Economy of Karelia

Republic of Karelia – boundary Russian region

Key information about Republic of Karelia
 
The Republic of Karelia is situated in the North-West of Russia. In the South Karelia borders Leningrad and Vologda regions, in the North - Murmansk region and in the East - Archangelsk region. In the North-East the Republic is washed by the White Sea. The western border of Karelia coincides with the state border of Russia and Finland; the length of the border is 798 kilometers. The White Sea is in the North-East of Karelia.
Key transportation routes run through Karelian territory connecting industrially developed parts of Russia with European countries and non-freezing northern port of Murmansk.
Population of Karelia is 637 thousand people, 42% of it lives in capital city Petrozavodsk. Gainfully occupied population accounts for 330 thousand, more than half of total population.
Education system in Karelia includes 2 higher educational institutions and a number of branches, 19 secondary educational institutions. 
Karelia is the land of forests and lakes. Forests occupy 15 mlh. ha or 64% of the republican territory, lakes and rivers – 25%.
More than 50 mineral resources are found in Karelia. The following are developed: iron ore, quartz, schungite, feldspathic and petrurgical raw material.
Traditional main fields of the regional economy are forestry, mining industry and agriculture, machine building and metallurgy. The basic one is forestry.
About 1/3 of all Russian iron-ore pellets and 10% of ballast are produced in Karelia.
In agriculture dairy cattle husbandry and trout breeding are developing successfully. The Karelian share of all trout produced in Russia is more than 70%. 
The basis for dynamic development of tourism in Karelia is its plentiful recreational potential and resources. There are more than 4 thousand historical, cultural and nature monuments in Karelia, including unique ones: internationally acknowledged Kizhi museum, Valaam archipelago, Petroglyphs – rock carvings made by ancient people more than 5 thousand years ago, Kivach – second largest plain waterfall in Europe.
In 2012 Fitch Ratings confirmed long-term ratings of the Republic of Karelia in Russian and foreign currency at “BB-” level. Long-term ratings forecast is “Stable”.
According to preliminary data in 2012 the number of small and medium-sized enterprises (including individual entrepreneurs) accounted for 26,940 units; average number of employees (without external part-timers) – 86.5 thousand people.
The Government of the Republic of Karelia conducts the policy of creating maximum favorable conditions for doing business through implementation of the regional program “Development of small and medium-sized entrepreneurship in the Republic of Karelia for the period till 2014”.
Karelian Business Incubator and Center of support of export have been established within this program.
 
Head of the Republic of Karelia – Alexander Hudilainen
Government of the Republic of Karelia http://gov.karelia.ru 
Ministry of economic development of the Republic of Karelia economy@karelia.ru
Business Incubator of the Republic of Karelia http://binrk.ru 
Center of support of export of the Republic of Karelia http://export10.ru