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Economic development of the Republic of Karelia in 2007

  Economic Policy

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   Results of 2007

Policy in the Field of Consumer Market and Services Development and Regulations

In the field of consumer market and sphere of services development and regulation policy of the Government of the Republic of Karelia is aimed at achievement of one of overall objectives in the intermediate term prospect - improvement of quality of life of the population.

Enforcement authorities of the republic carry out actions on development of transport infrastructure, communication, trade, tourism, housing and communal services. Within the framework of their powers state regulation of the prices and tariffs is carried out.

Policy pursued by the Government of the Republic of Karelia in 2007 resulted in further development of the consumer market. First of all - increase in volumes of turnover of trading enterprises and public catering, growth of volumes of transportations of passengers and cargoes by transport agencies, expansion of routing network of suburban, intermunicipal and inter-regional traffic, improvement of quality and reliability of this municipal services, expansion of the list of services rendered to the population.

Transportation Industry

The Republic of Karelia possesses developed transport network. Over its territory there run highways, waterways, trunk-railways connecting the republic with the central and east parts of Russia. Effective functioning of economy of the republic in many respects depends on steady work and further development of the transport complex and its infrastructure, optimization of transport communication and reduction of transport costs.

Government of the Republic of Karelia took measures on further development of transport complex of the republic and monitored its work. As a result of measures taken by the Government in 2007, transport enterprises transported more than 20 million tons of cargoes (109.9% to the level of 2006). Turnover of goods has made 27,7 billion kilometer-tons (105.8%). The passenger turnover has increased by 104.2%.

Now transport of the Republic of Karelia works more steadily and does not deter economic growth. It provides solvent demand of economy and population of the republic in transport services almost to the full.

Government of the Republic of Karelia carried out work on development of public road passenger transport. In the center of attention in 2007 there were aspects of organization of passenger transportation by motor transport, passenger bus fleet replacement and expansion of the network of intermunicipal and suburban bus routes, grantings of measures of social support to some categories of citizens.

According to the Law of the Republic of Karelia On Social Support of Some Categories of Citizens and Recognition of Some Legislative Acts of the Republic of Karelia inoperative, citizens receiving social support also get monthly monetary payments for phone, wired radio outlet and travel in public transport. In view of opportunities of the republican budget, the sum of monthly monetary payments increases annually. If on January 1, 2007 it made 360 rbl., since January 1, 2008 monthly monetary payments have increased up to 600 roubles per person a month.

According to the Law of the Republic of Karelia N895-ZRK of July 26 On Organization of Transport Service by Automobile, Railway, Internal Water, and Air Transport Government of Karelia exercised powers on organization of transport service in suburban and intermunicipal traffic. Work on coordination and approval of the bus traffic schedule for the republican routing network was conducted. Competitions on the right to carry out passenger transportation in suburban and intermunicipal traffic were held. Realization of the specified Law is carried out in close contact to the Department of State Traffic Safety Inspectorate of the Ministry of Internal Affairs on the Republic of Karelia, Department of the state road supervision of Federal service for supervision in the sphere of transport in the Republic of Karelia, institutions of local government.

Government of the republic created conditions for bus fleet replacement. In 2007 due to more than 20 million roubles of budgetary credit 5 extended capacity and comfort buses for intermunicipal traffic were purchased. It has allowed to open additional line Petrozavodsk-Cherepovets, to improve culture of service on the existing routing network, to satisfy needs of travel companies for rolling stock. Besides, new routes Petrozavodsk-Pudozh-Vytegra and Petrozavodsk-Vytegra were opened. Opening of inter-regional routes Sortavala-St.-Petersburg, Petrozavodsk-Sortavala-St.-Petersburg is studied now.

Routing network in the republic grows constantly and now includes 111 suburban and intermunicipal routes. The number of appeals of citizens to republican authorities regarding organization of motor transportation was reduced considerably.

On results of 2007 motor transport has transported 14,4 million passengers that exceeds parameters of 2006 by more than 5%.

Railway transportation. Annually, since 1998, Government of the Republic of Karelia and Oktyabrskaya railway have been concluding agreements on cooperation within the framework of which electrification of railways of Karelia proceeded. According the plan of investment expenses on the title of Electrification of Idel-Svir Piece of Line in 2007 it was drawn 87,7 million roubles - the entire scheduled volume.

Plan of capital investments for 2007 on objects of Petrozavodsk branch of Oktyabrskaya railway in the sum 157,9 million roubles has been drawn by 100%.

Issues of preservation of the number of suburban passenger trains, coordination of tariffs for passenger transportation in suburban traffic, use of means for government support of railway transportation which sum involved in 2007 from the budget of the Republic of Karelia has made 7 million roubles were controlled.

Besides in 2007 budget of the republic stipulates 85,4 million roubles for purchasing of 4 motor cars for suburban transportation. The cars were purchased and transferred according to the leasing contract to Oktyabrskaya railway.

Together with institutions of local government work on coordination of closing stations for some kinds of operations, work of low-density lines, delivery of cars for enterprises of the republic was accomplished. Government of Karelia has not coordinated closing of Brusnichny-Lendery and Ledmozero-Juškozero low-density lines for some kinds of operations.

