THE GOVERNMENT OF LENINGRAD OBLAST

Leningrad Oblast is an independent subject of the Russian Federation which occupies 84,5 thousand square kilometres which constitutes 0,5% of Russia’s territory.

The Oblast borders on Europen Union in the west through the border with Estonia and Finland and has a convenient outlet to the Baltic Sea with the coastline of 420 km from west to east. Besides, the Oblast has a border with 5 other subjects of the Russian Federation: Vologodskaya, Pskovskaya, Novgorodskaya oblasts, the Republic of Karelia and St Petersburg.

The Leningrad Oblast demographic situation of the 90-s has a number of specific features untypical of the Russian Federation. If Russia’s population has been declining over the past decade, the population of Leningrad Oblast until 1998 had been growing in both urban and rural areas.

In the period of 1999-2001 the population was reducing slower in comparison to the country scale. The total population by the end of this period constituted 1649,6 thousand people, or 98,9% to the beginning of 2000. Among major factors determining this negative dynamics are the growing death rate and population loss, and decrease of migration which otherwise compensates for the natural population loss.

The most positive demographic tendency of the Leningrad Oblast is a continuous since1999 increase of newly born children (by 19,3% until 1999) and the birth rate growth which was determioned both by extensive factors (changes in the population age structure under influence of the preceeding demographic situation) and by favourable social-economic dynamics.

Infant mortality rate is an important indicator reflecting social-economic prosperity of the area, population health level and the quality of healthcare. In early 90s infant mortality rate in the Oblast was much lower compared to the average figure in the country. In 2002 the infant mortality rate for 1000 people was 11,7 against 14,2 in the year of 1990. Further decrease of infant mortality rate can be a certain compensation reserve for the Oblast low birth rate.

According to the preliminary evaluation by 1^st January 2003 the permanent population of Leningrad Oblast is 1641,8 thousand (99,5% by the beginning of 2002), the population reduced in 2002 by 7,8 thousand people.

Demographic situation in 2002 was characterized by a minor decrease of natural population loss due to birth rate growth. Although Leningrad Oblast has a very high migration potential (in 2002 migration rate increased by 12,5%), the positive value of migratoty population growth of 13,3 thousand people compensated the natural population loss only by half, which determine dtheoverall population decline.

The number of newly born babies compared to the year of 2001 has increased by 7,5%, with the overall birth rate coefficient going up from 7,3 to 7,9 people per 1000 people. The growth in birth rate is very much influenced by the increase of population in its best reproduction age of 16-29 years old and by the increase of marriages. Surveys have shown that the number of young people between 16 and 29 has increased in 2002 by 8,6 thousand (2,4%) with marriage rate increase by 1,5% (11 thousand).

Leningrad Oblast has a very high labour potential. An apparent raise in some sectors of Leningrad Oblast economy for the period beginning from 2000 has affected the growth of enterprenuers and quantity of people involved in economics, followed by reduction of labour force volume registered within unemployment agencies (job-seekers).

The number of people involved in economic activities within the reporting period has increased from 701,6 thousand people in 2000 to 706,2 thousand people in 2002. In the employment structure the share of employed in industry, trade, public catering, healthcare and social care has increased.

Employment demand has increased substantively in industry (by 8,2 thousand people or 104,8% by 1999), trade and public catering (by 4,7 thousand people or 104,2% by 1999). In absolute calculation the increase of employed (fulfilled demand for the man power) has been obvious in the agricultural sector and forestry (by 1,9 and 0,6 thousand people accordingly), science and science-related services (by 0,2 thousand people).

Leningrad Oblast vacancies databank has noticeably increased since 2000. At the beginning of 2000 the number of vacancies announced by enterprises to employment authorities was 6879, whereas in the beginning of 2003 it already was 13 825. Modernisation of technological processes and acquisition of new equipment for competitive production have brought about the need for new professions and trades, which were not in demand before. At the beginning of 2003 the vacancies database had a variety of 980 professions (whereas at the beginning of 2000 the number was 670).

The scale of forced part-time employment has been reduced. In the period from 2000 until 2002 the number of employees from large and medium enterprises and organisations who worked part-time due to their managers’ decision, reduced from 10,8 to 5,7 thousand people (almost halved), which in relation to the average listings, has reduced from 2,7 to 1,4%. The number of employees on unpaid leave {forced leave} has reduced from 18,7 to 11,9 thousand people, or from 4,7% to 3% according to average listing statistics.

Economic growth combined with specific activities aimed at supporting and employing the umempoyed (such as, public work and temporary employment for teenagers, professional orientation and professional training, permanent employment and funded working places for those who are in social protection need, support in self-employment) have contributed to the growth of general number of employed in the oblast economy.

Th eresults of 2002 show numerical growth of employment in almost all material production spheres and non-industrial sphere, the highest rate is achieved by enterprises and organisations of transport (110,9%), building (104,4%), culture (104,4%), trade and public catering (102,2%). The number of people employed at the full-cycle industrial enterprises has increased by 0,4% and made up 155,7 thousand people.

In the real economy sector in 2002 more than 4,5 thousand of new jobs were set up, 2,8 thousand out of them – in industry. Besides, about 1,2 thousand new jobs were created as a result of new production enterprises put into operation in Oblast.

Leningrad Oblast is larger than many European countries in territory occupied by natural landscapes. The most valuable on both Russian and global scale are the ecosystems of natural forest tracts.

Most of the territory – 61,8% - is occupied by forest and wood bushes, 25% are water areas and swamps, 20% is a land for agricultural use (this includes 9,5 % of farm land), 9% of the territory are occupied by settlements, industrial, transport and other engineering communications, this includes 2,75% of the territory occupied by total area of towns, town-like settlements and rural settlements.

Being in the North-West of Russia, Leningrad Oblast is one of the main areas of timber processing and forest export. Annual volume of utilization is set at a level to ensure continuity and inexhaustability of forest utilization with the view to maximize the use of the ripe wood felling cycle. Wood-cutting capacity is estimated at 11,3 million of cubic meters.

In Leningrad Oblast a considerable volume of wood recovery is carried out and a special attention is paid towards forest fire prevention. Planting stock is being grown in 16 forest nurseries that occupy 555 hectars in total.

Water resources take up more than 13% of the Oblast territory, excluding Lake Ladoga and the Gulf of Finland. There are 25 thousand rivers and streams with the total length of more than 50 thousand kilometres, 41,6 thousand lakes and 6 big storage ponds: Narvskoye, Nizhnesvirskoye {Low Svir}, Verzhnesvirskoye {Upper Svir}, Volkhovskoye, Luzhskoye {Luga’s} and Nizhneoredezhskoye {Low Oredezh’s}. Priozersky (14%), Vyborgsky (7%) and Slantsevsky (6%) rayons have the largest water areas, whereas Volosovsky and Tosnensky (both 0,6%) rayons have the least.

Leningrad Oblast has substantial mineral resources. Its territory contains 155 developed deposits of solid minerals (phosphorite, shale oil and raw materials for construction materials production), more than 650 peateries (10 hectares and more each), about 800 of lake sapropel displays, 32 deposits of fresh and mineral spring water. Prospecting work for geological investigations and further development of diamonds deposits in Luga rayon is going on.

Raw materials of developed deposits are used for production of aluminium, alumina, mineral fertilizers, shale oil, cement, asbestos-cement containing products, road metal, gravel, mason’s sand, claydite and other.

Leningrad Oblast is unique in its industrial compositionas it presents a miniture copy of Russia. It is the only oblast in the country where all types of production and transport are developed.

Leningrad Oblast is a highly industrial region. Three recent years have shown a quick growth of gross regional production in the Oblast. In 2002 the per capita gross regional production was 59 thousand roubles. Goods production accounts for 2/3 of the gross regional production in the overall volume structure, whereas services sectors and net taxes for products make 1/3. Over the past three years there has been a stable tendency observed towards the increase in goods production in the gross regional production structure. Such situation in the Oblast has developed because the production volume in industry sectors develops at a higher pace than in the services sectors.

About one third of the population are employed by industrial enterprises which provide up to 80% of the budget earnings. Non-ferrous metallurgy, pulp and paper industry, chemical and refining industry, mechanical and instrument-making industries, construction materials production make the basis of the Oblast industry, with all these industry sectors being of high national importance. A typical feature of the oblast economy is domination of sectors originating from the use of local raw materials. In a number of economy sectors there prevail industrial complexes a full production cycle – from extraction of raw materials to finished goods.

Industrial enterprises produce all kinds of goods for industrial application such as: petrol, diesel oil, mineral fertilizers, aluminium, merchantable wood, cellulose, paper, cardboard, mashines, appliance and devices, construction materials. Besides, industrial enterprises produce a broad range of consumer goods such as furniture, fabrics {cloth, textile}, ready-made garments, and food.

Thare are 368 large and medium-sized enterprises which form a basis for industrial production, 3% of which are enterprises with more than 3000 employees, they are: Leningrad atomic power station (ËÀÝÑ), OOO “PO Kirishinefteorgsintez”, OAO “Phosphorit”, OAO “Leningradets” and others.

In the past decade thre have been significant changes in the Oblast industry structure caused by the necessity to adapt to new market conditions and tough competition.

Currently the oblast is develping very fast proving that its economy has overcome the recession period and can demonstrate stable growth to meet local and international market requirements. The industrial production volume in 2000-2002 has grown 1,9 times. It was the most substantial in 2002, when the industrial production index made 135,6% (127,2% in 2000, 110,1% in 2001). During this period the production growth was stated in 7 out of 10 of industrial specialization in main territorial sectors. A minor reduce of production volume was made in fuel industry, mechanical engineering, metals processing and non-ferrous metallurgy. In general the industrial production volume in 2002 has for the first time exceeded the level of volume in the year 1990.

Positive tendencies in the dynamics of production volume were accompanied by stabilisation in financial sphere. For example, in 2002 the balanced financial result (profit minus loss) of industrial enterprises compared to the year 2001 increased by 20,2%, while the overall growth of industrial production volume by 35,6%. Lower growth of balanced financial result was caused by several reasons, the main of which is anticipatory price growth for the goods and services of natural monopolists (electricity, combustive-lubricating materials, freight transportation etc.)

The biggest growth of balanced profit was registered in food industry, timber, wood processing, and pulp and paper industry.

Fuel and energy complex (TEK) is the basic industrial complex of the Leningrad Oblast economy. It includes fuel industry and electrical power industry.

Fuel industry comprises: oil-refining industry represented by “Kirishineftesintez” {Kirishi oil synthesis} enterprise, which is the biggest in North-West Russia:

Shale {schist} industry is represented by AO “Leningradslanets” and AO “Zavod Slantsy”, both enterprises run on local raw materials, with estimated stock supply of 1,8 billion tonnes;

Peat industry is represented by more than 20 sector’s enterprises producing different peat products such as fuel peat, peat pots, micro-greenhouses etc.

In 2002 production growth in the sector was 1,6% higher than in 2001. The development of the sector was defined by the main enterprises: “Kirishinefteorgsintez”, OAO “Leningradslanets”, OAO “Zavod”Slantsy”.

In 2002 OOO “Kirishinefteorgsitez” increased the output of fuel oil {mazut}, diesel oil and some other oil- products.

Due to objective reasons OAO “Leningradslanets” reduced its shale mining by 25,7%. The main reduction of shale mining occurred in the second quarter and was stipulated by the enterprises’s stoppage due to the absence of contract prolongation with Estonia. In the second half of the year the necessary supply was renewed and the situation became stable.

The activities of OAO “Zavod Slantsy” has showed stable profitability and production volume growth. In 2002 the plant started burnt {calcined} coke production and petroleum-polymer pitch {resin, tar} production and succeeded in delivering it to external market.

Electrical power industry in the Oblast is represented by Leningrad atomic power station (4000 megawatt), Kirishi (2097 megawatt) and Kirov (192 megawatt) hydroelectric power stations, Severnaya {Northern} thermoelectric power station (500 megawatt) and others. The total power of electrictricity generating sources for the region comprises 7787 megawatt, only 25-30% of which is being used locally. Due to the abundant electricity production, the region exports 4 billion kilowatt-hour to Finland.

Total growth of production volume in the power industry in 2000-2002 made almost 10%. The most substantial production growth was stated in 2001 and made 13,7%, in 2002 there was a minor - 1% - recession in the sector which cannot be considered negative for the sector.

Besides the power output decline by 4,4% at the leading enterprise of the sector – Leningrad nuclear power station, branch of ROSENEGATOM concern – was determined by dispatcher capacity limitations.

Timber industry complex (LPK) of the Oblast holds a leading position not only in North-West region, but in the whole of Russia. The timber industry complex is the second largest in the Oblast after Fuel and Energy Complex in export activities (11% of total exports). Timber industry complex comprises three subsectors, which have a strong industrial potential. They are:

timber (80 large and medium sized enterprises which provide 43% of timber industry complex export);

wood-processing (20 wood-processing and 20 furniture manufacturing enterprises, which provide 12% of timber industry complex export);

pulp and paper industry (3 pulp and paper plants and 5 cardboard and paper plants which provide 43% of timber industry complex export).

In the period from 2000 to 2002 the production volume in timber, wood-processing and pulp and paper industry increased by 1,5 times, with the growth achieved mainly due to the most dynamically developing subsector – pulp and paper.

The production growth in this sector in 2002 made 19,7%.

The production of almost all kinds of products such as timber transportation, merchantable wood, chipboard, paper and cardboard has increased.

OAO Svetogorsk spicialising in production of copypaper, cardboard packaging materials for liquid products, market cellulose, offsert paper, an dother types of products has been characterized by steady operation in 2002. The company was the first to introduce a new technology of cellulose bleach wash with elemental chlorine thus establishing European level of production quality.

Other important plants for the sector devlopment are ZAO Kamennogorskaya fabrika offsetny bumag (offset paper plant), OAO Siasky CBK (cellulose and paper combinat), ÎÀÎ Priozersky DOZ, ZAO Tikhvinsky KLPH, ÎÀÎ Lesohimichesky Zavod, and a recently opened company OOO Svedwood-Tikhvin. All above0mentioned companies have showed high performance and production increase.

Chemical and petrochemical complex has a strong industrial base (13 big and medium sized enterprises: OAO “Phosphorite”, OAO “Era”, OAO “Volkhov chemical plant”, OAO “Khimik”, OAO “Lesogorskiy plant”, GP “Zavod imeni Morozova”, OOO “PO “Kirishinefteorzsintez”, Volkhov filial of OAO “Metallurg” and other), which produce a wide range of products, including those of steady demand both at Russian and international markets. These are: mineral fertilizers, sulphuric acid, calcined soda, synthetic pitch and washing powders, plastics, paints, glue etc.

According to 2000-2002 results, the production volume in chemical and petrochemical industry went up by 7,5%. The sector is characterized by broad spectrum of products with production increase in all areas.

The growth of production volume in the sector in 2002 made 8,3%.

There has been output increase registered in the production of mineral fertilizers, synthetic pitches, plastic masses, sulphuric acis, calcined soda, rubber shoes, and bleaches.

OOO “PG Phosporite”, the biggest enterprise of North-West Russia which produces mineral fertilizers and food additions showed a substantial raise of main products in 2002, investment programme continued its fulfillment, new equipment was acquired, primarily for ore mining and processing.

The operations of OAO “Henkel-Era”, OAO “Khimik”, OAO “Volkhov chemical plant”, ZAO “Polymeric shoes production”, ZAO “Polymer-Faro” (rubber-technical products) and other enterprises of the sector was stable is 2002.

Mechanical engineering complex of the region consists of 62 big and medium-sized enterprises and also a great number of small enterprises with the capacity to produce a broad spectrum of military-technical and civil products for exports, such as: agricultural machinery, fishing machinery, products of shipbuilding.

In 2000-2002 the decline in mechanical engineering made 5%. Notwithstanding the reduction of production in 2002 by 15,7% a strong tendency of Oblast mechanical engineering revival is observed – the above stated reduction is relevant compared to 1,9 times raise of production in 2001 against 2000.

In 2002 there was a slight reduction in production of cars with specialised bodies, high ressure pipes, power cable, press-forging machines.

At the same time shipbuilding enterprises continued steady operations, with OAO “Vyborg shipbuilding plant” leading, where in May a multifunctional platform was put in commission. Besides, the raise of production volume at the enterprise was stipulated by building of series of fishing ships hulls, hulls of cabotage ships, production of steel and aluminium blocks, a ship which collects bilgeway water for the port in Primorsk and other products. Due to production intensification and improvement of the efficiency of production facilities, the productivity and profitability of OAO “Pirs” increased and new products were assimilated. At ZAO “Priborostroitel” {instruments-making} substantial investment was made into building of new production lines, in particular into galvanic, paint and powder surfaces production line. Production of ship fittings and fittings for fuel-energy complex at OAO “Burevestnik” raised almost by 1,5 times.

Operation of other enterprises of the sector was successful, such as OAO “Luga abrasive plant”, OOO “Caterpillar Tosno”, OAO “Avangard”, OAO “Krizo Plant”, AO “ToMe3”. In October assembling of cars from imported spare parts started at new enterprise ZAO “Ford Motor Company”, altogether 2,4 thousand cars have already been assembled.

Non-ferrous metallurgy of LO is represented by three biggest enterprises of the sector: Pikalevo and Volkhov branches of OAO “Metallurg” and OAO “Boksitogorsk alumina”. In 2000-2002 there was a substantial reduction of production volume, which made 25%. The main reason of production reduction in the sector was a reduction of the main products output at OAO “Boksitogorsk alumina”, which was caused by tough competition at the market and the necessity to produce more refined quality alumina, as well as transfer to imported more expensive raw materials due to the closure of the enterprise’s own mine.

The main reasons for negative tendencies of the sector development for the reporting period were the lack of nepheline raw materials supply to OAO “Pikalevskoye ob’edineniye “Glinozem” {Pikalevo alumina association} – this was caused by lack of coordination of financial arrangements with its supplier (OAO “Apatit”), the enterprise’s forced downtime for almost half a year in 2000, by reduction of non-ferrous metals ore mining, reduction of alumina production and other products of OAO “Boksitogorsk alumina.

The tendencies of production volume reduction in non-ferrous metallurgy remained the same until the end of 2002 and though the pace of reduction became slower every month, the total reduction has made 9,4%.

At the same time, subsidiaries of OAO “Metallurg” worked steadily, showing the raise of production. Since October 2002 non-profitability of the Volkhov subsidiary was overcome, mainly due to the three times increase of sodium tripolyphosphate production, which makes 20% of the whole volume of production. The complex of building materials production of LO includes:

Several dozens of big open pits for ceramic and fireproof mining, limestones and dolomites, crushed stone, sand, pebble, gravel, boulder, granite and diabase (Kamennogorskoye, Kuznechnoye, Gavrilovskoye, Privetninskoye and other). In Luga region there are mines for molding sand for foundry; plants for production of cement, lime, clay for construction ceramics, roofing slate and soft roofing materials, bricks, concrete and ferro-concrete materials and construction.

At present there are about 300 organisations and enterprises of different types of ownership which are involved in production of building materials, including: 4 house-building plants; 2 lime producing plants; 17 plants producing ferro-concrete constructions, 2 cement plants, 15 wood-processing enterprises, 4 brick-producing plants, 11 rock products plants, sand gravel and crushed stone open pits; 2 plants of soft roofing materials; 1 plant of expanded polystyrene plates.

The growth of production output in the building materials industry in the period from 2000 to 2002 was very considerable and made more than 55%.

The highest performance indicators were achieved in 2002, when the overall growth reached 31,4%. There was a raise in production of the following materials: pre-fab ferro-concrete constructions and products, cement, ceramic tiles for interior use, non-metallic building materials.

OAO “Tsesla”, OAO “Nephrite-Ceramics”, ZAO “Quartz”, ZAO “Petroceramics”, ZAO “Kammenogorskoye karieroupravleniye” {Kammenogorsk mining management}, OAO “Zavod “Stroydetal” {Plant for building fittings production}, ZAO “Semiozerskoye karieroupravleniye” and many others have operated with considerable growth of production throughout the year.

In Leningrad Oblast there are 606 operating palnts of food and food processing industry, including 12 diary plants and over 50 milk-processing lines, 7 meat-packing plants, 57 lines and modules on meat processing, 13 distilleries, 8 wine-making enterprises, 6 breweries, 11 enterprises producing soft drinks, 2 mills, 17 large-scale bread-baking plants and 132 bread-baking plants, 16 confectioneries, 4 tinned food factory, factory on albuminous sausage coats production and other.

At present food and food processing industry holds a leading position in production volume in the industrial mix. Its proportion in the Oblast overall volume of industrial production has raised from 8,8% in 1990 to 25,2% in 2002. For the period of 2000-2002 the volumes of production grew almost ten times. A substantial part of the growth was provided by newly open enterprises: OOO “Maleta”, ÎÎÎ “National wine terminal”, ZÀÎ “Philip Morris Izhora”, ÎÎÎ “Nevskiye porogi”, ÎÎÎ “Kraft Foods”, ÎÀÎ “AQUA-STAR”.

In 2002 the sector produced 1,6 times more products than in 2001.

Serious and consistent efforts are aimed at technical modernisation and production quality improvement at the milk factory and a large-scale bread-baking factory in the town of Tikhvin, the number of staff grew 1,5 times at ÎÀÎ “Sosnovo milk plant”, reconstruction of ÎÎÎ “National wine terminal” is underway.

Consumer goods industry at present is represented by 30 big and medium-size enterprises with over 5000 employees. These enterprises produce fabrics, including fanrics for technical needs, non-weaving materials, artificial leather, oilcloth, materials for tents, nets, knitted goods, socks & stockings, leather goods, goods made of fur, shoes, hats, underwear, outerwear, uniforms, soft and plastic toys etc. The biggest enterprises of the sector are ÎÀÎ “Uzor”, ZAO “Luzhskiy Trikotazh” {Luga knitted goods}, ZAO “Volkhovchanka”, ÎÎÎ “Komatso”, ÀÎ “Finscor”, ÀÎ “Novoladozhskaya kozhgalanterynaya fabrika” {Leather goods}, ZAO “Rainbow” and others.

According to the results of 2000-2002 the overall growth of production volume in the sector made almost 25%. Major increase of 16,1% was achieved in 2002.

Jacquard coverlets, gobelin miniatures and furniture decorative fabrics of ÎÀÎ “Uzor” {pattern} are in stable demand. Men’s, ladies’ and children’s underwear of Tikhvin OOO “Komatso” are in high demand. More than 70% of enterprise’s production is exported to European market. The best nets in Russia are considered to be the products of AO “Vyborgsetsnast” {nets, tackle}.

ÀÎ “Finskor” produces a variety of high quality goods, including first-rate natural leather shoes. ZAO “Finskor”, footwear, has produced 100 thousand pairs (this includes half-finished goods), the enterprise’s profit grew 1,8 times. There is a stable growth in portfolio of such enterprises as ÀÎ “Novoladozhskaya leather goods factory”, ÀÎ “Skankokver”, ÀÎ “Rainbow”, filials of ÀÎ “Trud” {Labour}.

