KOMI REPUBLIC

AT A GLANCE

Komi Republic is located in the north-western extreme of the Russian part of Europe, within the boundaries of the Pechora and Mezen-Vychegda lowland, Mid- and Southern Timan, the western slopes of the Urals (Northern, Pre-Polar and Polar Urals).

In the west, north-west and north, Komi Republic borders on Archangel Region and Nenets AO as its sub-area, in the east on Yamalo-Nenets AO and Khanty-Mansi AO as sub-areas of Tyumen Region, in the south-east on Sverdlovsk Region, in the south on Perm Region and Komi-Perm AO as its sub-area, in the south-west on Kirov Region. The republic's total borderline length is 4,415 km.

The distance between Moscow, the Russian capital, and Syktyvkar, the metropolitan area of Komi Republic, is 1,410 km.

The territory of Komi Republic, in terms of space, is 416,800 km2. The greatest length from the south-west to the north east is 1,275 km, from the north to the south - 785 km, from the west to the east — 695 km.

A considerable part of the territory is a hilly plain. The Ural Mountains serve as an Eastern border, the Timan ridge crosses the republic from the North-West to South-East. There are the Pechora lowlands between the Urals and Timan, and the Mezen-Vychegda plain in the West.

In terms of the republican land stock, forests and shrubs account for 74.5 %, marshland — 9.8 %, water reservoirs — 1.5 %, arable land — 1 %. 22.8 % of the total land area is used for reindeer pastures.

Climate. The location within the sub-arctic (in the northern extreme and north-east) and, mostly, within the moderate climate zones provides for a harsh climate with long and very severe winters and short, comparatively cool, summers. In January the average temperatures in Komi vary from minus 14o C in the South to minus 23o C in the North-East, in July from plus 19o C in the South to plus 12o C in the North-East.

The territory of the republic is within an excess moistening. A considerable predominance of atmospheric precipitates over an evaporation, a specific relief and geological structure lead to an increased swamping and developed hydrographic network.

Population. The republic is multi national — the population is a little more than 1 mln people of more than a hundred nations and nationalities. Russians (59.6%) and Komi (25.2%) prevail in the national population structure. The average age of people is 35 years. 75.5% of the republican population inhabit cities, 24.5% are village inhabitants.

Key historical dates. The territory of the current Komi Republic started to be inhabited presumably about 300,000 years ago. Indisputable proofs have been discovered that the area was initially inhabited around 40,000 years ago. In the 60-s of XIII century, the Komi land had been referred to as Perm and Pechora in the records of the Novgorod volost, and from 1478 this area became an inseparable part of the Russian state. The Komi had rendered habitable the upper Vychegda, Mezen basin and Pechora alongside with Russians since XVI century. Structurally, the territory was divided into lands, volosts and pogosts. In 1708, the initial territorial provinces inhabited by the Komi were incorporated in the structure of Archangel and Vologda uyezds. At the end of XIX century, the current Komi land was finally formed. From January to March, 1918, the soviet power was finally proclaimed. By March, 1920, the Civil War ended.

Since August, 1921, Komi Autonomous Oblast had been formed as a part of the Russian Soviet Federative Socialist Republic, and due to this fact the Komi people who had been separated for a long time territorially got a chance to be added to the central powers as a separate national division for the first time in its history. Administratively, the region was divided into 4 large uyezds.

In 1936, Komi Autonomous Oblast was renamed to Komi Autonomous Soviet Socialist Republic. On 29 August, 1990, The Supreme Council of the Komi ASSR adopted the declaration of the state sovereignty of the Komi ASSR at its extraordinary second session. Later on, on 23 November of the same year, the Republic was renamed to Komi Soviet Socialist Republic; and since 26 May, 1992, Komi SSR has started to be called Komi Republic. According to the Constitution of Komi Republic enforced at the extraordinary 18 session of the 12th Supreme Council of the Republic of Komi in 1994, " The state of the Komi Republic a RF full-fledged subject. Komi Republic enjoys at its whole territory the entire state authority excluding those powers of the Russian Federation and the common powers of the Russian Federation and the RF subjects which are related to the authority of the Russian Federation».

Administrative structure and state authorities. Komi Republic consists of administrative territorial units: republican districts and towns including the subordinate territories, the largest of them being Syktyvkar, Vorkuta, Ukhta, Sosnogorsk, Usinsk and Inta.

