Gazprom keeps Komi economy afloat
Gazprom’s major investments in the Bovanenkovo gas field in Yamal lifts the construction industry in the Komi Republic and helps keep the regional economy relatively stable, the Barents Monitoring Q1 report for the region shows.
The Barents Monitoring report for the first quarter of 2009 shows that Gazprom’s investments in the Ukhta-Bovanenkovo gas pipeline helps keep the regional economy afloat despite the aggravating economic crisis.
According to the report, the regional construction industry grew 13 percent year on year in the period, while investments in the main capital had a growth of as much as 81%
The overall picture is less rosy however. The Komi Republic in the period had a drop in industrial production of 6,4%. Oil production meanwhile increased 2,8 percent.
In first quarter of 2009 the lumber production dropped 29,3% compared to first quarter of 2008. The drop in pulp and paper production was 13,9%.
The regional budget is strongly affected by the economic downturn. According to newspaper Kommersant, the republic is one of 15 regions with a more than 15 percent drop in regional budget revenues.
