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Social and Economic development of the Republic of Karelia in 2009


  Economic Policy

    Industrial Policy

    Agroindustrial Complex


    Natural Resources
    and Ecology


  Results of 2009

Social and Economic Situation in the Republic of Karelia
on results of 2009

Due to measures taken by the Government of the Republic of Karelia on stabilization of the situation in economy of the republic, in 2009 it was possible to avoid sharp decline of production volumes in the industry. If in the beginning of the year production index in the republic has made 71.7%, on results of the first six months it was 85.9%, on results of the year - 90.1% (compared to 89.2% in the Russian Federation).

As a whole on results of 2009 in manufacturing activities gain of the index of physical volume in comparison with the beginning of the year has made 18.4%, in manufacturing activities - 19.4%. Thus, it is necessary to mention that in 2009 in manufacturing activities in the Republic of Karelia the index of production tkaes the lead of 4.2% over the average Russian parameter.

Among regions of the Northwest Federal District on rates of growth of industrial production the Republic of Karelia is on the 5 place.

As a whole regarding the Extraction of minerals, manufacturing activities, power, gas and water generation and distribution form of activity cost of own-produced shipped goods, works performed, services rendered using own resources has made 71,6 billion rbl., that in established prices exceeds the level of 2008 by 17.8%.

In 2009 decrease in volumes of industrial production is observed for almost all kinds of economic activities. An exception is production of vehicles and the equipment (130.4%), production of leather goods and shoe making (192.4%), furniture and other production (125%).

In comparison with 2008 it has been produce more plywood, papers, fish food and whole-milk production. Production of nonmetallic building materials, road metal and gravel, woodchip boards, cardboard, paper sacks, commodity cellulose, meat, alcoholic production has decreased by more than 10%.

On results of 2009 the ballanced financial result of large and medium organizations of the Republic of Karelia has made 3,5 billion rbl. of loss, whereas in 2008 there has been gained 7,8 billion rbl. of profit.

Relative density of unprofitable organizations in 2009 has made 49.1% of total number of enterprises (compared to 38.4% in 2008).

Timber industry complex is the leader in industry of the republic, and its production is a dominating commodity group in Karelian export. The share of timber industry complex enterprises in total amount of own-produced shipped goods, works performed and services rendered in the republic makes 33% (28% in 2008). On the share of Karelia there falls more than 61% of the all-Russian manufacture of paper sacks, 245% of paper sacks, including 37% of newprint, 4.5% of commodity cellulose, 3.4% of saw-timber, 1.7% of woodchip boards.

Negative influence of the crisis on financial condition of enterprises of timber industry complex amplified in January-February, 2009 when the collapse of raw material prices has begun, as well as production ramp-down. Therefore, financial situation at forest enterprises of the republic has worsened, most of enterprises are unprofitable.

At the same time the tendency of gradual transition of branches of forest industry to export of production of high-level processing is traced. Alongside with reduction of the share of round timber in structure of export in 2009 in comparison with 2008 export of kraft-paper and cardboard has grown by 18.6%; a newprint - by 7.2%, cellulose commodity - by 3.5%, saw-timber - by 0.7%.

In 2009 the volume of investments into development of capacities of enterprises of timber industry complex has made about 2,04 billion rbl., or 51.4% to the level of 2008.

Timber hauling in 2009 has made 5,3 million cubic meters, or 89% to the level of 2008. At the same time there takes place growth of labour productivity in logging. It is related to continuing introduction of assortment technology of logging which share in 2009 has made 93.2% in total amount of logging (77.9% in 2008).

Most of wood harvesting (61.5% of timber) is carried out by tenants of forest resources according to contractor's agreements (contractors).

Despite of difficulties, logging enterprises of holding of Investlesprom Joint-Stock Company, enterprises of Karelian Foreat Group, enterprises of Stora Enso group and others have preserved and increased volumes of production.

Most of production of forest resources (78%) is delivered by enterprises domestically, and more than 65% of harvested timber is processed in territory of the republic.

In 2009 further reduction of rough timber export from the Republic of Karelia proceeded, in comparison with 2008 their volume was grown 45% less and has made 1,2 million cubic meters.

In 2009 the index of manufacture in timber processing and production of wooden articles has made 85.6%, in monetary terms cost of products shipped has made 4,4 billion roubles, or 98.4% to the level of 2008.

Timber sawing in the republic is the basic kind of wood processing, but due to export specialization of the leading timber mills it depends on the situation in the world building sector.

In the beginning of 2009 intense situation developed in timber mills of the republic when 8 enterprises were idle, monthly volumes of production of sawn timber were halved.