The state power in Komi Republic is divided into legislative, executive and legal which are represented by the State Council of Komi Republic; the Head of Komi Republic, the Government of Komi Republic and other executive organs of Komi Republic; Constitutional Court of Komi Republic and Justices of Peace.

Local self-governance is recognized and guaranteed in Komi Republic. It is exercised independently within its competence areas.

Local self-governance bodies can be endowed with individual state authority backed materially and financially. Appropriate state bodies control their power endowment. The local self-governance bodies are not related to the state authorities in Komi Republic.

Natural Resources. Mineral resources include fuels, metals and nonferrous minerals, also underground waters.

The fields tested on the republican territory contain about 80% of quartz fibers, 50% of titanium, 30% of bauxites, 50% of barites, 4.5% of coal, and 3% of oil from the all Russia stocks. Due to its reserves and extraction volumes, the republic is the main fuel supplier (of coal, oil, and natural gas products) for the Russian European North.

The Pechora coal mining basin is the Russia's second in terms of its stock and it contains a spectrum of coals for coke and energy production.

The total resources of the Pechora coal basin are estimated at 242 bln. tons, including 58.4 bln. tons of standard coal. The extracted stock is more than 8 bln. tons, as much as 4.3 bln. tons of coal has been under development and available for a commercial production.

The oil and gas fields of the republic are located in the central and southern parts of the Timan-Pechora oil and gas province.

In 2005 there existed 137 hydro carbon fields, 82 of them have been exploited (93.3% of the extracted stock). The current extracted oil stock exceeds 486 mln. tons, as for gas — more than 117.3 bln. m3. The largest eight fields contain 70% of the extracted stock. 43 fields are being developed.

Experts call fuel shale as the raw material of the future. The stock is located in three fuel shale regions of the republic and exceeds 62 bln. tons, 6 bln. tons of it has been approved. The stock of peat (about 1000 fields) is 7.6 bln. tons, and as much as 122.8 mln. tons can be extracted.

Within the Timan ridge two bauxite regions have been found and explored. They are the deposits located in Middle Timan (68% of the stock) and South Timan (32%), which constitute the most important basis for the domestic aluminium industry.

The Middle Timan region has been developed, where three large bauxite fields have been explored, they are united into the Vorykva group which contains more then 30% of all the Russia's bauxite reserves.

The Titanium ore stock is the largest in Russia. The Yarega oil and titanium deposit is unique by its amount and quality; it concentrates more than a half of all Russia titanium ores ready for extraction. The project called as "The Complex Development of Yarega Oil and Titanium Deposit" has been implemented in the republic. Extraction and processing of titanium ore will be paralleled with a heavy oil extraction, the stock of which is estimated at 75 mln. tons.

The Parnokskoye iron and manganese field located on the West slope of the Polar Urals is the most promising one prepared for exploitation.

At the moment in the republic there have been found, explored and estimated the ore fields of manganese, chrome, titanium, poly metals (bauxites, copper), rare metals (wolfram, molybdenum, bismuth, niobium, tantalum), precious metals (gold, platinum, silver) as well as diamonds.

Non-ore minerals of Komi Republic can be used for chemical production (phosphoresces, salts, barites) or as building materials (lame stone, clay, dolomites, gypsum, marbles, quarts, sands, gravel), technical or optical (fiber quarts, piezo-quarts, mount crystal), and also for jewelry purposes.

The barite deposits of the Polar Urals are estimated at 80-100 mln. tons.
The Khoylinskoye barite field is the biggest and the best explored one (its stock exceeds 2 mln. tons); there is no similar deposit in Russia and in the CIS. The Zhelannoye field contains 80% of all the Russian transparent fiber quarts stock. The extracted stock of the Seregovo kitchen salt field is 700 mln. tons, the estimated one — more than 2 bln. tons.

The construction raw materials group is represented by multiple deposits of carbonate, construction and decoration stones, construction and glass sands, clays for bricks and ceramics, cement raw materials, gypsum. There are more than 200 fields of them, the majority of which has been developed.

The Republic of Komi is rich in industrial waters, mainly on the territory of the Timan-Pechora oil and gas province. Brome, iodine, lithium, magnesium, strontium, etc. are concentrated in the underground waters of oil fields. Also, the republic possesses considerable resources of drinking and mineral water.

