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Social and Economic Development of the Republic of Karelia in 2013


  Economic Policy


    Industrial Policy

    Timber Industry

    Mining Industry



    Construction Activities


    Small and Medium

    Innovation Policy


    Management of
    Natural Resources



  National Politics

  Public Administration

Industrial Policy

In response to complicated and unstable standing of a number of brunches of industry in 2013 that have demonstrated decline in overall production and investment activity, the Government of the Republic of Karelia had been paying special attention to implementation of measures of industrial policy. First of all, efforts were focused on preservation and restoration of industrial activity of town-forming and other socially significant enterprises, mobilization of investments, and creation of new enterprises.

Dependence of the world market conjuncture, especially in the context of Russia's accession to WTO, nonprofessional management, high tariffs for services of natural monopolies endangered with closing a number of leading enterprises of the republic, such as Kondopoga Inc., Pitkäranta Pulp Mill Inc., Bumex Lahdenpohja Plywood Mill, Ltd., Nadvoitsy Smelter, Onega ship-building factory Joint-Stock Company.

Under these conditions the Government of the Republic of Karelia was compelled to focus attention on individual work with each of the problem enterprises to preserve or renew its industrial activity.

in 2013 it was possible to restore volumes of production of Kondopoga Inc. and to involve the investor interested in modernisation of the enterprise, to keep volumes of output in Pitkäranta Pulp Mill Inc., to prevent closing of Nadvoitsy Smelter. Thus, considerable share of problems has not found the proper solutions yet and requires continuation of address work with each of the enterprises.

To take measures to solve the occurring problems the estimated figures and economic situation were monitored in the republic, disproportions in development of industries were revealed.

On the basis of agreements on social and economic cooperation with the largest enterprises of the republic of agreements work on increase of efficiency of use of capacities, introduction of new equipment, development of new kinds of production and sales markets, increase in volumes of production and growth of tax liabilities was conducted.

In order to support investment and business activity of organisations performing priority for the republic of kinds of activity (logging, timber processing, production of paper-making equipment, production of electric equipment) in 2013 tax exemptions for the profit tax and for corporate property tax were granted.

Besides, within the scope of the regional program Development of small and medium business in the Republic of Karelia through 2014 actions for partial refund of expenses of small and medium business enterprises related to purchasing of equipment for creation, modernization and development of production were performed.

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Created: May 12, 2014. Last updated: May 14, 2014.
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