North West grows, but unsteadily
04.03.2014
In 2013, the economy of the North Western Federal District (NWFD) and its social sector continued to grow in most of the basic parameters. Despite the reduction in IPI (Industrial Production Index) and investments, the district made a marked breakthrough in housing construction.
The North Western Federal District occupies 9.9% of Russia’s territory, i.e. this is the fourth largest region accounting for 9.6% (13.7 million people) of the country’s population. The district area is 1687 thousand square kilometers. The GRP (Gross Regional Product) makes up 10.5% in the amount of Russia’s total product. According to the State Committee on Statistics, the NWFD produces around 6.48% of all the country’s minerals while its processing industries contribute 15.5% to the Russian industry total. The investments in the district make up 8.7% of all Russia’s investments. The total foreign investments made in the non-financial sector of the NWFD economy in the first half year of 2013 amounted to US$ 9.7 billion. In the structure of foreign investments provided to the NWFD over the past period, 12.9% were direct investments. Overall, however, the NWFD sustained a reduction in capital investments. The growth of investments in fixed capital amounted to a mere 73.9% relative to last year’s result. Only the Nenets Autonomous Territory performed somewhat differently, coming up with a 151% growth relative to 2012.
In 2013, the industrial production and investments in fixed capital in NWFD continued to grow more slowly than generally in Russia. Whereas in 2012 the IPI for such types of economic activities as “minerals production”, “processing industries, “electric power, gas and water production and distribution” made up 101.9% of the 2011 total, in the year 2013 the growth was only 99% relative to last year’s result. While in the production of minerals the district repeated the result of 2012, in the processing of raw materials and production of resources it lost, respectively, 1.3% and 0.5%. Only three regions, i.e. the Republic of Komi, Murmansk and Novgorod oblasts demonstrated the IPI growth. The retail turnover in the NWFD increased in terms of mass of commodities, compared to the year 2012, by 3.9% reaching 1.5 trillion rubles.
In 2013 construction became one of the district’s most dynamically growing industries. Even though the construction work amounted to 712.4 billion rubles, or 90.9% of the previous year’s figure, practically all the regions of the district witnessed an essential growth in housing construction. So, in 2013 the NWFD commissioned a total of 6.2 million sq meters of housing floor area, which is 106.4% of that in 2012. The best dynamics was demonstrated by the Republic of Komi (162.9% to last year’s figure) and Vologda oblast (127.6%).
Overall, the district maintains the structure of main drivers of the economic growth. The largest investments are still made in the minerals production, raw materials processing, paper pulp industry, and machine building. The bulk of capital investments in the district in 2013 was made in oil refinery, i.e. some 57%. Such a figure was reached thanks to the building of the Lezno Oil Refinery of the Avro Company. In 2013 the investor invested in the project at least 45 billion rubles. The private sector invested 12.2 billion rubles, or 15.6% of the total capital investments in timber processing complex. In machine building, several projects were launched worth 5.9 billion rubles. In all, the said industries accounted for over 90% of the total investments.
Major investment projects
Murmansk oblast
Comprehensive development of the Murmansk transport network (2007-2020). Total investments – 132.2 billion rubles.
Nenets Autonomous Territory
Field infrastructure development of Trebs and Titov mines (mining since 2911). Investor – OAO Lukoil Oil Company, OJSC. Amount of investments – 180 billion rubles.
The Republic of Komi
System of Bovanenkovo – Ukhta gas-main pipelines of the Yamal-Europe gas transmission system (2008-2015). Investor – OAO Gazprom OJSC. Amount of investments – 594.7 billion rubles.
The Republic of Karelia
Construction of a new sea port in Belomorsk (2010-2014). Investor – ZAO Belomorski Port private JSC. Amount of investments – 6.7 billion rubles.
Kaliningrad oblast
Construction of Baltiiskaya Nuclear Power Plant (2016-2018). Investor – Rosatom State Funded Corporation. Amount of investments – 194 billion rubles.
Vologda oblast
Sokol (Falcon) Industrial Park (2010-2016). Project investors: ZAO ZemlyaResurs private JSC; OOO Sokolskaya Slab Manufacturing Company – OSP; OOO Zeus+ LLC. Amount of investments – 11 billion rubles.
Pskov oblast
Pskovsky Tourism and Recreation Cluster (2011-2016). Project investors: Pskov oblast regional public organization “Federation of boating and yachting tourism”; OOO December-M limited liability company; OAO North Western Investment Company; OAO Kabbalk-Inturist open joint-stock company; OOO Pskovinkomstroi LLC; OOO MNR-PSKOV LLC; OOO Extreme-Spirit LLC; OAO Ekran open joint stock company; OOO Trading House Carat LLC; OAO Alliance Realty OJSC; ZAO Stroikomplekt private Joint-Stock Company; OOO UNO-trade-invest LLC. The total investments around 6.5 billion rubles.
Arkhangelsk oblast
Construction of mining-and-processing integrated works based at V.Grib diamond deposit (2012-2015). Investor – OAO Arkhangelskgeoldobycha OJSC. Amount of investments – around 30 billion rubles.
Novgorod oblast
Lezno Oil Refinery (2013-2017). Investor – OOO Avro Ltd Liability Company. Amount of investments – 45 billion rubles.