Komi is one of the leading timber industrial regions of Russia. The total forested area is more than 30 mln. ha. or 3.5% of the Russian forest stock and 40% of the Russian North-European forest stock.

More than 75% of the forest can be harvested with the stock of 3 bln. m3 (3.2% of Russia North-West forest stock). Mature and over mature forests constitute 72.3%, 80% of them are coniferous.

The principal harvesting area in Komi is located in Udorskiy, Ust-Koulomskiy, Kortkeroskiy, Syktyvdinskiy and Sysolskiy districts.

The annual cut determines the optimum volume of harvesting. The annual growth is 28.5 mln. m3 and annual cut is 26.5 mln. m3.

Economics. Komi Republic is today a definitely industrial region; it has a self sufficiency of raw, energy and labor.

During the recent years the economics of the Republic of Komi has revealed the following positive features:

  • Growth in the majority of sectors of industry, including oil extraction, oil refining, timber, pulp and paper, metallurgy, coal, machinery building and metal processing;
  • Improvement of the investment climate, growth of investment activity;
  • A high credit rating of the republic;
  • Growth of living houses construction;
  • Growth of a bank loans number;
  • Increase of trade and commerce;
  • Growth of the population money income.

The gross regional product (GRP) of the republic in 2004 was RUR 141.1 bln, in 2005 being by an early estimation as much as RUR 162.2 bln.; it forms approximately 1% of Russia GDP.

The structure of GRP is represented in the following table.

Table 1

The structure of GRP of the Komi Republic (RUR mln)

 

2003

2004

Industry

40140,2

50616,3

Agriculture

2351,2

2468,0

Construction

10945,2

13056,6

Transport and communications

15902,0

20024,4

Trade and public catering

11113,3

13585,6

Other branches

23677,7

30416,3

Taxes

9421,0

10915,8

  Industry takes the leading position in the economy of the Republic of Komi. It is represented by more than 30 sectors and provides about 35 % of GRP. Industrial labour accounts for 22.4% of the total labour, the industry accumulating 26.4% of capital.

The branch structure of the industry — fuel (52.7%), timber, wood processing and pulp and paper (24.1%), electric power generation (14.2%).

Fig. 1

The industries of Komi Republic play a considerable part in the all-Russian industrial output, their shares according to production types are shown in table 2.

Table 2

Production volumes

2004

Share in all-Russia output

(in per cent)

2005

Share in all-Russia output

(in per cent)

Oil extraction, including gas condensate, mln. tons

10.2

2.2

11.2

2.3

Natural gas, mln. cub. m.

3.4

0.5

3.4

0.5

Coal

14.7

5.2

13.0

4.4

Sawn timber, thous. m3

627.0

3.2

703.5

3.4

Plywood, thous. m3

278.3

12.5

321.6

12.6

Cardboard, thous. tons

195.7

6.7

198.0

6.5

Paper, thous. tons

577.4

14.9

591.8

14.9

Fiber-boards, mln. m2

26.7

7.8

28.0

7.4

Particle boards, thous. m2

286.5

8.0

280.0

6.6

In 2005 the republican industrial production volume compared to the previous year increased by 3.8% and reached RUR 116.1 bln. The growth was stipulated by an increase in oil extraction, oil refining, coal mining, metallurgy, machinery building and metal processing, construction materials production and pulp and paper.

Diagram 2 represents the dynamics of the industrial output for 2000-2005 in percentage to the previous year with a side trend.

Fig. 2

Short characteristics of the republican sectors of industry and their perspectives for development.

The fuel sector of Komi Republic is represented by oil-extracting, oil-processing, gas, coal, and power sectors. It predominates in the Komi industry and generates 65.9 % of the republican industrial output.

Recently, the oil extracting sector of Komi Republic is rapidly developing (diagram 3). This can be explained by setting new deposits in exploitation, reactivating idle wells, carrying out a good many geological and technical activities. Also, gas and oil collection systems have been refitted and new technologies for oil-extraction implemented.

Fig. 3

The main production volume (about 60%) is provided by enterprises included into LUKOIL-Komi Group (LUKOIL-Komi Ltd., JSC Teboukneft, JSC Ukhtaneft, Closed SC RKM Oil, Closed SC Bitek-Silour, AmKomi Ltd., JSC Yarega NTK), as well as JSC Severnaya Neft and a few others. The share of oil extraction amounts to 33.6% of the total industrial output.

