Growth and crisis in Nenets AO
The far northern Nenets Autonomous Okrug in 2009 had the biggest industrial growth in Russia. At the same time, the region suffered from a major drop in investments, budget revenues as well as in regional salaries, the Barents Monitoring report reads.
The oil-rich and sparsely populated region located along the Pechora Sea remains one of the richest in Russia. However, 2009 saw new serious challenges in the regional economy.
The Barents Monitoring report, which is written by the Nenets Office of the Norwegian Barents Secretariat, confirms that industrial production growth in 2009 increased with the impressive 30,8 percent. However, that was first of all thanks to Lukoil’s newly opened oil field, the Yuzhno-Khilchuyu field. Along with bigger electric power generation (26,3%), the oil production (31,8% growth) pulled up economic figures in the region.
In other sectors, the situation was quite different. The report reads that the Nenets AO was one of the regions with the biggest drop in the construction industry. In 2009, the drop was 52,7 percent compared to the level of 2008.
Budget revenues, investments
The financial crisis had a negative impact on the regional budget incomes. In September, the Okrug was Russian leader (among 43 regions) in drop of consolidated budget revenues (54 percent). Similarly, the investments in the main capital in 2009 continued a negative trend. The investment activity amounted to only 68,7 percent of the level of 2008 and totaled 29,679 billion rubles.
The foreign investments for the period January-September 2009 decreased by 65,45 percent compared to the same period of 2008 and totaled 346,293 million USD. Of this, 98,5 percent was made in oil and gas production and 1,5 percent in real estate activities, lease and rendering of services. A total of 82,3 percent of the investments came from France, 9 percent from the Bermudas and 8,7 percent from Cyprus.
Employment, salaries
Also unemployment increased significantly. The number of people employed in the regional economy of the region decreased in January – November by 6,6 percent compared to the same period of 2008 and totaled 28233. The number of unemployed people by January 1, 2010 increased by 45,1 percent compared to January 1, 2009 and totaled 843 officially registered in the employment offices. Average accrued salaries in the Nenets Autonomous okrug remains among the highest in Russia. However, also the salary level saw a significant drop in 2009. The real salary decreased by 6,3% in November compared to November 2008, while the real disposable money incomes per capita (incomes minus obligatory payments and corrected by the Consumer Price Index) decreased by as much as 30,9 percent in all of 2009.
