OREANDA-NEWS. June 26, 2012. On June 20 at the session of the Government of Karelia Head of the region Alexander Khudilainen demanded from the field-oriented ministry to take a package of specific measures for revival of forest and mining industries and mobilization of investments in these the most important branches of economy of the republic.

Chairman of the Legislative Assembly of Karelia Vladimir Semyonov and Representative to Russia's Federation Council Sergey Katanandov also took part in the session.

The report about results of work of forest and mining industries of Karelia in 2011 and basic tasks for 2012 was presented by Sergey Shtrakhov, acting Minister of Nature Management and Ecology of the republic.

As Sergey Shtrakhov pointed out, 19,000 employees which makes about one half of the people occupied in manufacturing activities of Karelia work at the enterprises of forst industry, and 9,000 employees work for the mining enterprises.

On results of work of forest industry complex of the republic in 2011, growth of production volumes of loging has made 4.5% to the level of 2010, in processing this parameter has made 3%, in pulp-and-paper production decrease in the rate of growth was observed to make more 2%.

According to Sergey Shtrakhov, decline in rates of growth of production of paper was caused by astable work of Segezha Pulp and Paper Plant Inc. which is a part of Investlesprom holding in the last three months of 2011. It was holding's suspension of financing that had caused shortage of turnover means for accomplishment of production activities of the pulp and paper plant.

To solve the problem, Sergey Shtrakhov reported, the Government of the republic has signed the agreement with VTB Bank to provide the enterprise's stable operation, negotiations have been held to determine prospects for the holding's operation in Karelia.

Tax revenues in the consolidated budget of the republic from logging, according to acting Minister of Nature Management and Ecology of the republic, have grown by 20% and have made 200 million roubles.

As for results of work of mining industry in 2011, first of all, Sergey Shtrakhov pointed out 1.6-fold growth of production volumes of building nonmetallic materials. It is related to revival in the building market and in construction and repair of roads.

Implementation of 37 investment projects of building stone extraction with the purpose of production of read metal and blocks in Karelia proceeds. Investment interest to development of Karelia's resources grows, including among foreign companies. For instance, the German company of DEUTSCHE ASPHALT finances the KP-Gabbro's Joint-Stock Company project of road-metal production at Navolokskaye deposit in Kondopoga region.

The total amount of investments in mining industry in 2011 has grown in comparison with 2010 and has made 3,8 billion roubles, including 3 billion roubles of own means of Karelsky Okatysh Inc. for modernization of the enterprise and geological examination of South-Korpangsky deposit.

As a whole, Sergey Shtrakhov mentioned, mining industry works stably and has good prospects of development, it also concerns forest branch.

However, Head of Karelia could not concur with this optimistic appraisal. The key economic branch of the regional economy is forest industry, and currently it provides only 4% of the tax yield in Karelian treasury. First of all, Alexander Khudilainen emphasized the problem related to the activity of Investlesprom: last year the enterprise had excluded one billion roubles from the taxation system of the republic. As head of the republic reminded, Karelia is a subsidized region and this amount of money is quite essential for the republic. At that, no work has been conducted by the ministry this year to avoid the same thing happening again.

The showing related to the logging activities' taxation has also made Alexander Khudilainen doubt: last year, as Sergey Shtrakhov reported, this amount has made 200 million roubles.

– Have the ministry had any task on the tax levy? Is 200 million good or bad, is it an excellent grade of a poor? We have 370 million roubles of lease payment debts. We can not make a virtue out of 200 million roubles received in the consolidated budget, – Alexander Khudilainen noted.

Head of the region was also dissatisfied with the work conducted in the republic concerning mobilization of investors in forest and mining industries.

– There are 3,8 billion investments in mining industry, 3 billion of it is for the ore-dressing and processing enterprise. 800 million for the rest of the enterprises is nothing, – Alexander Hudilajnen has emphasized, having noted that is necessary to work with the investor actively, to conduct preliminary expert examination to avoid appearance of 'soap bubbles', as head of the region said.

Head of Karelia supported Sergey Katanandov's proposal to establish a working group for elaboration of issues related to the activities of Investlesprom JSC in Karelia.

On results of the session of the Government Alexander Khudilainen has offered to consider the work of the Ministry of Nature Management and Ecology of the region insufficient.

Besides, the draft decision of the session of the Government of the republic reflects the offer of Head of Karelia to determine the plan target for the Ministry of Nature Management and Ecology concerning collection of tax proceeds and mobilization of investments in the branch.