According to an expert forecast, the annual figure for 2006-2007 being 10,0-11.0 mln. tons.

Oil refining. The development of oil refining in the republic is stipulated by a big market for oil products available in the Northern Economic Region.

Fig. 4

Main figures for the oil refining (RUR mln.)

JSC LUKOIL-Ukhtaneftepererabotka is the key player in oil refining. The company has a fuel profile and produces such products as automobile gasoline, diesel fuel, aviation kerosene, fuel oil, bitumen, vacuum oil, etc. (See Diagram 4).

The oil refining equipment capacity is 4.5 mln. tons p.a. In 2005 the total amount of oil products totaled to 2.2 mln. tons or 117.6% of the 2004 figure.

Gas extraction and processing. The majority of licensed gas fields (74% of the extracted gas stock) belong to Severgasprom company in Ukhta which is included into Gasprom and extracts 99.9% of gas in Komi Republic. About 90% of gas and over 80% of gas condensate produced in Komi comes from Vouktyl gas field.

Sosnogorsk Gas Processing Plant is the only company in North-West Federal District that provides deep processing of natural gas and non stable condensate. The annual capacity is 3.0 bln. m3 of raw gas and 1.25 mln. tons of unstable condensate. The major products include industrial carbon, motor petrol, condensed gas, stable gas concentrate, stable gas, net gas and rubber items.

Gas extraction is planned to be increased by 3.3-3.4 bln. m3 by developing Yugid-Soplesskoye, Pechorogorodskoye and Zapadno-Pechorogorodskoye deposits as well by increasing gas recovery output in the Vouktyl Field.

Coal mining. Currently, 3 deposits are being developed in the Pechora Coal Basin, specifically, Vorkuta Field (coking and steam coal), Vorgashor Field (coking coal) and Inta (steam coal).

Coal is mined underground in the collieries of JSC Severstal Group, JSC Inta Coal Company, JSC Vorgashor Mine. Since 2002 coal has also been produced by an open-cast method at Yunyaginskoye Quarry.

Practically, all the coal mined is refined (concentrated) at preparation and washing plants.

Totally, the coal sector operates 8 collieries with the overall capacity of 15.2 mln. tons p.a. plus 4 preparation plants. According to the 2005 results, 13.0 mln tons of coal was produced by the businesses of the Pechora Coal Basin.

Coal Production Output Dynamics (RUR bln.) Fig. 5

Due to an expected market growth for Pechora coals and fostering the required investment into the coal mining sector, the coal output increase by 2007 is predicted at 16.2 mln. tons.

Electricity. The power system of the republic is a united, virtually closed-cycle territorial network with minor connections with the Russian power system.

The republican power system incorporates generating capacities and grids of JSC Komienergo (including Vorkuta Power Plants I and II, Sosnogorsk Power Plant, Inta Power Plant), Pechora Power Plant, the power plant for JSC Mondy Business Paper-Syktyvkar LPK and a number of smaller power plants.

The total capacity of the power plants is 2284 Mwt. The total length of grids of JSC Komienergy is 22.4 thousand km.

The volume of power is stable in Komi and depends on local consumption. In 2005 16.1 bln. Kwt/h of power was generated.

The timber sector of the republic constitutes more than 20% of the total output and it is represented by forestry organizations, logging companies, wood processing and pulp and paper mills. A wood processing sector includes businesses engaged in saw milling and production of building components, particle boards, ply wood and furniture manufacturing. JSC Mondi Business Paper-Syktyvkar and JSC Syktyvkar Boumizdeliya Ltd. produce various sorts of paper, cardboard, and sanitary paper.

A half of paper products are exported to 80 countries around the globe.

The share of deeply wood processed products in the republican pulp and paper output exceeds 88%.

Still, a lack of deep processing capacities is one of the impeding factors for the timber sector development.

In line with the general policy of the Komi authorities focusing on setting up deep wood processing businesses, a feasibility study for Udora Pulp Mill with the annual capacity of 500 thous. tons of market pulp was made. Also, business plans for mills in Pechora that would produce MDF boards with the capacity of 200 thous.m3 p.a. The possibility of funding a pre-feasibility study for Troitsko-Pechorsk Card Board Mill is planned in sight.

