out of 42 accepted to execution were put into practice (cost 241 mln rubles, including 30 mln rubles from the republican budget).

Despite of lack of means, 9 projects cost 37 mln rubles were funded from the Fund of development and reconstruction, which means the governmental support for the economy development.

Permanently working with federal power bodies on 27 federal target program accomplishments, the government was able to attract more than 300 mln rubles investment into social-economical field development, which is 2,5 times more in comparison with last year.

The Government RK works on solving social problems of the districts of the republic. For example, practical assistance to Veps volost resulted in positive changes in economic and social life.

The Government is going to continue the work on investment attraction into the mining industry and forest complex, transportation development, energy saving equipment, new technologies and so on.

Investment potentials

General information | Industry | Foreign economic activities
Investment policy | Tourism