There is a raise in production of knitted goods, fabrics of all kinds, including non-weaving materials, and footwear.

Production volumes hav eincreased at “Fanema”, “Luzhskiy trikotazh {Luga knitted goods}”, “Comatso”, “Volkhovchanka”, “Finskor”, “Nika” and other enterprises of the sector.

The agricultural sector of the Oblast is represented by diversifuied agriculture. Commodity output structure consistes of 55% of live stock breeding and 45% - plant cultivation. The most profitable products of the agricultural sector are potatoes, with the best crop capacity of up to 290 centres per hectare (c/h) and vegetables with the best crop capacity indicators of up to 565 c/h.

A distinctive feature of the agro-industrial complex (APK) of LO is a big number of large-scale specialised complexes: poultry farms, pig-breeding farms, beef-producing enterprises, fur farming and hothouses.

In LO the sector includes 231 agricultural enterprises, 20 processing enterprises, this includes 12 milk factories, 6 meat-processing plants and 2 tin-making plants. There are 27 services enterprises, 6927 farmers’ households (farms) and about 200 thousand of private households.

In LO a considerable attention is being paid to reforming of agricultural enterprises, with the following priorities:

To match current constituent documents with acting regulations and to choose the most suitable organisational-legal economic structure for the current stage of development;

To reatructure insolvent agricultural enterprises;

To restructure production of enterprises;

To improve of internal economic relations;

To develop inter-sector integration and cooperation;

To improve land relations;

To facilitate development and cooperation between agro-firms, farmers’ and private households.

In order to ensure steady performance under current economic conditions it is important to develop new management models for big agricultural enterprises, deepening intra-economic accounting.

The size of the consumer market, biggest in Northern Europe, and the improvement of effectiveness of agricultural producers and processors have determined a growing invetment interest to the regional agro-industrial complex.

LO is one of the leading regions of Russia in international cooperation in agricultural sphere. The Oblast has a longstanding experience of cooperation with Finland, Germany, Holland, Denmark, USA, Sweden.

Since 2000 LO agriculture shows a stable growth of gross agricultural production and in 2002 the growth rate made 108,1% against 2001, and 120,7% against 1999, this includes plant cultivation – 113,2% (122,8%), cattle-breeding – 104,6% (119,6).

In the agricultural production structure the highest shares belong to agricultural enterprises - 56,7%, private households - 41,8%, and farmers’ households - 1,5%.

Thirteen households of LO are now listed among 300 biggest and most effective agricultural enterprises of agro-industrial complex of Russia.

According to the results of 2002 year LO remains the leader in milk-producing, cattle-breeding (milk yield per cow) and poultry farming (meet and eggs).

To insure effective functioning and agricultural development the government of LO and Legislative Assembly have adopted the regional integrated programme: “Development of agro-industrial complex of Leningrad oblast for 2001 - 2005”, the regional target programmes “Preservation of genetic fund in plant cultivation of LO for 2001 – 2005” and “Preservation of agricultural lands fertility for 2001 – 2005” which guarantee targeted financial support from the government. The leasing system is being developed through allocations from the federal and oblast budgets which secures acquisition of new machinery and renewal of the tractors stock of agricultural enterprises.

Allocation of budget funds to most important priorities has enabled 14 (out of 16) agricultural enterprises to implement cassette technologies of cabbage seedlings, 10 agricultural enterprises have been provided wioth complex machinery for storing up rolls of fodder; and to grow potatoes according to Dutch and Finnish technologies; 18 enterprises have received grain combine harvesters “Sampo-Rozelev”; 18 enterprises have introduced new milk production technologies and “De Laval” machinery; 38 agricultural enterprises hav eimtroduced grain flatting.

Th eincrease of genetic potential in plant cultivation and cattle-breeding hav emad eit possible to improve grain crops fertility in a short period of time - 9,9% increase against 2001 and 1,8 times increase against 1999, potatoes - 12,7% (8,7%) increase, milk-producing cattle productivity - 5% (29,3%) increase, egg-laying quality of one hen - 2% (7,1%) increase, average daily overweight both on growing and feeding of cattle - 3% (23,3%), pig farming - 39% (18,5%). Unfavourable weather conditions influenced crop capacity of vegetables growing in the open air, which made 84% to recorded level in 2001 (though it was 10,5% higher than in 1999).

The development of transport complex of the Oblast plays an exceptional role not only in social-economic development of the region, but the whole of Russia, and this is stipulated by geopolitical position of Leningrad Oblast.

Having common land border with Finland and Estonia, LO is a subject of state border of Russia with European Union and Baltic countries. The shortest sea route from Europe to intensively developing markets of Russia and CIS lies through LO.

Taking into account the intensive development of partnerships between Russia, European Union and Asian-Pacific region, the geographic position of the Oblast becomes of a specific value and creates the necessary preconditions for the formation of big international transport junctions in the region.

Transit transportation allows the oblast to fully use its industrial capacity as a regional transport complex by stimulating its modernisation and giving an additional impulse to the development of related sectors and a broad spectrum of related services, such as fueling, repairs and maintenance services, organisation of trade and catering etc.

The tendency of the changing structure of international balance of transport services testifies to the growing role of LO in provision of international transit transporting services.

The volume of transport services exported from LO in 2002 achieved the level of 18,6 million US dollars, which makes 82% of the overall volume of exported services. The main consumers of LO transport services are Finland, Estonia, Germany. For comparison: for the same period the volume of imported services made only 3,6 million of US dollars.

Big investment projects implemented in LO in transit transport services in the region and the expected launch of new port capacities in the Gulf of Finland exercise a strong stimulating impact on foreign and domestic logistic transporters to use services provided by local companies.

In recent years the volume of investment into transport development has grown. It is in the transport sector that the biggest investment projects are implemented. Many units of the Oblast transport complex have a status of federal significance.

The volume of transport services, provided by big and medium size enterprises of the sector grew 2,2 times in 2002, as compared to the previous year level it made more than 11,8 billions roubles. The average amount of workers grew to 24,9 thousand people (111,4%). The average salary in the sector in December made 7052 roubles, which is almost 1,5 times higher than the last year’s level and 1,2 times higher than the overall average salary in the Oblast.

With the annual profit growth in the sector by 2,8 times (1064 million roubles), the share of unprofitable enterprises is 12% (54,4%) higher than in the previous year. Bills payable by the enterprises since the beginning of the year had grown 3 times and by 1 January 2003 made 984 million roubles, bills receivable – increased 5,7 times (1,5 billion roubles). Mainly it it current backlog, overdue bills payable have grown by 25,7% (212 million roubles), bills receivable – 23% (80 million roubles).

Volume the Oblast budget earnings from the sector’s enterprises made 693,1 million roubles and grew 1,6 times; 354,9 million roubles or 51,2% was recieved from October railway road (1,8 times increase). Earnings from enterprises of automobile transport increased 1,45 times, sea transport – 2,1 times, internal water transport – 2,1 times.

In 2002 in the structure of the Russian Federation budget the income share of LO earnings from the transport sector grew from 4,7% to 6,5.

Regarding the structure of the transport complex of LO it is necessary to state a high level of development of almost all kinds of cargo transporting, which allows to develop the system of international cross-product transportation. The total length of navigable water routes makes 1,9 thousand kilometres, railways – 3 thousand kilometres and automobile routes – more than 13 thousand kilometres. Due to its differentiated transport system LO is successfully integrating into the international transport networks.

At present the following big euro-asian transport routes lie across LO:

“North-South” – the ninth cross-product transport corridor with the main direction: Finland – St Petersburg – Moscow – Astrakhan’ – Caspian Sea – Iran – the Gulf countries – India;

“Transsib” – main direction: Vladivostok (Nakhodka) – Ekaterinburg – Kirov – St Petersburg; second direction; Vladivostok (Nakhodka) – Ekaterinburg – Moscow – Minsk – Warsaw – Berlin. In the prevalent economic conditions in 2002 the LO transport complex functioned steadily and fully satisfied the solvent demand in transportation services among the population and industry sectors.

Almost all kinds of transport are developed in the Oblast, which provides for continuous operation of cross-product (multifunctional) transportation corridors, including:

à) sea and river transport

Successful operation of the first phase of Baltic Pipeline System (BTS) and enterprises of sea transpot influenced the growth of volume, increase of tax revenues to the Oblast budget in 2002 and 2003. In 2002 sixty nine million tonnes of oil were pumped across the pipelines. At present there is a decision made to increase the capacity of BTS from 12 million to 50 million tonnes per year by additional investment of borrowed funds in total of 32 billion roubles.

The carrying capacity of the Vyborg port is 2 million tonnes per year. Most of the cargo turnover is made up by exported cargo — 96%, 3% — by imported cargo, 1% — cabotage. With a fertilizers reloading plant with up to 500 thousand tonnes per year capacity launched in March 2002, indicators of shipment increased by 31%, 1,3 million tonnes of cargo was worked up. For the first time in 10 years the important point of 1 million tonnes got past.

The sea trade port “Vysotsk” is situated on the North-West coast of the Gulf of Finland, south to the Vyborg port. Navigation in the port lasts throughout the whole year. In winter ships are piloted with the help of ice-breakers. The main part of the freights (97%) — is loading and piled cargo (ore, fluxes, coal, coke and other), 1% — wood, 2% — general cargo. Reduction of coal prices at European markets in 2001 and first half of 2002 and corresponding export restrictions brought about the reduction of shipment volume to 3,13 million tonnes (98%), exports makes 99%. In June 2002 construction began of a new complex on trans-shipment of oil and oil products with the capacity of 10,75 million tonnes per year near “Vysotsk” port by OOO “Lukoil – RPK Vysotsk-2” on the basis of the project on trans-shipment of liquid methanol and ammonia worked out by ZAO “Baltkhimexport”. The total project cost is 368 million US dollars.

The official opening of the trade sea -port of Primorsk was held in December 2001. The port in Primorsk is the third biggest bulk-oil port in Russia, and at the same time the first Russian port specialising in trans-shipment of crude oil and liquefield gas. The volume of processed freights, made by stevedoring organisations of the Oblast in 2002 grew by 3,9 times - 16,9 million tonnes, exports made 99,5%. Specialised Sea Cargo Port (SSCP) “Primorsk” dispatched 12,2 million tonnes of oil, 101,8% to the declared volume.

In Luga bay an intensive building of the trade sea port “Ust-Luga” continues, the port is intended in the future for 35 million tonnes turnover of export-import cargo. Over the past 2,5 years the sea port “Ust-Luga” project has created a solid foundation for further intensive development: marketing surveys were made, all ways of transport cargo turnovers are identified and adjusted; the final stage of General Plan revision of the port is coming to an end, investors are identified for all reloading complexes of the port and most of the parts of the port general infrastructure. The coal terminal complex has been started up with the turnover of 1 million tonnes per year as well as all the necessary parts of the infrastructure – port railway road, communication and informatisation systems, first phase of sea access duct, means of navigational provision. In 2003 there it is intended to reload 0,3 million tonnes. The construction of the ore terminal has started (total capacity 1,8 million tonnes per year by 2007 and total cost of 19,18 million of US dollars).

The system of the port external power provision is close to completion; reconstruction of the automobile access road to the port is underway (30 kilometres long). Feasibility studies for the port station “Luzhskaya” is adopted, reinforcement of the port railway outlets is being developed, the October railroad carries out reconstruction of the railway road section Weimarn – Kotly – Ust-Luga.

The financing of dredger works at the sea entrance canal and in the port water area is lagging behind, the money coming from the budget in insyfficient amounts and with delays. The federal budget has provided only 100 million roubles so far for dredger works against 560 million declared.

Since 2002 OAO “Baltic ferry” — 100% subsidiary of ÎÀÎ “Ust-Luga” Company”- has conducted construction works (as customer-developer) of multi-functional cargo-passenger auto-railway ferry connection “Ust-Luga – Baltiysk – ports of Germany” with the estimated turnover of 3,2 million tonnes by 2010 year and total cost of 74,53 million US dollars. The Ministry of Finance of Russian Federation agreed to the credit of 70 million US dollars from EBRD for fulfillment of the ferry project.

The Volga-Baltic water route connects the Oblast with the internal water system of the country. Almost 15 million tonnes of cargo is transported through internal water routes every year. The North-West shipping company is one of the biggest transporters whose ships carry cargo to the ports in the Baltic countries, the Mediterranean and Caspian Seas. The flow of traffic carried out by North-West Shipping Company in 2002 by internal water transport made 4,03 million tonnes, which is 17% lower than previous year with the turnover of 625,8 million tonnes/kilometres (reduction by 9,5%). Most of the flow of traffic is made by Leningrad river port. During navigation period 4 million tonnes of cargo were transported (84% of 2002) with 7,26 million tonnes (80%) of cargo processed by reloading machines. Podporozhsky port has reduced its traffic (19 thousand tonnes) by 72%, reloading (400 thousand tonnes) is also reduced by 53%. A shipwreck at the Neva river preveted the enterprises to achieve the projected traffic flow of 5 million of tonnes.

Navigation increases at Volgo-Balt, the volume of freight and passenger shipping operations is growing. In 2002 in comparison to the previous year the freight turnover both ways grew by 5% and made 10,39 million tonnes. Due to poor technical conditions of hydro-engineering units and their low carrying capacity many ships stand idle. Financing of reconstruction of hydro-engineering units (Upper- and Lower- Svir sluices) of Volgo-Baltic waterway is extremely insufficient. In 2002 the federal budget allocated 11,23 million roubles for these purposes. In 2002 the volume of financing increased by 15%. Additional 5 million roubles were allocated to the creation of an integrated system of centralized management of ships routing. Money is assigned to reconstruction of a part of main connection line St Petersburg - Slisselburg – 2,6 million roubles, and Slisselburg – New Ladoga - 2,4 million roubles.

b) railway transport

In transport system of north-west the railway transport holds a leading place (75% of freight turnover and 40% of passenger turnover). LO is the biggest consignor of goods of the European part of Russia. LO is serviced by the October railway road (ORR). Lately it has actively introduced new technologies, such as the system of optical connection lines. Federal Main Administration of “ORR of MRT of RF” {ORR of Ministry of Railway Transport of Russian Federation} – is the main taxpayer of the sector, its share makes about 43% of the tax earnings of the budgets of all levels, and more than 51% to Oblast budget.

In 2002 the Government of LO allocated 92 million roubles from the Oblast budget to compensate for railroad losses on subsidised suburban railroad transportation in LO. This money was spent on the acquisition of new a suburban train (52 million roubles), and construction and design of the rail in the Oblast.

The Oblast share in the total turnover of ORR in St Petersburg and LO is 40% of cargo and 27% of passengers. The oblast route miles of general use is 2393 kilometres (01.01.2002), including electrical railroads of 1552 kilometres. In 2002 the LO railroad consignors of goods reloaded 39,4 million tonnes (97% against the previous year. There was a reduction of volumes by 9% in oil – and oil products - 13,7 million tonnes, share of this cargo was more than 35%, loading of slates reduced by more than 30%, total of 0,74 million tonnes of slate loaded. The volume of building cargo increased by 1,8% - 15,9 million tonnes, timber - by 21,9% - 2,6 million tonnes, increase in cement loading - 4,8% - 1,43 million tonnes. Volume of transportation of other cargo types also increased, but their share in the overall volumes is not substantial. With the raise of tariffs the volume of passenger turnover in the Oblast was cut down by 2% in 2002, the number of passengers reached 34,9 million people, passenger turnover increased by 25% - 4,93 billion passengers/kilometre. Suburban trains summer schedule was kept at the level of 2001.

In order to fulfill the social policy the Oblast budget provided subsidies to pensioners (resident in LO) at suburban railway transport. In May 2002 5,4 million roubles were allocated to these subsusies. The government paid 21,9 million roubles to ORR (including the Oblast budget allocation of 5,4 million roubles) as compensation of losses from transporting of citizens who enjoy government priviliges (benefits) and come under the terms of federal laws “On veterans”, “On social protection of invalids of RF”, and also citizens who were under radioactive substances effect.

ORR fulfils a broad investment programme at the territory of Leningrad Oblast. In 2002 it completed electrification of Volkhovstroy-Tikhvin-Babaevo” and “Volkhovstroi-Svir” sections of the railroad. Railroad accessways to ports of Vysotsk, Primorsk, Vyborg, Ust-Luga (under construction) are being reinforced. Frontier passage in Ivangorod is being developed and re-equipped. The total investment of ORR in LO reached the level of 3,8 billion roubles in 2002. All this substantially reinforces the industrial and economic potential of the oblast.

c) automobile transport

LO holds a leading place in the North-West region in compactness and extension of roads. The overall length of the roads is more than 13 thousand kilometres, 11,4% of them are federal roads. Federal roads carry out international, interregional and intra-regional transportation of passengers and cargo.

Federal motorways of LO (“Skandinavia” Å-18, “Russia” Å-105, “Narva” Å-20, St Petersburg – Pskov Å-95, “Kola” Å-105) are included in the European network of automobile roads. Their share of international cargo in the overall volume of cargo turnover is 8%.

Automobile roads “Russia” and “Skandinavia” are part of the Ninth cross-product (multifunctional) transport corridor, they are the main automobile routes connecting Russia and EU countries.

In recent years positive dynamics have been observed in cargo transportation increase by all means of transport, this is caused by production volume increase, expansion of external economic and interregional connections, construction of the ports on the coast of the Gulf of Finland, Baltic pipeline system, Ring road of St Petersburg and other big construction projects.

In 2002 the LO organisations of automobile transport (including private entrepreneurs) carried (dispatched) 3,4 million tonnes of cargo, where 77,4% belongs to large and medium size organisations. The cargo turnover was 146,9 million tonnes, where 63,9 million tonnes belongs to large and medium size organisations.

The volume of transportation of external trade cargo increased by 10% in 2002 and constitued 2,47 million tonnes. The quantity of transportation means of foreign carriers increased by 9% - 257,1 thousand units, this includes almost 7% at the border with Finland (check-points "Brusnichnoye", "Svetogorsk"), at the border with Estonia - 22% (check-point "Ivangorod"). The proportion of carriers which operate at check-points "Brusnichnoye" and "Svetogorsk" increased from 55,7% to 60,4%, at the Estonian border there is only 15,9% of the operations.

Eighty percent of passenger transportation in the Oblast belongs to automobile transportation. Although this means of transport is most popular, according to statistics the volume of passenger transportation carried out in Russia by automobile transport annually goes down.

In 2002 automobile transport enterprises carried out transportation of 181 million of passengers, which makes 92% of traffic flow as compared to last year. Passenger turnover reduced by 6% and was 1778 million of passengers/kilometre. Besides, 5 million people were transported including additional automobile transport (private carriers, legal entities from other sectors), passenger turnover was 20,5 million of passengers/kilometre, 111% and 120% to the previous year level accordingly. Regularity of shuttle buses traffic was 94,5%.

Reduction of statistically registered volumes of transportation is explained first of all by the imimprovement of the reporting guidelines. For example, during 2002 private passenger transport developed substantially, and as a result considerable part of passenger flow (approximately 18% from the overall) switched on to private shuttle transport: in the Oblast there are 57 private companies and entrepreneurs which operate in the market, they carry out transportation at 163 shuttle routes with total number of buses – 460. Because the existing system of reporting does not require reporting on volume indicators (most of entrepreneurs paid taxes according to the system of single tax for imputed earnings), the indicator we look at is not reliable. According to the general evaluation of passenger transportation we can conclude that the volume of transportation remained the same or slightly increased.

In order to reinforce material-technical and financial conditions of automobile transport enterprises municipality administrations purchases Swedish 112 buses.

In 2002 forty-nine buses of small and medium capacity and 18 buses of large capacity were purchased by municipalities and automobile transport enterprises.

d) air transport

The main airport of St Petersburg and LO is “Pulkovo” airport, which carries out regular internal and external flights. Local airlines are serviced by “Rzhevka” airport, which is located in LO close to the city of St Petersburg. At present Rzhevka airport is used by more than a dozen private airlines, and provides a base for several air clubs.

The construction of the Ring road substantially increases the importance of an oblast airport and creates investment opportunities.

LO has substantial and important natural resources, history and culture.

Th eOblst has unique landscapes, which combine deciduous and coniferous forest, granite rocks and caves, underground salubrious waters and springs, dune sands and sand beaches. This is a small listing of remarkable places of authentic natural beauty, attractive for tourists. Most valuable places of nature, such as Nizhnesvirskiy reserve, National nature park “Vepskiy les {forest}”, other remarkable places and natural landscapes have a status of natural territories (national park) especially guarded and looked after.

The most valuable natural resource of the Oblast with a great tourism and recreation potential is a unique lake-river system. The biggest European lakes Ladoga and Onega, full-flowing rivers Neva, Volkhov, Luga, Svir, Syas’ are situated in the Oblast. Flora and fauna are rich and multifarous, the Oblast is inhabited by 60 types of mammals and about 330 types of birds. Rivers and lakes of LO are inhabited by almost 80 types of fish, the most valuable of which are salmon, white fish, umber, eel, and trout.

LO is rich in its historical-cultural heritage. There are more than 3900 cultural landmarks, about half of them are architectural and historical monuments, 700 – archeological sights, 100 – fine art heritage. The history of such towns as Vyborg, Gatchina, Ivangorod, Luga, Tikhvin, Priozersk, Schlisselburg, Staraya Ladoga is inseparably connected with the culture of Russia. Special place belongs to monasteries and fortresses’, most of them were part of Russia state defense system: Koporje, Korela, Oreshek, Vyborg, monuments of wooden architecture of Prisvirje. 300 of parks, palaces and estates, which are real gems in the history and culture of the Russian North.

In LO there are ethnic settlements of karelians, vepse, izhora, ved’ who carefully preserve their traditional national trades and cra and pass their skills to new generations. Souvenirs of cut wood, elm netting, laces and other products are very popular with tourists.

According to surveys the total volume of the tourist flow to LO is estimated at about 2,8 million people per year, including 1,8 million people from foreign countries, the majority of which come through the north-west part of state border of RF. The annual growth of foreign citizen coming to LO exceeds 5%.

In tourism in 2000 the government launched the “Regional programme of tourism and recreation development in LO for 2000-2005” which set out the framework to establish

an Interdepartmental Coordination Council on tourism which is now in operation.

By the end of 2002 there were 92 tourist companies (travel agencies). About 1,2 thousand people are employed in tourism work and this number is growing. The volume of commercial services for tourist’s and conducted tours in 2002 grew 3,6 times as compared to 2001 and made 115,9 million roubles.

There is a growing interest to LO. Itineraries become more varied and travel companies expand. Most of tehm are located in Staraya Ladoga, Volkhov, Luga and Priozersk rayons. Rural tourism is also developing – houses and huts for fishermen and hunters. Tour companies and travel entrepreneurs are registered and got licenses in 21 municipalities. In 2002 the Oblast was visited by more than 1 million tourists, which is 35% higher than in 2001.