Further output growth is predicted all over the timber sectors in the mid-term run.

Fig. 6

Timber Industry of the Komi Republic Timber Industry Structure in Komi

The key priorities in wood processing and pulp and paper would be reaching the project capacities for board production and saw milling, increased product quality for competitiveness in the domestic and foreign markets and developing new products.

Ore-mining. Ore-mining in Komi is in the making; its development has just been started and is a priority economic line of the republic for near years to come. 6 ore-mining businesses operate in Komi to develop bauxite, barite and manganese ores, fiber quarts. They have development licenses for bauxite, barite, manganese, and quarts, stream-gold.

The leading companies in this sector are JSC Komi Aluminium, JSC Timan Bauxite, JSC Yarega Oil and Titanium Company, JSC Hoylinsky Concentration Mill, and JSC Komi Manganese.

In 2004 the mining companies extracted 138.2 thous. tons of bauxite 3 thousand tons of manganese ore, 20 thousand tons of a barite concentrate, 1900 thousand tons of bauxites, 20 thousand cubic m of basalt gravel. In 2005 the rates of extraction of metallic and non-metallic ore have been increased considerably. Totally, a 38% increase has been reached in output.

One of the priority mining projects is a construction of an aluminous plant in the Republic of Komi which is implemented by JSC SUAL and Closed SC Komi Aluminium. It should produce 6.5 mln tons of bauxites, 1.4 mln tons of alumina, 300-500 thousand tons of aluminium per year.

Transport and telecommunication. The republican transport system is a part of the Russian transport network. The republic has the basic transports; in general, its transport communications comply with the inner-republican and external connections in terms of location and structure.

In the republic huge transcontinental pipe lines originate along which oil and gas is supplied to the central and northwestern parts of Russia's North.

A well-developed motor road network has been provided. The density of motor roads in general use in Komi is 15.2 km per 1,000 km2, one of railway is 4.0 km, the river ways density being 6.7 km.

The republican transport network covers 2.4 thous. km for railway, 2.8 thous. km for internal navigable waterway, 3.6 thousand km for gas pipelines, 0.7 thousand km for oil pipelines, 11.8 thousand km for motor roads, 74% of the motor road network being paved.

The telecommunication sector of the republic is represented by virtually all service connections. The telecommunication market is one of the rapidly developing economic sectors in Komi.

Telecommunication companies offer an entire range of services including local, intercity, and international telephony, free internet, digital mobile communication type AMPS-800, NMT-450, GSM-900/1800, video conferences, etc.

Construction. Over 700 building contractors operate in the republican construction sector.

Associations of construction companies such as Stroy-Kom Association of Construction Businesses and JSC Severgasneftestroy operate in the republic.

The major source of high business activity in the construction sector is a steadily and dynamically growing demand of the people for housing. The people themselves serve as major investors. In recent years a growth of budget investment in construction and social infrastructural development has become more and more noticeable.

Small business covers the principal economic sectors of the republic.

4, 982 small businesses have been registered in the republic. 63 small business operations account for 1000 people that are economically active.

Small business is the mostly active in non-productive sectors: 70% of entrepreneurs and 20% of small businesses are in trade and catering. Taken together, they provide nearly 80% of the republican retail trade turnover and the two thirds of personal services provided in the republic.

The significance of small business in the productive economic sector of the republic is growing. Its share in the republican industrial output has increased from 2.7% in 2000 up to 6.7% in 2004.

Republican target small business development programmes are developed once per three years in the republic to stimulate small business development and create a favourable small business environment.

Banking sector. The republican banking sector is represented by 3 independent commercial banks with 9 branches (2 of them being located in Moscow) and 31 active branches of commercial banks from other regions (16 of them being branches of Savings Bank of the Russian Federation).

The banking activities have a positive result dynamics: resources growth, an increased number of loans granted, primarily, to entrepreneurs and individuals, improved financial results of lending institutions, increased amount of funds from individuals attracted as deposits being accumulated by the banks and converted into loans and investments.

