business map of russia Regional supplement to the newspaper “Ekonomika i Vremya�
Murmansk Region: People, Resources, Opportunities For investors, business people, and wide range of readers
2009
Project on construction of the World Trade Center in Murmansk JSC “International B usiness Center “Murman”
Contacts
JSC “International business center “Murman” Tel.: +7 (8152) 55-47-20 Fax: +7 (8152) 55-47-21 assistant@ncci.ru
The project aims to:
•
Create a modern office cluster that encourages the establishment of businesses in Murmansk
•
Build a visible landmark that represents the new oil-age coming to Murmansk.
•
Establish a development that can incorporate a number of different functions: First class flexible office spaces (A, B category), meeting and conference facilities, college facilities (BI for oil & gas), a hotel with rooms of various comfort level.
•
Offer a dynamic work environment to international companies and their employees that consists of a wide range of service facilities: restaurant, cafes, shops, fitness centre, etc.
•
Create an open, green indoor environment that is in contrast to the outdoor arctic conditions and that provides an attractive working and communication environment.
•
Design a flexible structure that can be erected using a step by step strategy.
•
Build a total program of 60.000 m2 including underground parking.
“WTC-Region, Ltd.”
BB Eiendom AS
Tel.: +7 (495) 258-17-09 Fax: +7 (495) 258-10-74 Vladimir.mardashov@wts.msk.ru
Tel.: +47 909 66 075 Fax: +47 75 58 24 26 jmb@bbeiendom.no
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Murmansk Region: People, Resources, Opportunities
Contents People Murmansk folks
From the Publisher
6–7
Statistics: age, education, employment, income and expenses
“Our prime task 8–9 is to promote the development of business”
Dear readers:
Interview with Dmitry Dmitrienko, Governor of Murmansk Region
Resources Money
10–11
Structure of regional budget, statistics, priority spheres of financing
Arctics
12–13
Resources of the region, exploration plans, fleet, and infrastructure
Economics Map
14–15
Industrial centers, transportation routes, investment opportunities
Fishery
16–17
Trends of the industry, legislative amendments, statistics
Transportation Hub
18–19
Plans on development, new infrastructure, governmental and private investments
Real Estate
20–21
Trends of the construction industry, state of the housing, rental costsе
Tourism
22–23
Opportunities “One with the brain could find a solution in such situation”
24–25
Interview with Anatoly Glushkov, Chairman of the Northern Chamber-of Commerce and Industry
Top 100
26–27
«BUSINESS MAP OF RUSSIA», a regional supplement to the newspaper «Ekonomika i Vremya». Project leader: Alexey Smirnov. Editor of the Russian version: Valeriy Fenev. Editor of the English version: Elena Tolstyakova. 10,000 printed copies. Printed by «TK «Deviz Co.Ltd». Address: Office 4H, 60 lit. A, 17-ya Liniya V.O., St.Petersburg, 199178 Russia. Signed to be printed on 7.10.2009. Order 3687/1. Time of release: planned 20.00, actual 20.00. The newspaper «Ekonomika i Vremya» is registered by NorthWestern Regional Administration at the RF State Committee over Printed Media. Registered № П3300.
To the Readers
State of the industry, accommodation facilities, options for development
You are keeping in your hands the second edition of the “Business Map Russia” devoted to Murmansk — it is a regional supplement to the newspaper “Ekonomika i Vremya”. A year ago, we introduced our new information product to the business community, and we were genuinely pleased by the positive response on it by our partners and readers. The idea of annual reviews of economical and political life of the regions is not that new. But the media market of our country obviously lacks the analysis of the kind — structured and well-commented. A large international business forum in Murmansk is a proper reason to issue such edition. The time that passed since the autumn of 2008 was rather hard. The recession offered a test for durability for both the national business and Russian state itself. Murmansk Region also has experienced difficulties, but the implementation of major industrial and investment projects is not postponed here for a long term. Therefore, the economic life of this region in the near future is going to be most intensive. Expected are the extra investments from the government and the advent of new foreign corporations. Our company, in turn, also seeks to promote the economic growth of the region — primarily, through the arranging of transparent and objective information environment for all interested people, managers and entrepreneurs: for those who are already working in Murmansk land, and for those who are so far examining its opportunities. To achieve this goal, two major dedicated products of our company are designed: a weekly “Ekonomika i Vremya” and a series of “Business Map of Russia” devoted to Murmansk Region. When working over the regional editions, we have determined three key themes, without consideration of which can not be normal development for either business or for the state. “The People” is an assessment of professional skills and consumer abilities of the inhabitants of the region. “The Resources” concern raw materials, fixed assets, and technologies. “The Opportunities” stems from the two previous sections — it is an attempt to forecast the development of the region on the basis of the data available. The results of our work are the pages of this issue. We hope that the information provided is going to be interesting and useful for our readers even in the nowaday uneasy situation. We are grateful to the administration of Murmansk Region and Northern Chamber of Commerce and Industry, as well as our business partners and research companies for their fruitful cooperation that have contributed to the producing of Murmansk edition. This year’s series of “Business Map of Russia” will be followed by the edition devoted to Vologda Region. I wish you a happy reading and every success in your business.
Alexander Evseev, Editor-in-Chief, “Ekonomika i Vremya” CEO, Publishing Company “RIAL”
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Business map of Russia
Facts & Figures A Midnight Country
Oil and Gas Exploration
It is officially considered that the Mumansk Region was formed by a special decree of the All-Russia Central Executive Committee on May 28, 1938. It is found in the Kola Peninsula, mostly above the Arctic Circle. In the south, it borders the Republic of Karelia, while in the west — Norway and Finland. It is washed by the White and Barents Seas. But these austere northern lands were populated long before the historical decree of the Executive Committee. In fact, it was the Novgoroders who were the first of the Russians that made the path to the Kola Peninsula as long ago as in the 9th century. Much impressed by the phenomena of the polar day and the polar night, they christened these lands a “Country of Midnight”, in a poetical way.
Nights and Days The polar night (the period when the sun does not appear above the horizon) lasts here for more than a month, from the beginning of December to the middle of January. Its duration in various localities depends on the geographical latitude. Such phenomena are possible only above the Arctic Circle — an imaginary line on the earth surface. Speaking of that, there is a railway station at the border of Karelia and Murmansk Region, which is called “Polyarny Krug (Arctic Circle)”, and not far to the north from the station there is an obelisk designating the relevant geographical parallel (66°33' to the north from the equator).
The Lapps and the Sami
The Countries of the Arctic Night
History & Geography
Russia is not the only country in the world keeping the permanernt settlements in the territories where the Arctic night takes place. The phenomenon of the polar day and the polar night can be observed in a number of other countries. In 1996, their representatives established an intergovernmental organization — Arctic Council, which comprises Russia, Canada, Denmark, Finland, Iceland, Norway, Sweden and the USA.
A Hero City The Memorial to the Heroic Defenders of the Transpolar Lands
The Gulf Stream and the Arctic The climate in the Murmansk Region is severe and unstable. It is formed, on the one hand, under the influence of cold air fronts of neighbouring Arctic, while on the other hand, under the warming impact of Atlantic. At the end of the 2nd — beginning of the 1st As a result, a unique climatic situation millennium B.C., the nomads belonged to the occurs: the sub-arctic air masses are strongly Finno-Ugric group came from the North Urals eased by a warm current of the Gulf Stream, to the Kola Peninsula. They were not that giwhich allows for the navigation all year round. ant guys (the average menʹs stature was 155 cm) In the north of the Kola Peninsula, the av- with a relatively wide faces. As a result of mixing erage temperature in winter is –14°C, while in the newcomers with the aboriginal population summer, when the sun almost never leaves of the region, the ancient Sami — Finno-Ugric ethnic national group — was gradually formed. the sky, 14°C. In the central and in the southern part By their physical appearance, they resembled of Murmansk Region, the frosts happen the Europeans but also had the features with to reach –40°C in winter months. With that a vague hint on their Eastern origin. The Norsaid, the summer there is drier and consider- wegians called them “Terfinns” and “Ter Sami” ably warmer. The warmest area of the region is (referring to “Ter” or “Tre”, the then name of the southern White Sea environs. In the east- the Kola Peninsula), while the Russians used to ern areas, the climate is more severe, and the call them “Lapp” and “Lappari”. By descriptions largest number of days with strong storms is of the travellers survived to our days since the observed there. 9th century, the Sami wore no huts, lived in the The average annual precipitation in Mur- “stone rifts”, and ate “only animals — beasts and mansk Region is about 400 ml. They often fall birds and sea fish”. And they were Pagans and out as snow persisting 250 days. worshipped their own gods — Seids.
In 1985, for distinguished merits in World War II Murmansk was conferred the title “Hero City” and the highest award of the Soviet Union — Order of Lenin and medal “Golden Star”. In the course of World War II, Murmansk was attacked not once from land and air. The Fascist troops aimed to conquer the city of strategic significance, but the city near the front resisted the attack of the enemy for more than forty months. Dislocated in the Transpolar 150-thousand Fascist army was governed by a Hitler directive: to capture the city and the Murmansk port, through which the cargoes arrived from the ally countries to supply the country and the army under the lend lease program. The air attacks were most powerful — in some days, the fascists made 15–18 raids and dropped a total of 185 thousand bombs in the years of the war. By the number and density of the bomb attacks at the city, Murmansk is next to Stalingrad only.
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Murmansk Region: People, Resources, Opportunities
Facts & Figures Daily, in the Murmansk Region are
Murmansk–Petushki
19 babies born 36 thousand letters mailed 267 TV sets sold 66 refrigerators purchased The writer Benedict Erofeev, author of the immortal guide for the mysterious Russian soul — a poem “Moscow-Petushki”, was born in the Murmansk Region (1938). This man of letters had a hand in mythologization of own biography; that is why the birthplace of Benedict Vassilievich is mentioned in various sources as station Poyakonda, Chupa, and Town Zapolyarny simultaneously. Thus, it could be said that the route “Moscow–Petushki” began in Murmansk.
457 tons of coal produced 1.7 ton of cheese eaten 16 new families made 2.5 tons of cod caught
Let Them Speak
3.2 tons of sausage eaten
In 1972, in Town Apatity a popular TV presenter Andrey Malakhov was born. His biography is a denial of the myth that only the well-connected people with celebrity surnames become the stars of the TV broadcasting. At the early 90s, the audience can only heard the off-screen voice of Andrey. But some day, when all presenters were on vacation, the management of the “Good Morning” program decided to use Malakhov as a replacement. Since that his glory began…
114 tons of bread baked 22 pairs of shoes manufactured
In Murmansk, all nuclear-powered ice-breaking fleet of the country (eight ice-breakers, one lighter carrier and several vessels for technical aid) is based. This fleet assists the program of the northern supplies, and also delivery of cargoes of the Norilsk Nickel MMC. The length of the route is about 6,000 kilometers. The use of the nuclear fuel ensures the vessels an unlimited cruising range with no additional fuelling. Furthermore, the territory accommodates the facilities of the nuclear submarine fleet of the country.
Could Not Be Deeper
In 10 kilometers of Zapolyarny city there is a bore well of 12, 262 meters — the deepest in the world. Hard-working Chinese dug the wells 1,200 meters deep in the 13 century. The Europeans beat the Chinese record in 1930 to pierce the terra firma at 3-km depth. At the end of 1950s, the wells became deeper and reached seven kilometers. But in the USSR they managed to beat this record near Lake Vilgiskoddeoaivinjarvi. It is Finnish for “The lake next to the Mount Wolf”, although there is neither mount nor wolves near it. Now the well is completely “frozen”.
Fish In the Murmansk Region, there are thousands of lakes and a countless number of rivers. Local basins are the place where the most valuable fish breeds live: salmon, trout, grayling, smelt, etc. The region is a true paradise for fishermen, and fishing tourism surely is one of the trademarks of the region and the area for gainful money investments. But the region is also seaboard and is one of the major Russian suppliers of the sea
fish. On average, each sixth of the sea fish sold in Russia is caught exactly by Murmansk fishermen. Of course, in the recent years the yields of the fishermen were not as good as those during the Soviet times. But they look forward to the renovation of the sector and development of completely new industry — fish-farming. So what? In neighbouring Norway, they breed fish and make not bad money on it!
The Captain
The Northern Diaspora
The Nuclear Armada
In 1954, the composer and musician Sergey Kurekhin was born in Murmansk. The heritage of the Captain (the friends called him so) are the dozens of his albums, music to the theatrical performances, feature and documentary films, producing of disk records of legendary national rock groups — “Aquarium”, “Kino”, “Strange Games”, “Auction”, and “Colibri”. Or rather, it is unlikely that he was only a musician and only a composer. In one way or other, Sergey Anatolievich had a hand in all processes related to modern culture and modern art.