There is a network of 550 tourist accommodation facilitiesm such as pansionat, dom otdyha (leisure and recreation houses), sanatoriums (health centres), etc.

The network of public catering consists of 220 restaurants and 615 cafes. The total number of seats in cafes and restaurants of LO (excluding open “summer” cafes and restaurants) is estimated at 30 thousand places.

Recreation industry has been rapidly developing over the past years (aqua parks, luna-parks, casinos and so on), including traditional and new types of sports and extreme sports (water, underwater, mountain skiing, rock-climbing, diving and others).

The effective policy of the LO Government in the sphere of external trade development has created a substantial input into the regional economy. Since the end of 1998 there has been a sustainable tendency of external trade volume growth.

External trade turnover in 2002 made 3063,9 million US dollars and increased by 19% compared to 2000, its exports share (2175,9 million of dollars) increased by 2,6%, imports (888,0 million of US dollars) increased twice. The share of exports in external trade turnover reduced from 82% (in 2000) to 71% (in 2002). The trade balance remained positive.

In 2001-2002 LO was the first in the North-West Federal region in exports and the third in imports. Approximately 1,5 thousand Oblast enterprises participate in external trade activities, with 80% of turnover owned by 20 companies.

The number of partner countries grew from 97 in 2000 to 118 in 2002 ãîäó, where 98% of them were distant foreign countries.

The biggest supplies from LO in 2002 were made to Switzerland – 1022,5 million US dollars worth (47,0% of total volume, main products – fuel), Sweden – 295,2 million US dollars (13,6%, fuel, wood and wood products), Finland – 251,8 million US dollars (11,6%, fuel, organic chemistry compounds, wood), Estonia – 128,2 million US dollars (5,9%, fuel, fertilizers).

Among the largest goods exporters to LO in 2002 are the USA – 156,8 million US dollars (17,7% from the total volume, main products – tobacco, meat), Germany - 103,6 million US dollars (11,7%, mechanical engineering products, means of on-land transport) Brazil – 90,7 million US dollars (10,2%, meat, tobacco), Finland – 86,5 million US dollars (9,7%, mechanical engineering products, paper, products and compounds of inorganic chemistry).

Regarding CIS countries in 2002 the exports share made 82,7 million US dollars, imports – 14,5 million US dollars.

In exports the first place belongs to fuel and energy (68,2% of the overall volume). The second place belongs to wood and products made of wood (11,0%). The third place belongs to exports of petrochemical products (7,9%).

In imports the leading role belongs to food and raw materials (45,5%), second place is taken by imports of mechanical engineering products (26,7%), and then – by supplies of petrochemical complex products (11,4%).

Participation in different international programmes and technical assistance projects is one of the important streams of LO Government activities in support of Oblast exporters.

In 2002 in LO TACIS/BISTRO project “Strategy of exports development in LO” was implemented with participation of the Institute of external trade of Italy and OAO “Region-Expo”. The project was focused on support of development of exports opportunities for small and medium-size enterprises of the Oblast. Within the project framework the training was arranged for representatives of LO Government committees and potential investors, informational-methodological materials were issued, such as “Recommendations to regional exporters” and “Exporters’ catalogue. Leningrad Oblast, 2002”.

Creation of a favourable and stable investment climate has stimulated substantial Russian and foreign investments in economy and social sphere.

The results of investment activities of LO illustrate the stability of economic growth.

The main indicators characterizing investment in Leningrad Oblast are the following:

Investment in fixed capital (housing, buildings and structures, cars, equipment, tools, etc.); and foreign investment (direct investment, contribution to the charter capital). A good and favourable investment climate has stimulated considerable Russian and foreign investment which supports social and economic development.

In 2000 and 2001 the annual rate of investment growth including all sources reached the level of 14%. The following plants have been started up: Caterpillar (road construction equipment, 1 phase), Tosno rayon; tobacco factory ZAO Phillip Morris Izhora and OOO Kraft Foods (instant coffee), Lomonosov rayon; Ust-Luga coal terminal (1 phase) in the sea port Ust Luga, Kingisepp rayon; BTS in Primorsk. In addition, considerable investment has gone into modernisation and technical re-equipment of operating plants in the fuel, timber, wood, pulp and paper, construction and power industries. In 2002 the above-mentioned investment projects continued to develop.

However, because all major investors have already concluded construction of plants and facilities, the total amount of investment in fixed capital in 2002 constituted 62,9% of the total investment in fixed capital in 2001 (ie 23,4 billion Rubles). Regarding the sources of investment last year most investment went into company own funds (52%), which is typical of the year 2000 (57%) and 2001 (53%). Since the beginning of the year 2000 there has been steady growth of investment of all attracted sources of funding. On the annual basis there has been an increase in investment in construction from the federal and oblast budget. Thus, in 2000-2001 this amount reached 4,4 billion Rubles, including 3,4 billion Rubles from the federal budget.

In 2000-2001 foreign investment into the local economy has grown annually by 6-7%, coming to the amount of 632,5 million US dollars over the past two years. Two thirds of foreign investment accounts for direct investment. Since 2000 most investment (90%) has gone into industries development, 4% into communications and 6% into agriculture. In 2002 this trend continued: 94% of total investment was devoted to sectoral industries, including 48% in machine-building and metal-works, 26% – in timber, wood, pulp and paper, and 7% – food industry.

Systematic efforts to attract investors and successful implementation of investment projects have ensured the increase of investment in the development of the production sector. In 2000–2001 investment in this field amounted to 90% of total investment (mainly due to big investment in transport infrastructure development). In 2002, 16,9 billion Rubles (71% of total investment) was directed to construction of production facilities, including industries with a high level of investment growth in 2002 (in percentage to the previous year), such as:

Power sector – 109%: modernization and re-equipment of 4 power-generating units, which ensures long-term safety and longer life cycle; Leningrad nuclear plant at Sosnovy Bor: new power lines 137,6 km long in Vyborgsky rayon (commissioned by– ÌÝÑ North –West RAO ÅÝÑ Russia”), transformer unit with the capacity of 250 kw in Volosovo (commissioned by – ÌÓÏ “Electric networks”), transformer unit with the capacity of 1,3 thousand kw in Lodeinopolsky rayon (commissioned by – ÌÓÏ “Lodeinopolsky Diary Plant ”), transformer unit with the capacity of 600 kw in Gatchina rayon, village Vyritsa (commissioned by – ÎÀÎ “ Uzor”);

Chemical and petrochemical industry – 106%: restructuring and modernization of production facilities of ÎÀÎ “Henkel-ERA” in Tosno rayon, completion of plastic pipe production for perfumery at ÎÀÎ “Turboplast-Îtradnoye” in Kirovsky rayon, launch of the 1 phase of foam-rubber production with the capacity of 3 thousand tons a year in Voiskorovo, Tosno rayon (commissioned by – ÎÎÎ “nterfoam- SPb”).

Construction materials – 2,6 times growth: restructuring of road-metal production facilities at ZAO “Semiozerskoye karieroupravleniye” in Priozersky rayon; completion of a new construction stone quarry and road-metal plant by ZAO “Honkavaaran Maastorakkenus” in Gorelovo, Vyborgsky rayon with the capacity of 1 million cubic metres of road-metal per year; construction of crushing and sorting plany near Ostrovskoye pit in Kamenogorsk, ZAO Kamennogorskoye karieroupravleniye; construction and start-up of the first phase of the second line of glazed ceramic tile production for internal wall coating with the capacity of 1,8 million sq m by OAO Nefrit – Kamenka and start-up of tile production facilities with the capacity of 3,5 million sq m at ZAO Kvartz in Nikolskoye, Tosno rayon, acquisition of equipment by ÎÀÎ “Tsesla”, Slantsy rayon);

Agriculture – 112,5%: warehouse constructed for storage of potatoes, fruit and vegetables with the capacity of bulk storage of 30 tons in Volosovsky rayon (commissioned by – “Krestianskoye fermerskoye hozaistvo”), shelters for cattle with capacity of 60 heads in the Rostok farm in Volkhovsky rayon, chicken farm for 560 chickens in Gnezdovo farm in Volkhovsky rayon, reconstruction of drainage system of the area of 1,1 thousand hectares, lime treatment of soil in the total area of 1646 hectares in17 farms in Slantsevsky, Kingiseppsky, Tosnensky, Vsevolzsky, and Luzhsky rayons, modernizations of agriculture infrastructure, leasing of equipment.

Although there was a noticeable decline in investment in certain industries in 2002 in relation to 2001, it was in 2002 that most construction was finished in the following sectors:

Timber, wood-processing and pulp and paper industry – reconstruction of cardboard factory with the capacity of 20 thousand tons per year at OAO Siasky TsBK in Volkhovsky rayon, completion of the first phase of production of furniture pre-fabricated units at OOO Swedwood Tikhvin, chipboard production line launched with the capacity of 200 cubic meters per year in Nevskaya Dubrovka, Vsevolzhsky rayon (commissioned by OOO Intrast).

Fuel industry – construction continued of the first phase of deep oil refining (hydro cracking) by OOO PO Kirishinefteorgsintez, peat-processing shop at OOO Rusbalttorf in Sosnensky rayon, equipment purchased for OAO Leningradslanets and AO Slantsy.

Food industry – works completed to expand production facilities of ZAO Phillip Morris Izhora in Lomonosovsky rayon, ice-cream production lines at OAO Talosto-Volkhov, modernization of local bakeries in various regions of the oblast, plant assembled for coffee packaging with the capacity of 300 tons per year in Lomonosovsky rayon, diary plant with the capacity of 7 tons per shift in Sosnovy Bor (commissioned by MUP Kalistche-moloko), condensed milk production started in Lodeinopolsky rayon, with 120 tons per year capacity (commissioned by MUP Lodeinopolsky molochny zavod (diary plant).

Machine building and metal-works – construction completed and first phase launched at ZAO Ford Motor Company with the capacity of 25 thousand automobiles per year in Vsevolzhsky rayon, construction completed and equipment supplied for refrigerator case production at OOO Helkama Forste Viipury in Vyborg, and construction of plant for galvanic, powder and oil coatings at ZAO Priborostroitel in Vyborgsky rayon.

Medical industry – construction of production facilities and launch of medical glass production with the capacity of 63,8 million pieces per year at Zavod chimiko-laboratornoi posudy I priborov Druzhnaya Gorka (Medical and laboratory glass production) at Druzhnaya Gorka, Gatchinsky rayon.

Printing – construction continued of packaging materials production fro food industry at ZAO Ecotex-plus in Lomonosovsky rayon, construction continued of printing facilities at OOO MDM-pechat in Vsevolzhsky rayon (expected start up in 2003).

Growing demand for glass packaging has stimulated construction of new production facilities and reconstruction of old plants. Glass and porcelain industry received the investment of 580 million Rubles in 2002: construction completed and first phase launched of glass packaging production at OAO Kirishsku stekolny zavod (glass plant) with the capacity of 226 million dark bottles and ZAO Veda-Pak with the capacity of 269 million light bottles per year (Kingisepp).

Transport – construction continued of the second phase of the coal terminal of OAO Rosterminalugol at the port of Ust-Luga, mineral fertilizer terminal and timber complex of OAO Company Ust-Luga, construction of petrol and petrol product terminal (RPK) OAO Lukoil in Vysotsk, Vyborgsky rayon, reconstruction of rail at Volkhovstroi-Svir, construction of the Volkhovstroi locomotive depot, electrification of Idel-Svir rail at the expense of the Ministry of Rail “October Railway road”, construction and reconstruction of federal and territorial roads. The following facilities have been launched: sea trade port in Ust-Luga – deepening of the access channel to 9,4 m, construction of local roads - 42,2 km long, natural gas production, storage and degasification unit at GRS “Vyborg” with the capacity of 400 kg per hour.

Communications – telephone lines installed in apartments, modernization and network upgrade, new land line network for 200 numbers in the rural area of Lodeinopolsky rayon, and mobile radio telephone network for 400 numbers in Zamostie in Gatchinsky rayon (commissioned by OAO Telekom XXI), digital telephone station for 200 numbers at Svetogorsk.

Trade and public catering – new shopping outlets have been built in various rayons of the oblast with the total floor space of 6,7 thousand sq m and public catering outlets for 327 people in total, new warehouse of 930 sq m has been built in Bugry in Vsevolzhsky rayon, two petrol stations have been built in Novoye Deviatkino in Vsevolzhsky rayon and one petrol station in Tsvetochnoyein Vyborgsky rayon.

Since 2000 investment has grown into non-production (service) sector. This tendency has prevailed in 2002. Total investment in construction of non-production facilities has grown by 2,4 times compared with 2001, with 4,9 million investments, which accounts for 21% of the total investment. 252,4 million Rubles have been allocated from the oblast budget to the construction of cultural and social welfare facilities, which is 125% in comparison with 2001.

In 2002 the following growth of investment was registered:

Arts and culture – 4,5 times increase, social center (club) opened with seating space for 60 people in Pchevzha, and house of culture of OOO PO Kirishinefteorgsintez in Kirishsky rayon.

Health, sports and social welfare – 1,5 times. A new building of a home for 108 beds has been built for psycho-neurological patients in Siasstroi in Volkhovsky rayon, the first phase of a mountain skiing track 0,5 km long has been constructed at a health resort in Kavgolovo in Vsevolzhsky rayon, hospital for 65 beds in Voznesenie in Podporozhsky rayon, children’s hospital for 64 beds in Volosovo, polyclinic for 100 visits per shift in Beguntsy in Volosovo rayon, a gym for 300 people at teacher training college in Gatchina.

Education – by 2%, a new secondary school for 436 pupils built in Rassvet in Lodeinopolsky rayon, hall of residence for 280 beds of the boarding school in Yukki in Vsevolzhsky rayon.

Science and research – 1,6 times, construction continued of a nuclear reactor with capacity of 100 Mw at PIYaF named after Konstantinov in Gatchina, realization of the project to create a North-West science and industry center of nuclear power to design a new generation of nuclear reactors with VVER type reactor at NITI named after Alexandrov in Sosnovy Bor, production of optic and fiber-optic devices for industrial use, medicine and power at NII of complex testing of electrical and optical systems and devices.

Housing – 1,5 times, new housing construction of 433,2 thousand sq m, including private development in the amount of 261,9 thousand sq m.

Utilities – by 22%, a new sewage treatment facilities constructed in Ivangorod with the capacity of 4,1 cubic m per day, new gas pipeline constructed 13,7 km long, 23 units of heat supply and 3 water supply units built.

In addition in 2002 the following reconstruction and rehabilitation was carried out: a secondary school for 420 pupils in Alehovstchina in Lodeinopolsky rayon, children’s home for 8 people in Rahia in Vsevolzhsky rayon, dental clinic for 150 visits per shift in Tosno, buildings of Leningrad oblast arts and culture college, oblast clinical hospital, children’s oblast clinical hospital, surgical wing of a hospital in Siasstroi in Volkhovsky rayon, restructuring of a court building to accommodate therapy wing for 50 beds in the central district hospital of Kirovsky rayon, children’s hospital and polyclinic in Luga as well as rehabilitation of boiler-houses with the overall capacity of 4,5 gigacalories per hour.

In 2002 construction companies conducted construction works for the amount of 11,6 billion Rubles which presents 97,6% to the level of 2001, with construction at big and medium companies accounting for 3,7%.

Science, technology and innovation in the course of its development has become a major social factor influencing all spheres of life of Leningrad Oblast. Effective and focused application of the results of research and development has become a reliable indicator of social and economic stability. The region’s technological and innovation potential is based on the following:

About 30 medium-size and big-scale scientific organizations, primarily state-owned academic and sectoral institutes and scientific centres;

Over 300 small research organizations;

A number of higher education establishments:

A considerable number of production companies of innovative character.

The biggest research organizations are listed below:

The main areas of activity of the above-mentioned scientific and research institutions are the following:

Nuclear power and energy

Nuclear physics and optical electronics

Applied physics

Biology and medicine

Agriculture

Land reclamation and water resources management

Machine-building, including transport

Instrument-building, including lasers and radiolocation

Fishery

Most studies and research have national importance and are aimed at the development and improvement of science-intensive technologies. At the same time a considerable amount of work has a practical character for local application.

A significant share of the scientific potential of the oblast belongs to small organizations, most of which are located in towns with historic industry specialization (Sosnovy Bor, Vsevolozhsk, Gatchina, Vyborg, Shlisselburg, Kirishi).

In addition, a great number of small science and technology companies have been set up in the rayons with actively developing industries, such as metallurgic, machine-building and metal-works (Tikhvin, Volkhov, Boxitogorsk), pulp and paper industry, fisheries, shipyards (Vyborg, Svetogorsk, Priozersk).

Higher education institutions of Leningrad Oblast play an important part in strengthening the scientific and technical potential of the oblast. Leningrad State University named after Pushkin and Leningrad Oblast Institute of Economics and Finance provide specialists and professionals for local companies.

The network of branches of St Petersburg and Oblast higher educational institutions play a very important role in providing higher education in municipalities. The total amount of students in such universities and colleges has come up to 2300 people.

Another important aspect of scientific and technical development is innovation in agro-industrial complex of Leningrad Oblast. The government of Leningrad Oblast pays particular attention to its sustainable development. Over the past 5-6 years the regional policy in agriculture has been aimed at introduction of new technologies and restructuring of farms.

Innovation and availability of innovation companies is a decisive factor in the development of the innovation complex of the oblast.

Small business development is an important factor of wellbeing of any society. Most population globally is involved in small business both owners of small companies and their employees.

By the end of 2002 there were 11484 small companies registered on Leningrad Oblast (according to Peterburgcomstat), which is higher than in 2001 by 2107 companies. In 2002 there was an increase in sme numbers in all sectors, which highest number in retail and public catering (growth by 1066 companies), and industry (by 386 companies). The share of retail smes is 36,5%, industry – 24,8%, construction – 15,2%. Besides, by 01/01/03 there were registered 47400 individual (self-employed) entrepreneurs and 6635 new farms.

Although the number of people employed by small companies in 2002 remained at the level of the previous year of 119,3 thousand people, the industrial composition has significantly changed. The share of employed in industry has come up to 35% (with 28,7% in 2001), in construction – 28,2% (in 2001 – 20,9%), the number of employed in retail and catering has declined to 19,4% (in 2001 it was 32,1%). The employment reduction in the growing number of small retail and catering companies is explained by a steady tendency for amalgamation and introduction of new technologies and services, for example, self-service. The growth in numbers is determined by the increase in not-permanent small retail (markets and fairs).

The year 2002 is characterized by an increase in output. The total amount of products and services produces by small companies in 2002 is 47,4% higher than in 2001 and is estimated at 12755 million Rubles. According to statistics, there has been a great increase in the industrial output share – up to 36,4% (23,1% in 2001). Small companies in food, timber and wood-processing, construction materials, machine- building and metal-works account for over 88% of industrial output. In 2002 the share of construction works went down to 31,5% (in 2001 – 41,7%), retail and catering down to 11,7% (with 21,7% in 2001).

Although small business traditionally is associated with retail, transport and construction, the performance of small companied in Leningrad oblast has regional characteristics and differences. For example, small companies in the food and construction materials sectors are most successfully developing in Volkhovsky and Kirovsky rayons; timber and wood-processing – in Podporozhsky, Tikhvinsky and Lodeinopolsky rayons; in Sisnovy Bor – constantly high level of small companies in research and development.

The scale and pace of small business development in various municipalities of Leningrad Oblast are varied. The highest rate of small business development is observed in Vsevolozhsky, Vyborgsky and Tosnensky rayons.

In general small business development in municipalities of Leningrad Oblast is characterized by positive growth reflected in major market indicators. Enterprise development has become an important condition to solve social and economic issues at the local level.

The crucial factor in small business efficiency and growth is the formation of the enabling institutional environment, which stimulates its development. International technical assistance in this respect has been most effective. A number of pilot projects aimed at small business support have been successfully implemented in Leningrad Oblast over the past few years. All of them can be disseminated in other oblasts of the Russian Federation.

The Government of Leningrad Oblast pays special attention to the development of the social sphere.

The oblast cultural heritage is significant and varied. The oblast is rich in architectural, archeological, historical and artistic heritage, as well as arts and crafts of the Russia’s North – birch tree bark souvenirs, woodwork, basketry, straw and clay toys, earthenware, cast iron, laces, jewellery and so on.

There are two government institutions responsible for the heritage preservation and management: The Oblast Museum center and Historic Preservation Authorities. The Museum network consisting of 36 museums deals with a great scope of issues related to preservation and use of museum collections and museum property.

There is a wide network of culture and leisure institutions in Leningrad Oblast, including 465 public libraries (with 327 in rural areas), two universal libraries (for children and adults), 51 cinematographic organizations with 36 cinema units, 13 cinemas, 2 film distribution companies; 441 clubs/social centres including 355 in rural areas and 32 buses. There is an arts and culture college and 107 art and music schools. The oblast is considered to have most theatres among other oblasts of the Russian Federation – there 7 oblast state professional theatres and 6 municipal theatres; one oblast folk music orchestra “Metelitsa”.

Since early 90-s the oblast cultural development has been guided by the regional target programme.

The target programme approach and careful prioritizing in public spending have created favourable conditions to attract funds from the federal budget and other sources. As a result, with additional funding, a number of public events have been arranged in relation to national holidays, important dates and international forums, which also encouraged preservation and development of national cultures and traditions, and secured funding for restoration.

There is still a shortage of cultural workers (mainly at junior management level) due to low salaries (at the level of the minimum cost of living), although measures have been taken to provide additional payments and allowances within for cultural workers of state-owned institutions.

There has been an increase in paid-/commercial services are provided by cultural institutions in Leningrad Oblast. Due to a certain increase in state budget allocations, cultural institutions strengthen their material base and provide better and more varied services. Commercial services (mainly in leisure) are regulated in accordance with the means and demands of each customer group, as well as training and education capacity of ach institution. The volume of commercial services provided by museums, theatres, and concert halls, both for professionals and amateurs, is increasing due to the growing number of visitors and event.

The implementation of the programme has enabled the Oblast to preserve culture, landmarks and heritage, as well as to maintain professional human resources.

Automation continues in public libraries in the oblast, Internet resources are made available. Support of young talent remains one of the main priorities of culture development. Regular support is provided to groups and individuals who maintain and develop cultural traditions of ethnic minorities, such as Finno-Ugric. Concert and theatrical performance are given by oblast theatres, and the folk orchestra “Metelitsa”.

Two of Russia’s most popular annual film festivals are successfully held in Gatchina,

“Literature and Cinema”, and Vyborg, “Window to Europe”.

Long-term cultural programmes are being implemented, such as “Security at museums” and “North-West”, restoration continues and new pieces of art are bought to enrich museum collections.

