Severstal moves out of Karelia
The Republic of Karelia gets its tax revenues cut by more than 10 percent following the flagging out of the steel producer.
The Karelsky Okatysh, the huge plant in Kostomuksha near the border to Finland, will no longer pay taxes to Karelia, regional Minister of Finance Igor Usynin informed this Monday. The plant, which is owned Severstal, will from 2013 instead pay taxes to neighboring Vologda Oblast, Severstal’s cornerstone region, a press release from the regional government reads.
The republic will lose 2 billion RUB of tax revenues because of the move, Usynin said in his presentation of the regional 2013 budget on Monday.
Karelsky Okatysh is one of Russia’s biggest producers of steel pellets. The company in 2011 produced a total of 10120 tons and had a net profit of more than 17 billion RUB, the company informs on its website.
The reduced tax revenues from companies like Severstal forces the region to diversify its economy, Governor Aleksandr Khudilainen underlined in his presentation of the new regional social and economic development strategy. The document includes measures which is to spur more than 100 new innovation projects and as many as 18000 new jobs by year 2017. According to the programme, an annual five percent industrial growth rate and a doubling of tax revenues will be achieved in the period, Regnum reports.