OREANDA-NEWS. On 23 March 2009 was announced, that after recession in the beginning of the year timber branch of Karelia gives first signs of returning to life, and, in comparison with January, electricity prices for enterprises in February have decreased by 20-30%. Issues of the state support rendered to timber complex and measures on restraining tariffs were in the focus of attention at the session of the Anti-recessionary commission at the Government of Karelia on March 18. Opening the discussion, Head of the republic Sergey Katanandov has reminded that "economy is necessary not for the sake of economy, but to provide worthy life and stability to the people."

As the Acting Minister of Forestry of the republic Vladimir Matrosov has informed, in January production volumes in pulp and paper industry have made 73.1% to the similar period of the last year, and even 85.7% in February. In the wood-working branche this parameter has made 35.6% and 48.2%accordingly. The volume of timber hauling in 2 months is kept at the level of 80.8% that is the best parameter in the Northwest after Vologda. The main negative factors are significant reduction of round timber export, absence of turnover means, impossibility to receive credits and growth of accounts receivable. To support lumberers the Government of Karelia has given tenants the right to pay for wood resources according to actual development during the year, and instead of forfeits and penalties for rectification of breaches precautionary measures are applied with obligatory execution control.

Besides, social agreements called to protect workers of the branch during the crisis are concluded with the largest enterprises.

Also Karelian authorities cooperate with the federal center for inclusion of timber complex enterprises of the republic in the list of the industries applying for the state support. Such list is also generated at the regional level. Besides, application has been made for allocation of 335 million roubles of federal financing for wood road construction that will allow to provide employment of the population and master previously inaccessible forest land sites. Government of Karelia also helps enterprises to receive credits.

Issues of forest rent preservation at the level of the last year, a year delay of payments, indemnification of tenants' expenses for forestry management, subsidizing of credit interest rates to timber industry enterprises are decided at the level of the Russian Federation. Corresponding commissions of the Deputy Prime Minister Victor Zubkov are already issued for the second six months of the year.

At the session the issue of electricity prices has been raised again. Head of Karelia has asked the State Committee of the Republic of Karelia on Energy and Rate Management Chairman Yu.Akhtarin to report on measures taken to bring the situation to norm. As Yu.Akhtarin has told, in February the kilowatt-hour price for small and medium business has decreased by 20-30%, in comparison with January. Also Yury Akhtarin has told, that session of the Government of Russia on electricity prices will be held in the end of March. Among other issues the agenda on is session will include offers of the Head of Karelia on necessity to freeze growth of the free market of the electric power, to toughen control over the kilowatt-hour price formation and to exclude situations when power industry compensates the reduced rate for large manufactures at the expense of small and medium enterprises.

Matters at the session also concerned small business development. "Help enterprises to decide specific problems. – Head of the republic has emphasized. – Although, consider that during the crisis we shall, first of all, support those who has steady selling. Besides, it is necessary to consider weakening of foreign markets and make Karelian goods appear in Karelian stores, as during my recent trip to Segezha I have not seen any local goods in the local grocery store, except for some vodka from Lahdenpohja".

Participants of session have also considered the situation in the labor market of the republic. Number of unemployed officially registered in Karelia as of March 11 has made 14,2 thousand people (compared to 9,8 thousand people as of January 1). 4,1 thousand people are sent on mandatory leave. For two months of 2009 the employment service has helped 1,7 thousand people to find jobs. 667 unemployed were sent on vocational training. For implementation of the regional employment support program in 2009 it is allocated 169,2 million rubles. These funds are intended for advanced vocational training, organization of public works, assistance to development of small business and self-employment, assistance at moving to the work place in other regions. Ministry of Labor of Karelia promises, that realization of these actions in April will become more extensive and the rate of unemployment will start to go down.

In conclusion, Head of Karelia has addressed to law enforcement bodies with the request to supervise as strictly as possible use of budgetary funds, formation of tariffs, observance of the antimonopoly law and activity of institutions of local government which role in the crisis consequences overcoming is very important.