Preparations are under way to celebrate 1250^th anniversary of Staraya Ladoga. Restoration work has been done at the premises to secure safety. New collection pieces have been bought. Fire alarm systems have been purchased for a number of buildings of the museum-reserve. Big reconstruction works have been carried out at the House of Culture at Staraya Ladoga. A secondary and a correction/compensatory schools have been redecorated. Two festivals, international and oblast, have been very successful in celebrating the jubilee. A new website has been launched: “Staraya Ladoga – museum-reserve (zapovednik)”

In 2002 a social center was opened for 60 people in Pchevzha, Kirishsky rayon, and a hall of residence for the Culture College students (after reconstruction).

In 2002 the rate of provision of cultural and leisure facilities to 100 thousand people was – 28,8 institutions, and library services - 30,3 libraries.

Within the framework of activities aimed at the improvement of the social status of cultural workers in state-owned institutions laws have been passed at the regional level to ensure additional payments and allowances, which account for 60-70% compensation increase compared with the standard scheduled compensation at the federal level. Since 1 January 2003 cultural workers, whose salaries are paid from the oblast budget, are eligible for a special governor’s additional payment (nadbavka) for continuous work record.

The main achievement in education over the past five years is facilitation of the development of a multi-level varied system of education responding to the changing needs of all social groups. The main outcome is a flexible system of education offering choices to all participants of the education process (students, parents, teachers) with a wide range of educational institutions, curricula, standard regional curriculum and standards of the regional component. New school requirements are being discussed in the oblast to provide flexible education at different levels and with different specialization based on interests, abilities and capabilities of the pupils.

The oblast takes part in the following 4 experimental federal programmes:

- introduction of a new model of pre-school institutions

- restructuring of educational establishments in rural areas

In the 2001/2002 academic year 185,2 thousand young people left secondary schools.

At present there are 320 thousand students at 1085 educational institutions. In 2002/2003 85 schools with 7,7% of students of the total number of secondary school students specialised in a number of selected subjects, new schools and classes appeared with vocational training and intensive work practice. 20% of all schools are linked to universities and colleges. There are 9 lyceums and 14 gymnasiums.

Seven computer centres have been opened for teacher training. Automation and computerization is completed in the oblast with the internet access available in all schools.

There is growing number of school graduates who are awarded gold and silver medals for outstanding academic performance.

The share of pupils who attend afternoon classes (second shift) in 2000 was 13,1%.

Each year there is growing number of orphans who get into lyceums and colleges (approximately 3,1 % of the total number).

In pre-school education continuous efforts are being made to develop new curricula and training materials to introduce new ways of teaching. A special film has been made for training purposes to train specialists to work with different age children groups of short-stay, training materials have been designed for pre-school teachers working with mixed age groups. Such type of pre-school education is fully appropriate for rural areas where there are mostly small mixed-age groups of children due to the birth-rate decline.

There is a growing number of correction/compensation and health groups at schools. The number of combined and specialised kindergartens has increased. A number of municipalities participate in the National experimental project to create new type of pre-school institutions. Efforts are made to preserve and maintain the system of pre-school education.

The birth-rate decline has resulted in the decrease of number of children and pre-school institutions. This leads to reduction of pupils in schools in the reporting and further periods.

One of the main tasks is to strengthen the education infrastructure by opening new facilities within the framework of federal and regional programmes. Lately the following activities have been carried out: new school of general education has been built for 436 pupils in Rassvet, Lodienopolsky rayon, reconstruction of a children’s home for 8 children in Rahia, Vsevolozhsky rayon, gym for 300 people in Teacher Training college in Gatchina. Reconstruction of a school for 420 pupils in Alehovstchina, Lodeinopolsky rayon, new residential block for 280 beds in a special needs school for deaf childrenin Yukky, Vsevolozhsky rayon. All children’s homes and correction boarding schools have been provided with buses within the framework of the Governor’s programme “Children of Leningrad Oblast”.

A new oblast center for gifted children has been opened in Lisiy Nos, Kurortny rayon. It provides additional (after school) tuition for 9-10-th form students at the faculties of maths, law, economics, international relations and natural sciences.

Annual competitions are held for the best “School of the year”, “Teacher of the year”, “Student of the year”, as well as other contests.

In Leningrad Oblast there are 49 state –owned institutions of day-time further vocational education. The majority of students come from Leningrad oblast (96,7% of the total number of students).

The survey of vocational training of 2001 has shown a shortage of specialists for key industries and overproduction of specialists, which are not demanded by the market. To eliminate this disproportion the Government of Leningrad Oblast have adopted an Action plan for structural departments of the government to facilitate supply of qualified personnel to organizations, institutions and companies in 2002-2003. To implement the programme of material and technical base support of vocational training in agriculture in 2002-2005 in 2002 the following equipment was purchased – 8 tractors, 6 cultivators (harrows), 5 automobiles, 13 ploughs.

There is a growing demand in labour force. Very often actual job requirements are not met by the level of training provide din educational institutions. In view of this it is obvious that the regional education system, particularly vocational, requires restructuring and improvement.

Vocational training of qualified labour force is fulfilled in two directions: by providing training on the job by companies, and vocational training provided by state-owned colleges. Regarding the labour force training issue, it is important to restore the national policy in professional training provided at companies and to improve the system of initial vocational training.

In order to strengthen links between employers and vocational colleges in future it is planned to introduce contracts between companies and colleges to ensure supply of relevant work force, especially factory workers. It is suggested to encourage colleges of general industrial training to specialize in training determined by local market conditions.

The main tasks to improve initial vocational training are the following:

The above-mentioned measures will enable us to create better conditions to satisfy the demands of economy and social sphere in qualified professionals and workers.

In Leningrad Oblast there are 14 secondary specialised schools, 6 branches of secondary specialised schools, 3 state-owned higher educational institutions and 23 branches, 1 private higher educational institution and 4 branches. There is a tendency to increase the number of branches of higher and vocational colleges in the oblast. Thus, the number of university and college students in Leningrad oblast increased in 2002 by 8 thousand students compared to 2001 and reached the total number of 27800 students. There is a growing number of students in teacher training colleges. Availability of universities and colleges in the oblast has reduced the flow-out of students to the city. There are other reasons for that – no travel costs, no need to stay in a hall, possibility to stay with the parents, help them and study, get practice and future job in one’s local place.

Over the reporting period colleges of initial vocational training graduated 7784 students, including 343 orphans (301 now employed), and 118 graduates of correction boarding schools. In order to rehabilitate orphans and children without parental care who study in colleges of initial vocational training, a new rehabilitation center has been opened in Podrostok Centre for 20 people.

There 13 thousand children with special needs in Leningrad Oblast. They can attend special education institutions, which include 28 centres with psychological, medical and pedagogical assistance. Within the framework of the regional programme “Health of pupils in 2002-2006” in 2002 6 thousand sets of furniture was purchased to replace old classroom and canteen furniture.

The oblast health system is developing within the framework of compulsory medical insurance. The re 85 hospitals, including 15 central district hospitals, 18 city hospitals, 9 district, 21 area hospitals, 5 TB hospitals, 5 psychiatric clinics, 1 rehabilitation center, 4 hospitals (with nurses), 2 children’s hospitals, 9 dispensaries, including 7 with beds; 5 stations and 44 first aid units, 23 blood transfusion units, 9 dental centres and 105 out-patient rooms, including 93 in rural areas; 1 aid post and 39 medical attendant’s units; 385 medical attendants and midwives posts, 206 polyclinics (independent and part of treatment and prevention department), 3 children’s health centres; 4 homes for infants; 3 medical colleges; 1 maternity hospital and maternity departments in hospitals.

Besides, in St Petersburg there are 7 hospitals and 8 polyclinics (out-patients clinics).

There are alternative hospitals available, such as for day stay, out patient day-stay hospitals, treatment at home.

Pharmaceutical supplies are provided by 158 chemist’s shops, including 116 municipal and state-owned with 65 (62) located in rural areas. Out of the total number of chemist’s shops there: 11 central district, 1 interhospital, 31 hospital; budget; chemist’s units - 233, including municipal state-owned – 73, with 80 (39) located in rural areas; chemist’s kiosks - 138, with 33 in rural areas; optitioner’s shops and units – 19, with 1 in rural area; pharmaceutical warehouses – 30, including 4 in rural areas.

The number of high-cost clinical beds will be reducing due to differentiation of hospital capacities, hospital stay will become shorter with growing emphasis on nursing, rehabilitation, day-stay hospitals (for after-care) and development of social medical care, which in its term will increase the budget efficiency. Although the number of beds is expected to reduce, availability of services will remain unchanged. Disproportion in specialised medical help in various municipalities makes it necessary to consider the development of inter-regional specialised units in hospitals. Acquisition of laparoscopic surgical units by majority of hospitals in 2002 makes it possible to change specialization of a number of hospital units in 1-2 years and develop ambulatory surgery, improve the quality of medical services, reduce the number of postoperative complications, improve the network structure.

In 2002 the number of out patients increased three times compared with 2001. Out patient services are now available at all district policlinics and ambulance stations where patient receive hospital –level treatment.

The level of infectious diseases, including TB, has dropped. Cancer surveys have improved due to opening of a new branch of cancer dispensary in Kuzmolovo. A new radiological unit has started working at full capacity (150 beds) in the oblast clinical hospital. It is equipped with the latest SIEMENS tumour isolation device.

In 2002 the decline of medical attendant and obstetrical units stopped and its number has remained at the level of 2001.

There has been a positive change in the improvement of the material and technical base of medical institutions. A hospital in Sosnovo, Priozersky rayon has been opened after reconstruction, an out patient unit has been built in Boxitogorsk. A new dental clinic was opened in Tosno for 150 visits a shift. A therapeutics department for 50 beds and first aid department have been opened in Kirovsky Central Regional Hospital. A new out patient unit has been opened for 100 patients per shift in Beguntsy, Volosovsky rayon. Conditions are improved in out patient services in Michurinsky, polyclinic in Rostchino, a children’s hospital is under rehabilitation in Luga.

A new radiological department has been opened in Leningrad Oblast Clinical Hospital. A number of medical attendant’s units have been repaired. Within the framework of regional programmes equipment, supplies and ambulances have been purchased with funds provided by the oblast budget. However, central hospitals still require new equipment. This problem is being solved and a number of target programmes have been designed to address it in the future.

There has been a growing demand for more expensive medical services, such as cardio surgery, prosthesis of joint, transplantation, blood diseases, complex surgery and neurosurgery. Over the past years the volume of such services has increased but remains at a level lower that actual demand.

By the end of 1999 the situation with subsidized pharmaceutical supplies to low-income groups started to improve. More drugs were supplied to war veterans. Diabetes and cancer patients are fully provided with free medicines. Procurement was conducted by arranging tenders - thus more funds were saved to maintain availability of subsidies.

Leningrad Oblast is among top ten leading Russia oblasts in medical care with a high level of medical professionals and high quality of the service.

However, availability of medical professional human resources is becoming a topical issue for the oblast. There is a growing shortage of nurses in surgery, intensive care and out patient departments. There is a shortage of doctors in Lodeinopolsky, Podporozhsky, Tikhvinsky, Boxitogorsky and Slantsevsky rayons. Intensive work with school and university graduates partially solves the problem but not fully. Annual municipal and oblast pay raise partially reduces the flow-out of labour.

The social welfare system is run in accordance with the main principles of social welfare provisions: focused, differentiated and integrated. The main issues are: support to war veterans, disabled people, families with children; creation of a social welfare system; creation and maintenance of state-owned medical and social commission of experts and rehabilitation services fro disabled; calculation and payment of allowance in accordance with existing law to veterans, disabled and mothers; provision of rehabilitation equipment and prosthesis and orthopedic apparatuses, assistance and recreation for disabled people; health and safety at work; social partnership.

The main aim has been to preserve the existing social welfare network of institutions and to continue construction of most necessary units to ensure decent living conditions. It was mostly achieved by the end of 2002.

Social services to old-aged people is an important component of social welfare. There are new services introduced. Since 2001 there have been positive changes in provision of social security to certain groups of people. Demand in prosthesis and orthopedic devices has been fully satisfied. Transport and recreation allowances are fully paid out. Waiting lists for wheel chairs have been eliminated. In 2002 439 wheel chairs were supplied to the disabled people.

Over the past three years waiting lists for a free automobile has reduced from 1172 tî 251 people.

There are 15 homes accommodating 3875 people in Leningrad Oblast. In 14 of them there are departments with 34 nursing services for 1635 people. Thirteen homes for old-aged and disabled people with 3460 people are funded by the oblast.

There are 200 organisations in municipalities, which care for disabled people, including social services centres for the old-aged and disabled. By 01.01.03 there were 20 centres for 908 people in the oblast which provide services for war veterans and disabled people (with the annual turn over rate of 134 thousand people); there is 105 departments of services at home serving 10 thousand single old people; 22 units to provide social and medical service sat home to patients with chronic diseases (over 2 thousand patients a year); 23 units of emergency assistance (97 thousand people a year); 2 nigh quarters (doss-houses) for 40 people without residence (bomzhi) and people coming out of prisons (384 people a year ), and two residential blocks for single old people (for 89 people).

In Koltushi and Gatchina social services have been provided to children an dfamilies. In Vyborgsky rayon a crisis center has been opened, in Kingisepp – a specialised institution for children under age.

One in four families in Leningrad Oblast is registered with social workers and need help. Over 8 thousand families have more than three children, over 6 thousand families have disabled children, one in five children has one-parent. Social workers have registered 4250 under age children from deprived families.

Measures are being taken to strengthen the institute of the family. Within the framework of the annual programme “ Leto (Summer)” activities are implemented to engage children and improve their health.

Financial assistance is provided to boarding schools (hostels) to develop farms. They have 38 hectares of plough-land, 860 sq m of green house, pigsties for 800 pigs and cow-sheds for 40 cows.

The level of provision of hostels and homes for old-aged, disabled people and disabled children was 23,1 places for 10 thousand people in 2000 and 23,6 places for 10 thousand people in 2002.

In the field of physical education and sports, although the material base has not been dramatically improved or extended, over the past three years there has been a noticeable increase in sports and physical culture involvement among the population. Existing infrastructure is sufficient to provide young people and schoolchildren with sports facilities and sports schools.

In 2002 the oblast athletes won 27 gold, 16 silver and 12 bronze medals at international competitions and respectively – 72, 39 and 83 medal and the Russian national contests. However, training of world class athletes and sports reserve cannot be considered satisfactory.

To improve this situation a target programme was adopted in 2002 – Main directions of physical culture development in Leningrad Oblast in 2001-2004 – which envisages measures to increase numbers of qualified sportsmen among young people, create a centralized system of team reserve training, to set up an Olympic reserve scheme at the youth sports school in Kirovsk.

Sport development is connected with healthy life style, sports industries and new jobs.

In 2000 all sport-related expenses were covered by the oblast budget for the first time in the past decade. Since 2000 sports –days (spartakiada) has been revived in Leningrad Oblast. International and national tournaments are held in LO regularly.

Since 2000 multilevel skiing tournaments - Leningrad Oblast Cup - have started. After a two year break the World Cup in skiing was restarted in Toksovo, Vsevolozhsky region.

Since 2000 the oblast has pioneered special grants to leading athletes approved by the Governor among very few oblasts in the Russian Federation.

In 2002 mountain skiing track was launched. This 500 stretch is the first phase of the health and sports center in Kavgolovo, Vsevolozhsky rayon.

In 2002 two new integrated sports schools were opened in Siversky, Gatchins rayon, and Svetogorsk for 700 children. Three sports clubs for young people were opened in Tosnensky rayon (2) and Lodeiopolsky rayon. Asistance was provided to children’s sports school in Tosno, Sosnovy Bor and Gatchina. Three sports organizations working with disabled sports people have received equipment to take part in competitions. A new regional sports school of highclass wrestling has been opened in Sosnovy Bor. In Kolpino there has been opened a Centre for LO sports team training.

19 sports grounds and 40 playgrounds have been built, respectively 65 and 68 reconstructed, 217 and 336 repaired.

As a result the number of children involved in sports has come up to 1843 people.

At present, work with youth is considered as one of the most rapidly developing areas of social activities in LO.

Between 1999 and 2002 funding of this field from the budget increased 5,5 times. According to the data of 01.01.03 there are 5 oblast organizations, and over 80 municipal organizations (local clubs, Houses of Young People, social centres, etc.).

Activities conducted within the framework of the programmes “Main directions of activities to prevent deviant behaviour among young people”, “Support to ngos implementing youth policy” involved 15 thousand people in 2002 with over 70 thousand publications produced with information on youth policy and its implementation. The following youth centres are activ ein the oblast: drug abuse prevention center “Lotsman (pilot)” in Gatchina, Social and psychological assistance “Gloria” in Vyborgsky rayon, Centre “New Life”in Kingiseppsky rayon. Five events have been held to prevent deviant behaviour. 1000 thousand books and 3000 information booklets have been published on drug abuse prevention. Three new youth ngos have been created (“Alternative” club, Student Detachment Headquarters, “Mir molodih” (World of the young). The number of young people involved in activities of children’s and young people’s ngos has grown by 4,7 thousand people.

In the area of housing and utilities the housing problem remains most acute. Although certain measures have been taken to develop housing construction, provision of housing is a hot issue. Out of total housing stock (of 35,2 thousand sq m) 505 thousand sq m (1,4%) is considered to be worn-out.

About 35 thousand people are put on the waiting list for improvement of their current living conditions, while the actual number of people in need of better housing is twice higher. 53% of people registered for improvement of their housing are those who are eligible to get free housing. The wait state lasts 22-28 years.

In order to make housing more available, to preserve existing housing stock and develop effective use of housing activities are carried out within the framework of the federal target programme “Housing” designed to stimulate condominiums (associations of property owners).

In 2000 the amount of new housing funded by all sources constituted 391,5 thousand sq m; in 2002 – 433,2 thousand sq m with a big share of private investment – 261,9 thousand sq m (60,4%).

The level of housing provision is growing mainly due to the development of private construction. At the end of 2000 the average rate of housing provision was 22,2 sq m per person and it reached the level of 23,1 sq m per person by the end of 2002.

Housing and utilities is an area of most responsibility, complexity and low effectiveness. There are 170 companies providing housing and communal services.

One of the main indicators of the efficiency of the housing and utilities complex (ÆÊÕ) is the volume of services provided: in 2002 it was worth of 8128,9 million Rubles. In 2002 the housing maintenance services growth rate was 8,1% and in utilities - 18,5%. This increase is determined by the fact that company owned housing was transferred into municipal management and by new housing development.

Although the floor space of municipal housing has increased, the number of residents has dropped by 6%. According to the administrations of municipalities, many residents prefer to avoid paying growing utilities payments for their municipal flats by moving to the private sector.

Over the past year housing maintenance and utilities reform has been carried out across the oblast.

The major indicator of the success of the reform is the fact that the oblast has reached the standard federal ration between utility payments made by citizens and the cost of provided services. In 2000 this ratio was applied at the level of 60%, while the actual level of cost recovery constituted 49,2%. In 2002 the share of payment for utilities by the population went up to 57,6% with the national standard of 70%.

The increase of rent and utility payments are accompanied by social security activities, such as subsidies to low-income groups.

Special subsidy and allowance departments have been set up in many municipalities. In 2002 7,4% of households received utility allowance, which is 0,7% lower than in 2001. The total amount of allowances paid out was 84,4 million Rubles, which is 74,7% higher than in 2001.

According to the Governor’s order, municipalities have started to implement a pilot project to maintain target social support in housing and utilities by introducing personified accounts. These activities have been started within the framework of the project “Social security of the population in transition to full-measure payments for housing and utilities”.

In 2002 the number of people enjoying favourable payment terms grew by 23,6 thousand people or 4,3%. The subsidy amount constituted 490,9 million Rubles and exceeded the previous year indicator by 41,4%.

Profound reforms are carried out involving introduction of new contractual relations, creation of the client office, tenders, quality control, etc. The are 19 associations of property owners and 3 condominiums registered in the oblast.

There is a constant shortage of money in the sector, which leads to further depreciation of the equipment and consequently lower quality of the service. The utilities accounts payable are very high. The population debt level is also very high. This problem is not likely to be solved by elimination of subsidies and introduction of 100% payment for housing and utilities. At present 568 thousand people are eligible to state benefits.

Considering a very poor state of utilities and network it is necessary to attract foreign and national investment into this field. Cooperation has started with Danish, Finnish and Swedish agents and financial institutions. Within the framework of the Northern Initiative the oblast received 27 million euros to improve water supply and sewer systems in Gatchina, Kirovsk, Pikalevo, and Svetogorsk.

In accordance with the Agreement between the Oblast and Gasprom, OAO Gasprom carries out gasification of oblast settlements.

In 2002 gas pipelines reached Kirovsk and Lodeinoe pole, Druzhnay aGorka, Koporie and others. 20 thousand flats have received permanent gas supply, which exceeds previous years. This is a significant achievement compared with 5-6 thousand flats in earlier years.

Reconstruction of oblast warehouses involves TsKTI named after Polzunov and amalgamation “Serp i Molot”.

Activities have been started to introduce biological types of fuel. 23 boiler houses have switched wood chips and coal, 47 more are planned for the necessary reconstruction.

At present almost all water supply facilities need repairing, 90% of boiler houses and over 60% of equipment are out-of –date or worthless.

Over the past few years efforts have been made to carry out reconstruction and modernization of utilities. In 2002 municipalities conducted modernization of 44 boiler houses, including 22 that were totally reconstructed. Funding of target upgrading programmes is growing.

In 2002 first measures were taken to improve street lighting. Works were activated to improve the housing stock. Certain management changes were made. Three municipalities were involved in an experimental project to improve management. There is a difficult situation with public laundries and bath houses. There have been many complaints from the people of a number of settlements about poor services at local bath houses. Reconstruction of bath houses has started in Shlisselburg. There are serious problems with bath-houses in a number of settlements in Kirovsky rayon (Pavlovo-na- Neve, and Nasiya), Slantsevsky rayon and Lomonosovsky rayon.

In our attempts to solve utilities and housing problems we have introduced new technologies and carried out modernization of utility and housing facilities.

There are certain achievement on energy efficiency and saving. In most municipalities energy saving standards and limits have been introduced. Meters are introduced, mainly at oblast properties.

One of the most important reform components is – human resources. There are 39 thousand people employed in this field with the average salary of 4 thousand Rubles a month in 2002. Considering the low level of salary and the nature of the job, which is regarded as very low prestige, it is very difficult to employ good professionals and expect full commitment. This explains low quality and delays in restoration.

However, this problem is getting gradually solved. For two years courses have been run to train a new generation of professionals in the Institute of polymers, negotiations are being held to start specialised courses in the Engineering and Construction Academy, Institute if the Railroad Transport and other universities.

