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Economic development of the Republic of Karelia in 2008

  Economic Policy

  Industrial Policy





  Natural Resources
  and Ecology


  Results of 2008

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

Provision of consumer products and services of high quality for the population of the Republic of Karelia, creation of equal availability of services for the city dwellers and countrymen is one of the major conditions of increasing the living standard of the population.

Government of the Republic of Karelia works on development of transport, communication, trade, tourism, housing and communal services, state adjustment of prices and rates for some kinds of production, goods and services within the scope of granted powers that in 2008 has allowed to both keep the situation of stability in the consumer market, an to provide its development.

Transportation, including Road Facilities

One of the tasks faced by the Government the Republic of Karelia for 2008 was maintenance of effective functioning and further development of transportation industry in the republic, including within the scope of implementation of the Law of the Republic of Karelia On Organization of Transportation Service of the Population by Motor, Railway, Internal Water, Air Transport.

Increase in volumes of cargoes transported and demand for transportation services was promoted by preservation of volumes of industrial production, growth of consumer demand and turnover of foreign trade.

Last year Government of the Republic of Karelia solved tasks щn organizations of passenger transportations by motor transport, updating of passenger bus fleet, expansion of the network of intermunicipal and suburban bus routes in territory of the republic.

Within the scope of granted powers the Government of Karelia worked on organization of suburban and intermunicipal transport service for the population. Therefore, the network of routs was being coordinated and approved, as well as the bus traffic schedule, competitions of carriers to work on routes were held. Agreement was concluded with Karelavtotrans State Unitary Enterprise of the RK on transportation from June 1 to October 31, 2008 of some categories of citizens with granting them 50% discounts from the cost of established tariffs in suburban transportation of Petrozavodsk. As a result, within the period from June to October, 2008 it has been transported 276,4 thousand passengers of preferential categories. For these purposes from the republican budget it has been allocated more than 5 million roubles. Besides in September-October preferential transportation of some categories of citizens on suburban routes of municipal regions of the republic have been organized.

To reveal facts of infringement of rules of automobile passenger transportation representatives of the administration of motor licensing and inspection department of the Ministry of Internal Affairs on the Republic of Karelia and Department of the state road-transport inspection for the Republic of Karelia have held joint spot-checks.

Work on the further updating of bus fleet due to funds of the republic's and local budgets, as well as private capital continued. The rolling stock for intermunicipal and suburban transportation of passengers has increased by more than for 90 units that has allowed to both keep the operating routing network, and to introduce new routes. Routing network in the republic has grown in recent years having included 118 suburban and intermunicipal routes.

Actions on development of road facilities held by the Government of the republic have been directed on improvement of transportation and operational condition of the regional road network of the Republic of Karelia.

In 2008 by the Government of the Republic of Karelia has completed transferring the highway from St.-Petersburg to Petrozavodsk through Priozersk and Sortavala from the property of the Republic of Karelia to the federal ownership. As a result of transfer the network of regional motorways was reduced by 304 km, having made 6758 km.

Within the scope of realization of Agreements signed between the Federal Road Agency and the Government of the Republic of Karelia, it has been commissioned 9.44 km of highways and 30.1 km of bridges. Besides, five bridges have been put in operation due to means of the republican budget.

Development of road facilities of the Republic of Karelia is carried out within the scope of Development of Road Facilities of the Republic of Karelia for the Period through to 2015 and Increase of Traffic Safety in the Republic of Karelia in 2006-2010 regional target programs.

Besides works on support of uninterrupted and unobstructed travel of motor transport on public highways of the Republic of Karelia have been performed.

In 2008 on repair and maintenance of public highways owned by the Republic of Karelia from the republican budget it has been allocated 624,2 million roubles and 7,1 million roubles - from the federal budget.

Special attention at planning and performance of programs of road works has been directed on lowering of the accident rate on public highways. Thus, within the scope of the Traffic Safety Increase in the Republic of Karelia for 2006-2010 program there has been constructed 950 running metres of road protections on dangerous sites of motorways, 585 running metres of sidewalks, approaches to the railway crossing on the 1st kilometer of the roadway to Luchevoye-2 have been undergone complete overhaul. For the first time in recent years there have been built a 3-km long electric lighting line on Shuiskaya-Girvas motorway within the village of Spasskaya Guba. For implementation of actions of the Program from the republican budget it has been allocated 22,35 million roubles.

Railway transportation in Karelia is one of the major components of infrastructure of economy of the republic. In 2008 on its share there fell 90.6% of total amount of transported cargoes, 98.6% of all turnover of goods, more than 80% of the passenger turnover generated on all kinds of transport.

During the past ten years development of railway transportation in the republic proceeded according to the Agreement between the Government of the Republic of Karelia and Russian Railways, Inc. In 2008 implementation of the Agreement between Russian Railways, Inc., and Government of the Republic of Karelia on cooperation in 2007-2008, decisions of some protocols of working meetings signed by heads of the parties and heads of enterprises was carried out. In development of a railway infrastructure of the Republic of Karelia Petrozavodsk branch of Oktyabrskaya railway in 2008 has invested 806,4 million roubles.

