МурманшельфИнфо. 2009, N 5.

- Mr. Evdokimov, what is the role of the Murmansk region in the improvement of economic situation in the Russian sector of the Arctic? - Much is already said concerning this issue, but as I see, there is a strong necessity to underline once again, that the Murmansk region can become in the nearest future the basic region for development of hydrocarbon resources of the Arctic shelf. It seems to me, that you have the following hidden question: can global financial and economic crisis influence the plans of development of the Shtokman field and Arctic shelf? Rugged times go to and fro, and the shelf of the western Arctic, occupying more than 2,6 mln sq km under the Barents, Pechora and Kara Seas, and containing about 75% of all the hydrocarbon reserves of the shelf in Russia, will anyway remain the region of long-term strategic prospect for development of oil and gas sector. Proximity of industrially developed regions of the European North – potential users of oil and gas, as well as the opportunity to transport it via ice-free port of Murmansk to Europe and America – create prerequisites for development of raw material basis and production of oil and gas in the region. Development of the Shtokman gas condensate field and formation of the high- power transport hub will create sustainable demand for technological equipment, ship repair services, shipbuilding, machinery construction, transport services. We should not forget that this project will resolve a very urgent question of gasification in our region. Recently we have done much work to increase efficiency and competitive ability of the Port of Murmansk. We managed to attract attention of the federal government and Ministry of Transport of Russian Federation to the Murmansk transport hub, to display opportunities and realistic plans of its development. On the 8th of December 2008 the Chairman of the Government of the Russian Federation Vladimir Putin signed the Decree N1821-p “On implementation of complex investment project “Development of Murmansk Transport Hub”. Signing of this document has indicated again general interest towards development of the Murmansk port and creation on its basis the biggest beyond the Arctic Circle deep water hub – centre of coal, fertilizers, oil, and container cargo transshipment. Implementation of this project will let strengthen the role of Russia and the Murmansk region in the system of international transport corridors. - Is it possible that the period of investment expectations in the regionmight be prolonged in connection with the global financial crisis? And generally how can the crisis impact the situation in the region? - In connection with the world financial crisis the decline of investment activity is expected, but to realize the stated objectives the investment period is going to be prolonged. Talking about the assessment of the current situation in the gross, it is necessary to note that it is by far not the easy one, but nevertheless, not fatal either. We started the year 2008 not bad. In the first quarter of the year in industry, as well as in most other branches of economy, growth rates have significantly exceeded last year’s indicators. For instance, in the sphere of mining operations, the index of industrial production was 104,6%, in the processing industry – 105,5% and in the fishing industry – 114,8%. Efficient functioning of the enterprises together with the high level of prices for the raw materials provided good financial results, sustainability of consolidated budget of the region and social responsibilities. Nevertheless, beginning with the second part of the year, the situation started altering, and these alterations were by far not positive. First, the prices for non- ferrous metals reduced, and in November financial and economic crisis affected our basic enterprises. To the fullest extend its impact experienced such enterprises as Apatit, Olenegorsk Mining and Processing Works and Kovdor Mining and Processing Works. These enterprises, according to the volume of output and its dispatch, in November had lower indicators than a year ago: it was produced 368,000 tons of apatite concentrate, or 40% from the amount, produced in November last year; iron – ore concentrate – 400,000 tons, or less than 50% from the last year result. The index of industrial production generally in the region from the very beginning of the year for the first time went below 100% and comprised 98,6%. In December the situation was somehow better than in November, but much worse than a year ago. According to the pre-estimate, in the sector of mining operations, the expected results are going to be one third lower than usual results. Significantly have decreased the capacities of railway transfer, financial indexes went down, especially when we are talking about the enterprises of copper metallurgy. Consolidated budget 8 ÿíâàðü 2009 ¹ 5 ÌóðìàíøåëüôÈíôî Murman – the region with long strategic prospects Interview with the Governor of Murmansk region Yuri Evdokimov Firsthand