Mr. Parker
A year before the birth of Andrey Malakhov, a publicist Maxim Kononenko was born here, better known to the reading Russia as Mr. Parker. The columnist of the “Gazeta” (Newspaper) publication, editor-in-chief of “The Bourgeois Journal”, he is also the founder and originator of the popular internet-project “Vladimir Vladimiro vich” opened in autumn of 2002.
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Business map of Russia
People The Murmansk people are one of the most well-to-do inhabitants of Russian North-West. The impersonal statistics indicates so. Moreover, they are young, ambitious, and hazardous. And it is not without reason that every tenth Murmansk resident of those questionned at a local internet portal is ready to travel to Las Vegas on a regular basis in case of closing all transpolar casinos. It means that not everything is that bad even during the recession!
The Murmansk Residents: Hard-working and Hazardous
T
hirty-five years old is the average age of the Murmansk Region resident. No wonder that the Murmansk residents do not hurry to get stuck to a family tie. And when the family is made, a disappointment of the partner often follows soon. During 5 recent years, the number of marriages grew insignificantly in this northern region, while the number of divorces constantly increased. For the sake of justice, it should be noted that, after all, the number is growing of those willing to enter into official marital relations: in 2008, the marriage rate of the Murmansk resident (relative to 2004) has grown no less no more than by 16.2%.
TEXT: VLADIMIR SERGACHEV, PHOTO: ITAR-TASS
A significant part of the Murmansk families (38.3%) do without children but the most widespread option of the social unit (73.3%) — a family with one child. Alas, but the number of large families with many children is very low in this region of Russian North-West (just 2.6%) The fact that the number of out-of-wedlock births gradually goes down thus indicating a desire of the region residents to stabilize family relations (about 0.3% a year). In terms of demography, Murmansk Region (as compared with other territories of the NorthWestern federal district) looks quite well. By the level of natural loss of population (–1.4), the region keeps a honourable third position. And it is not by chance, because the Murmansk residents are not devoid of health (and for instance, as regards the flu incidence, they keep one of the last places in the North-West of the country). What is a portrait of an average region resident? They are young and strong in health. In 9 of 10 instances, they are urban residents. Well-balanced, well-educated, having a family, able and willing to work. And they are well aware where it is best to be employed…
Always Busy According to the Russian Statistics Office, the number of the unemployed grew significantly slower in the first half of 2009 in Murmansk Region as compared to the other regions of the North-West federal district. Since June 2008, this number increased here by 40 % only, while on average in the federal district the increase is 107.4 %, and in the neighbouring Vologda Region — 245.7 %. It has been always not that easy to find a lucrative job here, but the Murmansk residents are always on the go. You are going to sow what you have reaped…
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Murmansk Region: People, Resources, Opportunities
People
Salaries are Getting Up The Murmansk residents know how to “make money”. By the level of the salaries accrued, they are far ahead the average picture. And this is with regards to St.Petersburg, and the district, and the whole country. In the first half of 2009, the residents of the transpolar region earned RUR 25,300 rubles monthly on average (in the North-Western Federal District, the average income is RUR 20,300 only) and managed to “add-up” against 2008 both by the level of calculated (+14.1%) and the take-home (+0.1%) earnings. While the larger part of the residents of the North-Western Federal District have discovered that their earnings are decreasing, the Murmansk Region inhabitants are gaining. As a result, a share of population with substandard income goes down in the region (for the recent 8 years, by 10%). It should be noted that not only the employees of commercial companies but the public sector employees, as well as retirees, have comparatively high income in the region. The average pension, for instance, was RUR 6,260 in January 2009, and the minimal local wage is RUR 7,063 (average in Russia is RUR 4,300). From 2005 to 2008, a nominal salary of the public sector employees in Murmansk Region has grown by 187%, and since January 2008, all regional public sector employees gets no less than minimal monthly wage.
Spending without Being Frugal Who earns much, they also tend to spend much. That allows for a living somewhat better than of the neighbours, and the expenses are planned in a different way. In accordance to statistics, the residents of the regions spend less for food and goods (as well as for currency exchange) than the average for the North-Western Federal District, but they assign more money for savings and deposits. The Murmansk people spend only 28.5% for purchasing the foodstuffs, while the Pskov residents figures are 35%, and the Vologda residents — 41.8%, and the Leningrad Region residents — 42.7% (according to the Russian Statistics Office). Many residents of the region are able to buy not only the bare essentials but also expensive goods of long-term use, which includes the large household appliances and cars. The Murmansk residents also spend significantly more money for services than in the midland. Actually, the Murmansk residents take the first place in the
district by such indicator, being even ahead of the St.Petersburg residents. They also have no objections against going out for dining and wining… It should be remembered that the living expenses above the Arctic Circle are not that humble. According to the Russian Statistics Office (for the first half of 2009), the Murmansk Region confidently takes the second place in the district after St.Petersburg by the level of monthly consumer spendings (RUR 13,260). Even in the Nenetsky Autonomous District, where monetary income of the population is twice as much, they spend less for “day-to-day life”, and the fair share of income is held over. Against the Pskov residents, the Murmansk residents are not at all spendthrift, as their monthly monetary spending is almost twice as
Statistics Average monthly earning calculated (1st half of 2009) Regions RUR
Murmansk residents know how to “make money”. By the level of salaries, they are far ahead of the average indicators. And this concerns the district and the country in general. But do not forget that the living expense is significantly higher above the Arctic Circle
Republic Karelia
17 719,9
Republic Komi
22 190,6
Arkhangelsk Region
19 137,2
specifically, Nenetskiy Area
42 748,6
Vologda Region
16 329,3
Kaliningrad Region
15 615,9
Leningrad Region
17 953,7
Murmansk Region
25 328,9
Novgorod Region
14 438,8
Pskov Region
11 897,2
St.Petersburg
23 297,6
Consumer expenses of the NWFD population (1st half of 2009, monthly average) Regions
per capita, RUR
Republic Karelia
8272,4
Republic Komi
12527,3
Arkhangelsk Region
9384,8
specifically, Nenetskiy Area
much. And it is not only because the foodstuffs and the goods are significantly more expensive in the area of the permafrost: they just are used to indulge for the sake of certain human weaknesses, and have a real ability to afford something of the kind.
6466,0
Kaliningrad Region
9678,7 8252,8
Murmansk Region
13260,2
Novgorod Region
Let Us Peep into the Future The authorities of the Murmansk Region have the whole range of long-term plans (up to 2025), that give a lot of attention to the life level of the population, as well as the demography of the region. According to the provisional figures, the factual income of the Murmansk residents (as compared to 2005) will increase 1.5 times next year, while in 2015 — by 1.7 times, and by 2020 — more than 2 times. The real wage, as the project originators envisage, will be growing even at a higher rate, and by 2020, it will increase 2.9 times, which is going to allow for a significantly reducing the share of the “pauper” population (at least, three times more relative to the level of 2005), along with the enhancement of the targeted aid and active social policy of the state authorities. Changes are expected in the demography too. A rise in births that began in the Murmansk Region in 2007 will be supported in every way by the government, so that in 2010, the result of 10.9 births per 1,000 of the population will be reached. This is quite justified, as in the years to come the aging of the population is anticipated (this is also a Russia-wide problem in general), and it is not without reason that the additional financial expenses of the government will be required to discharge the social liabilities concerning the pension provisions and welfare aid. Thus, in 2011–2020, a drop of the number of the employed in the economy is expected at the level of up to 12.8% (while the level of the overall unemployment is going to be no higher than 1% after 2012). Be that as it may, but the Murmansk folks never lose their good mood. And even the polar night that persistently mantles the region is not able to cast them down — which goes without saying about the recession that happens significantly less often…
12092,4
Vologda Region Leningrad Region
8862,5
Pskov Region
7913,4
St.Petersburg
15324,2
Monetary income of the NWFD population (1st half of 2009, monthly average) Regions
The Region against NWFD
As of September 1, 13,600 unemployed were officially registered in the region. It is one of the lowest figures not only in the district, but generally in Russia. It is indicative that the number of free jobs grows gradually in the region (they number now about 7,000), and the number of the unemployed is reducing. While a year before, the vacancies were twice as many, the local employment office is now able to assist the Murmansk residents to successfully find a gainful employment. For 8 months of 2009, it succeeded in finding the jobs for more than 17,700 people (45 % of the applicants for such service), as a result the level of the unemployment registered in the region is only 2.6 %, which is significantly lower than with many neighbouring regions. But while in the towns of the region it is easier to find a job, in the northern areas distant from its center it is very difficult. In Murmansk, for instance, the relative weight of the unemployed against the overall number of emloyable population is 1.4 %, in Severomorsk it makes 0.7 %, while in the Lovozersky Area it is 7 %, and in the Terskiy Area — 15.2 %. It becomes quite clear why the rural dwellers tend to gravitate to the towns …
per capita, RUR
Republic Karelia
12511,3
Republic Komi
19406,8
Arkhangelsk Region
15663,4
specifically, Nenetskiy Area
39355,1
Vologda Region
10775,5
Kaliningrad Region
13303,7
Leningrad Region
11189,2
Murmansk Region
20261,9
Novgorod Region
11244,1
Pskov Region
10112,8
St.Petersburg
18402,5
Turnover of the retail in NWFD (1st half of 2009) Regions
per capita, RUR
Republic Karelia
37079,7
Republic Komi
57535,9
Arkhangelsk Region
40791,0
specifically, Nenetskiy Area
52434,3
Vologda Region
24715,2
Kaliningrad Region
42446,6
Leningrad Region
37795,1
Murmansk Region
53867,9
Novgorod Region
38707,5
Pskov Region
35696,7
St.Petersburg
63311,1
Source: RosStat
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Business map of Russia
People
“Our Prime Task is To Promote the Development of Business” Half a year ago, a new Governor was appointed in Murmansk Region. Dmitry Dmitrienko, ex-military man, businessman, and federal official, took his office in the region. The colleagues from Moscow describe him as an “efficient and energetic manager”. If such is the case, it is exactly what the region with big ideas about several economical mega projects needs.
TEXT: SERGEY IVANOV. PHOTO: ITAR-TASS
The Arctic has the utmost rich deposits of hydrocarbons. And Murmansk, which is a non-freezing deepwater port with an immediate access to the ocean, may become the main base for exploration of the Russian part of the Arctic shelf. Whatever difficulties are experienced, the crisis cannot last forever — Dmitry Vladimirovich, you headed Murmansk Region for not a very easy recession period. When you came, the personnel of the regional government was noticeably changed, including the people who were responsible for the economic segment. What are economic goals of the regional administration? Which are the priorities in the financial and industrial policy of the government under your control? — Indeed, I embarked on my work in spring this year, at the very climax of the crisis. The regional budget was not in its best condition that period — let’s say the “hole” existed in it to be urgently filled. I would not like to accuse anybody of that: the financial difficulties were quite objective by nature. You know that the production and processing of raw materials gives a big share of our regional economy. About 70–80% of the budget come from 29 major businesses, including the Kola Metallurgical Company, Fosagro Co., etc. Naturally, these companies that, among other things, are to meet the demand from abroad, give us a significant infusion through the taxes. Price fluctuations on the world markets thus directly affect the well-being of the region. A drop of the commodity market that occurred at the end of the last year and the beginning of this year has resulted to a certain financial tension. So my first task when entering upon office of the Governor was the same as for a doctor: “First and foremost, do no harm”. No steps should have been taken which could worsen the financial situation. And the second task was “Help!” That is, I had to think over a new economical prospect for the region, in order to find additional sources for the economic growth…
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Murmansk Region: People, Resources, Opportunities
People — Are you ready to list them now, after half proposal is as follows: give us the fish for sale a year upon taking the office? but the payment will be made in a month or two. — I believe that some things are obvious here: It is not quite acceptable for us, because the fish our major economic problem is unsufficient in- producers need the operating assets “here and come from small and medium-scale business now”, since the fish is a seasonal product. to the budget; therefore I consider my first and However, from my viewpoint the situation main task as encouraging the development of in the industry is changing, and in general the just small and medium-scale enterprises. It is fish becomes a fashionable item of the menu in the measure that will enable us to smoothen the Russia, especially in big cities. consequences of price fluctuations on the world So the demand grows; the deliveries of fish markets in the course of time. This is the first. production from the coastal cities to the cenThe other point of growth is the reform of our tral areas of Russia, the Urals, etc. constantly financial system so that to enhance the attrac- increase. tiveness of industrial and construction projects for investments, as well as the projects from — One more question, about major investother allied areas of economy. ment projects to be implemented in the We are making the budget of 2010 so that on region, and specifically the development of the one hand, not to lose the social focus that the Stockman gas condensate deposit. Do already exists, and on the other hand, to con- they change the terms for investors or dates currently establish the premises for a new eco- for the implementation of the project relatnomic boost in the near, post-crisis future. ed to the crisis? Besides, now we are going to undertake — As far as the Stockman deposit is conthe revision of all regional special-purpose pro- cerned, the pre-contract activity is now undergrams and targeted programs; we are working way and we believe that investor risks are miniwith federal agencies and negotiating the op- mal in the territory of Murmansk Region. We portunities to co-finance various projects… hope that in March 2010, when the major decisions are to be taken on this project by the consortium shareholders, any doubts of investors — Perhaps, it is the development of fisheries will be completely over. For all my knowledge, and fish processing that might become one of possible growth directions for small busi- the major project participants give its prospects ness. It is not a secret that the Murmansk quite optimistic estimates. fishermen preferred to forward their yield Our another large project of the overall to abroad, not to Russia, for a long time. renovation of the Murmansk transport hub is What is done here? already mentioned in a special-purpose federal — A good question. Indeed, we had such program. It is planned to create an almost new problem and it partially exists until now. How- port at the western coast of the Kola Peninsula. ever, it is not quite regional but rather federal. The hydrocarbon transshipment facilities, coal The fishermen had difficulties both with the transshipment facilities, container transshipregistration and the sale of the yield. But the ad- ment facilities should be included in it. vent of the federal fishing act (amendments to Also, a decision is in pending now whether federal act Nr. 333 adopted on December 3, 2008) the ferrous-ore concentrate transshipment fahas already removed a part of problems. cilities are to be included there. At present, the In any case, we have recorded about 17% RF Ministry of Transport has announced a tengrowth of delivery of bioresources to the shore, der for rendering the first stage of the works, and for specific kinds of bioresources such and the preparatory procedures are under way. growth of delivery is 30–40%. And this is despite Potential investors also work at the feasibility all the phenomena due to the recession. In this study of the project. regard, it can be probably said that another situI can not tell you right now who is going to ation takes place: while the fish and bioresourc- be an investor — until all tender procedures are es come to us, a new issue arises — the demand implemented. I can only confirm that there are and the solvency of the Russians. indeed the bids from the promising investors, Commercial representatives come to Mur- but the specific “names” will be revealed after mansk on a regular basis, and their main the completion of tender procedure only.