Government Karelia supervised preservation of the number of suburban passenger trains, coordination of passengers transportation tariffs in suburban transportation. On some actions in the field of railway transportation in the budget of the RK for 2008 it has been allocated 14,3 million roubles that was spent in full.

Due necessity of loading low-density lines there have been developed complex actions on development of industrial potential and transport infrastructure in territory of the Republic of Karelia with involvement of investments of interested organizations and enterprises. They are realized according to the Agreement on cooperation between Russian Railways, Inc., Government of the Republic of Karelia and Sever-Stroi, Ltd., directed on loading of Juškozero - Soujärvi railroad line (Soujärvi and Muezersky regions). In 2008 a number of new road metal processing enterprises have opened on that will allow to to provide an additional load of the specified railroad line.

Closing of low-density stations was coordinated in view of interests of institutions of local government of metropolitan regions. In 2008 closing of Prionezhskaya railway station was coordinated with the Head of Medvezhiegorsk metropolitan region.

Now all low-density lines of Petrozavodsk branch of Oktyabrskaya railway operate in view of their social and economic importance.

Under the offer of the Government of Karelia in the end of 2008 Russian Rrailways, Inc., has made a positive decision on setting Ledmozero-Kochkoma piece of line in constant work.

Government of the republic has prepared and submitted to federal enforcement authorities its offers on railway transportation development projects being of great importance both for the Republic of Karelia, and for the Northwest Federal District as a whole. The railway transportation development strategy in the Russian Federation through to 2030 includes such projects as completion of second ways on some sites of Murmansk direction of Oktyabrskaya railway, construction of the railway bridge through the river of Shuya and new Medvezhiegorsk-Konosha piece of line for development of unique deposits of Pudozh deposit of iron-titan-vanadic ores and Aganozersky deposit of chromic ores.

To organize passenger traffic by water transport on socially significant lines of Petrozavodsk-Velikaya Guba (Sennaya Guba) and Petrozavodsk-Shala the contract have been concluded with the WSOP Travel Agency recognized the winner of the competition of government order placement in transportation, passenger and hand luggage traffic rates for inland waterways have been coordinated. Thus, on the less-speed Petrozavodsk-Shala line rates have been lowered in comparison with 2007. Budget of the republic allocated 1 million roubles to render support to transportation on these lines. During the navigation period of 2008 by water transport there has been transported 97,6 thousand passengers, or 101.8% to the level of 2007.

In 2008 Onego Shipbuilding Factory, Ltd., has constructed and launched two dry cargo ship of Karelia river-sea class within the Russian Fleet Modernization program and the first sea vessel of the new project for the Estonian shipowner. Within the production program of 2009 the groundwork for four more vessels has been laid.

Government of the Republic of Karelia worked with federal enforcement authorities on reconstruction of hydraulic facilities of the WhiteWhite Sea-Baltic Channel. In 2008 for reconstruction of 11 sluices, developing of feasibility report for dams 21, 25, 27, reconstruction of information system of navigation security, reequipment and modernization of technical fleet it has been allocated 279,5 8 million roubles (3.3 times growth to 2007) from the federal budget. Besides 465,8 million roubles was allocated from the federal budget for major overhaul of objects of the channel.

Air transport. Now in territory of the republic there are three airports - Petrozavodsk, Peski, and Kostomuksha; four airdromes - Pudozh, Segezha, Kalevala, Sortavala; Kizhi heliport; twelve airfields.

To perform obligations defined by the state contract of actions in the field of air transport on local airlines from budget of the republic in 2008 it has been allocated more than 1,4 million roubles. The question of issuing the passenger transportation license to the Northwest aviation forest air protection base by the Federal Air Transport Agency was decided promptly. It has allowed to provide air transportation of the population to Kizhi island and village of Sennaya guba up to the end of 2008.

58 million roubles was involved in 2008 from the federal budget for development of construction documents and purchase of light-signal equipment for the runway of Petrozavodsk airport (Besovets). Within the scope of Development of the Transport System of Russia (2010-2015) federal target program there have been defined actions, scope, stages and terms of further reconstruction of Petrozavodsk airport through to 2011.

As a result of cooperation between the Government of the republic and Karelsky Okatysh (Iron-Ore Pellets), Inc., work of Kostomuksha airport started anew.

From Petrozavodsk airport in 2008 regular flights were carried out on routs of Cherepovets-Petrozavodsk-Helsinki-Cherepovets and Moscow-Petrozavodsk-Moscow. In summer period flights were carried out on the route of Archangelsk-Petrozavodsk-Solovki, to southern regions of Russia, volumes of charter flight transportations to Archangelsks, Yakutsk, Naryan-Mar have increased.

With a view of further development of air transport by decision of the Government of Karelia the working group was inspecting airdromes in Segezha, Kalevala, Sortavala, Pudozh to assess their technical condition and passenger transportation expenses.

Technical support
Created: March 31, 2009. Last updated: April 13, 2009.
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