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Social and Economic Development of the Republic of Karelia in 2011

  Modernization of the Economy

    and Construction

    Small And Medium

    Industrial Policy

    Industrial Policy

    Forest Industry

    Mining Industry


    Energy Complex

    Agroindustrial Complex



    Natural Resources
    and Ecology



  Civil Society

  Results of 2011


According to the Concept of Social and Economic Development of the Russian Federation through to 2020 regarding increase of competitiveness of key economic branches of the industry the policy of the Government of the Republic of Karelia was focused on development of metallurgy and engineering industry.

In 2011, despite of scarcity of working capital, many enterprises managed to continue modernization of production, introduction of new technologies and to come in the market successfully with production in demand, which resulted in increase in receipt of tax payments from these enterprises in budgets of all levels.

New kinds of production were mastered at Petrozavodskmash JSC, Petrozavodskmash Foundry Ltd., Onego Tractor Plant Ltd.

The cooperation agreement concluded in 2011 between the Government of Republic Kareliya and Rosatom Russian Federal Atomic Energy Agency became a basis of implementation of the investment program for 2011-2015 directed on increase in volumes of production, introduction of modern technologies, involvement and consolidationat of highly skilled personnel at the enterprise, increase of labour productivity at Petrozavodskmash JSC.

Last year the equipment for atomic power stations was produced at Petrozavodskmash JSC for the first time: systems of emergency cooling of active zone of the reactor, system of passive reflooding of active zone, collectors of the heat-carrier, decontaminators for Chinese petrochemical company Panjin Zhenao Chemical Co. The technology of pad weld under a flux on Italian installation Steel Mec was mastered successfully, works on creation of a new site to produce cases of steam and gas generators have begun. Production and delivery of the first case of steam and gas generator were planned for 2012. The enterprise has once again confirmed its opportunities to produce transport packing complete sets for transportation of spent fuel, having received the new production license of the Federal Service for Ecological, Technological and Atomic Supervision.

Work on increase in loading of capacities continued at Petrozavodskmash Foundry Ltd. In 2011 the enterprise has mastered:

    production of new heat resisting heavily alloyed iron used in production of cases of reactors to burn solid waste;
    production of mouldings of aluminium pig-iron on the order of American company Greenlight.

In November, 2011 the site of large caisson casting resumed its work after a long period os standing idle.

By results of discussion of options of further development of the second platform of Onego Tractor Plant Ltd. by the Government of the Republic of Karelia and the management the Corporate Governance Company Tractor Factories Concern Ltd. the strategy of development of the enterprise through to 2017 has been developed. The conclusion of the agreement on social and economic partnership between the Government of the Republic of Karelia and Onego Tractor Plant Ltd. is planned. The Government of the Russian Federation has included the enterprise in the list of manufacturers fire-suppression equipment and machines from which the state customers in 2011 purchased the specified products made in territory of the Russian Federation for the state needs through placement of orders at the sole supplier.

In 2011 work within the framework of the contract concluded between Onego Tractor Plant Ltd. and the Ministry of Industry and Trade of the Russian Federation concerning performance of research and development and organization of batch production of a modern complex of machines comprising of a felling-and-bunching machine, a delimber-crosscutter and a logger in Onego Tractor Plant Ltd. continued; commercial production of skidder Onezhets-300 was launched. In comparison with others logging machines made in the Russian Federation, the cost price of processing 1 cubic meter of timber by Onezhets-300 is more than 10% less.

The NAZ-SUAL branch since January 1, 2011 at the support of the Government of the Republic of Karelia has received the admission to trading system of the wholesale market of electric energy providing minimization of cost of purchased electric energy.

The Government of the Republic of Karelia solved questions with federal executive bodies with the purpose of maintenance of uninterrupted drilling and blasting operations in the mining industry.

One of the factors defining market saturation with building materials and influencing formation of the prices is production of building materials.

In 2011 implementation of some investment projects directed on development of the building industry and the industry of building materials in the republic continued, including:

  • further development and modernization of existing production at Stroyindustria KSM Ltd. including escalation of capacities to produce ferro-concrete constructions and products;
  • construction of a concrete and mud room and a shop on producing paving tiles at Monolit Ltd. in Kostomuksha; organization of production of laminated constructions and blockhouses made of surfaced timber and calibrated logs at the enterprise of Fintech scientific production association.

The draft regional program Development of Enterprises of the Industry of Building Materials and Industrial Housing Construction in the Republic of Karelia through to 2020 providing maintenance of balance between the volume, quality, assortment of production of building materials and needs of the building branch was developed.

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Created: January 9, 2013. Last updated: January 9, 2013.
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