— But is the ratio of private and public participationin the development of the port already determined? — About RUR 60 bln will come from the federal budget to construct the government facilities: quays and hydraulic engineering units, navigation aids, etc. A mixed form of financing is expected for the renovation of existing railway stations and creating a new one near the port. Most likely this will be the monies of both the Russian railways and other investors, and this is about RUR 29 bln more. The rest is private capital. In total, the project cost is estimated as more than RUR 150 bln.
A drop of prices on the world commodity markets has resulted in a certain tension for the regional budget, so my first task after taking the office of the Governor was in a way like a doctor’s: “First and foremost, do no harm”. And the second task was “Help!” — The first international forum devoted to conquering the Arctic is opened now in Murmansk. Why now? And why in your city? — You know the Arctic is now considered the utmost rich region with the proven deposits of hydrocarbons — so the focus of the business community on it is understandable. It is Murmansk, which is the deepwater and non-freezing port with an immediate access to the ocean, can be the advanced base for exploration of the Russian part of Arctic shelf. Whatever temporary difficulties the world economy experiences, the crisis cannot last forever. The strategic areas in the development of our country and our region will not change. The northern seas hide enormous riches under their bottom. Our common task — both of Russian businessmen and our neighbours from other countries — is to dispose of them as efficiently and carefully as possible. This is why we host such representative forum and hope that it will be held on a regular basis. Maybe even annually. Anyway, the guests are always welcome in Murmansk!
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10
Business map of Russia
Resources For the Murmansk Region, the 2007 financial year happened to be most successful when the prices for commodities and metals on the world market grew at high rates. A lack of finance-related problems allowed then ensuring a good money “provision” for 2008 as well. But because of the recession, the region’s treasury started to experience a certain tension, especially in the fourth quarter of 2008. The situation remains uneasy this year which has already resulted in a budget gap. However, despite all problems in making the budget for the next year, the authorities laid an emphasis not on the current expense but on raising investments to the region.
The Budget: Flexibility and Savings
T
his year, the Murmansk Region was ranked the 4th in the NorthWestern Federal District (see the table) by its income. In general, the budget of the Murmansk Region was approved for 2009 with the following indicators: income — RUR 33.33 bln, expenditures — RUR 35.04 bln. The budgetary gap is RUR 1.7 bln. It should be noted that in the first half a year of 2009 the budget was adjusted five times: due to the revenues from the federal funds and (largely) due to the recession consequences which “upset the routine” of the major regional taxpayers — ore mining and processing enterprises.
We make the budget of 2010 so that it is going not to lose a social focus but at the same time establishes the favourable background for further development, when the economics starts to recovers from the diffuculties due to the recession. Dmitry Dmitrienko, Governor of Murmansk Region
TEXT: LIUBOV SHABALINA
The tax inspectors recorded a decrease of the revenues to the treasury of profit tax and personal income tax. After multiple realignments, the budget “grew thin” noticeably by April: revenues totaled to RUR 29.79 bln, while the expenditures — RUR 35.17 bln. A gap has reached its maximum allowable value under the Budgetary Code. However, despite such sequester a social focus of the budget persisted. The authorities guaranteed an increase of all payouts and allowances to the aided persons, as well as an increase of salaries of government institutions employees.
are obligated to turn their attention to the restructuring of debts. Control over the market prices was highlighted as one of the key points in the anti-crisis program. In May, by the Governor’s order the multi-agency commissions for streamlining the expenditure was set up. It included several working parties: one is prescribed to deal with reduction of debts related to the budget payments, the second — to work with loss-making enterprises, the third — to undertake efforts in legalizing salaries and wages for a growth so that the revenues from a personal income tax increase.
Trying Time By the results of the half a year of 2009 the Murmansk Region faced a significant drop in the collection of the profit tax. Admittedly, on the other hand, non-repayable receipts from the federal budget have also increased. The expenditure plan for the first six months was fulfilled with significant savings: by 43.6 %. The payments of social focus and public regulatory liabilities have also failed to comply with the scheduled figures. The target investment program has suffered the most (21% of the plan). The same situation is with the transfers between the budgets. Expense for the maintenance of the administrative machinery (in total by RUR 40 mio) has reduced. Thus, the state of the budget became the mirror reflection of economy in the region where all
the key figures demonstrated negative dynamics for the six months, except investments in the stock and real wages. In September, the region received RUR 1.78 bln from the federal budget and assistance fund to the reforms in the housing and utilities; they were distributed by different items.
Signs of Stabilization In the second half a year signs of stabilization have showed up. The budget-making of the region for 2010 has begun. It is already clear that expenditure will be maximum optimized in it again. The primary objective is to raise investments to the region. According to the plans of the regional government, one of the main criteria for assessing the performance of the heads of the subordinate administration will be their abilities to implement the investment projects. According to Governor Dmitry Dmitrienko in the crisis period the municipalities should not only efficiently use the arriving subsidies and bailouts but actively identifying additional sources of financing. “We make the budget of 2010 so that despite the crisis it does not lose a social focus but at the same to establish the background for further development after the impact of the crisis on economy begins to decrease,” — the Governor said to the journalists. With such attitudes the “zero” readings of budget-2010 will begin.
Statistics The fulfillment of the consolidated budgets of NWFD subjects in the I half of 2009 Income Subject
Expenditures RUR, bln
Subject
RUR, bln
Republic Karelia
11.24
Republic Karelia
12.94
An Anti-Crisis Plan
Republic Komi
19.33
Republic Komi
21.06
In spring, the region adopted an anti-crisis program. It includes the sections from various areas of activity. A weekly monitoring of major enterprises and banks becomes one of the lines. As instructed by the Governor, the executive authorities will have to optimize the number of government employees and the expenses for their salaries. The subordinate unitary enterprises were advised of revising the salaries so that they do not exceed the level prescribed by the budget. In doing so, the authorities promised to the public to strengthen support to enterprises. The banks
Arkhangelsk Region
22.07
Arkhangelsk Region
24.06
Vologda Region
17.56
Vologda Region
20.26
Kaliningrad Region
15.02
Kaliningrad Region
13.09
Leningrad Region
28.29
Leningrad Region
25.65
Murmansk Region
19.90
Murmansk Region
20.02
Novgorod Region
10.08
Novgorod Region
10.23
Pskov Region
9.33
Pskov Region
8.32
St.Petersburg
141.41
St.Petersburg
130.15
Nenetskiy Area As per the data of Federal Treasury
4.27
Nenetskiy Area As per the data of Federal Treasury
4.35
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Business map of Russia
Resources
Shtokman field, May of 2008
The Arctic: the New Fleet of Russia Western countries have intensified their activity in the Arctic. Russia is keeping pace with them. Rich in hydrocarbons and having a potential strategic transport value in the future, the Arctic is drawing more and more attention from Moscow. The scale of plans on development and establishment of a new infrastructure in the region is impressive. The region has probably not seen so much industrial expansion since the Soviet times.
TEXT: ANDREY LAZAREV, PHOTO: ITAR-TASS
A
ccording to the Arctic policy of EU that was designed by the European Commission, 25% of the undiscovered oil and gas field of the world may lie in the Arctic region. Most of these resources are in the economical areas of Russia and USA. In his speech at the 9th RAO/CIS Offshore International Conference and Exhibition, Sergey Donskoy, Deputy Minister of Natural Resources of Russia, was less assertive and said that the reserves of the Russian shelf are not researched enough yet. One can only be confident about the regions of the Barents, Kara, and Okhotsk Seas where the approximate amount of hydrocarbon reserves is determined. All the other resource potential of the Russian shelf is based on predictions. The reserves are spread in over 20 biggest oil- and gas-bearing areas and basins in the sea and on the mainland where over 1,000 promising fields have been identified. However, only a few dozen oil and gas fields have been verified.
From an Idea to Oil-wells In the last years, Gazprom moved from designing concepts to real development of the Russian shelf of the Arctic. For this purpose, in particular,
an oil-derrick platform is being built at OAO Sevmash, which will go to the Prirazlomnoye field. Orders for drilling units for prospected wells of the Shtokman project have been placed with the Zvezdochka company and the Vyborg shipbuilding plant. And this is just the beginning. There are bigger challenges ahead, which the international integration will help solve. At one of the press conferences, Valeriy Golubev, Deputy Chairman of the Executives Committee of Gazprom, told journalists that by 2030, the company is planning to raise the gas reserve increase by 43% through shelf reserves. Investments in the development of Northern deposits will amount to billions of dollars. Implementation of the first stage of the project started in July 2007. It is expected to produce 23.7 billion cubic meters gas per year and to supply gas to Europe and countries of the Atlantic basin including USA. Work at the Shtokman project has been divided into three conventional stages. Foreign companies Total S. A and StatoilHydro ASA have been involved in the implementation of the first stage. According to Yury Komarov, Senior Executive Director of Shtokman Development AG, one
of the objectives of the project is organization of cooperation of Russian and foreign contractors.
Transport infrastructure Fleet modernization is another challenge for Russia these days. A few years ago, an expert research showed that after 2010, further use of the existing transport system could be a problem. Most of the problems are related to logistics — primarily, cargo traffic via the Northern Sea Route. There were several problems listed; in particular, the specified lifetime of evaporating units (nuclear reactors) of ice-breakers operating on the Northern Sea Route expires in 2008. Overhaul of these units would extend the service time of the icebreakers until 2013. There is no governmental program of new ice-breaker construction, and the commissioning of the 50 Years of Victory ice-breaker in 2007 does not solve the ice traffic problem. The experience shows that building a new ice-breaker from the initial design to trial trips takes 10 years. A careful analysis of the ice-breaker fleet development programs and a comparison of their implementation shows that after 2013, the only operating linear nuclear-powered ice-breaker on the Northern Sea Route may be the 50 Years of Victory, which cannot lead the ships in the mouth of the Enisey river to the Dudinka seaport because of its keel depth. Therefore, unless diesel-electric ice-breakers are put into operation by that time, ice escort of ships to Dudinka will cease. There is a similar situation with ice-class cargo ships suitable for the Northern Sea Route; the existing fleet is old, and its lifetime will expire around 2012. Most of ice-class ships that are suitable for cargo transportation will be out of service in 2009. After that, ship owners will have to invest big amounts in repair or order a new fleet. If this is done on time, the ship tonnage will stay on the current level for about ten more
13
Murmansk Region: People, Resources, Opportunities
Resources years. And the possible growth of cargo traffic will inevitably depend on ice channeling. The pessimistic conclusion can be made that any new investments in resource development programs of the Russian North will have to be backed with capital investments in the transport infrastructure. It is not by chance that in the previous years big cargo owners who hope to settle in the Arctic latitudes seriously have started developing their shipbuilding programs intensively. This has resulted in extra tonnage on the Northern Sea Route today. However, these days it mainly covers the needs of its owners. Nevertheless, the future plan is engaging more cargoes from other customers. The Murmansk Shipping Company is not abandoning the plans of own fleet development either. This company is now a holding comprising also JSC Northern Shipping Company and JSC Northern River Shipping Lines. Each of them has its own niche in the Arctic, which enables all the companies to cover the whole range of transport services related to sea and river transportation.