Federal and regional programmes implementation in Leningrad Oblast: major outcomes (Attachment to Section 1)

Results of realization of targeted Federal and Regional Programmes largely determine the totals of socio-economic development in Leningrad oblast. Among many measures ensuring a favorable investment climate, and social-directed expenditures on public account, etc. the major place is occupied by a system of operations forming sequential and systematic state policy of the region. Key elements of this system are the methods of strategic planning and target programme management, used in realization of the regional state policy.

Strategic planning prevents from contradictory, or duplicating operations and costs and allows to notify the partners about planned measures and to receive their assistance. Therefore, the significance of strategic planning increases with the magnification of the scale of management. Stating the strategy, the oblast managing authorities provide all possibility to combine business and public interests, to make sure that the goals and methods are justified. In this sense, the territorial strategic planning executes major socio-political function, promoting development of social integration, establishing social and economic ties between citizens and legal subjects of the territory.

The strategic planning acts as a major tool to publicise the state policy and ensure public understanding of specific state initiatives within a broader integrated context. Thus, strategic planning can be considered as a basis for sensible democratic management. The availability of strategic plans is a major condition ensuring actual transparency of the state policy.

The Leningrad oblast has turned out to be among the first regions of modern Russia, which have paid attention to the possibilities of applying both strategic planning and target programme management to state policy development, planning public expenditures, and looking for solutions of socio economic problems. This approach has allowed the oblst to create a broad normative-legal basis, to accumulate wide experience of the development and realization of regional targeted programmes of various directions of activity, etc. It has also facilitated dissemination of ideas about possibilities to increase the public sector efficiency following the principles of openness and sustainability both ensured by programme-target approach.

Leningrad oblast was one of the first to accept the Concept of Socio-Economic and Town-Planning Development in 1998. The Concept sets out the main strategic purposes and aims to be reached by 2005, formulates essential development problems of practically all branches of economic and social orbs, states strategic problems of regional, spatial and budget planning, etc. This has enhanced the development of most favorable and attractive conditions for all forms of business, and has served as stimulus for economic activity of the inhabitants, rational use of state resources, etc.

In 2000 based on the above Concept Leningrad Oblast Government adopted the comprehensive Programme of Socio- Economic Development of the Leningrad oblast, which outlines concrete strategic problems.

Municipalities have completed a serious stage of work in putting together local strategic plans of socio economic development. The oblast’s authorities intend to expand the circle of stakeholders of strategic planning process, including interested foreign partners. In March 27, 2002, the Partnership Agreement on 4-years cooperation was signed between the Leningrad oblast’s Government and the United Kingdom government. Strategic planning and improvement of state management with reference to reduction of poverty and increase of social spendings efficiency are among priority directions of the cooperation.

Regional targeted programmes, whose significance steadily increases, set out strategic goals and action points for Leningrad oblast. The target programme approach allows the authotities to identify and establish relations between public expenditures and aims at which they are directed. The targeted programme allows not only to solve concrete problems, but also to demonstarate to the public who significant these problems are and what measures are taken to solve them.

The Leningrad oblast authorities have already gained essential experience in management of regional targeted programmes. This is confirmed by preparation and acceptance of a number of following basic concept documents regulating the contents and procedures of development, acceptance and realization of regional targeted programmes, such as the decree of the Governor “On the order of development, accepting and monitoring behind realization of regional targeted programmes in the Leningrad oblast”, accepted in 1997. In 1999, the Legislative Convention of the Leningrad oblast accepted the Law “On regional targeted programmes of the Leningrad oblast”. The Law provides the legislative framework for a number of essential aspects of target programme management of both practical and theoretical nature. Currently, a draft regional law “On strategic planning in the Leningrad oblast” is being developed with the input of international experts. The law will clarify some principal points of legal relationship between strategic planning and target programme management.

About 30-40 regional targeted programmes are annually realized in the Leningrad oblast. By 2002, the total funding of the programmes accounted for almost a sixth part of the regional annual budget. The corresponding dynamics of the amount and scale of regional targeted programmes for 1996-2003 is represented in the table below.

* Planned values are given

Agriculture, road construction, education, youth policy, public health service, culture, social care, environment protection and others are among the main directions of regional targeted programmes.

According to public funding, road construction is the main priority of Leningrad oblast (71,3% of all programme cost in 2002). The remaining costs (346,6 million rubles in 2002) are traditionally directed to social welfare. Education, culture, public health service, youth and social security totally comprise 58% of the above remains. Their distribution is as following: 23% - public health services, 17% - education, 7% - youth, sports and tourism, 6% - culture, 5% - social security. Significant cost (22%) is attributed to environmental protection programmes. The cost of agricultural programmes (5% in 2002) has increased during last years.

Agricultural programmes make provisions for the increase of agricultural production, including growing of elite sabadilla, meat production and processing, processing of fruits, berries and mushrooms, development of medicines, dietary and children's food production, preservation and creation of new jobs; magnification of profits; increase of management efficiency; acceleration of registration of all bargains with land and soil resources; increase of incomes into rayon budgets through the land rent, etc.

In public health the programmes are aimed at the reduction of numbers of operation after-effects, reducation of term of patient stay at hospitals, and period of examination and treatment in order to improve the quality of the service. By 2003 it is planned to achieve guarantteed equal free access to dental services for the population; to improve dental services to reach international standards; to reduce the level of intensity of caries and other dental decease, particularly, among schoolchildren; to reduce the costs of dental treatment, etc.

Under the public health services programmes it is also planned to improve the efficiency and quality of medical service at pre-hospital stage, to upgrade professional skills of emergency medicine staff, to reduce the number of lethal cases and traumatic traffic accidents resulting in physical inability, etc. The programmes also assume an increase of living standards and duration of life for cancer patients, as well as decrease of their mortality and improvement of early cancer diagnostics, prophylactics and routine inspections for the population. Special attention is given to the development and improvement of village cancer medicine. This should allow for reducing both terms and costs of hospital treatment, and to decrease mortality and physical inability of the rural population of the oblast. The programmes will provide cancer health treatment to about 6,000 village inhabitants.

Educational programmes are designed to ensure education quality improvement to meet integrated and variable parameters, and to strengthen objectivity of state regulation of educational establishments and institutes through licensing, certification and accreditation. It is also planned to increase a number of children's organisations and associations, as well as the quantity of international educational projects. The retraining of teachers on various socially significant specialties will be conducted.

Social security programmes are aimed at the creation and/or development of 1) centres of social help to family and children; 2) specialised establishments and centres for young people and cildren; 3) crisis centres (branches) for women; 4) branches of emergency psychological telephone hot-lines; 5) a system of groups for family education, etc. The efficiency of social services delivered at home through introduction of regional social standards, defining volume and quality of services will be increased. It is also planned to 1) organize the net of wards for nursing geriatric patients; 2) improve funding of social-security institutes and organizations; 3) reduce the nymber of socially deprived people requiring social support.

Other problems to be solved under social security programmes include 1) reduction of industrial death and injury rate, occupational diseases, and 2) improvement of social security of various categories of workers. Is also planned to decrease the level of primary physical inability and increase security of the disabled. It should be done by means of rehabilitation, opening of rehabilitation centres and branches, as well as development of specific rehabilitation programmes. In accordance with the Federal Programme of creation and development of a system of non-state (alternative) pension maintenance of the population, almost for a thousand of workers of state jobs will receive additional pensions of 300 Rubles monthly.

Within the framework of the programme of the development and support of small business, new jobs are created and support is provided to new small enterprises. Increased income to the regional budget is expected due to the growth of volumes of production of goods and services.

In tourism it is intended to create a modern highly effective tourist industry; to increase the duration of tourists stay in the area; to increase internal and in-coming ternal tourist flows, which will create new jobs and annual additional incomes to the regional budget.

Within the framework of youth programmes it is planned to create, run and support youth organizations as tools for public youth policy implementation. Information and methodical materials will be published, as well as various special permanent youth TV-programmes will be prepared.

The number of children, teenagers and young people involved in sports activities, as well as the number of sports schools and facilities will be increased in accordance with the main guidelines for regional sports development.

On a programme basis, support is carried out to ngos realizing youth policy. This will increase the number of children and youth engaged in activities of youth associations.

The oblast’s budget is the main source of funding of regional targeted programmes. As of 1 January 2003, from 40 programmes stipulated in the oblast’s budget, 39 programmes were authorized. In 2002 all programmes were financed from the regional budget of total 1,2 billion Rubles (75,2% of the year’s plan). The main problems are connected with the fact that the programme “Improvement and Developments of Highways” was not fully adopted and therefore was funded at 68,4%. Remaining programmes have received 99,9% of the budgeted amount. In 2001, for comparison, 39 regional targeted programmes of totally 1,2 billion Rubles were funded, i.e. 78,7% of the plan.

An important task to achieve an integrated approach to the solution of social and economic problems of the oblast is maintenance of concerted action at various levels of the public authority, including local government, enterprises and the general public. The degree of efficiency of proposed measures is determined by the amount of resources coming from federal and local budgets, and other off-budget (non-guvernmental) sources. Taking into account all sources of funding, the total financing of regional targeted programmes of the Leningrad oblast in 2002 constitued 1,97 billion Rubles. Additional funding was mainly provided by the federal and oblast budgets (approx. 32% and 62% respectively). Municipal, off-budget funds and enterprise contributions remained at a low level and did not exceed 3% of total funding.

However, the composition of funding sources varied depending on the nature of the programmes. The project of training and retraining of state and municipal officials was completely funded by the oblast budget. Oblast budget funding also dominated in programmes for support of small and medium business, environmental problems, land use and surveying, youth policy, and sports. This financial source was also considerable in programme funding in education, road construction, and culture. It was only the programmes on agriculture, informatics and telecommunications, social security and public health services that received mixed financing.

Most of federal finances have gone into regional targeted programmes in public health services, agricultural production, road construction and culture. Off-budget sources were attracted to programmes on agricultural production, culture, public health services, and informational technologies.

Continuous and sustainable funding has been provided to topical programmes. In 2002, the obligations of the above sources on funding regional programmes were executed in the following proportions:

Federal budget - 102% or 620,5 million Rubles;

Municipal budgets - 41% or 55,2 million Rubles;

Non-government sources - 138% or 41,9 million Rubles;

Other sources - 46% or 39 million Rubles

Federal programmes are one of the major tools of nation-wide state structural policy implementation.

In this respect Leningrad oblast has positive experience. The number of the Federal programmes and subprogrammes involving the oblast are constantly increasing. In 1997 there were 23 federal progammes, in 1998 - 26, in 1999 - 38, in 2000 and in 2001 – 43 each year. In 2002 37 federal programmes and subprogrammes were funded from various sources in the amount of 3,9 billion Rubles (in 2001 - 4,2; in 2000 - 1,7; in 1999 - 1,6 million Rubles). In addition,mixed funding for “non-programme” part was 571,8 million Rubles.

The share of the federal funding for the programmes has made 41,6% or 1,6 billion Rubles (in 2001 - 44,9% or 1,9 billion Rubles; in 2000 - 71% or 1,1 billion Rubles; in 1999 - 73% or 1,1 billion Rubles), and for “non-programme” part the federal input was 86,4% or 494,1 million Rubles.

17 programmes have been funded totally by the federal funds. 18 federal programmes envisaged oblast funding. The following programmes are considered most expensive and large-scale:

“Modernization of Transportation System of Russia”, subprogramme “Highways” - 55,9% of the total budget planned for all programmes;

“Ecology and Natural Resources of Russia”, subprogramme “Wood” - 19,1%;

“Modernization of Transportation System of Russia”, subprogramme “Sea Transportation” - 6,9%;

“The State Housing Certificates” - 2,8%.

In 2002 actual financing from all sources was provided for 36 programmes and has made in total 3643,1 million Rubles (including offset of debt - 175,1 million Rubles) or 93,6% of all budgeted funds. Financial obligations of federal programmes funding from various sources have bee performed in the following proportions:

The federal budget - 99,5% or 1610,6 million Rubles (including credits payable 90,4 million Rubles);

The oblast’s budget - 99,0% or 1395,8 million Rubles;

The municipal budgets - 105% or 34,1 million Rubles;

Non government sources - 72,6% or 602,5 million Rubles (including accounts payable of 47,5 million Rubles).

During 2002, work was carried out in 36 Federal programmes and subprogrammes, all budgeted for in 2002. The actual spendings made 3516,3 million Rubles. According to the status of January 2003, liabilities made 11,9 million Rubles: particularly, programme “Ecology and Natural Resources of Russia” (subprogramme of “Wood”) - 8,1 million Rubles (non-government sources) and “Housing” - 3,8 million Rubles (Federal budget).

All these parameters are regarded satisfactory and were reached due to effective procedure of applying to the oblast authorities for participation in federal programmes, accompanied by careful examination of applictaions, and constant monitoring of the selection process by representatives of federal ministries and other authorities.

Positive tendencies in the oblast development typical of the previous yearshave dominated in 2003. Industrial and agricultural production, investments in fixed capital, retail turnover, turnover of public catering and commercial services increased in January-May 2003 compared with the same period of 2002.

There have been more taxes and other obligatory payments collected than in January - May 2002.

Compared with the last year, the real income and salaries of the population have grown. The consumer price index is slightly lower than last year. Pensions and children's allowances were paid outin full in time. Indebtedness on payment of wages continues to reduce. The situation at the labour market has remained stable.

Consolidated and oblast’s budgets were executed with profits.

Industry. According to the totals of January - May 2003, the industrial production index of all enterprises has made 120,1%, and at large- and medium-size enterprises - 120,4%. 8 of 10 main branches of territorial industrial specialization gave growth of volumes of production. Reduction of volumes of production was registered in chemical and petrochemical industry and light industry.

In January-May 2003, the balance financial outcome in industry has 1,7 times exceeded the level of the last year and made 5539 million Rubles.

Balance losses have been observed in ferrous and non-ferrous metallurgy, chemical and petrochemical industry, mechanical engineering, metalworking and light industry.

The share of large and medium-size unprofitable companies consitued 41,8% in January-May 2003 with the total loss of 849 million Rubles (last year - 38% and 801 million Rubles respectively).

Accounts payable of large and medium-size industrial enterprises exceeded accounts receivable by 1,5 times and by June 1 accounted for 26,1 billion Rubles.

In January-May 2003, the ratio between the volume of shipped production to the volume of production output by large- and medium-size industrial enterprises reached the level of 93,4%. The lowest value is registered in food-processing - 70,5% and building materials - 59,5%.

The greatest growth of industrial production was reached in Vsevolozhsky rayon - 3,2 times, Kirovky rayon - 2,6 times, Sertolovo - almost 1,5 times, Tikhvinsky and Lomonosovsky rayons - more than 30%, Lodeynopolsky rayon - 18,9%, Kingiseppsky rayon - 17,4%, Gatchinsky rayon - 17,2%. Industrial production reduced in 11 municipal formations including Shlisselburg city - 46,9%, Ivangorod - 35,7%, Volosovsky rayon - 31,8%, Gatchina - 24,1%, Vyborgsky rayon - 20,9%.

According to the estimates of 2003, the total industrial production growth is expected at the level of 21%. Production growth is expected in all main sectors, with the exception of chemical and petrochemical, where the output will not exceed the volume of 2002.

The volume of production in the power industry increased by 7,6% in January - May 2003 mainly due to the increase of heat energy production (1,6 times) and electric power production by electrical heat power plants (by 3,4%). However, there is an overall decline in electric power production of 3,7%, with 1% decrease at Leningrad Nuclear Power Plant (hereafter LAES) mainly caused by repairs of one of the energetic blocks in accordance with the schedule of the Federal Energy Power Commission.

In 2003, the total LAES electric power output will make 23379 million KW/hr, which is 3% higher than in 2002. In 2003 electric power production is expected to grow by 3% with the total evaluated production of 17,6 billion Rubles.

In fuel industry in 2003 production output has increased by 3,1% for the five months of the current year. The following increase has been registered: in petrol automobile - 4,3%, in fuel oil - 19%, carbonic liquefied gases - 0,8%, the production of slate at ÎÀÎ “Leningradslanetz” increased by 8,3%. At the same time, processing of petroleum reduced by 1,6%, and production of diesel fuel - by 0,9%.

The growth of production in this sector is expected to further increase by the end of 2003 coming up to 2% of the 2002 level. At the same time, the share of the fuel industry in the total industrial production of the oblast will decrease by 15%.

In January-May 2003, in the metallurgic industry the growth of production by 7,9% was reached mainly due to undisturbed operation of branches of ÎÀÎ “Metallurg”. Steel production increased 1,9 times.

The growth of production in the branch is expected to remain at the level of the first quarter of 8% until the end of 2003.

Chemical and petrochemical industry has decreased by 13,2%. The main reason of production output decline in the sector was the decrease of synthetic detergent production by ÎÀÎ “Henkel-Era”. In addition the production of synthetic resins and plastic masses at ÎÀÎ “Zavod Slantzy” has decreased by 2,9%. ÎÀÎ “Khimik” and ÎÀÎ “Volkhov Khimichesky Zavod” have reduced the production of bleaches by 20% and 2,9% respectively. Largely, the decrease was caused by low consumer demand.

At the same time, in the overall sector the production of the following kinds of production has increased: sulfur – by 34,6%, plastic items - by 14,9%, polymeric films - by 12,5%, sulfuric acid - by 13,3%, mineral fertilizers – by 2,9%, footwear rubber – by 2,7%.

As estimated for 2003, the growth of production in the sector is not expected with the output level remaining at the level of 2002.

The growth of production in machine-building has made 15% between January - May 2003. Production of blacksmith-press machines at ÎÀÎ “Pella-mash” increased by 18,5%. However, ÎÀÎ “Zavod ÊÂÎèÒ” has reduced production of high-pressure pipelines (100 mm and higher diameter) by 39%.

As forecasted for 2003, the total growth of production in the secto is expected to make 10%, mainly due to two-shift operation and systematic increase of production at ZAO “Ford Motor Company”.

Due to steady operation of the main enterprises of the timber industry complex, the growth of production in the sector will continue in 2003 and is expected to grow by at least 10%.

The production in the sector is expected to grow by 5% in 2003.

Light industry is characterized by the 0,4% decline during the first five months of 2003. However, there is no decrease at large- and medium-scale enterprises. Production of fabrics of all kinds has decreased by 0,8%, including unwoven fabrics - by 0,9%, production of knitted items reduced by 15,9%, and footwear - by 62,5%. Production of pants and jackets grew 1,7 times.

The tendency of production output growth of in the sector will remain at this level until the end 2003 and will come up to 30%. The share of the sector output in the total production will increase by almost 27%.

The main problems of the development of the industrial complex of the Leningrad oblast are following:

1). Considerable number of unprofitable enterprises which present more that 40% in 2002.

2). Significant increase of morally and physically out-of-date equipment; decrease of input of new capital stock; low rates of modernization. The wear-and-tear of fixed assets in the main industry sectors is characterized by the following parameters (in percent):

Total for industry - 46,7;

Electric power industry - 52,8;

Fuel industry - 53,6;

Non-ferrous metallurgy - 49,6;

Chemical industry - 64,6;

Mechanical engineering - 44,3;

Timber industry complex - 46,2;

Building materials industry - 59,4;

Light industry – 39.

The active part of assests in a number of municipalities does not exceed 30%: Shlisselburg city - 20,9%; Ivangorod city - 25,5%; Lodeynopolsky rayon - 26,4%; Gatchina city - 30,8%.

3). Underload of existing vast production capacities, low competitiveness and lack of demand for production of such enterprises. As a rule the management of such enterprises failed to conduct modernizing and adjust available assets to the requirements of the market.

4). Shortage of qualified human rsources.

5). Underestimation of innovation factors in production, marketing, finance and human resources. Lack of activities aimed at certification of products to comply with international standards necessary for Russia to join WTO.

6). Low energy efficiency.

7). High utility debts of state-owned organizations and municipal utility companies for supplied water, heat, electricity, etc.

In addition to common reasons intrinsic to all enterprises, there are a number of problems of more individual character.

Agriculture. In January-May 2003, the gross agricultural output by all forms of enterprises (individuals, farmers and enterprises including 14 large agricultural enterprises located in St.-Petersburg) made 7427 million Rubles in total that exceeded the level of the corresponding period of 2002 by 3, 4%. (The share of agricultural enterprises is 84%). By 1 June 2003 all forms of enterprises have sown summer cultures on 83,2 thousand hectares of sowing area (including resowning on perishing winter), that is by 17% less than in 2002. Individuals and farmers enterprises account for 54% of all crops (5% less comparing with 2002).

The total harvest of 10,7 thousand tons of vegetables was yielded on protected and open ground (0,6% higher than in 2002).

For the accounting period, all categories of enterprises have made 66,2 thousand tons (116% in comparison with 2003) butchery and poultry (55,8 thousand tons or 123% by large agricultural enterprises), milk and diary foods - 259,5 thousand tons or 99% of the level of 2002 (217,8 thousand tons 101% by large enterprises), eggs - 894,3 million or 103%.

The total share of individuals and farmers in gross production is as follows: 16% production of meat, 16% - milk and diary foods, and 1,6% - eggs.

By June 1 2003, in comparison with June 1 2002, in all forms of enterprises the livestock of large horned cattle and pigs was reduced by 5% and 9% respectively. At the same time, livestock of poultry in large agricultural enterprises has increased by 5%. Individuals and farmers account for 13% of large horned cattle, 25% pigs, 99% sheep and goats.

In January - May 2003, the average yield per cow in large, mediun-size and small agricultural enterprises was 2458 kg of milk, i.e. 7% higher than in the corresponding period of 2002. Egg laying rate per hen on the average was 127 eggs, which is 2% lower comparing with 2002.

During the five month of 2003 all agricultural producers have sold: meat of cattle and poultry (in alive weight) - 59,8 thousand tons (119% against corresponding period of 2002), milk and dairy products - 235,3 thousand tons (99,8%), eggs - 843,2 million (110%).

By June 1 2003 accounts payable of large and medium-size agricultural enterprises has exceeded accounts receivable by 2 times and accounted for 2820 million Rubles, 34,4% of which is overdue. During May 2003 accounts payable and accounts receivable increased by 0,4% and 2,9% respectively.

In January-May 2003, the oblast and federal budget provided 92 million Rubles (60% of half-year limit) and 70,15 million Rubles (98,2%) respectively to support agricultural producers.

In terms of 2003 all agricultural producers are expected to receive 2,1% gain of the gross product (2,6% by large agricultural enterprises) in comparison with 2002, including plant growing - 3,2% (5,4%), and animal husbandry - 1,3% (1,6%).

In comparison with the last year, grain harvest is expected to grow by 2,5% due to expansion of sown areas, and increase of productivity of high reproductive perspective grades. The increase of total harvest of potatoes is expected to grow by 1,3%, and vegetables by 8,7%. That could be achieved by more effective use of land, increase of quality of seed material, introduction of advanced technologies, growth of productivity of plant cultures and sown areas increase.

Animal husbandry and poultry farming are expected to grow due to productivity increase of cows by 2%, and hens – by 0,3%.