In 2007 volume of transportation of cargoes by railway has made almost 19 million tons, that exceeds the similar parameter of 2006 by 8.8%.

Petrozavodsk branch of Oktyabrskaya railway has considerably increased transportation of iron ore, ferrous and nonferrous metals, hardware. In 12 months of 2007 container transportation has made 576,8 thousand tons. The largest paper-making enterprises of Russia Kondopoga, Inc., and Segezha Pulp and Paper Mill, Inc., transport their production in railway containers providing partial load mode of transportation. Sending of paper by covered cars in last year has made 212,7 thousand tons.

Last year Government of the Republic of Karelia forwarded perspective investment projects of railway transportation development in the republic to the Ministry of Transport of Russia. It is completion of Ledmozero-Kochkoma piece of line, reconstruction of Lodeinoye Pole-Janisjarvi piece of line, Wärtsilä and Kivijarvi railway boundary check points, construction of railway from Medvezhiegorsk to Konosha (Northern railway) for development of Pudozh and Aganozersky deposits.

Work concerning transportation of cargoes and passengers by water transport, modernizations of fleet was accomplished by the Government of the Republic of Karelia in close cooperation with The White Sea-Onego Shipping Company, Inc.

Navigation of 2007 has begun in due time. Travel Agency of the White Sea-Onego Shipping Company, Ltd., carried out transportations on Petrozavodsk-Shala-Velikaya Guba line, on Petrozavodsk-Barany Bereg intercity line. The planned passages and volumes of transportation were executed. Since 2004 the company has in addition organized traffic on the line from Byelomorsk to Solovki. In 2007 the shipping company carried out transportation of passengers on Petrozavodsk-Barany Bereg line by hovercraft for 10 passangers. To support some measures in the field of water transportation 910 thousand roubles were allocated from the budget of the republic in full.

Within the framework of the Internal Water Transport subprogram of Modernization of Transport System of Russia (2002-2010) FTP and own development program of The White Sea-Onego Shipping Company, Inc., in 2007 Onega ship-building factory, Ltd., constructed and launched two new "river-sea" boats of Karelia project. Construction of sea vessels of the next series has begun.

In last years volume of financing from the federal budget for reconstruction hydraulic engineering constructions of the White Sea-Baltic channel has grown from 26 (2000) to 87,5 million roubles in 2007. As a result, technical condition of hydroconstructions has improved considerably.

Now of 19 sluices it is necessary to finish reconstruction of the 11th sluice and reconstruct three dams (21, 25, 27). The given objects by results of declarations are in preemergency and emergency technical condition. In 2008 for their reconstruction the federal budget allocates 288 million roubles.

Due to expansion of mutually advantageous economic and cultural coperation of our republic with Finland and other countries of the Northn and Western Europe, Government of the Republic of Karelia worked on reconstruction and further development of Petrozavodsk airport (Besovets). Measures were taken for restoration of the airport in Kostomuksha with the purpose of the routing network expansion on local airlines.

With a view of preservation of international status of Petrozavodsk airport and improvements of its service conditions and work of its attendants, Government of the Republic of Karelia together with the Airport Petrozavodsk Joint-Stock Company worked on its reconstruction. In 2007 design works on replacement of light-signal equipment of Besovets airport were performed. By the order of the Government of the Russian Federation N1965-r of December 29, 2007 budgetary assignments for reconstruction of objects of Besovets airport in the volume of 80 million roubles for 2008 were approved and in the volume of 90 million roubles for 2009.

During the year Cherepovets-Petrozavodsk-Helsinki, Moscow-Petrozavodsk-Moscow regular flights were carried out from the airport. In summer period Arkhangelsk-Petrozavodsk-Solovki flights have been opened. In a number of regions of Russia volumes of transportations by charter flights have increased: in cities of Arkhangelsks, Yakutsk, Naryan-Mar.

In 2007 910 thousand roubles were allocated from the budget of the Republic of Karelia for the Northwest Base of Aviation Protection of Forest Main Branch of the Republic of Karelia on some measures in the field of air transport. As a result, air communication on the Petrozavodsk-Kizhi-Sennaya Guba local line was carried out.

On December 14, 2007 a Protocol on joint actions the period from 2007 to 2011 on implementation of the Agreement between the Government of Moscow and Government of the Republic of Karelia on trade, economic, scientific, technical and cultural cooperation was signed. It provides participation of the Government of Moscow in reconstruction and modernizations of Petrozavodsk airport and organization of direct aviation traffic between Moscow and the Republic of Karelia, development of aviation traffic with other subjects of the Russian Federation.

Basic tasks of Government of the Republic of Karelia in the sphere of all kinds of transportation in 2008 and the following years are:

  • preservation of suburban and intermunicipal passenger transportations in full;
  • improvement of service quality due to renovation of the rolling stock fleet;
  • opening of new inter-regional and international routes;
  • provision of completing construction of Ledmozero-Kochkoma piece of line;
  • creation of Karelprigorod, Inc., suburban passenger company;
  • continuation of reconstruction of hydraulic engineering constructions of the White Sea-Baltic channel, Petrozavodsk international airport (Besovets).
Technical support
Created: March 24, 2008. Last updated: April 15, 2008.
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