Gazprom Dictates Cargo Traffic Gazprom has its own ambitious plans for development of the sea component. The Krylov Research Institute has drawn a program for sea machinery construction for shelf development until 2030 by Gazprom’s order. According to the experts at the institute, over 350 various floating crafts and special facilities costing in total more than USD 100 billion need to be built for the gas company’s needs within 20 years. Gazprom has underscored that the implementation of this program will depend on the increase of oil and gas production on the shelf. At the RAO/CIS Offshore 2009 conference that took place in St.Petersburg recently, it was mentioned that for the development of the Russian shelf within the next 20 years Gazprom would need 58 tankers (USD 9.45 bln), 46 ice-breakers (USD 4.04 bln), and 93 support vessels (USD 961 mio). At the presentation
that the institute made for Gazprom it is also stated that by 2030, the company will need 34 floating oil-derrick platforms, 27 tankers for liquefied natural gas transportation, and 39 research vessels. The program of Northern natural resource exploration will require large amounts of cargo traffic by itself. Development of gas condensate provinces is impossible without it. Meanwhile, it is planned to begin in 2013–2014. Its reserves are 3.8 trillion cubic meters gas and 37 million tons condensate per year. Therefore, Gazprom alone can generate cargo flows that would increase the traffic on the Northern Sea Route drastically.
After 2013, the only operating linear nuclear-powered ice-breaker on the Northern Sea Route may be the 50 Years of Victory, which cannot lead ships in the mouth of the Enisey river to the Dudinka seaport because of its keel depth
Statistics «Gazprom» demand on building of maritime machinery for shelf exploitation, until 2030 Vessels and special facilities Index Number
>350
Cost, USD bln
>100
«Gazprom» demand on oil-derrick platforms for shelf exploitation, until 2030 Oil-derrick platforms Index Number Cost, USD bln
55 42.9
«Gazprom» demand on building the tankers for shelf exploitation, until 2030 Tankers Index
Infrastructure problems are made worse by the financial difficulties that Gazprom is facing today due to the global economic recession and lower demand for gas. This makes expect that the plans of the Shtokman field development can be postponed for at least one year, though until now the company has kept saying that the terms would not change. There are plans of building two oil transshipment units and gas liquefaction plants. However, there are also forecasts that if Gazprom is late with the development of the Shtokman field, the future demand for liquefied natural gas may exceed the global supply. This largely explains the recent intensification of negotiations with investors.
Number Cost, USD bln
58 9.45
«Gazprom» demand on building the ice-breakers for shelf exploitation, until 2030 Ice-breakers Index Number
Source: Presentation of Krylov Research Institute at the conference RAO/CIS Offshore 2009
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14
Business Map of Russia
Murmansk Region Norway
Kirkenes
Barentsevo Sea Pechenga
Kolskaya Superdeep Wellsite
А�
��
Vidyaevo
Zaozersk
Zapolyarny
Gadzhievo Teriberka
Polyarny
Snezhnogorsk Р
��
Nikel А
Severomorsk
���
Kilpyarv
Tumanny
MURMANSK
��
Kola Pechengskiy Area
ve Ri
om ul�� T r Р
a Murmashi
�
M�
��
Р
Ri
ve
��
o rL
tt
a
Verkhnetulomskoe Water Reservoir
Verkhnetulomskiy Kolskiy Area
Olenegorsk
M
��
Revd
Monchegorsk
Kovdorskiy Area
Lake Umbozero
Lake Imandra
Kirovsk Apatity
Kovdor
Polyarnye Zori M ��
Finland
Kolskaya Nuclear Power Plant Kandalaksha
Kanaa Bay Alakurtti M
Salla
Zelenoborskiy
��
Kandalakshskiy Area The map illustrates pp. 8–23, no coordinate grid applied
Republ ic Karelia Petrozavodsk
15
Murmansk Region: People, Resources, Opportunities
Legend Agriculture specialization
Minerals
Dairy and meat industry
Deposits of apatite Ferrous ore
River Voron
ya
Industry branches
М18
Federal highways
Р18
Other federal roads Territorial roads
Mining
Titanium, vanadium
Metallurgy
Copper-nickel ore
Machine building
Ports
Raw materials for ceramics
Airport
Production of vehicles
Deposits of gold and metals of platinum group
Airfield
Food processing
Deposits of quartz
Customs checkpoint
Hydroelectric power plants
Tantalum, niobium, zirconium, lithium
Power supply
y
Thermal power plants
Serebryanskoe Water Reser voir
MURMANSK ПСКОВ
Fishing base
Towns with population above 100,000 people
Apatity
Towns with population up to 100,000 people
Umba
Towns with population up to 10,000 people
Investment projects
Area border
Ostrovnoy
Region border
a
Country border
Riv
er
Lovozero
ay
a
kh
Iokang
Federal border
Su
River
da
Lake Lovozero Lovozerskiy Area
River Ponoy
What and Where
arz er V uga
Umba
Administrative territory units of Murmansk Region as of January �, ����
Terskiy Area
Varzuga
Kand
alak
Chapoma
shsk
iy Gu lf
ite
r th
ola
cle
Pyalitsa
White Sea Neck
Towns with subordinate territories: Olenegorsk, Monchegorsk, Apatity, Kirovsk, Polyarnye Zori, Kandalaksha CATE: Severomorsk, Zaozersk, Vidyaevo, Skalisty, Snezhnogorsk, Polyarny, Ostrovnoy
Wh
No
P ern
ir rC
Sea
Lake Vulliyarv
Riv
a
Autoroutes
16
Business map of Russia
Resources
The Fishery: a Good Catch at Financial Storm The fisheries sector is one of few in Russia whose indicators are not going down but going up in the recession year. Fortunately, cod, haddock, and capelin do not depend on the stock figures and are not going so far to migrate away from the northern seas. But catching the fish is a half the way. Russia experiences a serious problem with its processing and transportation. And this is a good chance for investors.
TEXT: ANDREY LAZAREV, PHOTO: ITAR-TASS
A
ccording to statistics, in January–August of the current year the Murmansk Region enterprises increased their catch of fish and production of other seafood up to 436.200 tons (+9.6 % as compared to the same period of 2008). In general, the index of the industrial production in the fisheries sector has increased even more — by 11.4 %. The same indicators are mostly related to the increased quota for cod, haddock, herring, and mackerel, as well as with the commencement of a full-scale capelin catching after the expiry of the moratorium. Production of marketable foodstuffs made of fish (except for canned food) on board the fishing vessels has increased by 7.9 %, output of frozen fish — by 13.7 %, ice-cooled fish — by 35.2 %, fish fillet (frozen) — by 35.9 %. The forecasts for 2010 sound optimistic. A growth in the stock of fish is observed in the fishing areas not only of the Barents Sea but also of the Norwegian and Greenland Seas. Therefore, at the coming 38th session of the Joint Russo-Norwegian Fisheries Commission it is most likely that the quotas for catches of cod, haddock, and capelin may be increased. Therefore, in the capelin season of 2010 the fishermen may anticipate to achieve even better yield against 2009. It is also worth noticing that at the end of the last year, the fisheries sector in Russia was subjected to certain legislative adjustments. In December 2008, the Federal Fishing Act was amended, under which the bareboat charter vessels governed by a foreign jurisdiction were not allowed to operate in the RF economical zone from January 1, 2009. Further more, since that day the catch quotas are given to Russian vessels only, and as as much as for ten year at once. The purpose of all such changes is to return the private fishing fleet back under the Russian jurisdiction and establish the favourable environment for “clearer” and “more transparent” operations of the fishing companies specifically on the national, Russian market. In addition, the fish and other seafood imports have drastically reduced in Russia in the year of the recession (a drop by 70 % for certain sorts of fish). To a great extent, the market has therefore “broken free” for the expansion of national companies.
Go Fishing, Everybody !
For 9 months of 2009 elapsed, the investors contributed more than RUR 600 mio in fish farming in Murmansk Region. The major task is to satisfy a significant portion of the Russian demand for fish production in the near twothree years. The Murmansk Region Government expects that the level of investments will increase in future. The infrastructure is going to emerge that will make it possible to deliver the fish straight to the counters of the Russian foodshops. A special initiative of the Federal Agency for Fisheries will also promote the fish trade: It is a revival of the network of dedicated fishmongers in the Russian cities under the Ocean trade name. The initiative has already been started to be implemented in practice. There are about more than half of a hundred of such fishmongers in Russia already. In future, the Ocean chain system (or the like under a local name) should unite about 450 shops throughout the whole country. Murmansk is one of the first among the cities that have supported this initiative. The project implies the installation of special refrigerator storages that allow for prolonging the date of consumption for the unprocessed fish. Furthermore, a chain of direct sale of output from all fish-processing enterprises of Murmansk Region is being arranged, to prevent the losses due to the competition with cheaper imported goods that are inevitable under a conventional sale system. Within the framework of programs for the promotion of fisheries industry, a project to launch a fish-processing enterprise at Spitsbergen has already been elaborated. A tender for designing the fish processing facilities in Barentsburg was posted recently in RosRybolovstvo. It is most likely that the Norwegian specialists will be building this project. It is expected that at the end of the year the design documents will be finalized, and the construction will begin in 2010. Development of the processing productions, retail trade system, purchase of new modern fishing vessels with the advanced facilities — all these are the strategic objectives endorsed by the state authorities. For the investors, including foreign ones, there is a good opportunity now to cover temporary “lacunas” in the sectoral process flow just in time.
17
Murmansk Region: People, Resources, Opportunities
Resources The Sea Neighbours
Statistics
With regard to promotion of the fishing business, Russia relies not only on own efforts but on a mutually beneficial cooperation with the neighbours. The joint Russian-Norwegian Fisheries Commission (JRNFC) operates successfully with certain outputs. Its objective is to work out the uniform rules for fisheries. The objectives of the commission also include the settlement of commercial and other conflicts arising from time to time. For example, in September this year the Norwegian coast authority detained two Russian trawlers. This incident tooks place mainly due to the fact that the rules for fisheries in RF and Norway were uncoordinated. The international workshop under the assignment of the 37th session of the Commission delivered its proposals to this end. The 38th Russian-Norwegian Fisheries Commission embarked upon the work at the beginning of October 2009. However, the head of the
Fish and other seafood yield in January–August of 2009 Total, 000 tons to the same period of 2008
+9.6%
Dynamics of major indexes in the “Fishery” sector in January–August of 2009 Index
%
Production index of «Fisherie» sector
+11.4
including: fish products manufactured on board of vessels
The forecasts for 2010 sound optimistic. A growth in the stock of fish is observed in the fishing areas not only of the Barents Sea but also of the Norwegian and Greenland Seas. The quotas for catches of cod, haddock and capelin may be increased. Therefore, in the capelin season of 2010 the fishermen may anticipate to achieve even better yield against 2009
+7.9
frozen fish
+13.7
ice-cooled fish
+35.2
frozen fish fillet
+35.9
Source: MurmanStat
Fish and other seafood yield of the enterprises of Murmansk Region Year
000 tons
2004
528.9
2005
578.8
2006
607.0
2007
550.4
2008
557.2
Source: MurmanStat
Indexes of industrial production over Murmansk Region, % as compared with previous year
The Region against NWFD
Norwegian delegation Lisbet Plassa noted that it was still early to speak about any tangible results reached. A lot of discordance have still accumulated for the previous years. And, since the matter of money is involved, the parties are reluctant to come to an agreement. The comments on this of the representatives of the Barents-Belomor territorial office of RosRybolovstvo are most cautious and elusive: “The life will show whether or not the standard rules for fisheries are to be adopted at the 38th session —but the RF is not going to accept a tradeoff to the detriment of governmental interests”. Nevertheless, the activity of the commission has already shown that the experts are quite able to reconcile on a number of technical issues. Among other things, the general procedure for estimation of excessive catches has been elaborated, although some discrepancies still remain, related to the ratio for recalculating the finished goods back into the raw materials. Regrettably, the Russian proposals on the principles underlying the joint control over the fishing have not been welcomed yet. It will be exactly the subject to discuss at the current session. The situation with such control in open waters of the Global Ocean near Spitsbergen has also not been discussed yet. In either event, the fisheries sector, according to the experts, will demonstrate a steady growth in the near future. Among other things, it relies on the governmental assistance. Changing conditions of the government control and future “ups and downs” on the financial markets will never beat the “ace up the sleeve” of Murmansk people: the fish, like other foodstuffs, remains the product of the “first demand”. A need for it cannot just disappear. It means that there always are opportunities for successful business here. The key point is to offer own most efficient and gainful option. And be not late in approaching the market!
