foreign economic activity

The Government of the Okrug explains active foreign economic activity primarily through the development of export-oriented branches. At present import deliveries prevail in the structure of foreign economic circulation. This is determined by a number of factors, among which:

Isolation of the Okrug from land transport communications;
High customs duties and tariffs for deliveries from the central regions of the country;
Limited season of maritime navigation (short-time navigation).

Traditionally, the prevailing part of foreign trade circulation was import from the countries of the Asian Pacific Region – the USA, Canada, Japan, and the Republic of Korea. Today, realization of big infrastructure projects is extending foreign trade links and stimulating a search of new trade partners from Germany, Turkey, Finland, the Netherlands, Switzerland, and Taiwan.

Main import items are:

Foodstuffs;
Petrochemical and fuel-energy complex products;
Industrial facilities and products of mechanical engineering;
Transportation means;
Computer engineering products;
Building materials.

The showing tendency of growth of export is connected with the activating of mining industry and agriculture complex. Traditional economies, such as deer breeding, sea mammal hunting, fishery, and fish processing have big export potential.

Between 2001 and 2005, the volume of foreign trade circulation grew as much as 15 times, which is connected with the restoration of economic activity in the region.

Diagram 1. Dynamics of foreign trade circulation in the CHAO (thousand dollars).

Increasing volumes of house-building in national villages, regional centres and Anadyr, reconstruction and building of utilities objects, power economy and social sphere create conditions for considerable growth of import deliveries. Foreign contractors have provided import of building materials and equipment from Turkey, the USA, and Canada.

Moreover, import of foodstuffs from the USA has been resumed; it accounts for about 48% of the total circulation.

The number of foreign trade partners varies from 10 to 16 organizations and enterprises with different ownership patterns.

Main inspecting and regulating functions in the sphere of foreign economic activity are fulfilled by the customs offices. Modern customs terminals are functioning in the Okrug, namely: "Chukotskaya" Customs, "Anadyr Airport" customs office, and "Providenia Seaport" customs office.

Anadyr

5:41 -14°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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