Fig. 7

In 2001—2005 the amount of resources for the Komi banking sector has increased by 2,8 times and was RUR 30.6 bln. as of 1 January 2006. The amount of individual deposits attracted was RUR 19.2 bln., having increased by 3.2 times for the same period. The total loans granted to businesses and individuals have been increased by 3.4 and 15.2 times, accordingly, giving the total figure of RUR 40.7 bln. and RUR 7.6 bln. (Diagram 5). The balanced accounts of lending institutions (the profit) have increased by 3.9 times for the same period. As of 1 January 2006, the total balanced banking profits in Komi amounted to RUR 1.05 bln. (Diagram 6).

Fig. 8

Foreign trade turnover. In 2005 the foreign trade turnover of Komi Republic and foreign countries plus CIS nations amounted to US$ 0.78 bln., without taking traditional oil exports into account. Compared to 2004, it gave the increase at 12%. The exports were increased by nearly 18%. The republic is a leader in terms of foreign trade in Northwest of Russia.

The main export partners of Komi Republic are Ukraine, Netherlands, Germany, Poland, Great Britain, Italy, and Switzerland. The import partners were Finland, Germany, Ukraine, Belarus, Great Britain, Sweden, and Czech Republic. The major goods exported from the republic are oil and oil products, coal, wood-processed products and pulp and paper. Machines, equipment, chemicals, metals, textile are basic import items.

The priorities and targets of social and economical policies of the Komi Government are declared in the Plan for Government Priority Actions on Social and Economical Development of the Republic of Komi, and also in the Economic Program till 2005. A Strategy for Economical and Social Development of the Republic of Komi for 2006-2010 and till 2015 is developed in sight.

To do the priority challenges and define developmental trends of federal and regional levels, target programs are adopted, which, primarily, focus on creating the legal and economic conditions for business growth, the most useful utilization of land, forest, and other natural resources; fostering domestic and foreign investments and bank capital; modernizing the available and setting up new industries; using progressive technologies and equipment; providing state support for people to improve their living conditions, build or to buy lodging; to providing reliable communal services.

14 Federal Programs are being implemented in the republic. The Russian Transport System Modernization Programme (2002-2010) is the most important among others. The programme is focuses on transport infrastructural development of the republic. The Lodging Program for 2002-2010 aims at building and reconstructing the living houses to relocate people from old houses, providing lodging to different group of people, reconstructing communal services objects, relocating people who live at the north extreme to regions in the south of Russia.

The active programs of regional development in Komi were initiated in accordance with the regional priorities of social and economical development. They include such programmes as Reforming of Housing and Communal Services Programme of the Republic of Komi for 2004-2006, Development and Support for Small Entrepreneurship Programme until 2005, House for a Young Family Programme for 2004-2010 and some others.

Investment activity. Fostering and protection of investments are strategic lines which the Komi Government attaches special attention to for the republic potentials would serve the needs of the population, increase its prosperity and quality of life in the rough Northern climate.

The Republic of Komi possesses high investment potentials. The basic factors of investment attractiveness of the region are:

  • Availability of the legislation supporting an investment activity;
  • A unique combination of natural resources;
  • Cheap energy;
  • A highly qualified labour.

A positive investment image of the republic has been confirmed by the world leading rating agencies like Moody's Investors Service and Fitch Ratings; Komi has been given a high long-term international rating of the Republic of Komi. The scale improvement of international long-term rating of Komi for foreign and national currencies from B+ to BB- /"Stable Forecast" by Fitch Ratings in May 2006 can be considered as a positive sign. The Komi's short-term rating for foreign currencies has been confirmed on B level. Also, Fitch Ratings has increased the national long-term rating of the republic from A(rus) to A+(rus).

The increased ratings reveal further improvement of budget indices of the republic due to steady economic growth and, according to Fitch Ratings, this trend is likely to prevail in the coming years.

From 2001 to 2005 the total capital investment has increased from RUR 21.7 bln. to RUR 50.5 bln. (Fig. график No 1). Начиная с 1999 года, в республике отмечается уверенный рост объемов инвестиций в основной капитал. По итогам 2005 года на развитие социально-экономического положения республики направлено 50,5 млрд. рублей инвестиций в основной капитал, что на 31,5% превышает уровень 2004 года (по итогам 2004 года прирост объемов инвестиций в основной капитал составил 22%).

Fig. 9


Capital investment, RUR bln.

The economic priorities of Komi Republic's regional development are related to further industrial structural changes, direction of investment in the fuel sector, timber industry, mining, transport, housing and communal services.