436.2
% of growth as compared
Year
%
2004
106.2
2005
105.0
2006
102.8
2007
90.5
2008
103.6
Source: MurmanStat
Cost-effectiveness of sold goods, products (works, services), % as compared with previous year Year
%
2005
6.0
2006
8.9
2007
13.4
2008
13.6
Source: MurmanStat
Subsidies for aboriginal peoples who deal in fishery in 2009 Subsidies from Murmansk regional budget Co-financing of communities Source: MurmanStat, Government of Murmansk Region, Federal Agency over Fishery
RUR 2 mio no less than 10%
18
Business map of Russia
Resources
Murmansk Sea Port
Transport: Expansion of Opportunities Murmansk is the most convenient jumping-off place for development of the Arctic with its colossal natural reserves. It has also human and scientific resources, and the main point is its being a non-freezing sea port. Therefore, the implementation of the development project of the Murmansk Transport Hub will be launched in the regions that will increase export-transit capacities of Russia, expand the range of foreign economic ties, and improve the life quality of the residents.
TEXT: ANDREY LAZAREV, PHOTO: ITAR-TASS
T
he main factor for the implementation of the Murmansk Transport Hub Development Project (MTH) is the unique geographical location of the city of Murmansk, a non-freezing port which is the most deepwater port in Russia. It is able to receive the vessels deadweight up to 300 thousand tons, and furthermore economically independent of other countries as there is no need to pass through their maritime belt. The other advantages of the hub development feature the proximity of the region to the European and American markets, opportunity to use international transport corridors Northern Sea Route, TransSib and North-South free and undeveloped territories on the western shore of the Kola Gulf fit for construction of new terminals, reliable transport links of the Murmansk port with the industrially developed regions of Russia. These were the reasons for the RF Government to take a decree dated 08.12.08 Nr.1821-p with the resolution to implement the overall investment project “Development of the Murmansk Transport Hub” and significant budgetary funds have been allocated. At present the
hub development project is included in the federal earmarked program “Development of Transport System in Russia” (2010–2015).
The Amount Involved According to expert opinions the development plans of the Murmansk transport hub will require about USD 7.6 bln. It will be necessary to invest about RUR 60 bln from the federal budget to this end. These monies will be used to construct the facilities in the federal ownership: berth and hydraulic engineering structures, navigation aids. It is anticipated to spend RUR 29 bln more for the arrangement of the railway infrastructure. It can be the money of the Railway Road or the Investment Facility, and also from the investors. However, the final form has not been decided so far. The remaining amount — RUR 160.34 bln — will be the investors’ money. The establishment of the Special economic zone of the port type in the territory of the region will contribute to raising investments. This will allow the investors sparing about 10% of the funds both at the construction stage and at the stage of putting into operation — because of exemption from
VAT and customs payments for all equipment delivered.
Development Plans Under the MTH development project the renovation of the sea port will be undertaken on both shores of the Kola Gulf. It is anticipated to construct the coal and crude oil loading terminals with the cargo turnover of 20 million tons and 35 mln. tons a year respectively on the western shore not yet developed. Construction of the container terminal is planned on the eastern shore. Coal is mainly handled so far here. The container terminal with the designed capacity of 1 million TEU (equivalent of a 20-foot container) a year will appear instead of the coal berths. Furthermore, it is envisaged the retargeting of going port facilities to transship general cargoes to ensure the deliveries of raw materials from a number of deposits of the Arctic shelf. The project also envisages the development of the logistic and warehouse infrastructure, development of the railway transport, further equipping of the water area of the port and the fairway. The renovations undertaken will permit to increase significantly the volumes of cargo transshipment. Under the optimistic scenario it is anticipated a growth of the total cargo turnover of the Murmansk sea port up to 144 mio tons by 2020, and under a pessimistic one — up to 52 mio tons. Under the intermediate option the cargo turnover will increase four times relative to the present level, i.e. up to 100 mio tons a year.
Additional Freight Traffic The launch of the projects on the western shore is first of all linked to the beginning of the development of hydrocarbon reserves of the Arctic shelf.
19
Murmansk Region: People, Resources, Opportunities
Resources assistance to a growth of economic potential of the North-Western region and the Russian Federation, a significant strengthening of the competitive advantages provided by the transport system of Russia in general; promotion of business and investment activity in the
Further on, the cargo traffic of the Murmansk Transport Hub will be growing up for account of carriages of the mining-industrial production of the Murmansk companies. First of all, experts talk about the Kola mining-metallurgical company (MMC) — a major company of the Norilsk Nickel Group. MMC Norilsk Nickel public joint stock company will invest RUR 2.2 bln in the renovation project of metallurgical production on the production site of Kola MMC public joint stock company in the city of Zapolyarny of the Murmansk Region. Furthermore, the whole range of not so large ore-mining businesses operates in the Murmansk Region which may also provide an additional cargo traffic in the Murmansk Transport Hub in future.
The cargo traffic of the Murmansk Transport Hub will be growing up for account of carriages of the miningindustrial production of the Murmansk companies. First of all, experts talk about the Kola mining-metallurgical company (MMC) — a major company of the Norilsk Nickel Group
In the course of the implementation of the project the total local railway carriages at the Murmansk Transport Hub may increase up to 43 mio tons in 2015, and in 2020 — up to 66.9 mio tons. Coal in bulk, petroleum products in tanks and container cargoes will make a basic part of such cargo traffic in future. Total volumes of foreign trade container carriages of the Murmansk Transport Hub may amount to 2.7 mio tons by 2015, and 10 mio tons by 2020, including a share of import will increase up to 60%. The volumes of coal transshipment through Murmansk will also significantly grow. They are envisaged to bring to the level of 23 mio tons in 2015 and up to 32.9 mio tons in 2020. For comparison — it was handled 11.1 mio tons in 2008. A discharge of petroleum products will increase up to 9 mio tons in 2015 and 14.2 mio tons in 2020. For example: in 2008 it was 1 mio tons only. Almost 80% of total volume of cargo transshipment in the Murmansk hub will fall to coal and petroleum products in the near time.
Murmansk Region for account of improving the overall investment and business climate; establishment of necessary background for dynamic development of the Murmansk transport hub, increase in the development rates of economy, invigoration of innovative activity, raising national and foreign investments and advanced technologies in the development of the economy of the Murmansk Region; establishment and development of modern port facilities for handling export cargoes in the Murmansk port and on the western shore of the Kola Gulf as well as conditions for renovation of the port infrastructure for account of raising national and foreign investments; diversification of the oil and coal export system through the Murmansk port, establishment of competitive transport schemes for export of mass commodities cargoes with the use of heavy-tonnage transport vessels deadweight up to 300,000 tons; bringing the transport infrastructure of the Murmansk Region in line with the current economic conditions and establishment of the background for construction of new port terminals on the western shore of the Kola Gulf; establishment of objective conditions for development of cargo carriages by the Northern Sea Route; creation of new jobs, maintenance and development of the human resources potential of the region, improvement of the life quality of population; getting additional tax revenues to the budgets of all levels. In the course of the implementation of the Murmansk Transport Hub development project, the optimistic scenario expects a total growth of cargo turnover up to 144 mio tons by 2020, while a pessimistic one — up to 52 mio tons.
Strategic Prospects The result of the implementation of the overall development project of the Murmansk Transport Hub should be: the establishment of equal international competitive opportunities for the Murmansk port that will promote a significant growth of an export transit potential of Russia for account of an increase of export and transit freight traffic in prospect and strengthening of foreign economic ties, and also expansion of the involvement of the Murmansk Region in the international cooperation; integration of transport system of the Murmansk Region in the overall Russian transport system and
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Forecast of cargo turnover of Murmansk Transport Hub for 2020 Scenario
000 tons
Optimistic
144
Pessimistic
52
Averaged
100
Major achievements of JSC «MSTP» for 8 months of 2009 Index Cargo turnover
Value 10.46 mio tons
Turnover surplus against 8 month of 2008 Daily wagon turnover
+12% 1,500–1,600
Annual number of vessels handled
The Region against NWFD
A Growth of Volumes
Pskov (8112) 32-1825 prontopskov@ellink.ru
Statistics
550
Annual number of wagons handled
220,000
Growth of tariffs for cargo transportation in the 1st half of 2009 (% against the 1th half of 2008) Regions
%
Republic Karelia
106.2
Republic Komi
90.1
Arkhangelsk Region
102.4
specifically, Nenetskiy Area
124.2
Vologda Region
100.2
Kaliningrad Region
104.4
Leningrad Region
115.2
Murmansk Region
81.6
Development of Murmansk Transport Hub until 2015 Index
Value
Length of new railways
81 km
Cost of enhancing railway access to the port: Cost of enhancing road vehicles access to the port
RUR 28.2 bln
RUR 6.9 bln
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Business map of Russia
Resources Large investment projects that will be implemented in the Murmansk Region are already influencing the real estate market and the building sector of the region. Overheated in the recent years, the market started shrinking noticeably as the crisis started. However, builders and developers do not hurry to say goodbye to their projects as they expect a rapid growth of business activity in the near future.
Real Estate: Waiting for a Boost
E
xperts call the construction sector of the region “a weakness factor” of the Murmansk Region. In the 1990s, construction was one of the first industries to face the market realities. Commercialization has, on the one hand, made the industry more flexible and adapted to modern life realities and on the other hand, put a major part of business, finance, and employment relations “in the shadow”. Struggling for lower construction costs, companies decided to save on wages, which is why most of the employees had to change jobs or move to other regions.
In September, the average price of realtors was about RUR 32,000 per sq.m. However, in private conversations realtors confessed that vendors would offer a discount of RUR 50,000 to 150,000 per every real property bargain (e.g. an apartment) Most of the experts’ hopes for a renaissance of the sector are related to two big investment projects, namely, the development of the Shtokman gas condensate field and the development of the Murmansk port transport unit.
text: IRINA KARELINA, PHOTO: ITAR-TASS
Cottages Needed At the moment, the first-hand housing market in the region is very compact as building volumes have gone down. For many years, the Murmansk Region has been one of the last on the list of Russian regions by residential construction. This year, construction rates went down even more due to the economic recession. In January– August 2009, the amount of jobs and services in the industry amounted to 72% compared to the same period in 2008. In nine months, 13,500 sq.m of new housing were commissioned in the region. These are 18 residential buildings in the cities of Murmansk, Kola, Apatity, Kirovsk, Monchegorsk, and Polyarnye Zori, in the towns of Zelenoborskiy and Umba, and in the villages of Chavanga and Kovda. Of that number, construction of two apartment blocks was funded by the regional budget and of one — by the Kola nuclear power plant. The other new buildings are individual houses, namely, 15 private homes with a total area of 2,500 sq.m. For comparison, in the same period
in 2008, 21 houses were built of which 20 were individual. Demand for individual housing in the North has been growing in the recent years. In Murmansk, there are already three local “areas of development” of private housing, namely, near the Lights of Murmansk hotel, at the southern exit road near Shabalina street, and in the city at the foot of the bald hill to the south of Kooperativnaya street. However, it should be said that some of the private construction projects have been suspended this year, and the demand for new land plots has shown a decline tendency. However, in the future, private cottages should also appear near the Pitievye Lakes, according to the general plan of Murmansk development that has been adopted this year. According to the experts, implementation of investment megaprojects is the only way to create solvent demand and establish a need for a firsthand residence market in the region.
The Per-Meter Fall Prices on the real estate market in the Murmansk Region have been dropping for nearly a year. According to the experts, in late 2008, the dropping demand for apartments was caused by negative expectations of market participants due to the recession in the banking sector and on the stock market. The mortgage shrink by several times has also shown. As a result, housing sales in December 2008 dropped by nearly a third. However, the prices had stayed at the same level for some time.
