OREANDA-NEWS. December 11, 2008. In a crisis commission meeting this week, Murmansk Governor Yuri Yevdokimov said regional production of iron and apatite ore in November was down with more than 50 percent year-on-year and that the economic downturn is resulting in significantly lower regional budget revenues.

The situation demands “operational action and coordination efforts”, the governor told the members of his regional crisis commission. The heavily industrialized Murmansk Oblast is facing major economic hardships as raw material plummet and demands plummets.

The situation is having its toll on the regional budget which only last month had 1,2 billion RUB less revenues compared with the same period last year, a press release from the regional administration reads.

The production decline can be registered all over the region. While the Apatite company in November reduced production with 59,6 percent year-on-year to 368,000 tons, the Olenogorsk Iron plant in the same period reduced production with 52 percent to 400,000 tons.

Industrial production in all 2008 is now down more than one percent.

The governor also indicated that SUAL is considering to close its aluminium plant in Kandalaksha. He now proposes several measures to help reduce strain on the company, among them lower property taxes.

The crisis commission concluded that that the situation on the consumer market remains stable. There are also no critical changes in the labour market, the governor said.