After significant backlog in production of sawn timber in the beginning of the year, in the third quarter of 2009 there has been achieved 6% growth of production to the third quarter of 2008, and in the 4 quarter growth has made 40% to the similar period of 2008.

On results of 2009 the leading timber mills such as Solomensky Timber Mill Joint-Stock Company, Swedwood Karelia, Ltd., Setles, Inc., Karelis Prom Joint-Stock Company, Promles, Ltd. (established on the basis of Pegas International , Ltd.,), DOK , Inc., Karelia Profil, Ltd., have shown positive dynamics of production in comparison with 2008.

Curtailment of production of sawn timber in the republic in 2009 (by 5.2% to the level of 2008) was less significant than on the average across Russia (by 12.2%) and in the Northwest Federal District (by 8.6%).

In 2009 the volume of export deliveries of sawn timber from the Republic of Karelia has made 489,500 cubic meters, or 76.3% of total amount of produced sawn timber.

In 2009 in comparison with 2008 volumes of production of wood-particle boards became 38.5% less, production of commodity veneer reduced by 51.1%, production of door sets has become 20.8% less. At the same time in 2009 it was possible to achieve growth of volumes of plywood production by 6.6%, window blocks - by 35%.

Production index for cellulose, wood pulp, paper, cardboard and corresponding articles in 2009 has made 97.3%, in monetary terms cost of products shipped has made 19,2 billion roubles, or 95.2% to the level of 2008. Decrease in rates of growth of pulp-and-paper production in 2009 was caused by essential falling of volumes of production of cardboard (by 58.7% to the level of 2008). Segezha Pulp-and-Paper Plant, Inc., in 2009 has almost ceased production of kraft-liner which on results of 2009 has made 17% to the level of 2008.

Since February, 2009 pulp-and-paper enterprises worked stably, monthly increasing volumes of production of the basic kinds of products.

In 2009 production of paper in the republic in comparison with 2008 has grown by 2.7% and has made 990,300 tons. In Russia production of paper was reduced by 2%, in the Northwest Federal District - by 3.2%.

In 2009 the volume of production of newprint by Kondopoga, Inc., has made 748,800 tons, or 101.5% to the level of 2008, production of bag paper by Segezha Pulp-and-Paper Plant, Inc., has made 229,400 tons, or 108.6%.

Production of commodity cellulose in 2009 has made 90,400 tons, or 89.2% to the level of 2008 (in Russia - 88.1%).

Production of paper sacks by Segezha Packing, Ltd., in 2009 has made 316 million pieces, or 89.7% to the level of 2008.

Due to the falling demand and unprofitableness of production Suojärvi cardboard-producing shop of Kondopoga, Inc., has reduced production of cardboard by 21.5% and is switching to production of cardboard for own needs (cardboard cores).

In 2009 cost of shipment of goods on the extraction of minerals form of activity in actually established prices has decreased by 41%, including 44% decline in extraction of metal ores. At that the index of physical production volume on extraction of minerals has made 88.4%, including 91.7% on extraction of metal ores.

Karelsky Okatysh, Inc., today provides production of 25% of all iron-ore pellets made in the Russian Federation. To the share of the enterprise there falls about 40% of the volume of iron-ore pellets exported by Russian enterprises far abroad.

In 2009 it has been made 8,5 billion tons of iron-ore pellets, or 91.1% to the level of 2008.

Volume of investment in the mining industry in 2009 has made 3,5 billion roubles.

33 investment projects of building stone extraction for road-metal manufacturing are carried out in the republic. In 2009 the following new enterprises producing road-metal were commissioned - Sever-Stroy, Ltd., Petro-Granite, Ltd., (Muezersky region), Granitdomdorstroy, Ltd., (Suojärvi region) and Prionezhsky Mining Company, Ltd., (Pryazha metropolitan region).

In 2009 enterprises of the republic hacve produced 9,5 million cubic meters of road-metal, or 86% to the level of production in 2008. In the context of financial crisis due of reduction in demand for road-metal caused by absence of solvent consumers and decline in volumes of construction volumes production of road-metal is significantly less, than in 2008.

Block stone for production of memorial products (monuments), mainly presented by gabbro-diabases of Drugoretsky deposit (Prionezhsky region) remains the most steadily called-for in the market. In 2009 the share of black stone in total amount of extracted block stone in the republic has exceeded 80%.

Development of block stone deposits is carried out in Pitkäranta, Kem, Lahdenpohja, Pudozh regions and the most active is in Prionezhsky region. In 2009 extraction of block stone in the republic has made 24,5 thousand cubic meters, or 93% to the level of extraction in 2008. The best results of extraction and production of block stone belong to Kara-Tau, Ltd., and Drugaya Reka Joint-Stock Company.


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Created: April 26, 2010. Last updated: June 15, 2010.
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