Then the rates of USD and EUR started growing. Considering the change of the USD/RUR rate, the apartment prices in USD in the region dropped by more than 20% as a result. In the rest of Russia, no one noticed this drop at first as the prices had always been calculated in RUR. Then the RUR prices started dropping too. As a result, by late summer 2009, apartment prices dropped by nearly 30% and with the account of the “losses” due to the USD strengthening, even 50%. In September, the average price of realtors was about RUR 32,000 per square meter. However, in private conversations realtors confessed that the vendors would offer a discount of RUR 50,000 to 150,000 per every real property bargain (e.g. an apartment) at the very first attempt to. However, it should be noted that in the last years there had been a true price boom on the second-hand housing market in the Murmansk Region. The market went red-hot; in accordance with the expert opinion, the apartment prices grew on the wave of expectations of the upcoming prosperity and well-being of the region due to the soon start of the Shtokman field development. Meanwhile, the housing in the Murmansk Region is characterized by a high degree of depreciation. Due to permanent lack of funding, many apartment buildings have not been renovated for 30–40 years. The depreciation of about a half of apartment buildings is 31 to 65%, and of one tenth of buildings, over 65% (which makes the building completely non-repairable).
Statistics Prices of construction developers (1st half of 2009) Regions
%
Average prices on the second-hand market (as of May 2009) per sq.m Regions RUR 000
Republic Karelia
91.6
Republic Karelia
41.6
Republic Komi
97.5
Republic Komi
40.8
Arkhangelsk Region
94.9
Arkhangelsk Region
38.3
specifically, Nenetskiy Area
60.0
specifically, Nenetskiy Area
115.8
Vologda Region
98.1
Vologda Region
39.2
Kaliningrad Region
96.6
Kaliningrad Region
42.0
Leningrad Region
106.1
Leningrad Region
48.3
Murmansk Region
101.9
Murmansk Region
28.8
Novgorod Region
97.1
Novgorod Region
35.8
Pskov Region
97.7
Pskov Region
31.4
St.Petersburg
98.5
St.Petersburg
87.8
Source: RosStat
Source: RosStat
21
Murmansk Region: People, Resources, Opportunities
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Business map of Russia
Resources
The white waters of Kola Peninsula provide for extremal tourism
Tourism Business: Rich Opportunities The Kola Peninsula… The land with no sundown for a half of the year, where it is possible to see the rainbow-coloured glowing of the northern lights. The territory, rich in natural resources. The starting point of the Northern Sea Route. And it is much closer than it seems: a well-organized transport access by land and by air connects it tightly with many cities of Russia and the states of Grand Dame Europe.
text: Vladimir Sergachev, photo: itar-TASS
T
he Murmansk Region is some times called the Russian Lapland. Almost all its territory lies in the tundra and forest-tundra areas to the north of the Arctic Circle. This region is interesting for the people who are tired of the noise and everyday concerns of human civilization; for those who are ready to experience new sensations and to try their will and luck. The trump card of the region is the unique nature allowing for exercizing any kind of ecological, adventure, and extremal tourism. There are enormous opportunities for that. The region counts more than 20,000 rivers and brooks and about 111,500 lakes. In the western and in the central part of the Kola Peninsula, numerous mountain mass is found elevating up to 800–1,200 meters above the sea level. There are 4 natural sancturies on the peninsula, 10 game reserves and over 450 monuments of history and culture. Both hunters for the game and for impressions are not going to remain without trophies. And more than that: it is worth remembering that it is the Murmansk Port where the sea voyages to the Arctic and to the North Pole begin.
The tourist products of the area are indeed abundant and versatile. They feature the ski tours and rock-climbing routes and extremal car rallies (“Arctic Trophy”). And there are also tours by the rivers, lakes, and the White Sea, mineralogical tours to the Khibine Mountains, and shooting tours. Educative, ecological, adventure, historical-ethnographic trips (including those to the coast-dweller settlements) — the Kola Peninsula is ready to provide the widest opportunities for the people light on their feet. But it is not only the rich nature that appeals to the guests of the lands with nonsetting summer sun. Business events held in Murmansk and other cities of the region enjoy an evergrowing demand. Last but not least in the list are such memorable events as “The North Holiday” and “Welcoming the Sun”…
Infrastructure The Murmansk Region numbers about 100 accommodation facilities with about 2.500 rooms for more than 4,000 people. However, only about a half of the hotel room capacity may be considered up to the European standards of comfor (only 17% of the hotel room
capacity is “de luxe suite” category), and about 23% of the rooms does not have “conveniences” at all. To host and accommodate foreign tourists, for instance, only about 10 hospitality facilities are used: the rest of them are not able to provide a full range of services. Yet it must be said that sometimes they are not necessary required, as some adventure seekers have no objections at all about living in an authentic Sami raw-hide tent for a while... As far as the sphere of entertainment is concerned, the hospitality infrastructure of the Murmansk Region has wide opportunities to provide services to the guests at a highest level. Modern restaurants, bars, and cafes (about 30), entertainment and bowling centers (9), theatres (3), museums (6), art gallery, and dozens of sports facilities — all that will keep amused a guest of Murmansk after successful fishing or adventures in the mountains. In the restaurants, for instance, it is possible to taste not only conventional dishes the European are used to long ago, but also local gourmet delicacies (“stroganina” — fresh-frozen chips of fish, etc.) According to www.murmantourizm.ru data, about 50 companies providing the hospitality services that are included in the Joint Federal Register are established in the Murmansk Region. Many of them (more than 70%) operate in the regional center; however, a number of such businesses operate in Apatity, Kirovsk and Polarnye Zori. The major local hospitality businesses are united into the regional association “Barents Tourism” (comprising 16 members). A larger portion of such businesses deals in the area of outbound tourism while the primary activity of the other is to host incoming guests. The Kola Peninsula has also a well-developed transport infrastructure reliably connecting it
23
Murmansk Region: People, Resources, Opportunities
Resources not only with other regions of Russia but with neighbouring Finland, Sweden and Norway. Among other things, the Murmansk port quite fits for calling the cruise ships.
What is so attractive for a tourist in the Murmansk Region? The waters of the Kola Peninsula are a real paradise for a fisherman. Thousands of rivers and lakes breed dozens of fish species with the most popular salmon family (salmon, bulltrout, and trout). There are at least 17 leisure camps for foreign tourists furnished with all necessary facilities: over 1,500 guests from 38 countries annually come to the Kola Peninsula with the only purpose of fly-fishing the salmon. It is a challenge of the battle with a strong rival: the trophy would be a very large fish weighing 2–14 kilograms. The rivers Varzuga, Umba, and Olenitsa are well-known as the lucky places for such fly-fishing pilgrimage. The best option to try oneself in the salmon fishing is to get to the Varzuga: they say that nobody has left it with no fish. But a trip to the Umba might be In 2008, for instance, the number of tourists the extent of your fishing; it alternates lakes and reaches, rapids and rushes throughout the companies provided services to (outbound and inbound) has grown by 26% and exceeded 80 kilometers downstream. In winter and in summer, the guests of the 90,000 people. The amount of taxes coming Kola Peninsula will get unforgettable impres- to the budgets of all levels (relative to 2007) sions due to the contacting with the wild ter- has increased 1.5 times (over RUR 49 mio), rain of the region. One of the most fascinating and the investments of tourism businesses adventures is a trip to Lake Seidozero — the pic- in their own development amounted almost to turesque landscapes around are to be imprinted RUR 56 mio. According to expert estimation in the memory forever. that differs from the official figures, the toHowever, the wealth and the diversity tal number of tourists in the region exceeded of the wilds attracts to the peninsula the 350,000 people in 2008. lovers of various sorts of leisure (skiing, walkIn the meantime, both the authorities ing, biking; ecological, aquatic, and other and representatives of the hospitality business kinds of tourism). The region maintains almost are certain that it will have to be done a lot 30 routes of various length, duration, and dif- in this area. Among other things to implement, ficulty level. the earmarked program for development of While some guests prefer shooting and tourism envisages to increase significantly the fishing salmon, the other choose “The North role of municipalities and to bring the infraHoliday”, motor boat or snowmobile races; the structure to a new level (first of all, the quality third ones like to watch the playing of the water of accommodation facilities should be imbetween the sky and stone on the coast of the proved). The primary objective for the next White Sea for hours. Winter entertainments 3 years is announced to establish such touristare especially popular: the opportunity to ride recreational territories of regional importance as quick as the wind in the deer sled attracts as “Pechengskaya”, “Terskaya”, “Khibines”, and “Lovozerskaya”. many guests. The Russian steambath. Fresh venison fried A Green Light to Tourism on a camp fire. Fishing and shooting. Primeval The authorities of the Murmansk Region consid- clean water and air. A multitude of cultural er tourism one of the priorities in the regional events. An opportunity to do your business sucdevelopment. They have already worked out cessfully. Hearty hosts ensuring an exciting proa number of projects targeted at its promotion, gram and security. including the Local Government Act concerning The Kola Peninsula is the area of never-endthe support to tourism and a long-term targeted ing adventures; and it is within easy reach…
Statistics Volumes and sources of financing the program “Tourism Promotion in Murmansk Region for 2009–2011” (RUR 000) Financing sources
Budget-2010 should not lose its social focus with a concurrent establishment of the background for the development of the region in the post-crisis period when economy of the region will recover from the present-day difficulties
The Region against NWFD
Try It and Taste It
program “Development of Tourism in the Murmansk Region for 2009–2011”: both documents are adopted in 2008. And even Sergey Shpilko, President of the Russian Union of Hospitality Sector, who attended the annual regional scientific and practical conference devoted to tourism issues, emphasized that “everything that has been done in the Murmansk Oblast in the recent years is arranged in a “clever way”, with quality and professionalism”. Which has resulted in real outputs.
Amounts
Total
417952
Regional budget
42345
Off-budget sources
375382
Source: www.murmantourizm.ru
Expected growth of the number of guests at the accommodation facilities of Murmansk Region Year
000 people
2007
235.9
2008
240
2009
260.5
2010
270.8
2011
294.8
Source: Program “Promotion of Tourism in Murmansk Region for 2009-2011”
Incoming tourism in NWFD in 2008 NWFD subject St.Petersburg Arkhangelsk Region Vologda Region Kaliningrad Region Republic Karelia Republic Komi Leningrad Region Murmansk Region Nenetskiy Area
000 people 4 800 290 1 250 516 1800 180 2 100 42 20
Novgorod Region
270
Pskov Region
250
Source: RST
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24
Business map of Russia
Opportunities
“One with the Brain Could Find a Solution in Such Situation” Northern Chamber of Commerce and Industry, comprising the business people of Murmansk Region, is among the major participants of the First Murmansk International Forum. We questionned Anatoly Glushkov, President of the Chamber, about the life of the regional entrepreneurs, about the conditions created for the investors, and about the agenda of the official events of the Forum.
The strategic location of our city has certainly the crucial importance here. A non-freezing port, proximity to the resources deposits, high human potential — all this allows for considering Murmansk as a basic city for exploration of the Arctic
text: sergey ivanov. photo: NCCI
— Anatoly Mikhailovich, has the business situation changed in the region with the replacement of the Governor and advent of a new managerial team? Has it become more comfortable to work for the entrepreneurs? — You know that not that much time has passed since that and it would be early to make any fundamental conclusions. But we see the intents of the new team to build partnership relations with business, hear that it is important for the administration how not only “giants” but also small- and medium-scale businesses are growing and developing. This tunes us very positively in a sense. Together with the administration personnel, we have so far undertaken big joint efforts to host the Murmansk International Economic Forum and those events to be held within it — and gained very good and positive experience from such joint undertakings. — How will your Chamber be represented at this forum? — The Chamber participated in the preparations for such forum from the very first days — from the concept formulation to the involvement in the organization committee and executive committee and development of separate lines of the participant’s undertakings. Among other things, we are the moderator of “The Strategy of Partnership in the Barents Region” conference. We already work with our foreign associates within the annual meetings of the Barents Industrial Partnership Forum. There are opportunities so far to expand the list of participants of such meetings and raise the status of the event. I should mention that we have not used many opportunities of mutual cooperation in this region yet. I would even put it tougher: we are still fluctuating around the “zero point”. Although
25
Murmansk Region: People, Resources, Opportunities
Opportunities the process, if it can be said so, of “knowing” plant provide us with a surplus of energy, in the each other was already completed long ago — south — oversupply, in the north — shortage. we have a good idea about both our opportu- This problem also remains one of unsettled. nities and opportunities of our partners but it does not come to specific co-operation projects — When they apply to you for consultations, as often as one would like to. Perhaps, it is our what sectors of economy do you mention Russian drawback. Although the investments among the prioritized for investments? come to the region, their monitoring process, — Probably, it is difficult to be original here. and dealings with investors in general, could But our region is rich in mineral resources. be probably more efficient. Well-known major international companies operate here. This is a very attractive area for — It is probably one of the primary tasks of big businesses. The Russian and foreign business have an enormous interest in the Shtokthe new administration? — Yes, and not only this. We have questions man deposit and new infrastructure projects to the regional authorities regarding the ca- connected therewith. The renovation project dastre value of the land. From our viewpoint, of the Murmansk Transport Hub provides a lot it is overpriced unreasonably — let us say, for of opportunities for business people. Actually, instance, it is one and a half time higher than the matter in question is the establishment of in the Kemerovo Region. Furthermore, our ca- a new sea port. dastre value is higher so far than avarage on the But there are also other business opportunimarket. And this is simply strange. ties. For instance, fisheries and fish-farming. Basically, it may be revaluated within the ju- Let me remind that about 500–600 thousand dicial proceedings if the entrepreneurs go this tons of fish a year is bred in neighboring Norway. But no such precedents have been yet. And way. This is comparable with the annual yield I think they are not going to be as we can resolve of our Murmansk fishermen. They also begin to this issue jointly with the administration. The invest the monies in such business. I am sure overstated value of the land imminently influ- that it has good prospects. ences the investment appeal of the region. Especially for small- and medium-scale business. — Are there any changes so far occurring in As far as I know, the administration means the fisheries sector in general? As far back to assist seriously such businesses and the revi- as a year ago, a problem to sell the catch exsion of the cadastre prices would be a good step isted. More exactly — with its sale in Russia. towards it. The fishermen preferred to leave it with the The connection problem to the electric net- “third parties”… works. While there is even an oversupply of elec— There is a real problem now, rather not tric power in the Murmansk Region, in Mur- with the yield but with the option to sell it. Durmansk — such a paradox! — there are certain ing the recession, the consumption falls, and problems with it: depreciation and obsolescence the intermediaries attempt to compensate their of the network facilities do not allow carrying losses in income by the simplest way: raising over additional capacities to the city. The hydro- the price for their services, Profitable selling electric power plants and the Kola nuclear power the fish is not that easy under such conditions:
our Murmansk “refrigerators” are stuffed but our products do not reach so far the Russian in the faraway districts of our country. Again, it is a matter of poor organization of our trade, inflexibility of the system. One with an initiative and with the brain could find a solution in such situation acceptable to everybody and build up their business on it.
