CONTENTS:

• Geographical position

• History of the region

• The Nature

• Culture

• The population

• The economy and the industry

• Foreign-economic activity

• Finance

• Standard of living

• The investment appeal

• The international cooperation

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The Murmansk oblast is one of the largest and most economically developed regions in the European North of Russia. The region is located on the Kola peninsula, washed by the Barents and the White seas and has the area of 144, 9 thousand sq. kilometers. Almost all the territory is above the polar circle.

Geographical position main menu

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Settling of the Kola Peninsula began long ago. The discovered village cemeteries of the Stone Age date back to XI-VII millennia B.C. Rock paintings - petroglyphs on the bank of Kanozero lake (more then 4 500 years ago) tell us about the first settlements their traditions and way of living.

The history of region next

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The history of the Murmansk region is closely connected with the development of the Russian European North. In the ХII century the first Russian natives from the land of Novgorod start visiting the White Sea coast. Since XV century Russians appeared on the peninsula as the permanent population, Russian settlements of Umba and Varzuga appeared on the Terskij coast. In 1565 Kola receives the first mentioning in historical sources.

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During the Great Patriotic war active battle operations in the Transpolar were conducted on Murmansk and Kandalaksha directions. In 1944 the special medal was instituted «For defense of the Soviet Transpolar».

Murmansk in 1941-1945 years

350 thousand people were decorated with it. In 1985 the city

of Murmansk was awarded the honorary title of a hero-city.

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NatureThe Murmansk region occupies the Kola peninsula and adjoining west and southwest territories of the continent. Almost all the territory is located above the North polar circle. In the north and the northeast it is washed by the Barents Sea, in the east and the south – by the White Sea.

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The mountain range Hibiny is located in the central part of the peninsula - it is the highest and, perhaps, the best known and popular with the tourists area of the Kola Peninsula.

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By quantity and beauty of rivers and lakes Murman can easily compete with neighbouring Karelia. Thousands of lakes connected by short channels are scattered among the hills.

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CultureToday the sphere of culture of the Murmansk region is wide and many-lateral. First of all, it is represented with a network of establishments of a various orientation: museums, libraries, cultural centres and palaces, centres of national art, establishments of supplementary aesthetic formation, musical college.

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The professional art is represented by the drama theatre, the puppet theatre, the philharmonic society. The list would be incomplete without the establishments of the army and the fleet: officers’ palaces, ensemble of singing and dancing, the theatre of the Northern fleet.

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The national traditions of Kola Lapps and Pomors are rich and original. They largely determine the development of modern culture, that has acquired its full volume with talents and experiences of people who arrived in the Transpolar from all parts of immense Russia.

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The population of the Murmansk region is nearly 865 thousand people. In comparison with other regions of the country, the oblast is more urbanized - 91,4 % of the population live in the urban area.

Population

The characteristic positive demographic feature of the

Murmansk region remains a high share of the population of able-

bodied age which made in 2005 69,5 % from the aggregate

number of the population against 67,9 % in 2000.

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The economy of the Murmansk oblast is based on a rich raw-material base of the Kola peninsula, on biological resources of the Barents sea, and also on the opened for the all- year- round navigation to the World ocean. These factors have defined the character of the region’s development.

THE ECONOMY AND THE INDUSTRY next

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The large industrial complex is shaped on the Kola peninsula.

In the industrial production structure the maximum share is carried by mining complex, power, fishindustry.

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In 2005 the volume of industrial production of the

regional enterprises reached 100,2billiard rubles. The

growth of volumes of production occurred in nearly all key economic branches

and amounted for the industry in general to 102 % compared to a level of 2004.

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In the industrial production structure the maximum share is carried by mining complex, power, fishindustry. In 2001-2005 the total volume of industrial production has grown by 9,5 % including: non-ferrous metallurgy- 15,6%, ferrous metallurgy - 37,5%, food industry and fishing - 6,7%.

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The mining complex Includes enterprises of mining-chemical industry, non-ferrous and ferrous metallurgy making the basis of the economy of the region.

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Almost thirty kinds of minerals are extracted today, ores of phosphorus, titan, iron, aluminum, copper, nickel, zirconium and other rare metals being of the greatest value.

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The centers of ferrous metallurgy in the Murmansk region are Olenegorsk and Kovdor. Principal town enterprises are public stock company «Olkon» and public stock company «Mountain-concentrating industrial complex in Kovdor», which is part of holding «Eurohim».

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The largest companies of non-ferrous metallurgy in the country are located on territory of the Murmansk oblast: public stock company «Kola mountain-metallurgical company», Kandalaksha’s aluminium factory branch of public stock company «SUAL».

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The supply-demand complexThe development of the supply-demand complex of the region is primarily connected with mastering of the oil-and-gas deposits of shelf zones of the Western Arctic regionsSince the end of 70s of the last century they have opened and explored bid deposits of hydrocarbons in a shelf zone of the Western Arctic, which occupies the area of more than 2,6 million square kilometers. It is here, at the Arctic shelf, that fuel and energy riches of Russia of XXI century lie still untouched.

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The Murmansk region belongs to the most energy provided territories of the Russian Federation. Nearly 2 % of the electric power developed in the country is produced here.

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The power supply system of the Murmansk region is presented by 17 hydroelectric power stations incorporated in 4 cascades, and the northern most Kola atomic station.