The growth rates of animal husbandry is expected to slow down, since it is difficult tostabilize livestock of large horned cattle, the efficiency of cows has achieved a high level, and further gain will not be so intensive. Broiler-farming factories operate at full acapacity, and further production will be steady.

In meat cattle breeding the growth of beef production will be ensured by cultivation of highly productive breeds of cattle, which will ensure the average daily weight gain of 800-1000 grams.

In pig breeding, efforts are being made to attract investment to restore large pig-farm complexes. Therefore, the livestock of pigs is expected to increase.

The development of fodder supplies in summer time is directed to intensive use of pastures. Large attention is given to organization of green conveyor in pasture period.

In 2003 agricultural equipment will be supplied under leasing terms, agricultural enterprises will be restructured and their finances improved.

The development of agriculture in the Leningrad oblast will be carried out according to the regional integrated programme “The Development of Agriculture of Leningrad Oblast in 2001-2005” which outlines the government policy and support aimed at efficient use of public funds

The main problems of agricultural enterprise development can be summarized as follows:

1). Acute deficit of financial resources, deterioration of material base, disproportion of prices for agricultural and industrial production, goods and service.

2). Infringement of interests of agricultural producers in selling price regulation.

3). Prevalence of imported agricultural products in food markets of St.-Petersburg, that impedes sales of local agricultural products.

Transport. According to Petersburgkomstat, in January-April, 2003, the volume of services rendered by large and mediun-size enterprises in the transport sector, has made 3269 million Rubles or 128,4% in comparison with the corresponding period of 2002. The average volume of employment in transport has increased by 1,5% and has made 25,2 thousand people. The average monthly wage in the sector in April 2003 is 7380 Rubles, which is 28,9% higher comparing with 2003 and 1,4 times above the average salary in the oblast (5309 Rubles/month).

Financial results for January-April 2003 are positive, the total profit of the sector is 481 million Rubles, with the share of unprofitable enterprises of 72,9% of the total number of sector enterprises (increased by 10% in comparison with similar period of 2002). The total loss of these enterprises has increased 2 times and made 149 million Rubles.

Accounts payable and accounts receivable of enterprises increased 1,9 times by April and by May 1, 2003 made 6158 million Rubles and 6290 million Rubles accordingly. The overdue accounts payable have increased by 4,3% (238 million Rubles), the overdue accounts receivable has decreased on 7,4% (71 million Rubles).

The total volume of carriages of consignments by transport enterprises in January-May 2003 made 30,2 million tons or 97,9% against corresponding period of 2002 including pipe-transport transported 28,2 million tons (97,2%).

During last year active preparation was made for further capacity increase and implementation of new projects, which realization will be carried out in 2003-2006. In 2003 the nvestment level will exceed the level of 2002 by 2,5 times and will make approx. 12,2 billion Rubles – reaching the peak of investment activity for the last two years.

Due to planned activities aimed at capacity increase an dteh launch of new facilities, the volume of services provided by large and meduin-size transport enterprises will increase at least 1,5 times and will make approx. 17-18 billion Rubles in 2003. This will be primarily achieved by the capacity increase of BTS (Baltic Transportation System) and start-up of the complex for pipe-transportation of petroleum and petroleum products with the capacity of 4,7 million/tons per year.

Railway transport. In January-May 2003, the volume of transportation by OZHD (Octobrskaya Zhelezny Doroga – October Railway) commissioned by the enterprises- consigners of Leningrad oblast made 16,3 million tons (110,6%). In the structure of consignments transported by rail, petroleum and petroleum products predominate (33,2%), followed by building materials (38,8%) and wood consignments (8,4%).

In January-May, 2003 the total number of passengers (across Leningrad oblast) made 11,8 million people (91,4%) with the gross passenger turnover of 1,426 million/passenger/km (96,4%).

With The “LUKOIL” terminal starting to operate in 2003, the gross volume of freight traffic is expected to come up to 41 million tons (104% against 2002). However, the volume of passenger carriages will be maintained at 2002 level.

The Decree of 21.04.2003 ¹ 64-ïã was issued by the Leningrad oblast Governor to support local pensioners whereby retired citizens of Leningrad oblast received the right of subsidised travel on suburban railways from April 25 until October 1, 2003. In May 2003, the actual amount of realized single sunsidised tickets for pensioners made 141,114 tickets, and the actual incomes - 417,5 thousand Rubles.

Motor transport. Motor transportation has significantly increased. In January-May 2003, the gross volume of carriages of consignments by motor transport companies made 1,8 million tons (141,8% to corresponding period of 2002), with the total freight turnover of 84,2 million/tons/km (127,1%). Large and medium-size enterprises transported 1,3 million tons with freight turnover of 29,6 million/tons/km.

Passenger transportation companies transported 71 million people in total (93,4% of the volume of the corresponding period of 2002). Passenger turnover decreased by 2,9% and made 706 million/persons/km. Besides, in January-May 2003, with additional private trucks (holders of buses) and legal entities from other sectors, administrations of municipal formations organized transportation of 3,1 million people with passenger turnover of 19,8 million/persons/km. These are by 49% and 2,6 times higher than appropriate figures for 2002. Until the end of 2003, reduction in cargo and passenger auto carriages is not expected.

The oblast’s budget has covered leasing contract for 95 buses (ÍÅÔÀÇ - 5299) of large capacity. In May 2003, 40 buses were received under the contract. All buses were passed to municipalities for operation on local regular routes, which will improve the quality of transport service. In June 2003, additional 30 buses are expected.

In January - May 2003, the total number of traffic accidents in the oblast increased by 2% (763 cases) against 2002. However, at the same time, the number of traffic accidents involving children has reduced by 7,5% (86). Casualty rate - 165 people (100,6%), including 4 children. The number of injuries remained practically at the level of 2002 - 881 people (101,5%), including 81 children (85,1% to the level of 2002).

Sea and internal water transport. In May 2003 the total freight turnover of seaports made 1,493 million tons (107,5% to May 2002). In January-May 2003, the gross freight turnover reached 6,326 million tons (98,2% to corresponding level of 2002). In total volume of processed consignments exports accounted for 99,2%, imports - 0,4%.

The main share in the total freight turnover is taken by seaport Primorsk, which has shipped 5,400 million tons of petroleum between January – May 2002, including 1,014 million tons shipped in May. The port has operated staeduly: In 2003 the total shipment is expected to reach the level of approx. 15 millions tons.

The situation has considerably improved in remaining seaports of the oblast. Under the totals for 5 months the port of Vyborg has transshipped 211,7 thousand tons (50,4%), in May - 121,8 thousand tons; seaport Vysotsk - 669,9 thousand tons (52,8%) and 312,6 thousand tons respectively. The property dispute between ZÀÎ “ÌÒÏ Vysotsk” and ÎÎÎ “Kortline” regarding berth ¹ 4 continues with security from both sides constantly present in the seaport. By the end of 2003 seaport “Vyborg” is expected to process 1,3 million tons of consignments (practically at 2002 level). The volume of turnover of seaport “Vysotsk” will reduce to 2,6 million tons (84% to 2002 level).

Winter over, since 12 May 2003, Ust-Luga wood terminal “Factor” has begun shipment of round wood. In May 33,5 thousand tons were shipped (for 5 months of 2002 79,7 thousand tons were shipped). Since May 19 2003, the coal terminal of “Rosterminalugol” company has started to operate in seaport Ust-Luga (11,2 thousand tons of coal were shipped by the end of May). It is planned to transship 0,3 million tons of coal until the end of 2003.

The current technical conditions of hydraulic engineering structures of Volga-Baltic water-channel are very poor. Its throughput ship conductivity is very low. Besides the funds provided for channel reconstruction and repairs (particularly, of Verkhne- and Nizhne-Svyr gateway servers) were highly insufficient. In 2003, financing of gateway servers was stopped in view of adjustment of design documentation. Only 21 million Rubles were funded within the framework of creation of system of centralized management of ship traffic.

Investments. In January-May 2003 investment in the oblast economy increased 1,5 times (in comparison with the similar period of 2002) and made 9 billion Rubles. Large and medium enterprises have spent 81% (7,3 billion Rubles) of the total investments. In January-May 2003, the following industrial capacities and facilities were launched into an operation:

“Industry” -

- 3,8 km – long lines of electricity transfers of ÎÀÎ “Lenenergo” in Rebovichy, Ladeynopolskii rayon;

- Transformer substation with the capacity of 630 KW in Vsevolozhsk city;

- Furniture plant with annual production of 770 units of furniture in Sertolovo, Vsevolozhsk rayon.

71-meters high metal tower for base station of cellular radio-frequency communication, Cherkasovo, Vyborgsky rayon.

In January-May 2003 in comparison with the corresponding period of the last year the volume of housing construction increased: by 840 apartments of the total 108,9 thousand sq.m (107,7%). In January 2003 an obstetric station for 15 visits per day was opened in Kirishsky rayon.

During the first 5 months of 2003 construction contracts were executed 4,99 billion Rubles worth (6,3% higher, than in 2002), including large and medium-size organizations - 1,57 billion Rubles (1,3% grows). At the same time, large and medium-size building enterprises have executed contractual construction works of 1,5 billion Rubles worth, that makes 103,1% to the corresponding period of 2002. New agreements on realization of building contracts and services have been signed for 1,6 billion Rubles.

By the end of 2003 according to a preliminary estimation, investments from various sources in fixed capital will increase by 25% (comparing with 2002) and will make 32,6 billion Rubles.

In 2003 the volume of contracted work is expected to grow by 2% with the actual worth of 13,1 billion Rubles.

Finance. Positive balance profit of the total 6118 million Rubles received by large and medium-size enterprises of the main sectors of the economy (excluding agricultural enterprises) within 5 months of 2003 has exceeded corresponding values of 2002 1,6 times. This includes industry - 1,7 times, construction - 2,3 times, communications – by 19,5%. At a loss have worked enterprises of black and color metallurgy, light industry, chemical and petrochemical industry, mechanical engineering and metal working, housing-municipal (utilities) services, wholesale trade of industrial production.

In January-May 2003 the number of unprofitable enterprises in the oblast’s economy in comparison with the corresponding period of 2002 increased by 44 companies or 12,4% and made in total 400 (44,6% of all enterprises). However, their total loss (1511 million Rubles) has decreased by 10%. Housing-municipal services show the highest percent of unprofitable enterprises - 69,1% (total loss - 423 million Rubles); transport - 65,7% (129 million Rubles).

According to the forecast, the balance profit of large and medium-size enterprises will make 15,9 billion Rubles in 2003, which is 34,2% higher than in 2002.

Accounts payable of large and medium-size enterprises of the surveyed economy sectors increased by 15,9% in comparison with the beginning of the year and by June 1, 2003 made 42,7 billion Rubles, of which 17,9% is overdue. Accounts receivable increased by 9,1% (30,3 billion Rubles), of which 15,1% is overdue. Thus, accounts payable exceeds account receivable by 12,4 billion Rubles.

During May 2003, overdue accounts payable and overdue accounts receivable increased by 4,5% and 3,5% respectively. In overdue accounts payable the debts of industrial enterprises take up 39,4%.

By June 1 2003, accounts payble to banks on laons and credits made 20,3 billion Rubles including 0,5% overdue. The greatest share of overdue accounts payable is attributed to agricultural (80,2%) and transport (8,3%) enterprises.

Receipts of taxes and other mandatory payments in the budgets of all levels in January-May 2003 totally made 11,727 billion Rubles, which is 34,5% higher than in 2002. In May 13,8% more taxes were collected than in month.

During May 2003, the enterprises debt in tax payments to the budget increased less than by 1% and by June 1 2003 made 3,962 billion Rubles or 33,8% of total receipts to the budget, including value-added tax - 52,3% and profit tax debt - 12,42%.

During May 2003, the arrears on payments into the budget increased by 0,8% and with allowance for debts from the previous year, made 1,928 billion Rubles. This is 48,7% from total indebtedness on tax payments (deferred payments - 15,3% and suspended to collection - 36%).

During January-May 2003, the consolidated budget of Leningrad oblast has received the total income of 7406,8 million Rubles (45,9% of year-planned value), including to the oblast’s budget - 5244,4 million Rubles (46,5% of year-planned value).

The revenue accounts of the consolidated budget accounted for the total of 6326,8 million Rubles (35,8% of year-planned value) including exclusively oblast’s budget - 4235,9 million Rubles (34,7% of year-planned value).

The excess profit of the consolidated budget has made 1080 million Rubles, with purely oblast’s part of 1008,5 million Rubles.

Consumer market and living standard of population. During January-May 2003, consumer prices went up by 8% (by 9% in the past year), including food - by 8% (9,3%), consumer goods – by 4,4% (5,3%), services – by 15,4% (15,6%).

In May 2003 prices increased of: beet – by 9,9%, fresh cabbage - by 8,4%, onions - by 3,4%. Bakery products made of 1^st category wheat flour became more expensive by 2,4%, cookies - by 1,1%, buckwheat - by 1%, cheese – by 0,7%. Bananas went down in price by 3,4%, eggs - by 2%, sugar - by 1,3%.

Among consumer goods which grew up in price in May are the following: utensils - by 3,2%, printed issues - by 1,7%, knitted items and haberdashery - by 1,4%, footwear - by 1,3%, clothes - by 1,1%, fabric - by 0,9%, furniture - by 0,8%, drugs - by 0,7%, building materials - by 0,5%.

Services to population have risen in prise totally by 0,8%: sauna services (bath house) - by 3,9%, repairs of house appliances - by 0,2%, air tickets – by 9,5%, sanitary-rehabilitation services - by 4,6%, laundries - by 3,6%. Regarding utilities, water supply, water drain and house heating charges increased by 1,3%, hot water supply – by 1,4%.

In January-May 2003, prices of manufactured goods increased by 2,7%, in capital construction - by 10,3%; prices on agricultural production - by 1,6%. Tariff index on freight traffic remained at a level of the previous year, and communication services for legal entities has increased by 0,9%.

According to the forecast, consumer prices will increase by 15% in 2003.

In May 2003, the cost of minimum consumer goods basket increased by 1,5% compared with April and made 1156 Rubles 77 kopeks. As estimated, it will make 1165 Rubles by December 2003.

In May 2003, the real income of the population increased by 11,4%, and decreased by 3,4% compared with May 2002 and April 2003 respectively. Accordign to the forecast, by December 2003 the real incomes will exceed the level of December 2002 by 7,5%. The average monthly per capita income made 2705 Rubles in May 2003, and is expected to reach 3850 Rubles in December 2002 (estimate).

The average nominal salary in May 2003 across all industries, including small business, made 5484 Rubles. The real salary subject to the consumer price index, made 102,5% in May 2003 to the level of April 2003, and 109,8% to May 2002.

In economy sectors monitored by Petersburgkomstat in May 2003, above the average salaries are paid to employees in the financial-credit field, insurance and pension maintenance - 8613 Rubles, transport - 7369 Rubles, industry - 6701 Rubles, management - 6482 Rubles, construction - 6292 Rubles, science and scientific service - 6218 Rubles. The lowest salaries are still observed in such sectors as arts and culture - 2923 Rubles (53,3% from middle level), and education - 3080 Rubles (56,2%).

In 2003 the growth of the average salary will continue. As estimated, in December 2003, it will make 6200 Rubles or 5,7% higher than in December 2002.

By June 1 2003, overdue indebtedness on wages was registered among 168 enterprises and organizations monitored in economy sectors (149 – month’s delay) in total 157,7 million Rubles, including 48,8 million Rubles (31%) caused by overdue of budget financing. The total budget overdue is shared between the Federal budget (23,4%) and the budgets of municipal formations (76,6%). The greatest share in total budget indebtedness falls to science and scientific service - 50,8% or 24,8 million Rubles.

During May 2003, the total overdue indebtedness on wages increased by 5,6 million Rubles or by 2%, (8,7% increase since the beginning of the year). In May the indebtedness due to budget overdue increased by 4 million Rubles or 8,9% (1,5 times increase since the beginning of 2003).

By June 1 2003, in Leningrad oblast, there is no indebtedness on payment of pensions and children's allowances. In May 2003, the average appointed monthly pension with allowance of compensatory payments made 1645 Rubles 52 kopeks. 454,14 thousand people receive state pensions in the oblast.

In January-May 2003, the turnover of retail trade in the oblast (12205 million Rubles) grew by 8,3% and the turnover of public catering (445 million Rubles) by 2,6% against the previous year. In May 2003, in a structure of retail trade turnover there was a 58,9% decline in food (in May 2002 - 60,8%). The share of retail trading enterprises in the turnover of retail made 75,8%, sales of goods at markets - 24,2% (in May 2002 accordingly - 80,2% and 19,8%).

In 2003, the turnover of retail trade is expected to make 31798 million Rubles or 107% to 2002 level. This is promoted by opening of new shops and covered markets for sale of agricultural production, as well as construction of large supermarkets.

Paid-for (commercial) services were proviede for the population of the oblast in January-May, 2003 for 3081 million Rubles, i.e. 7,1% higher than in 2003. It is shared between individuals (10, 9%), enterprises, and organizations. The main place in a structure of consumed paid services is still taken by services of compulsory character: municipal utilities - 36,4%, communications - 13,1%, housing - 11,7%, transport - 10,3%, housekeeping services- 8,8%.

In January-May 2003, the population of the oblast received personal services in the amount of 270,9 million Rubles (101,8% to corresponding period of the previous year) (43,7% was rendered by individual enterprineurs). Among 11-kinds of personal services the volumes have reduced in 5-kinds: repair of household radio-electronic equipment, household machines and gears, fixing and manufacturing of hardware - by 5,6%, photo services - by 1,6%, sauna and shower service - by 5,6%, hairdressers - by 8,9%, funeral services - by 3,6%. The biggest share in the structure of personal services is taken by repairs, decorating and construction - 18,7%, their volume has increased by 21,8% in comparison with the last year.

As forecasted, in 2003, the total volume of paid-for services in the oblast will reach the level of 8555,7 million Rubles that is 108% of the 2003 value.

Social welfare. In the area of social security in 2003, a number of social facilities have been reconstructed. Thus, for example, Slantsev boarding house for children is planned for reconstruction to accommodate 25 places war- and labor- veterans. The administration of municipal formation “Tosnensky rayon” has allocated an unfinished building of a kindergarten with pool to accommodate 534 disabled children for social rehabilitation in Tosnensky rayon. A specialized apartment building is reconstructed in municipal formation “Tikhvin rayon”, where it is planned to render a broad spectrum of services to old-age citizens.

In 2003, the provisio rate of places in homes for old age people, and disabled people and children is expected to make 24,0 places.

Appropriate facilities are needed in orderto improve the system of addressed (individual) social security. Currect social infrastructure (boarding houses, homes, centres of social service, etc.) needs reconstruction and upgrade as most of these institutions are overcrowded.

It is necessary to continue construction of a children's rehabilitation center at Volovsky children's home for mentally deficient children. The importance of this home is stipulated by the fact that there are 6,4 thousand disabled children requiring specialised medical and social services. In the social security system there are only 2 children's homes for disabled children with 465 places located in adjusted buildings. One of the homes occupies buildings constructed in 1937, and requires emergency repairs. In the boarding house, there are 5 sq.m floorspace per each child, with the standard allowed space of 12 sq.m. There are bedroom for 20 people. Therefore, sanitary and hygienic conditions are below the acceptable level.

Over the past years, the amount of disabled children has increased leading to longer waiting lists to place children at specialized institutions. 70% of children at children's boarding houses are orphans and children of parents were deprived of parental rights. These children can stay only at specialised places and the lack of adequate facilities result in inadequate rehabilitation, medical and social services.

The majority of stationary establishments of social security in the oblast have insufficient material base and were constructed 40-60 years ago and require reconstruction. Boarding houses for veterans and disabled are overcrowded the average bedroom space per person makes 5,6 sq.m with the standard requirement of 7 sq.m. The waiting list for places at boarding houses is as long as 120 people. The wait stay is from 8 months until 1 year.

Provision of medical and social services to war- and labor- veterans who need to be placed to boarding houses is a topical issue in the oblast. Duration of expectation of queue is very long. In the oblast, there are not enough social apartment houses for improving social conditions for elderly people and invalids.

Construction of specialised apartment houses has essentially improved housing conditions of elderly and disabled people.

Public health services. The provision of hospital beds in 2003 will make 101 places. The number of hospital clinic places (more expensive) will gradually be reduced, even with allowance of new hospitals constructed. This process will be supported by differentiation of available hospital capacity, continued reduction of terms of treatment in hospitals and development of branches of reduction treatment, daily hospitals and more efficient using of funding. Despite the reduction of hospital places, the availability of population in medical help does not decrease. The irregular development of specialised medical help in various municipal formations reinforces the necessityto solve problems of development of integrated specialised branches of hospitals.

In 2003, financial possibility appeared to repair tubercular and psycho–neuralogic hospitals. Reconstruction of institutes of public health services began in those rayons, where it had not been conducted for a long time.

The level of medical service provision for each 10,000 inhabitants is expected to reach 252 visits per shift by the end of 2003.

Cordial illnesses, traumas, cancers, AIDS, alcohol and substitutes intoxication, etc. remain at a very high level in the oblast.

Medical aid to population is not satisfactory with respect to cordial surgery, prosthetic large joints, treatment of blood disease, complex surgical and neural-surgical treatment etc.

The net of daily (daytime staying) hospital place is insufficiently developed, that does not make it possible to reduce numbers more expensive overnight hospital beds.

Specialised medical help is developed at disproportioned levels among municipalities. This fact makes it necessary to consider establishment of inter-rayon integrated specialised branches of hospitals.

Resource-saving technologies of medical aid organization, medical investigation and treatment of population are clearly underdeveloped within the oblast.

Possibilities are not realized to develop preventive maintenance of diseases, extension of practice of the family doctor, outpatient surgery. More efforts can be made for maintenance of availability of qualified help to the village population.

Medical staff is becoming am encreasingly acute problem: there is a small inflow of experts, shortage of accommodation, dissatisfaction by wages, resignations, acting pension legislation, etc. The deficit of nurses in surgical branches, intensive care, polyclinics increases.

Material base in hospitals and polyclinics have to be remodelled and updated. Construction of new facilities, replacement of medical equipment at least in central rayon hospitals is required.

In 2003 in the education system, we have worked on maintaining and developing pre-school education and on improving the structure and content of general education. The formation of education system will be continued in every educational institution, along with providing necessary resources at the regional and municipal levels.

The target programmes will be further applied to ensure integration and continuity of general and further education, to provide the accessibility of primary vocational training, to create a unified vocational education system of the region. In 2001 the Teachers Training College of Leningrad Oblast (Gorbunki, Lomonosov District) was linked with Leningrad Oblast State University named after A. Pushkin. In 2002, the Leningrad Oblast Correspondence Pedagogical School was linked with the Vyborg Teachers Training College.