New investment activities will relate to the projects focusing on modernization of the republican economic structure with a special emphasis on deep processing sectors in the timber industry and fuel sector, creation of new businesses in mining, development of transport and communal services.

In line with the legislation of the Russian Federation and Komi Republic, the following is guaranteed to investors by the state authorities in Komi:

  • Equal rights for investment activities;
  • Publicity when discussing investment project;
  • Adherence to the terms of treaties and investment agreements made with investors;
  • Firmness of investors' rights.

Investors' rights and support of investment activities is guaranteed by the law of Komi Republic on investment activities on the territory of Komi Republic, which makes it possible to make use of a wide range of instruments to stimulate investment activities of businesses in line with the federal legislation.

Science and Education. The leading republican scientific organization is Komi Science Center under Ural Branch of the Russian Academy of Sciences. Komi Science Center comprises 6 institutes: Institute of Biology, Institute of Geology, Institute of Language, Literature and History, Institute of Physiology, Institute of Chemistry, Institute of Social, Economic and Energy Problems of the North.

The basic lines of Komi Science Center's research activities are related to the Earth sciences, including geology of fuel, ore and non-metallic minerals, ecological human and animal physiology in the Arctic, biodiversity, population biology and ecology, biocenose of taiga and tundra ecosystems in North-East European part of Russia, technologies in processing new prospective renewable raw minerals and new materials development, theory and practice of development of the Komi people and other peoples in North-Eastern Europe.

Fundamental and applied research is carried out in over 20 republican scientific institutions. 3,200 persons are employed in science and research. The republic has over 506 general educational institutions where around 125,100 students go. A network of advanced education has been formed in the republic, including 10 lyceums, 18 grammar schools, 20 schools where students study a range of subjects at advanced levels.

Higher education started in Komi in 1932 when a teachers' training college was established. At present, apart from Komi State Teachers' Training College, there are also in Komi Syktyvkar University, Ukhta Technical University, Branch of Saint-Petersburg Mining Academy in Vorkuta, Syktyvkar Forest Institute under Saint-Petersburg Forest Technical Academy, Komi Academy of the Civil Service and Management in Syktyvkar, Komi Branch of Kirov State Medical Academy, Branch of Vyatka State Agricultural Academy. Over 11,000 students are trained in higher education institutions; annually around 2,000 skilled specialists are graduating from the higher schools.

Culture. In Komi there are 60 musical, painting, art and choreography schools, an art school under the head of Komi Republic has been established.

In the republic there are five professional theatres: Viktor Savin Academic Drama Theatre (its history started back in 1930), State Opera and Ballet Theatre, Circumpolar Drama Theatre; State Folklore Theatre and Republican Marionette Theatre.

Republican Philharmonic Hall provides many-sided concert activities; Asya Kya (Dawn) State Song and Dance Group, Parma (Taiga) Art Group, Sigoudek Song and Dance Group have always been very popular with the local people.

The museum network includes both state institutions (National Museum with its 13 affiliations, National Art Gallery, Vorkuta Museum of Local Lore) and more than a hundred social museums established at the regional companies.

Reserves. Protected Territories.

Particularly protected reserved territories cover 15% of the total area of Komi. This is Europe's largest stretch of primary forest.

The unique natural potentials of the republic are represented by Pechora-Ilych Reserve (721,300 ha in area) and Yugyd-Va National Park (which means clear water in English) with the total area of 1.9 mln. ha; the both have been incorporated in the UNESCO list of world cultural and natural heritage. Also, there is a number of forest, flora, meadow, marsh, ornithological, fish and geological reserved territories.

The territories adjoining the Ural Mountain are unique all by themselves. They are a harmonic combination of mountainous and flat landscapes, unique old-growth weakly decayed mature forest, a rich flora and fauna of the European and Siberian species, many of which are included into the red books of International Nature Protection Union, of the Russian Federation and our republic. It was in Pechora-Ilych Reserve that the globe's first moose farm was established.

All these provide excellent possibilities for all sorts of tourism development: both sports or cognitive travel tourism, and amateurish tourism.

Dear Sirs,

You have just made the first small step towards further business cooperation: you have shown your interest with Komi Republic, its natural wealth and economic opportunities. Hopefully, the next move on the way towards each other would be your wish to see our republic with your own eyes.

Feel free to check our official website at http://www.rkomi.ru


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