Oil lifts Nenets economy
Industrial production in the far northern Nenets Autonomous Okrug increased 38,5 percent year-on-year in the first six months of 2009, the latest Barents Monitoring report confirms. That, however, is all thanks to Lukoil’s new Yuzhno-Khilchuyu oil field.
The report, which is written by the Norwegian Barents Secretariat’s regional office in the Nenets AO, shows a positive dynamics in regional industrial production. However, other parts of the economy struggle with serious problems.
The report shows that the oil-rich region with a population of only 42,300 in the first half of the year had an industrial production growth of 38,5 percent. A major increase in oil production was what made the positive trend. Oil production, including natural gas condensate, increased by more than 35 percent to a total of 9,08 million tons.
Also electric power generation increased significantly in the region, with 28,5 percent year-on-year growth to a total of 475,2 million KWH.
At the same time, the construction industry in the region showed a serious drop. The volume of work in the regional construction declined by as much as 52,9 percent compared to the same period in 2008. Housing construction dropped by 68,4 percent compared 2008. A total of 127 flats, or 6300 square meters, was built in January-June 2009.
Also investments dropped significantly in the region. According to the report, a total of 19.69 billion rubles were invested in the period, which is a 57,3 percent drop compared with the same period of 2008.
The Nenets Autonomous Okrug still remains one regions with the highest salaries in Russia. The average accrued salary in the region was 42.566 rubles, which is up by 8,9% compared to the same period of 2008.
