The Official Karelia
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Economic development of the Republic of Karelia in 2005

  Results of 2005

  Economic Policy

  Productive Industry



  Inter-Regional Cooperation

  Natural Resources
  and Ecology

    Forest Resources

    Source of Minerals
   and Raw Materials

    Water Source

    Land Tenure



Natural Resources and Ecological Conditions
Forest Resources

According to the legislation public management in the field of utilization and protection of the forest resources and reproduction of woods in the territory of the republic is accomplished.

Total area of the the state timber land makes 14,8 million hectares, the general stock of trees is 961,92 million cubic meters, of which 432,52 million cubic meters of mature and overmature forest. Middle age of trees of coniferous breeds makes 74 years, and 42 years regarding deciduous breeds.

The primary goal in the field of forest exploitation is maintenance of rational continuous and effective utilization of wood resources. During the year wood competitions implying handing over timber land to rent at annual volume of forest exploitation of 558,1 thousand cubic meters have been prepared and held. There also worked a commission on handing over timber land to short-term using, auctions were held. Appropriation the stasus of non-wood areas to wood areas was accomplished. Performance of conditions of rent contracts by tenants was analyzed, work of timber enterprises on forestry actions performance was organized. For 2005 estimated wood-cutting area in the republic makes 8,8 million cubic meters, in comparison with 2002 it has decreased by 392,1 thousand cubic meters due to performance of forest organization works and specification of the estimated wood-cutting area for a number of timber enterprises.

It has been distributed 7286,5 thousand cubic meters of wood-cutting area resources, that makes 82.6 % of the approved estimated wood-cutting area.

It has been handed over for rent 10 498,0 thousand hectares of wood fund at estimated wood-cutting area in the volume of 6,8 million cubic meters, with 6,3 million cubic meters of established volume of using in 2005, that makes about 71% of estimated wood-cutting area in the republic. It has been actually sold 6 372,6 thousand cubic meters of the wood-cutting area fund to tenants under logging tickets, that makes 101% of the established forest exploitation norms for 2005. Average cost of one depersonalized cubic metre of standing timber sold, in view of the raising factor, on the main using has made 95.1 roubles (49.5 rbl. at minimal rates).

52 auctions have been held in 2005, 153,2 thousand cubic meters of timber have been sold for the sum of 51 341,9 thousand rbl. The price of one depersonalized cubic metre of wood has made 204,6 rbl. that 3.9 times exceeds the minimal rates of wood duties.

Actual development of the estimated wood-cutting area in recent years makes about 66-67%.

Table 6

Estimated wood-cutting area development in the Republic of Karelia in 2002-2005

YearsEstimated wood-cutting area,
thousand cubic meters
Developed in fact,
thousand cubic meters
% of development
TotalOn coniferous
TotalOn coniferous
2002 9209,7 6916,8 6118,5 4687 66
2003 9209,7 6916,8 6091,4 4590 66
2004 8939,4 6648,8 6015,0 4464,9 67
2005 8817,6 6488,0 7155,4   81

Scheduled reafforestation and forestry works are carried out in the republic. For the period from 2002 to 2005 timber enterprises accomplished reafforestation on the area of 93,3 thousand hectares, including afforestation on the area of 35,1 thousand hectares. In scheduled volumes the following actions have been executed: additional afforestation, care of afforestation. In wood nursery forests and hothouse complexes for the period from 2002 to 2005 it has been grown 125 million pieces of standard planting material. 167,9 thousand hectares of saplings was included into the category of valuable plantations of trees.

As a result of undertaken reafforestation for the period from 2002 to 2005 the area not covered by wood in the republic has decreased by 18 thousand hectares and on 01.01.06 has made 174,8 thousand hectares.

In 2006 it will be necessary to regenerate 26,5 thousand hectares of forest, including afforestation of 6,5 thousand hectares; to prepare 4 thousand hectares of ground for the next year's afforestation; to execute care of forest plantations on 16 thousand hectares; to replenish forest plantations on 5 thousand hectares. During the period from 2002 to 2004, as a result of favorable weather conditions and preventive work done and performance of precautionary and restrictive actions, in the territory of the republic decrease in areas covered by forest fires was observed, and also the damage caused by them. Nevertheless, the fire-dangerous season of 2005 has confirmed statistical data of the last 15 years that peaks of excessive fire danger in woods in the territory of Karelia arise in 2-3 years.

