OREANDA-NEWS. The progress and prospects of cross-border cooperation development in Karelia were considered on January 16 at the session of the Government of the republic held under the chairmanship of Head of the region Alexander Khudilainen.

Results of cooperation between Karelia and border regions of Finland, advantages that the republic gains from its geographical position, as well as prospects of further development of cooperation with international partners analyzed in detail at the session.

Modern cross-border cooperation was launched in 1992 by the Agreement concluded between the governments of Russia and Finland. According to Valentin Chmil, Deputy Head of the Republic of Karelia and Minister of Economic Development, about 450 joint projects in the sphere of social and economical cooperation amounting to more than 35 million Euro had been implemented within the scope of the agreement in territory of the Republic of Karelia. The most important of them are treatment plants in towns of Lahdenpohja and Sortavala, waste treatment and intake facilities in settlements of Sortavala region, the longstanding integrated project of reforming of the health care and social security services of the Republic of Karelia, etc. A new inter-governmental agreement was signed in 2012. At the regional level Karelia supports bilateral cross-border cooperation with regions of Eastern and Northern Finland. This cooperation is featured for the harmony of projects in the sphere of economy, and cooperation in culture, education, employment of the population, etc.

When Finland had joined European Union cooperation has been also developing within the scope of joined Russia-EU programs. Within the period when TACIS-CBC, Interreg and Euregio Karelia Neighbourhood programs were in force in Karelia it had been implemented more than 60 joint projects in cooperation with Finnish partners involving 37 million Euro of financial assistance from the EU. Implementation of the Karelia European Neighbourhood and Partnership Instrument cross-border cooperation program between Russia and EU featuring Finland is currently in force. Total volume of financing within the program makes more than 46 mln. Euro. Some large projects concerning infrastructure have become a special part of the program. Among them there are reconstruction of sites of the road from Ihala to the state border through Raivio in Lahdenpohja region and from Louhi to Suopera in Louhi region. New ENPI CBC Programs between Russia and EU are expected to be launched in 2014.

Intensification of contacts between Karelia and Finnish territories has resulted in growth of mutual trade. On the information provided by Valentin Chmil in 9 months of 2013 volume of foreign trade between Karelia and Finland has made 204 mln. dollars having grown 4%. At that, Karelian export has almost doubled.

Available objective prerequisites to further growth of turnover and tourism is restrained by backwardness of the border infrastructure and the necessity of reconstruction of Karelian roads leading towards the border. For example, throughput possibilities of Wartsila and Lytta international automobile border-crossing points are exceeded today many times.

To benefit from Karelia's border location, to increase budget revenues of the republic from the transit cargo traffic between Russia and Europe it is necessary, first of all, to develop the operating and to build new border-crossing points, to put in order highways, as Head of Karelia Alexander Khudilainen has told about it at the Government session.

Establishment of the State Commission for preparation for the celebration of the 100th anniversary of the Republic of Karelia chaired by Nikolai Patrushev, Secretary of the Security Council of Russia, offers the republic ample opportunities to involve federal funds in development of border infrastructure. As Alexander Khudilainen has told, this issue will be considered at the next session of the State Commission.

- 792 kilometers of the border with Finland means vast opportunities for mobilization of investments and development of tourism, however we need to endeavor efforts for that. Improvement of transportation facilities whatsoever contributes to tourist prospects of the territory of the republic, - Alexander Khudilainen stated at the session of the Government.

Valery Kiryanov, Chairman of the State Committee of the Republic of Karelia for Tourism, Head of the Administration of Sortavala region Leonid Gulevich, and acting Head of the Administration of Lahdenpohja region Nadezhda Bogdan in their statements have confirmed words of Head of the republic. For instance, the number of places in hotels of Karelia today allows to increase annual number of tourists visiting the republic from 1,9 million people to 3 million. However, Valery Kiryanov has no doubt that the breakthrough development is possible only on the basis of developed road and transportation infrastructure.

On results of consideration of this issue Head of the Republic has charged Valentin Chmil with generalization of proposals regarding Karelia's possible participation federal programs concerning development of border territories and present them at the next session of the State Commission for preparation for the celebration of the 100th anniversary of the republic.

In the opinion of Alexander Khudilainen, priority projects for Karelia in this sphere are construction of Syvaoro international automobile border-crossing point in Lahdenpohja region, modernization and expansion of Wartsila and Lytta international automobile border-crossing points built in the 1990s, reconstruction of railroad crossings of the same name to make it possible to conduct passenger and containerized cargo transportation, development of the Petrozavodsk international airport. In the sphere of transportation it is necessary to continue negotiations concerning transfer of federal roads leading towards Wartsila automobile border-crossing point Sortavala region, Lytta automobile border-crossing point in Kostomuksha, and Suopera in Louhi region to the federal ownership, or their reconstruction at the expense of federal programs. Fulfillment of these plans will give an impulse to development of economy both in the regions bordering upon Finland, and all over the entire territory of Karelia.