The integration of higher and secondary special education is going on in the region by attaching teachers’ training schools to higher education institutions (in 2002/2003 academic year the regional liberal arts college became a department of secondary vocational education within the State Rural Institute named after St. Cyril and St. Methodius).

In 2003 the federal programmes are being implemented, making it possible to continue construction of a children's home in Nikolskoye, Tosno District, a new school in Tosno, renovation of a hostel to accommodate classrooms of vocational school No. 55 in Lodeinoye Pole, and rebuilding of hall of residence of Lyceum No. 11 into a block of flats.

In 2003 it is expected to complete the construction of an annexe to the school in Plodovoye, Prioozersk District, the first annexe to secondary school No. 1 in Siversky, Gatchina District, and a new school building in Tosno. It is planned to start construction of a second building for school No. 1 in Novaya Ladoga, a new school in Sertolovo, major repairs of secondary school No. 5 in Priozersk, and the rebuilding of hostel No. 1 of vocational school No. 52 into a boarding school in Kiselnya.

Another positive trend in the field of education is reduction of the second shift in comprehensive schools, which in 2003 is estimated as 8.9%.

A major problem of pre-school education is insufficient involvement of young children. The system of pre-school education is not fully cost-effective, education quality management still has to be improved. The material condition of comprehensive schools remains a serious problem. It is necessary to better prepare teaching and managing staff for meeting the challenges of education modernisation. Teaching regional aspects of school subjects requires higher quality of training materials and textbooks, which should be made available in libraries of educational institutions. The unity of educating and upbringing still has to be achieved.

In the system of supplementary education it is necessary to ensure integration and continuity of the content of general and supplementary education. The involvement of children in receiving supplementary education is not sufficient at all levels of educational process.

In the field of vocational training there are still many unsolved problems concerning the creation of legal, economic and organisational conditions for developing a system oriented to the needs and capabilities of personality, certain areas, the region as a whole, and the labour market. A balance of the labour market interests and education services is to be found on the basis of socially-oriented relationships. The developing of vocational education is prevented by:

- imimprovement of early occupational guidance of children;

- imimprovement of information provision with regard to labour market and educational services;

- staffing needs of vocational education institutions of all levels.

Necessary legal conditions have not been created for comprehensive development of orphans and children taken into care, as well as for their social adaptation and integration in society after the children's home.

About thirteen thousand children receiving education in the region are children with limited capacities, and the number of such children grows up annually.

The material basis of educational institutions has to be improved with building up new facilities and renovations of the existing ones.

The number of cultural and public service institutions per 100,000 residents in 2003 has remained at the level of the previous year – 28.3 institutions, and 30,3 public libraries.

Within the framework of the programme for 2003, the restoration and conservation of cultural and historical landmarks of federal importance remain the main line of activities in this sector.

The number of vacant positions in the cultural sector is as large as before, this refers mainly to junior service staff, due to very low wages (at the level of subsistence requirements).

The restoration and conservation of cultural and historical buildings still remain the issue of the day. A number of cultural institutions facilities need major repairs and replacement of equipment.

Housing and communal services. Housing remain the most acute problem. About 35,000 families in the region are registered as needing to improve housing conditions, over a half of which are in preferential groups entitled to free of charge housing. The housing queue period ranges from 22 to 28 years. In the current year 2003, it is planned to commission 435,000 square meters of housing, but no residential housebuilding is foreseen at the expense of the federal budget (only purchasing with housing certificates). The share of individual housebuilding will increase by 27.4%. Private individuals will build dwelling houses of 340.500 square meters (in 2000 it was 171.900 square meters). A growth of 18.5% is expected in house-building within the framework of the Oblast Government Target Programmes: ”Support of Residents Needing to Improve Housing Conditions on the Basis of Mortgage Lending Principles”, "Housing for the Young”, “Social Development of Rural Areas till the Year 2010”, “Resettlement of Leningrad Oblast Residents from Tumbledown and Wrecking Housing”.

The housing rate is growing, mainly due to individual housebuilding. The average housing rate in 2003 is expected to be 23.5 square meter per person.

The formation of condominiums within the framework of current reforms has not been properly promoted. This process demands constant initialisation.

Actuvities aimed at attracting investments in the housing sector are carried out on a low level, which makes impossible to improve the conditions of the existing housing resources, services and networks.

In 2003 the residents' share in utilities payments has amounted to 90%. The work with utilities debtors at the local level is not carried out actively enough. The share of actual utilities payments by the residents is low.

Labour market. In May 2003 the situation on the registered labour market of Leningrad Oblast continued to gradually improve: the number of people seeking employment and the number unemployed has decreased, while the number of job openings has increased. The unemployment rate in the reporting period was constantly falling, and in May it reached 1.3% (in May 2002 it was 1.6%).

With the average regional unemployment rate of 1.3%, the unemployment rate in rayons varied from 0.3% in Kirov Rayon to 4.1% in Boksitogorsk Rayon. Its value was above the average in thirteen municipalities, and below the average in sixteen municipalities.

At the end of May there were 11,000 registered unemployed. The lowest number of the unemployed (21 people, or 0.2% of the total number of the unemployed) was registered in Koltushi Volost, and the highest (1,500 people, or 13.8%) – in Tikhvin Rayon.

The number of the unemployed has reduced in twenty-six municipalities as compared with the beginning of year.

For the reporting period, 36,700 people seeking employment have applied to the employment service (in January – May 2002 the figure was 39,400. The service has registered 21,500 people (24,000), of which 9,500 have been registered as the unemployed (12,100).

For the five months, employers have offered 29,100 job openings to the employment service (26,000 a year ago).

14,500 people seeking employment have been placed in jobs (14,100 people in January – May 2002), including 6,570 unemployed (6,590). 653 people (753) have been engaged in public works. 2,266 applicants (1,800) have been sent to vocational training and retraining. Career-guidance services have been offered to 32,700 people (35,200). 121 unemployed people (33) have been pensioned off at an earlier age.

At the end of May 2003, there were 0.7 people seeking employment per one job (in 2002 one person per one job).

By the end of the reporting period, unemployment benefits have been granted to 9,895 unemployed people (last year to 11,800 people). The average amount of unemployment benefit in May 2003 was 1167.35 Roubles (in May 2002 – 1411.3 Roubles).

The current year promises to be rather favourable in view of manpower and supply of labour. At the same time, the continuing growth of employable population (by 11,000 people in 2003) can have certain impact on the growing of total and registered labour market.

According to estimations, the economicly engaged population will amount to 711,900 people in 2003, increasing by 5,700 people (100,8 %) as compared with the year 2002. Owning to the commissioning of new enterprises, it is expected to create about 2,000 jobs.

The measures aimed at regulation of the registered labour market of Leningrad Oblast are carried out within the framework of the Regional Target Programme of assistance to employment in Leningrad Oblast for the years 2002-2003, and the Action Plan of the Leningrad Oblast Employment Service for increasing the efficiency of job placing of unemployed and unoccupied residents in 2003. As a result of implementation of said measures, it is planned:

• to reduce the registered unemployed number to 11,000 by the end of 2003, and the registered unemployment rate – to 1,3%;
• to ensure the growth of job placements in 2003 up to 43,100 people or 3.9% more than in 2002, increasing their share in the total number of job seeking people from 52,7 % to 54,8 %;
• to render career-guidance services to over 56,000 people in 2003;
• to provide opportunities for necessary vocational training to 3,700 unemployed people;
• to organise 200 fairs of jobs and vocational training;
• to ensure at least 50,000 job openings through the employment service;
• to provide 3,000 people with public works and 2,500 people with temporary works in 2003;
• to place in temporary jobs up to 15,000 under-age adolescents;
• to support business initiatives and to render assistance to 611 people in self-employment; to provide information support to at least 700 people on issues of starting up their own businesses;
• to render assistance in finding jobs to the following categories of residents needing special social protection: in 2003 – 17,320 women, 4,880 long-time unemployed people, 467 disabled people and people of pre-pension age, 50 refugees and forced migrants, 379 people who retired from military service and members of their families.

The main goal of the social and economic development of Leningrad Oblast is an increase of living standards and quality of life.

The achievement of this goal can be assured through dealing with the following social priorities:

- a substantial growth of real income of the population, improving the quality of life and raising the consumer demand;

- carrying out a comprehensive and consistent demographic policy aimed at creating most favourable conditions for young families, increasing birth rate;

- achieving a higher level and quality of health care, providing a decent living standard to disabled people, old-age pensioners, and other socially unprotected people;

- further reforming and developing of the education system, improving the quality of education in order to provide all industries with up-to-date specialists and skilled workers;

- developing a system of accelerated housing provision through implementing actual schemes of people's engagement in housing construction;

- forming and carrying out a balanced public policy in the housing sector by means of reforms, improving the quality and reducing the cost of communal services.

The attaining of the above-mentioned objectives should be supported by forming of an adequate economic basis. The major economic objective is to create the conditions that will ensure a high and sustainable economic growth rate. This objective can be achieved through dealing with the following priorities:

- to carry out a balanced fiscal and tariff policy aimed at reduction of tax burden in the production sector; eliminating administrative obstacles on the way of establishing new enterprises;

- to develop and improve the system of investment guarantees and credits for new small and medium businesses;

- to implement a system of measures and developing the infrastructure to assist the building-up and strengthening of small business;

- to improve the business and investment climate in the region;

- to extend and developing the information sphere of Leningrad Oblast, promoting an efficient integration of different industries and sectors;

- to enhance an efficient use of available natural resources, free industrial areas and facilities.

In order to achieve the above goals, and subject to attaining the main objectives, it is expected, in the medium-term outlook, to reach the following values of main macroeconomic measures:

- average annual growth of GRP - 7%, with its double increase in 2010 against 2003;

- growth of industrial output by 8% in 2006 against 2003;

- growth of agricultural output by 6% in 2006 against 2003;

- increase of investments in fixed capital by 13-14% in three years;

- annual retail trade growth by 5-7%, growth of paid services to population – 3-5%.

Sustainable development of the region's economy in the forthcoming period will have a positive impact on its financial condition and will help improve the residents' living standard.

The real available cash income of population will annually increase by 6% on the average. The share of expenses on commodities and services will grow in the population's expenditure pattern. The number of people with cash income below the subsistence requirements will continue to decrease from 39% to 35%.

Housing of total area of 1.4 million square meters will be built in three years.

Within the same period, the provision of population with housing and social institutions will increase too.

Based on the perspective directions of social economic policy of the Russian Federation, targets and objectives defined in the President’s Letter to the Federal assembly of the RF as well as earlier defined major targets of Leningrad Oblast development, the public social and economic policy of this oblast will be implemented in several directions:

Development of the economic potential of the LO and its investment policy

Development of social sphere

Improvement of state management by developing targeted programme management in LO and in budget-finance sphere

Improvement of the level of wellbeing in respect to budget allocations in municipalities of LO.

Economic policy of LO will be based on improvements in tax and budget policies, attracting new investments, development of small enterprises, increase in economic knowledge and mobility of the population, provision of employment, development of transport system and engineering networks.

As a first step, it is planned to maintain balanced fiscal, tax and tariffs policies aimed at decrease of the tax burden on the industrial enterprises; eliminate administrative barriers in establishing new enterprises.

The public Economic Policy will be based on the expansion of the information networks of LO leading to effective integration of indusries (between industrial enterprises), science and industry, education, commerce, state.

One of the main conditions to provide fare competition for oblast enterprises is to establish protectionist measures on the external market.

Design and approval of transport and industry development programmes will be completed soon. It is necessary to increase monitorinf ans control to achieve expected results of acting programmes.

Formation and functioning of the planned state industrial police will be based on the respective regional targeted programmes. Regional industrial policy- an integral part of structured policy of economy modernisation, including number of measures connected with development of regional industry, oriented on competiteveness of industrial enterprises, increase in the production effectiveness and structural improvements, reconstruction and modernization of existing facilities (totally or partly), development of new types of products, introduction of new progressive technologies, which will help to increase processing industries.

Realization of industrial policy shall provide stable growth of economic development, helping to have several macroeconomic indexes such as prices, trade balance parity, and employment on good stable levels.

Main targets of the industrial policy are: to increase production effectiveness and competetiveness of products; to increase the share of processing industries on the basis of high-tech products growth; to increase the exports potential.

Immediate tasks of the industrial policy invisage decrease of numerous ineffective enterprises; elimination of morally old equipment; purchases of new assets, training of qualified personnel; decrease in the high resource consuming elements.

Effective implementation of the industrial policy is only possible when the oblast governent has full information about functioning of the industrial complex. Thus importance of monitoring of industry functioning is rather important. In the nearest future system of industrial branches monitoring performed by the departments of the Government of LO will be improved towards passing from local networks to more systematic approach in data bases design, allowing to simulate economic processes and more clearly forecast state of economics for the medium term perspective.

Moreover information about regional produce deliveries is of big importance. At present many regional enterprises have no adequete information concerning the assortment of goods produced by local regional companies. Hence cooperation between these enterprises is on a low level. This does not mean that this problem is out of the range of important issues for the Government, but it is considered rather random and mainly as personal initiative. Serious work should be done to optimise links between regional enterprises and creation of the goods exchange system between regional companies. Initial action-to develop oblast information database for all types of locally produced goods. Oblast Chamber of Commerce is entitled to carry out this work.

To reach the goals of industrial policy the following measures should be undertaken:

- Development of competetive advantages of the industrial complex including geographical location (close to the border), developed infrastructure, rich mineral resources base, high power capacities, scientific-technical and innovation potential;

- Improvement of the system of state procurement. Tenders for produce purchases is one of the economic instruments of supporting most perspective enterprises helps to establish healthy competition and expand good functioning businesses, giving equal opportunities to sell to such a big client as State. Besides tenders it’s important to upgrade qualification level of both contractors.

- There is no doubt that direct placement of procurement orders is not effective. Of extreme importance is that public tenders are political events which help to strengthen positive power image.

- Improvement of special investment climate, aimed at support of companies implementing investment projects

- Signing agreements with big oblast monopolists aimed at development of mutual obligations of parties to get positive results in overall industrial functioning

- Improvement of bonus system for oblast enterprises improving quality and competetiveness of products

- Provision of information-analytical support to industrial companies, installation and upgrading of oblast data bases, containing data about industrial enterprises on LO territory, containing information about carried on investment projects, free industrial areas etc. Publishing of information brochures, catalogues etc.

Major target of agroindustrial policy is food supply in oblast and Saint-Petersburg, minimizing dependence on imported agricultural goods, competetiveness of agricultural products, employment of rural population and rational use of land and natural potential in general. To reach this goal following problems should be solved:

Access of agricultural enterprises to financial resources giving possibilities to upgrade existing equipment;

Leading protectionist policy on St.Petersburg markets

Reforming of agricultural enterprises, bringing foundation documents in compliance with current legislation and choosing suitable legal forms for existing agricultural companies; improvement of inter-companies relations; development of integration and cooperation; improvement of land ownership relations; improvement of cooperation between agrifirms, farms and private gardeners.

Increase in yields of production and maintaining good level of agronomical measures on agricultural lands.

Support of selection work, introduction of new varieties and new technologies connected with energy saving.

One of the major directions of economic policy in LO is support of small enterprises. It is important to increase speed of small enterprises development; to provide credits; to maintain good climate for the existence of small business.

In the sphere of development of tele-radio communications means- provision of access to all Russian and regional programmes to increase quality of transmission and quantity of channels,

Economic development is closely connected with development of transport infrastructure. In this respect it is important to increase safety of traffic on oblast roads; to develop strategy in roads development, to define priority tasks in road development policy and instruments to implement it.

Considering increasing relations between Russia, EU and Asian-Pacific region, geographical position of oblast is of big importance and creates basis for establishing international transit junction on the oblast territory, stimulating its modernization and giving impulse for development of additional services such as gasoline filling station, car repairs etc.

It is necessary to continue formation of compettive tourist and recreation buisness as one of the leading branches of economy providing satisfying demands of both local and foreign operators in such services, on one hand, and giving significant input in regional development due to increased revenues of oblast and municipal budgets, new investments, increased employment, improvement in medical care, rational use of cultural heritage and natural resources.

In the sphere of land and mineral resources and civil construction regulation it is planned to raise effectiveness of state control, decrease of administrative barriers with the increased responsibilities while using natural resources. Attention will be drawn to ecological, social and budget effects of respective programmes, tender procedures in selection of such objects and programmes are of big importance.

Exploration and use of mineral resources base in LO should supply needs of social economic development in LO.

Population and enterprises should be supplied by drinking water; water resources and mineral springs are to be kept ecologically clean, protecting population from any dangerous effects of water use.

System approach is planned in developing measures of environmental protection in LO by means of studying, keeping and improving natural resources in LO.

Forrest resources is one of the major treasures in LO and state policy will be aimed at forest reproduction on forest free areas, improved variety composition, increase in natural yields, rational use of timber.

In the nearest years it is planned to establish state cadaster of LO (GGK LO) aimed at providing information to bodies of state power and municipalities, to physical people and legal entities about environment, its planned changes, including territorial borders for allowed civil construction, as well as other information used in investment, land improvement and other activities, for valuation and taxation of real estate.

In the same direction the computerized state cadastre management real estate information system should be introduced in the Leningrad oblast. Creation of a computerized state cadastre management real estate information system in Leningrad oblast will improve real estate management and facilitate and stimulate investment in real estate.

Another important factor to attract and secure investment to Leningrad Oblast is to create insurance system from technogenic risks and natural disasters. The most widely spread problem here is fires. To solve this problem measures will be taken to improve fire engine services and their efficiency, to strengthen their material and technical base. These measures will increase efficiency in fire prevention and extinguishing.

Common task for all branches is a conditioning for development of an effective civilized labor-market, which is efficently provides citizens, searching for job with a proper job permitting at the expense of the own incomes to provide a higher level of consumption, and employers - necessary manpower; rise of ffectiveness of volumes regulation of and qualitative frame of external labour migration.

State policy on development of social sphere will be based on:

Development of an education system, rise of quality of education providing firms of industrial and social assignment with modern personnel, qualified engineers and workers.

In public health services the major direction remains public support of motherhood and childhood, conditioning for health protection of the mother and birth of healthy children, preservation of reproductive health, warning and reduction of a mother and infantile rate of sickness and death.

The work on prophylactic and reduction of a level of a rate of sickness by contagious, oncologic and other mass diseases will be continued. The reduction of a rate of sickness and death of the region population from contagious diseases should be achieved by resources of specific prophylaxis, ensuring of epidemic well-being on epidemic parotiditis, whooping cough, preparation for liquidation of a rate of measles in the region, complete liquidation of a poliomyelitis

The complex of preventive and medical measures, capable to provide a necessary level of society protection from further diffusion of a tubercular infection contamination and stabilization of indexes of prevalence of disease among various categories of the population will be realized with the tendency of further decreasinig. The material and technical base of institutions, cabinets of the tubercular profile will be developed; advanced medical technologies for improvement of diagnostic and treatment of tubercular ill will be also introduced.

Perfecting diagnostics and treatments of oncologic diseases in the Leningrad Oblast, development of material and technical base of institutions, departments, cabinets of the oncologic profile; Introduction of advanced medical technologies, combined treatment oncologic ill will be continued

The implementation of the complex of measures on reducing a level early invalidization of diabetic ills with complications (disease of nephroses, eye, nervous system) is planned.

In the determined period an acceptance of complex measures on reduction of rates of distribution of the HRV-INFECTION (first of all among youth) in Leningrad Oblast, improvement of the organization and improvement of medical aid quality for HRV-INFECTED are planned.

For the decision of these socially significant problems the infrastructure of system of public health services should be well developed. Requirement of the central regional hospitals improvement of the organization of the first help; reequipment of rural ambulance stations, obsteticals items and " the family doctor services; improvement of stomatological service of Leningrad Oblast will be carried out. Especially significant task is a development of the Leningrad Oblastal public health services body "Children's clinical hospital " as a result of which conditions for rendering highly specialised medical aid to children of Leningrad Oblast should be created.

A improvement of the psychiatric help to the population for the purpose of conditions creation for realization of the law of the Russian Federation “About the psychiatric help and guarantees of rights of citizens will be continued together with the improvement of forms of the psychiatric help rendering; realization of the precise control for a condition and moving of mentally diseased patients.

The state policy in a sphere youth will promote spiritual and moral ideals formation - as a motivation of creative and productive activity; personall restoration; realization of an active cultural policy; ensuring of modern education, since preschool and finishing the high education. Measures promoting the scientific creativity provided by the state guarantees and stimulus will be realized; directed on support of creative activity of the youth, assisting formation of socially useful youth system of reference, values and priorities. In this direction an amount of introdepartmental barriers will be reduced by transition to the development of the complex programmes covering all adjoin brunches and focused on an end result.

Not only social, but also economically significant task remains a development of the education system providing improvement of education quality, its humanistic orientation, a priority of public values, lives and health of the person; education of civilization and love to the mother land, labor, reflecting a specificity of social-economic and cultural development of region and acting as one of factors of its economic and social development.

Preservation and development of material base of institutions of initial professional education of an agricultural structure demands attention with the purpose of satisfaction of market needs of a labour in the highly skilled personnel of an agricultural structure for Leningrad Oblast enterprises of agriculture; improvement of conditions of training and work in institutions of professional education of an agricultural structure of Leningrad Oblast; increase of efficiency of industrial activity of trainees; increase of efficiency of educational, floor spaces, machines and the equipment of rural schools and liceums usage; improvement of teaching and educational process in schools and liceums; increase of quality indicators of production, works and services in rural schools and liceums.

At the same the decision of educational problems time should not have a negative effect on schoolchildren’s health. Conditions for preservation, strengthening and restoration of schoolchildren’s health should be created; the educational system based on steady motivation and preservation needs of the health and health of others is generated.

Improvement of sports base of educational institutions should be continued. It will provide improvement of education quality; preservation of schoolboys health of Leningrad Oblast; development of sports endowments of children and teenagers; improvement of system of preventive work with children and teenagers on formation of moral references and a healthy way of life; increase of a role and productivity of sports - mass work in educational institutions of Leningrad Oblast.

Conditions for development and adaptations of information processes in the regional education system, promoting formation of united regional informational and educational space, with integration of municipal educational systems in it should be created.

Formation and spiritual development of a society are inseparably linked with preservation of available cultural potential and maximum effective usage of it for activation of cultural life and formation of cultural originality of region

The state support of activity of the public associations realizing a youth policy in territory of Leningrad Oblast should be continued with the purpose of amplification of the public - state character of a youth policy, realizing on Leningrad Oblast territory, increase of public activity of Leningrad Oblast youth.

Development of physical training and sports should promote increase of physical training and sports role in life of Leningrad Oblast, increase of a total amount of pupils involved in physical training and sports on 1,5-2 percents

The system of patriotic education of youth of Leningrad Oblast with a purpose of formation of the social - active person of the citizen and the patriot, having feeling of national pride, civil dignity, love to Fatherland, people and readiness for its protection will be developed.

