Economy

The development of Chukotka’s economy is affected by unfavourable climate (cold) and geographical (remoteness from the administrative and industrial centкes of Russia) factors. However, Chukotka has its own resource base, high-capacity energy resources, a stable management and supply system and its attractiveness as a subject of investment is becoming more vivid.

It is impossible to forecast what the balance of positive and negative factors will be. It will largely depend on the world prices for raw stuffs and priorities of the Federal Centre. The administration of Chukotka, for its part, has three major scenarios, and each of them has its pros and cons.

Option 1 is connected with the optimization of the size of the population. In this case, a part of the population engaged in the economy of the Okrug gets removed to more favourable climate zones. About 20 thousand people remain, 16 thousand of which are the native population. This way Chukotka will be preserved for future generations as a huge “national park” with the uniquely low level of interaction between the man and the nature.

Option 2 implies preservation of the present state of affairs. Probably they will keep investing in gold and silver mining. But upon the whole, nothing will change.

Option 3 is connected with the development in the full meaning of this word. This means attraction of investment into geological exploration, thermal power economy, coal and transport. Investment will make it possible to export coal to Asian countries, start trading in the Mexican and Japanese markets. A transfer from agriculture oriented at the native population to the advanced processing of meat and sea food.
The third option is viewed by the administration of the CHAO as the most prospective. The calculations show that about 100 billion rubles worth of investment is needed for the next 15 years. In order to estimate the size of this sum of money, it is necessary to compare it with the cost of the first two options. If it is decided that Chukotka has to become a national park, the state will have to spend 2.5 billion rubles on the “evacuation” of the population and another 30 billion on building and purchases of housing “on the continent.”

The program of the scenarios has been handed in for analysis by the Ministry of Development of the Region. The conclusion is planned for March, 2007.

If the third option wins the favour of the Ministry, the specialists think that by 2015, the Okrug will do without state subsidies. This will be achieved through building a floating atomic energy power station in Peveka, a deep-sea port, and an automobile highway connecting Magadan, Kolyma, Bilibino and Anadyr. The Okrug lays its hopes on the synergy effect from the parallel development of energy and mining industries and infrastructure.

And in middle-term perspective Option 3 will allow decreasing the level of state subsidies of Chukotka to about 30%.

Anadyr

15:12 -15°C

COMMENTS

The program of economic development in Chukotka can be carried out, considers vice-premier of government CHAO M. Sobolev.

First of all, the long-term program leans on resources of peninsula. Let’s begin that geological resources of Chukotka are explored today on 10 %-17 %. The next regions are explored much better. And even on these, tentative estimations resources here can be found. The proved resources of gas on the Priosernoe deposit - 7,3 billion cubic meters. Oil resources are estimated approximately in 10 million tons, the proved stocks make 4 million tons of them. They are dispersed on small Fields, such, as Hatirskoe, where extraction is conducted by "Sibneft" company. But it is not necessary to dismiss a shelf – it’s insufficiently studied yet, but there are data, that it’s resources can make up to 14 billion tons of conditional fuel. Exxon Mobile Company in similar ice conditions, in Baffin bay has constructed 7 platforms. What prevents to construct them here?
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Reindeer breeding can be profitable: E. Marochkin acting on the head of agriculture and foodstuffs department makes comments.

There was a moratorium on an industrial slaughter of deers in district till 2006. But now it is removed, farms have allocated a contingent for commodity slaughter this year. It is planned to hand over in a trading network about 9 thousand deers this year. Within the limits of national project the agrarian and industrial complex have got slaughter area on terms of financial leasing which is assembled in Kanchalan. Basically its value is in that correctly cut production will receive a trade look and will answer all established norms. The livestock of deers for September, 1st - from above 183 thousand. It’s below the level of 1990 (490 thousand heads), nevertheless, in Chukotka a livestock grows on faster rates, than on Yamal, and it’s our main competitor. Potential market - not only Vladivostok, but also Japan, Korea, China. Reindeer breeding is, at least, preservation of a traditional way of life of native people and food safety of region and when sales volumes become great enough, branch can turn in profitable.
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