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Nature and Resources Potential
Natural resources of the republic are the basis of its investment potential. A future investor should pay attention first of all to renewable resources, which the Republic is rich in. In connection with certain advantages of geographic location of the Republic, relatively developed transport infrastructure, moderate risks and other favorable factors, development and processing of renewable resources provide a solid base for long-term business projects.
Forest Resources
The total area of the forest reserve of the Republic of Karelia is 14,759.9 thousand hectares, or 82% of the total area of the Republic, including 9,356.4 thousand hectares covered with forests.
The majority of the trees are valuable coniferous species (89%), among them pine occupies 5.9 million hectares (64%), spruce 2.3 million hectares (25%), birth – 1.0 million hectares (11%).
Total timber reserve is 910 million cubic meters. Among them, 30.3% are the forests of the first group, 30.8% - second group, 38.9% - third group. The amount of the forest available for logging is 84% of the total stock (15.3% - forests of the first group, 30.3% - second group, 38.4% - third group).
From the overall reserve, ripe and overripe forests comprise 435.84 million cubic meters, where majority is coniferous trees – 383.26 million cubic meters. Annual average increase of timber – 13.64 million cubic meters. Woodiness of the territory is 52%.
In terms of the age of the forests, the majority are young trees (38.3%), ripe and overripe tress (32%), as well as relatively small areas of middle-aged (22.1%) and growing (7.8%). High quality of timber is typical of northern forests.
Mineral Resources
On January 1, 2008, mineral resources base of Karelia include 829 developed deposits, which have 27 types of mineral resources with the estimated amount of deposits.
Mineral resources are the basis of the mining industry, and this basis is formed by means of geological research, with the goal of reproduction of mineral resources.
The main types of mineral resources are: iron ore, titanium, vanadium, molybdenum, precious metals, diamonds, mica, building materials (granites, diabase, marbles), ceramic raw materials (pegmatite, spar), carbonate ores, alkaline amphibole-asbestos.
An important investment potential of Karelia for the near future is unique deposits of building and decorating stones. Today the construction market in Russia is on the rise, especially in such cities as Moscow and Saint-Petersburg. The Republic has good cooperation with large investors from these cities in the sphere of stone extraction and stone processing. Unique possibilities of Karelia in this sphere are explained by a wide range of building and decorating stones, as well as by proximity of the Republic to the central regions and cities of Russia. Karelia is ready to become one of the chief suppliers of building materials for the markets of North-West and Central regions of Russia, and provide all the necessary conditions for investors.
More information can be found on the website “Mineral Resources Base of the Republic of Karelia for Investors”
Water Resources
Internal surface waters of Karelia belong to the basins of two seas: the White Sea and The Baltic Sea. Principal elements of the hydrographical network of the republic are lakes, rivers, water reservoirs and bogs. There are over 61 thousand lakes in Karelia, including lakes Ladoga and Onega – the largest lakes in Europe, about 27 thousand rivers and 29 water reservoirs. The aggregate area of lakes including the flooding area during reservoir formation is 18.8 thousand square kilometers.
Lake Ladoga is the largest lake in Europe. Its altitude above sea level is 4 meters. The water surface area is 18,400 square kilometers. Average depth ~ 51 meters. The deepest places – up to 380 meters (separate hollows).
Lake Onega is the second largest lake in Europe. Its altitude above sea level is 33 meters. The water surface area is 9,800 square kilometers. Average depth ~ 50 meters. The deepest places ~ 127 meters. Its volume is 295 cubic kilometers.
According to the international classification of natural waters, the waters of both lakes belong to ultra fresh. The Onega water solid is 30–50 milligrams/liter, Ladoga – up to 60 milligrams/liter (ultra fresh waters are up to 200 milligrams/liter). These are one of the cleanest waters in the world, which do not require any or (by request of consumers) require minimal water treatment for using in households (including drinking), for sanitary-hygienic and industrial (food industry, chemical industry, electronic industry, etc.) purposes. This fact determines the high social-economic and ecological effect from their use and competitiveness of the production.
About 85% of Onega and 40% of Ladoga Lake areas are located
on the territory of Karelia. Including these areas, 23% of the republican territory is covered by water. Total resources of surface waters of Karelia are 195 cubic kilometers 25% of which is river stream flow.
The abundance of lake water network typical for the region predetermined the use of lakes as reservoirs. At present, there are 29 water reservoirs in Karelia with total capacity 372,439 million cubic meters.
On the territory of Karelia reserves of underground water were discovered and surveyed in 13 deposits. Known reserves for industrial and drinking water supply are 34.1 thousand cubic meters per 24 hours, including prepared for economic development –
23.0 thousand cubic meters per 24 hours.
Forecast resources of fresh underground water of Karelia are estimated as 820.88 thousand cubic meters per 24 hours. They are characterized by low (3,5%) degree of exploration and development of known resources (5%).
Bioresources
According to the estimates of experts from the Institute of Forest and Institute of Biology of Karelian Research Center of the Russian Academy of Sciences, in the Republic of Karelia annual biological reserves of wild berries (blueberry, lingonberry, cranberry, and cloudberry) comprise about 120 thousand tons, of which about 62 tons are operational. According to the specialists’ estimates, the use of berry potential does not exceed 25–30% per year, and most of the berries are sold outside the Republic in the raw state. Considering the fact that even preliminary processing of berries – cleaning and freezing – increases the price of berries at least two times, potential investors have significant perspectives in this area.
There are 150 kinds of medicinal plants with operational reserves over 6 thousand tons. The Republic can increase harvesting these raw materials by 1,000 times without any ecological damage and widen the scope of the harvested species.
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