OREANDA-NEWS. December 9, 2008. The Russian Federal Security Service has reopened the towns of Nikel, Zapolyarny and Pechenga located along the border to Norway for regular traffic. However, the Pechenga Bay and the settlement of Liinakhamari remains closed area. That is a bad sign for local industry.

In a decree of 1 October this year, the FSB announces that the towns of Nikel, Zapolyarny and Pechenga have been taken out of the border zone. That is good news both for the local population and for people in the neighbouring Norwegian municipality of Sшr-Varanger.

The introduction of stricter border zone regulations and subsequent travelling restrictions in 2006 significantly hampered cross-border contacts between the Russian and Norwegian municipalities.

The FSB decree does however keep the whole Pechenga Bay part of the border zone. That will not be welcomed by local industry nor by local authorities, which see the deep-water and ice-free bay as the possible site for major port development and trade. The bay is by several experts seen as one of the best suited sites for port development in the Kola Peninsula.

In neighbouring Norway, the bay is seen as a possible key component in a joint Norwegian-Russian industrial and economic zone – “the Pomor Zone” – meant to help stimulate bilateral initiatives related to oil and gas projects.

The areas around the Pechenga bay have also attracted the interest of wind power developers. As reported by BarentsObserver, a Sankt Petersburg-based company plans a 100-windmill park in the area.

Also Russian tourist companies have expressed interests in Pechenga. A regional company plans a major tourist complex in the settlement of Liinakhamari, a former base of the Russian coast guard.