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TransportFavorable geographical position and developed industry have stimulated the development of all types of transport and a network of roads on the

territory of the region.

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Murmansk is the largest nonfreezing port of Russia above the polar circle, rightfully considered the northern gates of Russia, the starting pointof transit along the Northern sea route.

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In 2001-2005 large-scale activities have been carried out to increase efficiency and competitiveness of the Murmansk transport unit. The reconstruction of Murmansk sea trading port and deep bottom works in the Kola bay allowed to accept vessels which have the displacement of more than 200 thousand tons.

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To provide a complex development of Murmansk transport capacity the general scheme of Murmansk transport unit development was worked out.

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fish production which is developed in Russia. The enterprises of the fishing industry of the Murmansk oblast make wide assortment of production: fish canned food, fresh frozen and cooled fish, smoked products, balyks, dried fish.

A fishing complexFishing industry of the region gives almost every sixth ton of the commodity food

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The necessities of the industry concern ship repair, manufacture offishing equipment and containers.

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By the fishing out of water bioresources the region borrows one of the leading places among regions of the Russian Federation. In 2005 the index of industrial production in fishery has made 110,6 % on 2004. The fishing out of fish and sea foods has increased by 10 % and made 585,1 thousands tons.

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In the Murmansk oblast it is the branch, called to provide regional needs of the population for dietary food stuffs. The relative density of rural industry in lacertus reproductive technologies is insignificant.

The Agriculture

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In 2005 the government of the region increased twice the assignments from the regional budget to support the branch which allowed to slow down the negative tendencies and prevent mass bankruptcy of the remained agricultural productions. The livestock of animals and birds, manufacture of the basic kinds of production were restored, results of financial and economic activity are being stabilized.

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The Murmansk region is included into 20 of subjects of the Russian Federation among the largest exporters of the commodity output. The region has more than 80 external economic partners. The basis of export is made with nonferrous metals, apatite concentrate, fish production.

Foreign-economic activity

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The financial sphere in the Murmansk region is preserving its stable character. In real sector of economy the system crisis has been overcome, the real financial basis for steady development of the enterprises has been created.

Finance

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On the size of average nominal monetary incomes among territories of Northwest Russia in 2005 the Murmansk region took 3 place, conceding only to the republic of Komi and to St.-Petersburg.

Standard of livingnext

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The consumer market

In 2005 the population of the

blast got goods for the sum of

45,6 billion rubles, which is on

16,1 % more than the last year.

The gain of a turn of retail trade

in commodity weight has made

7,4 % against 5 % in 2004.

Rates of growth of sale of

nonfoods (111,1 %) have

exceeded rates of growth of

volumes of realization of food

stuffs (104,1 %).

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Owing to the geographical position, nonfreezing deep-water port and presence of significant stocks of minerals, including oil-and-gas deposits of the Arctic shelf, the Murmansk region remains an interesting object for investments.

The investment appeal

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Investment and innovative projects make a basis of Strategy of economic development of the Murmansk region for the period till 2015, which is realized by the government of the Murmansk region since 2001, and also of the Program of social and economic development of the Murmansk region for the period of 2004 - 2008.

The Unique advantages of the Kola peninsula:•· Significant stocks of natural resources on territory of the peninsula and the shelf of the Arctic seas;• Presence of free capacities of the electric power and highly skilled personnel potential;• Presence of deep-water nonfreezing port and the open outlet to the World ocean;• Proximity of transport unit to the European, American and internal markets;• Opportunity of using the international transport transit corridors – The Northern sea route, the Trans-Siberian Railway and North - South;• Creation in the region of a favorable enterprise climate with the interest of social- economic development of the Murmansk region.

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The economy of region is on the rise. In 2005 the volume of investments into the basic capital has been 17,48 billion rubles, or 109,4 % to a level of 2004.

Foreign investments in 2005 have amounted 30 million US dollars that is twice more, than in 2004.

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The Murmansk region is a bordering region having old and close relations with the nearest neighbors - Norway, Sweden, Finland. The connections with other countries are quickly developing.The frontier international cooperation is developed both as in a format of bilateral regional cooperation within the limits of Barents Euro-Arctic region, as of a transboundary cooperation with EU.

The international cooperation

main menuThe Government of the Murmansk region

183006 Murmansk, prosp. Lenina, h.75, Ph.: (8152) 486-200. www.gov-murman.ruThe department of economic development: Ph. (8152) 486-232. e-mail: econom@amo.murman.ru

The department of inter-regional cooperation and congress - exhibition activity of the administrative department of the Government of the Murmansk region: Contact Phones: (8152)486-351, 486-419, 486-440,e-mail: mvc@online.ru, efimova@amo.murman.ru

The exhibition operator: ANO «MurmanEXPOcentre» The Union of industrialists and businessmen (employers) of the Murmansk region

Contact Phones: (8152)622-000, 622-001, 622-002, e-mail: mec@lzl.ru, www.sppmo.ruThe data is cited according to 01.03.2006

Prepared for printing under the order of the Administrative office of the Government of the Murmansk region with the assistance of Murmansk local public organization «The association of independent journalists of the North»

Murmansk, street Touristov, 29a. Phone/fax 42-04-24. e-mail: mmooanjs@yandex.ru Photo materials provided by the Government of the Murmansk region, Lev Fedoseev.

Design – O. I. Korkonosova Editor - O.V. Soshnikova