The Russian and foreign business have an enormous interest in the Stockman deposit and new infrastructure projects connected therewith. The renovation project of the Murmansk Transport Hub provides a lot of opportunities for business people. Actually, the matter in question is the establishment of a new sea port — Let us return, if you permit, to the coming forum. Its basic topic is exploration of the Arctic. Why the Forum gathers in Murmansk and why now? — The strategic location of our city has certainly the crucial importance here. A non-freezing port, proximity to the resources deposits, high human potential — all this allows for considering Murmansk a basic city for development of the Arctic. Also, two our major investment project — development of the Shtokman gas condensate deposit and renovation of the Murmansk Transport Hub — enters upon the crucial stage. Thus, both place and time for hosting the forum have been chosen quite reasonably.
26
Business map of Russia
Top 100
Rating of the largest enterprisers in Murmansk Region
COMPANY
FULL registered NAME
ACTIVITY
ADDRESS
PHONES
TAKINGS, rur 000
1
JSC “Kolskaya GMK”
Joint stock company “Kola Mining and Metallurgical Company”
Production of non-ferrous metals
184500, Murmanskaya obl., Monchegorsk-7, Metallurgov pr., 25
7-7201
28633759
2
JSC “Apatit”
Joint stock company “Apatit”
Excavation of mineral raw materials for chemical and fertilizer production
184250, Murmanskaya obl., Kirovsk, Leningradskaya ul., 1
5-5590, 3-5209
26575226
3
JSC “Kovdorsky GOK”
Joint stock company “Kovdorsky Mining and Processing Plant”
Excavation of ferrous ore in open quarries
184141, Murmanskaya obl., Kovdor, Sukhacheva ul., 5
7-6000, 7-6001
24310663
4
JSC “Olkon”
Joint stock company “Olenegorsky Mining and Processing Plant”
Excavation of ferrous ore in open quarries
184533, Murmanskaya obl., Olenegorsk, Leningradskiy pr., 2
5-8236, 5-5100
9982145
5
JSC “KolEnergoSbyt”
Joint stock company “Kolskaya Energy Distribution Company”
Electric power distribution
183038, Murmansk, Kominterna ul., 5
69-2425
9311027
6
JSC «MSCO»
Joint stock company «Murmansk Shipping Company»
Sea-going cargo transportation activity
183038, Murmansk, Kominterna ul., 15
48-1011, 48-1049
7944683
7
“Trading House EuroNord” Co.Ltd
Company with limited liability “Trading House EuroNord”
Retail of mainly foodstuffs, including beverages, and tobacco
183034, Murmansk, Geroyev-Severomortsev pr., 33A
41-0601
6070880
8
JSC "Murmansk trawl fleet"
Joint stock company “Murmansk Trawl Fleet”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183038, Murmansk, Shmidta ul., 43
28-8111, 28-8100
4748299
9
“Proekt” Co.Ltd
Company with limited liability “Proekt”
Other wholesale
183038, Murmansk, Profsoyuzov ul., 24
45-4212
3573925
10
“Soyuz” Co.Ltd
Company with limited liability “Soyuz”
Wholesale of alcoholic and other beverages
183034, Murmansk, Domostroitelnaya ul., 15, korp. 1
41-0358
3484642
11
JSC "Murmansk Commercial Joint stock company seaport” "Murmansk Commercial seaport”
Transportation of other cargo
183038, Murmansk, Portovy Proezd, 19
48-0644, 42-3176
2972395
12
JSC “RosNeft Oil Company — MurmanskNefteProdukt”
Joint stock company “RosNeft Oil Company — MurmanskNefteProdukt”
Wholesale of motor fuel, including aviation gasoline
183010, Murmansk, Marata ul., 26
25-1326, 25-1316
2753881
13
JSC “Murmanskaya TPP”
Joint stock company “Murmanskaya Thermal Power Plant”
Production of vapour and hot water (thermal energy) by boiling units
183038, Murmansk, Shmidta ul., 14
47-2541, 48-2534
2488858
14
SRUHPC “TEKOS”
The State Regional Unitary Heat & Power Company “TEKOS”
Production of vapour and hot water (thermal energy) by boiling units
183034, Murmansk, Promyshlennaya ul., 15
43-5213
2350306
15
“Arctic-Energo” Co.Ltd
Company with limited liability “Arctic-Energo”
Electric power distribution
184500, Murmanskaya obl., Monchegorsk, Metallurgov pr., 25
7-7239
2294898
16
JSC “SMNG”
Joint stock company “SevMorNefteGeofizika”
Prospecting, geophysical, and geochemical works concerning mineral resources
183025, Murmansk, Karla Marksa ul., 17
47-6397, 45-0886
1988686
17
JSC “PechengaStroy”
Joint stock company “Pechengskoe Construction Association”
Construction of bridges, above-ground car roads, tunnels, and underground roads
184430, Murmanskaya obl., Pechengskiy r-n, Zapolyarny, Lenina ul., 8
7-8081, 3-6910
1880605
18
“KRES” Co.Ltd
Company with limited liability “KolaRegionEnergoSbyt”
Electric power distribution
183038, Murmansk, Kominterna ul., 5
45-6394
1816571
19
Private JSC “Company SEYD” Private joint stock company “Company SEYD”
Wholesale of other building materials
183034, Murmansk, Transportnaya ul., 8
44-0170, 44-0161
1633698
20
“Skadar” Co.Ltd
Company with limited liability “Skadar”
Wholesale of motor fuel, including aviation gasoline
183038, Murmansk, Sofyi Perovskoy ul., 17
59-6170
1633397
21
”Kosam” Co.Ltd
Company with limited liability ” Kosam ”
Civil engineering works on building construction
184682, Murmanskaya obl., Snezhnogorsk, Pavla Steblina ul., 22, korp. 3
6-1746
1366542
22
Private JSC “TC KTK”
Private joint stock company “Trade Company KTK”
Other wholesale
183034, Murmansk, Transportnaya ul., 10
22-4686
1362346
23
JSC “UPSC — Center”
Joint stock company “United Power Supply Company — Center”
Electric power distribution
184209, Murmanskaya obl., Apatity, Nechaeva ul., 5, kv. 74
42-6075
1357741
24
“TeploEnergoService” Co.Ltd Company with limited liability “TeploEnergoService”
Management over maintenance of the housing
184511, Murmanskaya obl., Monchegorsk, Komsomolskaya ul., 5
7-3122
1268546
25
“Skarus” Co.Ltd
Company with limited liability “Skarus”
Wholesale of motor fuel, including aviation gasoline
183052, Murmansk, Generala Shcherbakova ul., 7a
45-3813, 53-2999
1259659
26
FSUE “PINRO”
“Polar Research Institute of Marine Fisheries and Oceanography”
Research and development in the area of natural and technical sciences
183038, Murmansk, Knipovicha ul., 6
47-2532, 47-3181
1232370
27
Private JSC “ArcticService”
Private joint stock company “ArcticService”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183038, Murmansk, Shmidta ul., 16
69-0720
1175010
28
FSUE “AMNGR”
Federal State Unitary Enterprise “ArcticMorNefteGazRazvedka”
Prospecting, geophysical, and geochemical works concerning mineral resources
183032, Murmansk, Kolskiy pr., 1
56-4519
1131680
29
“Stinger- Trade” Co.Ltd
Company with limited liability “Stinger- Trade”
Other wholesale
183034, Murmansk, Transportnaya ul., 10
43-5232
1055681
30
“Trading House Melifaro” Co.Ltd
Company with limited liability “Trading House Melifaro”
Other wholesale
183034, Murmansk, Domostroitelnaya ul., 24
43-5672
1018377
31
Private JSC “SpecTechnology”
Private joint stock company “SpecTechnology”
Other wholesale
183038, Murmansk, Rybny Proezd, 8, kv. 135
42-8589, 42-8583
1013936
32
“StatOil Nefto” Co.Ltd
Company with limited liability “StatOil Nefto”
Retail of motor fuel
183032, Murmansk, Lenina pr., 16А
59-6260
980556
33
“Bunker Company“Flagman Murmansk” Co.Ltd
Company with limited liability “Bunker Company “Flagman Murmansk”
Wholesale of fuel
183038, Murmansk, Vorovskogo ul., 5/23, office 625
28-8634
977578
34
MUE “Severomorsk Heating Networks”
Muicipal Unitary Enterprise “Severomorsk Heating Networks”
Production of vapour and hot water (thermal energy) by boiling units
184606, Murmanskaya obl., Severomorsk, Murmanskое shosse, 3a
5-0701
935434
35
“Gimeya — Product” Co.Ltd
Company with limited liability “Gimeya — Product”
Retail of mainly foodstuffs, including beverages, and tobacco
184355, Murmanskaya obl., Kolskiy r-n, pos. Murmashi, Sovetskaya ul., 4
43-6140
917963
36
JSC “AMPE”
Joint stock company “Arctic Maritime Prospecting Expedition”
Prospecting, geophysical, and geochemical works concerning mineral resources
183038, Murmansk, Sofyi Perovskoy ul., 26
45-0709, 47-7418
912745
37
FSUE “AtomFlot”
Federal State Unitary Enterprise “AtomFlot”
Repair and maintenance, refurbishing and cutting into metal scrap, for vessels and floating platforms
183017, Murmansk, 17
28-9116
861770
38
“MKTI Holding” Co.Ltd
Company with limited liability “MKTI Holding”
Other wholesale
183032, Murmansk, Marata ul., 26
23-3004, 23-2701
847181
39
Private JSC “MTF 3”
Private joint stock company “Murmansk Trawl Fleet 3”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183038, Murmansk, Shmidta ul., 43
28-8198, 28-8183
827769
40
Private JSC “ExpoNeft”
Private joint stock company “ExpoNeft”
Wholesale of motor fuel, including aviation gasoline
183032, Murmansk, Lenina pr., 3
23-0408, 23-4316
795078
41
“Robinson” Co.Ltd
Company with limited liability “Robinson”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183001, Murmansk, Podgornaya ul., 45
23-6999, 23-4951
784882
42
Private JSC “Arctic Motor”
Private joint stock company “Arctic Motor”
Retail of transportation vehicles
183008, Murmansk, Kolskiy pr., 110/1
151-8611
777640
43
“NWFC-Murmansk” Co.Ltd
Company with limited liability “North-West Fishery Company-Murmansk”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183001, Murmansk, Tralovaya ul., 43
55-5240
775006
44
“NordMedService” Co.Ltd
Company with limited liability “NordMedService” Retail of pharmaceuticals
183038, Murmansk, Lenina pr., 95
45-5522, 45-6034
738861
45
“Forpost” Co.Ltd
Company with limited liability “Forpost”
Retail of radio- and TV devices
183034, Murmansk, Sverdlova ul., 19а
43-0386, 45-5576
723803
46
Private JSC “Murmansk Trawl Fleet 2”
Private joint stock company “Murmansk Trawl Fleet 2”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183038, Murmansk, Shmidta ul., 43
28-8170
714185
47
“Apatit-ElectroMashServise” Company with limited liability Co.Ltd “Apatit-EleсtroMashServise"
Metalware processing
184209, Murmanskaya obl., Apatity, Promploshchadka ANOF-2
3-8414
683325
48
JSC “MGES”
Joint stock company “Murmansk GorElectroSet”
Transmission of electric power
183010, Murmansk, Shmidta ul., 16
47-4100
682437
49
JSC “Khlebopek”
Joint stock company “Khlebopek”
Production of bread and pastry of non-durable storage
183038, Murmansk, Pishchevikov ul., 2
45-3583, 45-4739
669608
50