During preparation for a fire-dangerous season of 2005 all necessary organizational and technical actions have been executed in target dates. 1741 km of fire-prevention strips at the plan of 1700 km have been prepared, care of 3563 km of mineralized strips at the plan of 3560 km has been executed. Readiness of forest exploitators for the fire-dangerous season have been checked.

In 2005 in territory of timber land ther have been registered 514 forest fires. The area covered by fires has made 5090 hectares. The average area of one forest fire has made 7.7 hectares, that exceeds the parameter of 2004 (2.8 hectares) and average data for the last 5 years (4.0 hectares).

Losses of forestry from forest fires during the fire-dangerous season of 2005 have made 393,9 million roubles. A principal cause of occurrence of forest fires was local population's casual fire handling (93% of the number of all fires).

In total for the period from 2002 to 2005 in republic there were 2304 wood fires. The damage caused by them has made 479,7 million rbl.

Despite of complex conditions, during all fire-dangerous season of 2005 timber enterprises and involved organizations basically successfully struggled against forest fires. As a result of measures taken it was possible to admit no development of extreme situations.

Reproduction of the Source of Minerals and Raw Materials

Source of minerals and raw materials of the republic includes the following kinds of minerals: fuel and energy raw material (uranium, peat), ferrous metals (iron and chromic ores), non-ferrous and rare metals (nickel, cobalt, vanadium, molybdenum, tin, etc.), precious metals (gold and metals of platinum group), nonmetallic minerals (diamonds, graphite, muscovite, riebeckite-asbestos, talc and talc stone, feldspar raw materials, quartz, schungite rocks, quartzite, dolomite, kyanite, sulfur ores, petrurgical raw material, building stones, sandy-gravel materials, clays, etc.).

As of 1/1/2006 source of minerals and raw materials of Karelia includes 312 proven territories of 26 kinds of firm minerals with stocks considered by balance, and over 400 perspective manifestations; 379 peat deposits; 13 deposits of underground household and drinking water, 3 deposits of mineral water, etc. Of the minerals listed above the folowing are being developed: iron ores (Kostomuksha deposit), feldspar raw material and quartz (deposits of Chkalovskoye, Hetolambina, Blinkovye Varaki, Dolgoye Ozero), schungite (Zazhoginskoye deposit), petrurgical raw material (Khavchozerskoye deposit), extraction of medical muds and mineral waters (deposits of Gabozero and Martsialnye Vody) is accomplished, deposits of underground waters and building materials are worked.

Within the framework of reproduction of the source of minerals and raw materials in 2005 works on the whole spectrum of subprograms have been accomplished: "Iron ores of Karelia", "Chromites of Karelia", "Gold of Karelia", "Diamonds of Karelia", "Feldspar raw materials of Karelia", "Building stone of Karelia", etc. In 2005 prospecting works with approval of stocks on 7 deposits of cover stone (10,9 million cubic meters), 9 deposits of building stone on rubble (452,8 million cubic meters), 5 deposits of sand and gravel materials are completed.

The used fund of bowels continued to extend. If in 2001 there operated 495 bowels studying licenses, then as of 1/1/2006 - 567 licenses, including: 413 licenses - for generally found minerals, 54 licenses - for not generally found minerals and 100 licenses - for extraction of underground waters from single wells.

In 2005 96 licenses have been issued, of which: 16 licenses - for not generally found minerals (including 4 licenses upon the auction results), 68 licenses - for generally found minerals, 12 licenses - for extraction of underground waters from single wells. Of licences issued in 2005 for not generally found minerals: 4 licenses - for extraction of minerals; 3 licenses - for geological studying and extraction of minerals; 9 licenses - for geological studying.

Thus, in recent years geological studying and reproduction of stocks of generally found minerals was carried out most dynamically. Opportunities of increase in resource potential and stocks of not generally found minerals in many respects is restrained by imperfection of the federal legislation and complexity of procedures on attraction of means of investors for the considered purposes.

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Created: April 12, 2006. Last updated: April 24, 2006.
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