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Less oil, more cash on Nenets tundra

The oil-dependent Nenets economy is growing despite a major drop in oil production, the Barents Monitoring report reads.

The Nenets Autonomous Okrug produces less oil, but salaries and revenues continues to increase.

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The Russian Arctic region in 2012 experienced a serious decline in industrial production. In total, industrial output in the region dropped 11,2 percent in the first nine months of the year, the latest Barents Monitoring report informs. Oil production, the by far most important part of the region’s industry, fell 11,7 percent, the report reads.

Also the construction industry saw a major drop (-47,3%) along with cargo transport (-2,1%).

A key reason for the declining oil production is the lower output at Lukoil’s Yuzhno-Khilchuyu field.

Meanwhile, the region continues to deliver positive economic results. Salaries in the period increased by 16,6 percent to a total of 56596 rubles, which is among the highest regional averages in all of Russia. According to the monitoring report, unemployment continues to drop and now amounts to only 2,2 percent of the labor force.

At the same time, as previously reported by BarentsObserver, the regional balance account for the first nine months the year showed a surplus of one billion rubles (€24,5 million).

The population in the region increased by 174 individuals growth, mostly due to in-migration. The total regional population totals 42437.

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Barents Monitoring Nenets AO 20121.95 MB