МUE “Kirovsk HUM”
Municipal Unitary Enterprise "Kirovsk Housing & Utilities Management”
Management over maintenance of the housing
184250, Murmanskaya obl., Kirovsk, Labuntsova ul., 5а
9-4971, 9-4697
664466
27
Murmansk Region: People, Resources, Opportunities
Top 100
Rating of the largest enterprisers in Murmansk Region
COMPANY
FULL registered NAME
ACTIVITY
ADDRESS
PHONES
51
Private JSC “L — Parfume”
Private joint stock company “L — Parfume”
Wholesale of perfumery and cosmetics
183031, Murmansk, PavlikaMorozova ul. , 5/1
43-4040, 43-6060
659461
52
“Laura-Murmansk” Co.Ltd
Company with limited liability “Laura-Murmansk”
Retail of transportation vehicles
183038, Murmansk, Sofyi Perovskoy ul., 17, office 226
68-5138
653712
53
“Market” Co.Ltd
Company with limited liability “Market”
Retail of mainly foodstuffs, including beverages, and tobacco
183035, Murmansk, Aleksandra Nevskogo ul., 81
43-4668
635160
54
“PA Melifaro” Co.Ltd
Company with limited liability “Production Association Melifaro”
Production of ready and canned foodstuffs from meat, poultry, meat offals, and blood of animals
183001, Murmansk, Tralovaya ul., 3
43-4284, 43-5676
626975
55
“SeverTrans” Co.Ltd
Company with limited liability “SeverTrans”
Sale of transportation vehicles
183008, Murmansk, Kooperativnaya ul., 4
25-6891, 25-1141
625774
56
“TechnoCenter Sever” Co.Ltd
Company with limited liability “TechnoCenter Sever”
Wholesale of computers and peripheria
183038, Murmansk, Kapitana Egorova ul. , 14
45-2883, 45-2833
619848
57
Private JSC “Murmansk ProdService”
Private joint stock company “MurmanskProdService”
Retail of mainly foodstuffs, including beverages, and tobacco
183034, Murmansk, Domostroitelnaya ul., 7
68-5700, 43-6140
616565
58
“Barents Beer” Co.Ltd
Company with limited liability “Barents Beer”
Wholesale of alcoholic beverages, including beer
183034, Murmansk, Domostroitelnaya ul., 7, korp. 1, office 500
62-7171, 26-2350
601308
59
JSC “ApatitStroy”
Joint stock company “ApatitStroy”
Construction of nuclear power plants
184209, Murmanskaya obl., Apatity, Lenina ul., 22
6-2559, 6-3070
600644
60
“MurmanRyboProduct” Co.Ltd
Company with limited liability “MurmanRyboProduct”
Wholesale of fish, seafood, and canned fish
183001, Murmansk, Podgornaya ul., 92, office 215
28-7778
586756
61
JSC “Murmansk Sea Fishing Port”
Joint stock company “Murmansk Sea Fishing Port”
Other cargo transportation
183001, Murmansk, Tralovaya ul., 12
28-7222
584910
62
“Melifaro” Co.Ltd
Company with limited liability “Melifaro”
Retail of mainly foodstuffs, including beverages, and tobacco
183034, Murmansk, Domostroitelnaya ul., 24
43-4284, 43-5672
574511
63
“Trading house "Cosmetics” Co.Ltd
Company with limited liability “Trading house "Cosmetics”
Retail of cosmetics and perfumery
183038, Murmansk, Papanina ul., 22
271-7516
567923
64
Company “Murman Seafood” Co.Ltd
Company with limited liability “Murman Seafood”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183038, Murmansk, Karla Marksa ul., 28
26-3910, 26-3931
558720
65
Private JSC “MurMet”
Private joint stock company “MurMet”
Wholesale of waste and scrap metal
183001, Murmansk, Tralovaya ul., 2
45-0279, 45-4319
547722
66
“Two Ns” Co.Ltd
Company with limited liability “Two Ns”
Retail of building materials
183008, Murmansk, pr. Kolskiy, 51, kv. 2
26-1866, 27-1106
543152
67
JSC “KEMBF”
Joint stock company “Kandalaksha Experimental Production of engines, except for aircrafts, Machine-Building Factory” cars, and motorcycles
184040, Murmanskaya obl., Kandalaksha, Zavodskaya ul., 1
5-6202, 9-3478
542075
68
SRUE “MurmanskVodoKanal”
State Regional Unitary Enterprise “MurmanskVodoKanal”
Water distribution
183038, Murmansk, Dzerzhinskogo ul., 9
47-2898, 47-2652
541084
69
Private JSC “LSC”
Private joint stock company “Low Shipping Company”
Sea-going passenger transportation activity
183038, Murmansk, Portovy Proezd, 19
48-0250
539182
70
JSC “Molochny Zavod” Town Severomorsk
Joint stock company “Dairy Factory” Town Severomorsk
Production of treated liqueous milk
184606, Murmanskaya obl., Severomorsk, Murmanskое shosse, 3
5-1484, 5-1484
536581
71
“Nord Piligrim” Co.Ltd
Company with limited liability “Nord Piligrim”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183001, Murmansk, Tralovaya ul., 51
45-9902, 47-3651
532235
72
“Kapital and K” Co.Ltd
Company with limited liability “Kapital and K”
Wholesale of foodstuffs, including beverages, and tobacco
183034, Murmansk, Domostroitelnaya ul., 8, korp. 13Б
73
“Murmansk Car Company" Co.Ltd
Company with limited liability “Murmansk Car Company”
Wholesale of foodstuffs, including beverages, and tobacco
183034, Murmansk, Transportnaya ul., 14
22-4627, 22-6034
514736
74
JSC “Murmansk Combine Bakery Complex”
Joint stock company “Murmansk Combine Bakery Complex”
Production of flour from grain and vegetable crops and ready flour mixes and dough
183034, Murmansk, Promyshlennaya ul., 23
43-5511, 43-5767
508917
75
JSC “MurmanskAvtoTrans”
Joint stock company “MurmanskAvtoTrans”
Suburban car (bus) passenger transportation
183038, Murmansk, Terskiy per., 8
42-0925, 42-1096
499972
76
“BarentsSnab” Co.Ltd
Company with limited liability “Barents Snab”
Wholesale of fish, seafood, and canned fish
183010, Murmansk, Lenina pr., 18, кв. 64
22-0113
493736
77
“Mirazh” Co.Ltd
Company with limited liability “Mirazh”
Retail of mainly foodstuffs, including beverages, and tobacco
184209, Murmanskaya obl., Apatity, Lenina ul., 5
4-6564, 6-3099
493148
78
“SpecMetResources” Co.Ltd
Company with limited liability “SpecMetResources”
Wholesale via agents (for commission or on a contractual basis)
183014, Murmansk, Dostoevskogo ul., 12
52-2807
491170
79
JSC “Nord-West F. K.”
Joint stock company “Nord-West F. K.”
Processing and preserving of fish- and seafood
183039, Murmansk, Rogozerskaya ul., 15
45-5394, 45-8642
483770
80
JSC “MurmanOblGaz”
Joint stock company “MurmanOblGaz”
Distriution of gaseous fule
183032, Murmansk, Kolskiy pr., 29
25-3112, 23-2541
482431
81
“MC “ZhKS” Co.Ltd
Company with limited liability “Managing Company “ZhilKomService”
Management over maintenance of the housing 184046, Murmanskaya obl., Kandalaksha, Batyuty ul., 23
7-1808, 7-1969
472720
82
“RAF” Co.Ltd
Company with limited liability “RAF”
Wholesale of foodstuffs, including beverages, and tobacco
183034, Murmansk, Domostroitelnaya ul., 8, 13а
83
JSC “ElectroTransport”
Joint stock company “Electric Transport of Town Murmansk”
Trolleybus activity
183034, Murmansk, Sverdlova ul., 49
55-3108
463160
84
JSC “AvtoKolonna 1118”
Joint stock company “AvtoKolonna 1118”
Intraurban car (bus) passenger transportation
183008, Murmansk, Kolskiy pr., 55
56-3320
462455
85
MMUE “SpecDorStroy”
Murmansk Municipal Unitary Enterprise “Specialized Trust of road construction and improvement”
Construction of bridges, above-ground car roads, tunnels, and underground roads
183027, Murmansk, Radishcheva ul., 20
25-8076
450387
86
“Lovozersky GOK” Co.Ltd
Company with limited liability “Lovozersky Mining and Processing Plant”
Excavating and refining the rare metal ores (zirconium, tantalum, niobium etc.)
184580, Murmanskaya obl., Lovozerskiy r-n, pos. Revda, Komsomolskaya ul., 23
3-3134, 3-3055
449730
87
“Zhadnov” Co.Ltd
Company with limited liability “Zhadnov”
Retail of non-frozen foodstuffs, including beverages, and tobacco
183034, Murmansk, Transportnaya ul., 7
22-4695, 47-2507
448581
88
JSC “MPE”
Joint stock company “Murmansk Prospecting Expedition”
Prospecting, geophysical, and geochemical works concerning mineral resources
184209, Murmanskaya obl., Apatity, Fersmana ul., 26
7-6503, 7-6564
446682
89
JSC RBD № 3
Joint stock company “Road-Building Department Construction of car roads, railways, № 3” and runway systems for airfields
184041, Murmanskaya obl., Kandalaksha, Kirovskая ul., 10
9-4981, 9-4888
445890
90
JSC “ApatityEnergo”
Joint stock company “ApatityEnergo”
Distriution of vapour and hot water
184209, Murmanskaya obl., Apatity, Bredova ul., 15а
2-2765
442075
91
Private JSC SPE “Vega”
Private joint stock company ScientificProduction Enterprise “Vega”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183038, Murmansk, Teatralny Bular, 9
47-3579, 47-2751
441668
92
JSC “Apteka Pervaya”
Joint stock company “Apteka Pervaya”
Retail of pharmaceuticals
183038, Murmansk, Shmidta ul., 45
47-6134, 45-1584
418825
93
Private JSC “Belomorskaya Neftebaza”
Private joint stock company “Belomorskaya Neftebaza”
Arranging the cargo transportation
184030, Murmanskaya obl., Kandalakshskiy r-n, Palkina Guba, pos. Beloe More
9-4958, 6-9360
417697
94
“ASASIFISH” Co.Ltd
Company with limited liability “ASASIFISH”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
184365, Murmanskaya obl., Kolskiy r-n, RP Molochny, Stroiteley ul., 26
45-9817
410328
95
“TEC” Co.Ltd
Company with limited liability “Thermal Energy Complex”
Production of vapour and hot water (thermal energy) by boiling units
184530, Murmanskaya obl., Olenegorsk, Promploshchadka Olenegorskogo GOK
5-5176, 5-6151
409026
96
JSC “MADPP”
Joint stock company “Murmansk Agency for the dissemination of printed publications”
Retail of books, magazines, newspapers, paper and stationery
183025, Murmansk, Kapitana Burkova ul., 51а
44-5977, 44-6697
401980
97
JSC “Olenegorsky Mechanical Plant”
Joint stock company “Olenegorsky Mechanical Plant”
Metalware processing
184533, Murmanskaya obl., Olenegorsk, Monchegorskoe shosse, 20
5-4359
399645
98
“RosProdSnab” Co.Ltd
Company with limited liability “RosProdSnab”
Foodstuffs production from meat and poultry
183008, Murmansk, Zoi Kosmodemyanskoy ul., 33
43-3340
398024
99
JSC “Murmansk Governorate Fleet”
Joint stock company “Murmansk Provincial Fleet”
Obtaining the fish and aquatic bioresources in public areas of Global Ocean and inland sea waters
183038, Murmansk, Shmidta ul., 43
28-8254, 28-8192
388143
Company with limited liability “BaltService”
Other wholesale
184365, Murmanskaya obl., Kolskiy r-n, RP Molochny, Molodezhnaya ul., 8, kv. 52
43-5627
382507
100 “BaltService” Co.Ltd
Rating of the largest enterprisers in Murmansk Region by their takings in 2008. Source: RosStat
TAKINGS, rur 000
518286
463769