OREANDA-NEWS. On 25 February 2009 was announced, that during his working trip to Kostomuksha Head of the Republic of Karelia Sergey Katanandov has signed the Quadrilateral agreement on cooperation and interaction amid the economic crisis with the management and proprietors of Karelsky Okatysh (Iron Ore Pellets), Inc., and local self-government of Kostomuksha.

Kostomuksha is another "flashpoint" on the card of Karelia where Head of the republic went within the scope of active anti-recessionary work. Sergey Katanandov systematically visits the most important for economy, strategic enterprises which have firsthand knowledge of rigid pressure of the world financial crisis. After Segezha and Kondopoga, Kostomuksha's turn has come.

At first sight, things in Kostomuksha are not in such a bad way, as in Segezha. It is promoted by active and independent anti-recessionary policy of the ore-dressing and processing enterprise's proprietor Severstal-Resurs Joint-Stock Company and administration, and effective measures of local authorities. These days the ore-dressing and processing enterprise, saving on whatever possible, is reducing production expenditures. The enterprize is working, though not at full capacity, both the personnel, and stably high wages of workers are preserved. No employment layoffs are not planed, dispensing with less painful measures. For example, about five hundreds working pensioners have left the enterprise voluntary (and with quite good severance pays). Employees temporarily out of work keep from 50-75% of wages. Average salary in the town even in January has made about 25 thousand roubles. Nevertheless, production drops, and it is proved by such figures: in its palmy days the ore-dressing and processing enterprise made up to 11 million tons iron-ore pellets a year, and this year it can make only 7 million tons. It is clear, that budgets of all levels receiving less incomes will suffer. As Sergey Katanandov has assessed the situation, "this is the lowest level of production at the ore-dressing and processing enterprise since I've been holding the office of the Head of the republic."

It is clear, that the enterprise needs the state support. Forms it will take and what volumes this support will be rendered in became the subject of long and difficult negotiations between the Government of Karelia, proprietors and management of the enterprise. Importance and complexity of the arrangements achieved is proved by the fact, that together with the Head of the Republic to Kostomuksha came ministers of the financial and economic block of the Government of the RK. The result is positive: the Agreement has been signed.

- It is very important for us to feel mutual understanding and cooperation with our partners in anti-recessionary work, - Sergey Katanandov has told, making comments on signing of the Agreement. - We appreciate their aspiration to keep the enterprise afloat, in working order. Management of the ore-dressing and processing enterprise and the town administration has made arrangements to undertake a number of joint actions to keep the volume of production no less than 7 million tons of iron-ore pellets, to fulfill all social obligations, to keep the staff, workplaces, and viability of the town. The government, in turn, has stated in the Agreement a number of its obligations to support the ore-dressing and processing enterprise. Our opportunities are quite rich here - from the electric power rate management to lobbying interests of the enterprise in Moscow. Today I'm confident, that the situation in Kostomuksha is stabilized. Maybe, this stabilization is at a rather low level, however, the important thing is that we shall not make it lower.

What is good about reaching the lower limit in this decline? That there is no way down, only the way upwards. Kostomuksha believes, that moving up will start for sure, and today it is getting ready for it.

During his working trip Head of the Republic has also visited the pool under construction in Kostomuksha, social objects and industrial enterprises, has held a number of meetings with the town administration, representatives of timber industry complex and force structures of the region.