At the same time the stable functioning public - state preventive system of deviate behavior in the youth environment will be developed.

In sphere of ensuring of normal and an appropriate conditions of the population of Leningrad Oblast life state bodies will carry out the systematic state housing policy focused on youth and working capable population, providing a social acceptability of reforms in housing and communal services. The problem task of the near future is necessary to develop and start realization of high-grade regional target programmes in sphere of housing and communal services. Including questions of life-support of the population.

The system of the complex problems decision of prevention of children's physical inability, medical-social, psychological-pedagogical rehabilitation of children and teenagers with the limited capabilities should receive the further development and improvement

One of important conditions of social guarantees to the population is a creation and development of the not state provision of pensions system of the Leningrad Oblast population.

The system of social service of families with children will be also developed, formation of effective system of prevention of neglect of the minors requiring for social rehabilitation will be carried out

The complex of measures for the decision of social and economic, legal, medical, cultural, household and other problems of eldery people will be carried out, the level and quality of life of citizens of the senior generation are increased.

In a direction of social support of disabled people it is necessary to achieve reduction of a level of initial physical inability, amplification of social support and improvement of life quality of invalids, increase of efficiency of activity of public service of medical-social examination of Leningrad Oblast, amplification of the state support of public organizations of invalids (rendering material and other kinds of the help).

Social and economic valuable questions of improvement of conditions and labor safeties with the purpose of preservation of life and health of the worker during labor activity, ensuring of healthy and safe working conditions on manufacture; warnings and prevention of an industrial traumatism and occupational diseases.

In a direction of ensuring of youth by habitation the system of the state support should be created by formation of legal, organizational and financial conditions based on experience of youth inhabited complexes and in view of necessity of creation of preconditions for improvement of a demographic situation in area.

Improvement of the government management will be under construction on the basis of development of open and capable system of the state planning based on wide public participation in the decision of regional development questions; ensuring of political and legal stability, continuity of the state obligations and the responsibility for business, a society and the person, ensuring and protection of civil rights.

The use of programme-targeted methods of management is the main direction of improvement of state regulation.

Results of 2002 testify that although essential successe has been acghieved, there are still considerable amount of unsolved problems in the area of organization of strategic planning and work with regional targeted programmes.

According to the legislation on regional targeted programmes of Leningrad Oblast: “ All charges of the regional budget which are not connected to service and repayment of a public debt, liquidation of consequences of extreme situations, acts of nature and epidemics, ensuring of the separate state authorities transfered on a municipal level, the financial help to budgets of municipalities, elections and referenda, indemnification of the additional expenditures which were arisen as a result of decisions, accepted by bodies of the government leading to increase of budget expenditure or reduction of budget incomes of municpalities, and also with ensuring the functioning of bodies of representative and executive authority, the Selective commission of Leningrad Oblast, budgetary establishments of Leningrad Oblast, are carried out only at their inclusion in structure of programmes ”.

Today's legislation promotes realization of these requirements. All newly developed programmes can be authorized not only after a positive estimation by enforcement authorities, but after consideration by Legislative assembly. Such order predetermines lengthening of procedure of discussion of programmes, but on the other hand raises a degree of the responsibility of their developers and initiators, and also garantees of programmes financing and the fact that decided problems actually have the regional status .

Regional targeted programmes should be realized not only as financial and economic tools of management, but as the important element of sociopolitical life of the region. These targeted programmes allow to see actual, instead of declared priorities of the government, and estimate correctness of actions assumed by it beforehand and to measure their productivity after. Programme-target management contains poorly used potential of publicity attraction to development of a state policy.

Among the tasks that keep a constant urgency in work with programmes, there is need of maintenance of stable and steady financing ensuring strictly according to the plans of authorized measures, and also the expanded participation of financial and other means not only from the regional budget. Regional targeted programmes should not represent a list of expenditure of actual regional budget at all. Taking into account the social importance of the problems solved by regional targeted programmes, and the limited financial opportunities of the regional budget, it is necessary for departments structure to provide all possible measures for more active attraction of funds of federal and local budgets, funds of the enterprises and the organizations to financing programmes. It is necessary to aspire to limiting the share of the regional budget in financing each programme on 50 % from total amount of financing. It should not become a mechanical process when foreign means are involved in the decision of the tasks which are not basically interesting for them. First of all it is necessary to formulate correctly the purposes of programmes so that really express problems common for region representing strategic value for development of region as the Subject of Federation, for development of separate territories also.

Participation in work with regional target programmes should not be reduced and come to financial ensuring. It is more important to organize a stable and effective teamwork for the choice of the programme purposes and tasks, for definition of programme objects and actions structure. It is necessary to raise a role of institutions of local government, deputies of Legislative assembly, the population during formation and realizations of regional programmes, including their representatives in structure of bodies of a target programme management, involving them to an estimation, examination and the control of realization of programmes.

Now questions of an estimation and increase of efficiency of regional target programmes are subjected to a special attention. At the analysis of existing structure of indexes conclusions were made about necessity of amplification of programmes of a financial and economic component, additional inclusion in programmes integrated indexes more exactly presenting the title purposes reflecting the contents. It is recommended for developers and curators of programmes to expand the usage of parameters of economic and budget programmes efficiency. Programmes in social sphere should be estimated by the indexes reflecting not only development of actual social infrastructure (buildings, the equipment, number of occupied), but also improvement of a standard of living of the population. The major complex of tasks of social programmes should be a normalization of a demographic situation in region: rise of birth rate, life span, including - economically active, reduction of death rate. Usage for calculation of social effect of parameters of employment should be accompanied with an estimation of a predicted level of wages of occupied. Programmes in sphere of the government managing should be guided, including on reduction of number of the device due to improvement of quality of work.

Regional targeted programmes should become the effective mechanism of realization of a policy of leveling of existing disproportions in socially - economic development of municipalities. In these purposes criteria that difines a level of development of municipalities and disproportions in their development will be developed and legislatively authorized. It is necessary for structural departments of the government to provide stage-by-stage leveling of existing distinctions in social and economic development of territories of region during the formation of every targeted programme.

Introduction of principles of competitive selection should be continued during the distribution of budgetary funds and formation of regional target programmes.

These principles should be executed at formation of the regional address programme of capital investments at the expense of funds of the regional budget first of all . It should be formed extremely from the objects proved and included into a structure of regional targeted programmes. The estimation of expediency of various objects should be carried out at a stage of the coordination of regional targeted programmes, and any changes in the nomenclature of building objects should be accompanied by updating of regional targeted programmes laws at regional level.

During the development of programmes alternative ways of the decision of actual tasks should be considered. It is necessary to raise a level of scientific and practical study of the tasks solved by regional targeted programmes by realization of competitions on their development with preliminary definition of necessary values of target indexes and the approximate sizes of their budgetary financing. Such procedures are necessary for providing under all programmes finishing in 2004-2005 years.

It is necessary to strengthen the responsibility of participants and developers of regional target programmes specially for realness of actions which are anticipated in a contents of them, and also for results of their realization. Targeted programmes should be based on precisely certain criteria, the clear indicators coordinated to their resource ensuring.

At selection of the problems demanding programme study it is recommended to not be limited by duplication of regional programmes tasks decided within the framework of current federal programmes, which switched attention to the questions concerning the competence of Leningrad Oblast as of the subject of the Russian Federation.

It is necessary to pay special attention to prevention of the budgetary losses connected to failures in life-support systems of the population, by development of the complex regional target programmes that cover all aspects of functioning of the appropriate branches. Tasks of more active introduction saving resources technologies should be solved also

It is necessary to carry out the analysis of planned maintenance of budgetary efficiency of sold regional target programmes and to increase densities of the programmes focused on economic and budgetary effect. The analysis of the regional budget of 2002 shows, that with a share of the charges subject according to the specified law to programme study, makes about 45 % or 4,4 billion roubles. Thus, the nearest years the volume of the means proved by regional target programmes is necessary for increasing almost by 2 billion roubles.

The most problem sections of the budget from these positions are the following:

Road economy (the maintenance of roads)

Social policy

Public health services and physical training

Education

Industry (excluding the fuel and energy sector, building, architecture, a mineral -raw-material base, housing, subventions for the enterprises of Leningrad Oblast on payment of the tax to users of highways)

Transport

Computer science (information supply)

Construction, architecture

Fuel and energy complex

Agriculture and fishery

Other expenses

Target budgetary funds

Culture, art and cinematography

Mass media

Basic researches and assistance to scientific and technical progress

Housing services

For the purpose of preventing of contradiction of expenditure that is carried out according to these sections to the legislation it is necessary to develop a number of new programmes and to expand sphere of action of existing ones. So, expenditure on the ensuring of roads on section “the Road economy” can be included in structure of the prepared programme of development and improvement of roads. Programmem-target methods were not applied to a substantiation of charges on branches last years so it possible to meet the greatest difficulties in this sphere. An actual task becomes a development of programmes of the industry, a fuel and energy complex, transport development.

In intermediate terms major tool of a structural policy politics of Leningrad Oblast will be participation in realization of federal programmes. It is supposed, that in 2004-2006 years development and realization of federal targeted programmes will be carried out according to their list made on the basis of priorities and approved Government of the Russian Federation: “Development of an infrastructure”, “New generation (education, culture and health protection)”, “Reform of justice”, “Life security and preservation of an environment”, “New economy”, “Regional parity”

Infrastructure development. The targets of realization of a priority - improvement of conditions of reproduction of economic activities, development of a social infrastructure, ensuring of effective functioning of manufacture and the markets, ensuring of conditions for qualitative improvement of integration of Russia in world wide system of communications and standards;

New generation (education, culture and health protection). The targets of realization of a priority - preservation and development of educational and cultural potential of the country appropriate to needs of economy and a civil society, ensuring of a high level of the general and special knowledge, formation of the person on principles of humanism and values orientation providing successful modernization of the Russian society, and improvement of health condition of the population;

Legal system reform. The purposes of realization of a priority - formation of the legal space adequate to modern inquiries of the person, a society and economy, creation of conditions for effective activity of judicial system and execution of its decisions;

Life safety and environmental preservation. The targets of realization of a priority - isto avoid a deterioration and creation of conditions for improvement of life quality of the population estimated by parameters of an environment and a health condition, avoiding and prevention of extreme technologic and social situations, liquidation of consequences of failures and accidents, ensuring of reproduction of reproduced natural resources and rational usage of non-reproducible natural resources;

New economy. The targets of realization of a priority - innovational development of economy, an output on internal and the world markets of the hi-tech goods and services, fixing on segments of these markets, increase of a share of production of the hi-tech goods and services in economy structure ;

Regional parity. The targets of realization of a priority are creation of conditions for overcoming of social and economic backlog of the several territories which have the geopolitic and geostrategic importance for the country, achievement of functioning of these territories necessary for effective social and economic development of the country considering an integration opportunities.

With the purpose of realization of the specified priorities federal targeted programmes were financed from the federal budget authorized by the Government of the Russian Federation according to rules.

The federal targeted programmes anticipated to financing from the federal budget, are formed on the basis of the following system of criteria:

Conformity of the problem decided by a programme-targeted method, “ to the Basic directions of a social and economic policy of the Government of the Russian Federation on long-term prospect”. Realization of this criteria is devoted to give to programmes a precise target orientation and to concentrate available resources on the key problems decision facing to the country the appropriate priorities of formation of federal targeted programmes;

Prevalence of expenditure on NIOKR and capital expenditure, including purchase of the equipment, in structure of the programme financing. The high share of the current expenditure on programme measures serves as the indicator of that the given problem can be solved by other methods within the framework of the current financing. Concrete parity of NIOKR of capital investments and other expenditure should become an object of the analysis and it must be taken into account at formation of system of programmes;

Interbranch and interdepartmental character of a solved problem. The problems which are included in the competence of federal enforcement authorities should be solved within the framework of the funds selected for primary activity from the federal budget. The problems which are included in the competence of enforcement authorities of subjects of the Russian Federation should be basically solved by using of own funds, including subventions, transfers, etc. If a problem has interbranch and interdepartmental grants, it (in view of other criteria) can apply for the decision by programme-targeted methods;

The decision of the problems covered with the federal targeted programme, goes beyond frameworks of the short-term period. Problems should be taken into account at formation and realization of the federal budget for the appropriate year in case they can be solved within the limits of one fiscal year. In the case the problem cannot be solved in the short-term period and it is adequate for requirements of other criteria, realization of the programme approach for its decision is possible. The output from frameworks of year demands proved prognosing estimations as requirement for resources, and estimations of an opportunity of financing.

In comparison with the changeable current targets of economic policy and means of their achievement of the purposes and tools of realization of federal target programmes should have much more steady and long-term character;

The programme should have quantitatively estimated result of realization. It is supposed, that in documents under each programme it is necessary to have precisely designated quantitative criterion of its execution, and also realization of the purposes of the programme with selection of stages of the purposes achievement. It will serve as a basis for strict and objective control of its realization.

The absence of similar indices, no meter how it could be explained, inevitably results to subjectivism in acceptance of decisions on development, realization and an estimation of results of performance of federal targeted programmes;

Significant multiplicative effect, which in many respects is defined by integration of solved problems. The result of realization of programmes should have the integrated effect surpassing the sum of results of separate programme measures. Except for that the effect of realization of the programme will be shown not only in spheres covered with the programme, but also for other sectors of economic activities and whole economy;

It is impossible to decide a current problem in other ways and also it is necessary to participate for federal government whereas many problems of regional and branch character can be solved without participation of the federal center;

The sum of expenditure of the federal budget for realization of system of federal targeted programmes should be coordinated to budget opportunities during all term of realization of programmes. The actual conformity is necessary to define considering the predicted incomes of the budget on intermediate term prospect and required volumes of financing according to the rest of the articles of the federal budget. The programme part of the federal budget can not be significant because the basic function of the federal budget is financing of the operational expenditure and ensuring of the current state requirements.

Programmes are adequate to the precise system of criteria: conformity of an actual problem of long-term strategy of the state; prevalence of expenditure on NIOKR and expenditure of capital character in structure of financing of the programme; interbranch and interdepartmental character of an actual problem; impossibility of the decision of a problem in the short-term period; quantitative definiteness of results of realization; significant multiplicate effect from realization of the programme; impossibility to decide a problem in other ways and necessity of participation of the federal government; coordination with opportunities of the budget during all term of realization of the programme.

Realization of federal target programmes authorized by the Government of the Russian Federation of in 2004-2006 years is directed on development of a social infrastructure, rational system of economic regulation, ensuring of internal and external security, activation of tools of stimulation of innovational activity.

An improvement of an enterprise and investment climate will promote increase of efficiency of realization of programmes, and also shares of out of budget sources of their financing.

An improvement of quality of selection and a level of validity of declared objects, improvement of interaction of all levels of management where the special help could be rendered by municipal authorities are a priority task for Leningrad Oblast in work with federal target programmes in intermediate term prospect.

The budgetary policy is a basic element of economic policy of the region Government, determined a level of social protection of the population, enterprise activity and investment attractiveness of Leningrad Oblast. Its efficiency assumes openness and control capability, adequate usage and productivity of expenditure being carried out; observance of principles of reasonable sufficiency in the formation of the budgetary expenditure structure.

The budget should become an instrument of economy rise, so budgetary policy should have the precise targets. It is necessary to develop an income base to continue re-structuring and rationalization of budget expenditure, both regional, and local and legislatively results of positive practice of the re-structuring based,, on division of account of authorities between bodies of the government and institutions of local government first of all.

At the present the condition of the budgetary system is characterized by proceeding of process of a concrete definition and detailed elaboration of the state authorities, division of authorities between levels of the government. Authorities of local self-management also are concretized, thus there is a decrease of volume of not financed state mandates. At the same time, this process is accompanied by changes in distribution of tax sources of incomes between levels of the budgetary system, directed on their centralization at a federal level. All this results lead to a necessity of better incomes of the consolidated budget planning, objective distribution of regulating incomes between levels of budgetary system of a region according to volume of executed municipal and state authorities.

There was significant success in regional economic development in the past year that was partly connected to budgetary policy which was carried out. In budget execution the action of the positive tendencies planned since 1999 was kept.

Growth of budgetary revenues in 2002 allowed to finance a number of the important social programmes in addition. Financing of expenditure of the regional budget was carried out in full volume and without delays. The budgetary system of the region ceased to be a source of non-payments in economy. Execution of budgetary obligations promoted increase of a level of social stability.

Introduction of the programme-target approach to distribution of budgetary resources is stably carried out. In the regional budget for 2003 it is stipulated to finance 43 programmes for the sum of 1598,1 million roubles. Considering the funds provided on other sources (federal, local budgets, other), the total amount of financing of programmes makes 4100,8 million roubles. The share of the regional budget is 39 %.

The regional state order for 2002 made 3994 million roubles, thus on procedure of open competition orders for the sum 2771,6 million the roubles, the closed competition 34,3 million roubles, under quotations 91,1 million roubles. For comparison in 2001 at a total sum of the state order 1970,5 million roubles it was placed at open competitions of the order for the sum 288,5 million roubles, at the closed competitions 1732,4 million roubles, under quotations 239,2 million roubles accordingly were placed. For the first quarter of 2003 at open competitions there were orders for the sum 288,5 million roubles, at the closed competitions of orders were not placed, under quotations on the sum 22,5 million roubles.

The mechanism of realization of purchases for the state needs of Leningrad Oblast of energy carriers is developed, which prices are effected not only by seasonal fluctuations, but also there is a significant influence of a conjuncture in the world market.

At formation of a budgetary policy in 2004 it is necessary to be guided by development of the achieved positive results and avoid negative influence of uncontrollable processes.

The budgetary policy should promote keeping steady rates of economic growth, achievement of high efficiency of the State expenditure, decrease of disproportions in social and economic development of area. The relations between sector of public finances and other sectors of economy, should become an example of the responsibility for the accepted obligations, opennesses, publicity and precise execution of the legislation.

In the sphere of social and economic development it is necessary to consider the strategic purposes of a budgetary policy:

The major task of a budgetary policy in 2004 and on long-term prospect is keeping of equation of all budgets of budgetary system of a region.

Thus the budgetary policy should be coordinated with other directions of a state policy of Leningrad Oblast.

It is necessary to provide an increase of incomes of the budget but not expense to increase of tax loading at economy, and expense to expansion of taxable base due to creation of favorable conditions for development of private business, to reduction of an illegal shadow turnover. Work on creation of stimulus for a extracting from "shadow" incomes hidden from the taxation before, for growth of tax receipts will be continued. Diligent payers of taxes should know: the less incomes are hidden, the more significant receipts in the budget are, the more opportunity on the further reduction of tax burden.

Work on repayment of the collected tax debts of the enterprises will be continued. Concerning non-functioning enterprises it is necessary to apply for procedure of bankruptcy more strictly. Serious reserves in work with tax bearers are hidden in explanatory and an information work.

In 2002 receipts in the regional budget from usage of a state ownership increased. However these successes are insufficient. The system of efficient control over the state activities is only at an early stage of development. Creation of such system should be accelerated.

An important source of updating of the regional budget should become putting in order the usage of objects of the real estate which is taking place in economic conducting of the state enterprises and establishments. It is necessary to strictly control of usage of such objects, conditions of their renting and reception of incomes of rent of a state ownership in the regional budget. Clear targets should be put to each state enterprise and each budgetary establishment. It is necessary to define, which objects of the property and for which state needs should be continued in the regional property and what it is necessary to refuse.

In 2004 the analysis of economic feasibility of preservation of a share holding (shares) of Leningrad Oblast in the registered commercial enterprises will be completed and suggestions on realization in an order those from them which do not give feedback are prepared, proceeds of this sale in incomes of the regional budget were anticipated. The policy of the Government of Leningrad Oblast concerning households will be aimed to development in region of a market infrastructure still and creation of appropriate conditions for enterprises for making the competitive goods and services, and also for receiving sufficient financial resources on the development.

Also in 2004 the analysis of planned ensuring of budgetary efficiency of regional target programmes will be completed and weight of the programmes, focused on economic and budgetary effect will be increased.

In 2001-2002 years work on inventory and an estimation of efficiency of expenditure and obligations of the regional budget was begun. The basic directions of the further optimization of budgetary expenditure are the following:

A new method of distribution of means of the Fund of financial support was applied to the development of the budget for 2003. This method provides leveling of provision of municipalities with budgetary funds accompanied by simultaneous creation of stimulus for realization of a rational budgetary policy at a local level.

However, the usual system of interbudgetary attitudes needs deeper and wide reforming which will be aimed at maintenance of stability of sources of formation regional and local budgets by fixing of incomes of receipt of federal taxes on a long-term basis regarding transmitted in budgets of subjects of the Russian Federation and regional taxes in the nearest years. Independence of local budgets will be provided, including, and gradual transition from system “ one tax - two budgets ” to system - “ my tax - my budget ”. Such system will induce to escalating taxable base without fear for further redistribution of specifications of deductions. It is necessary to transfer all taxes from small business to local budgets in the long term. It will be resulted in growth of employment, and increase of budgetary receipts. Interbudgetary relations in Leningrad Oblast will be improved in a direction of the further regulation of procedures of budgets projecting, and their stabilization at the same time. Stability of interbudgetary relations finally is expressed in stability of normatives of deduction from regulating sources of incomes. Such methods of designing of budgets which will allow to introduce stable specifications of deductions in intermediate term prospect should be developed and legislatively authorized. Changes of these normatives should be connected to investment activity of municipal authorities and have encouraging character, and also with realization of regional programmes of leveling character.

During the last years Leningrad Oblast is included in the top ten regions - leaders in rates of economic growth. At the same time the municipal cut of regional economy is characterized by non-uniformity of development of the several territories, and it is caused by branch specialization and features of nature-resource potential, and also:

Historically in the process of development of territorial specialization of manufacturing in borders of Leningrad Oblast there were generated some economic zones, each of which is characterized by steady enough branch aspect of economic development.

SUBURBAN ZONE (reaching the borders of the city of Saint Petersburg and the coast of the Gulf of Finland) - most richly occupied, with the big weight of urban population and intensive pendular migration; it is presented by the following municipalities of Leningrad Oblast: Kirov, Vsevolgsk, Tosnensky, Gatchinsky, Lomonosovsky raions and cities of Shlissel'burg, Gatchina, Sosnovy Bor, Communar and Sertolovo, Koltushskoj volost. In this economic zone such brucnches as mechanical engineering shipbuilding the instrument making and electronics, agricultural mechanical engineering and motor industry are developed; the enterprises of the industry of building materials, pulp-and-paper, light and food-processing industry are widely presented. The largest specialised enterprises for release and processing of agricultural production are located here.

NORTHERN ZONE is presented by Vyborg and Priozerskim rayons and city of Svetogorskom. The industry specializes on shipbuilding and instrument making, the largest enterprises of pulp and paper industry and building materials (extraction and processing granits, rubble etc.) are placed here. Fishing, meat and milk animal industries and fur farming are significantly developmented in this zone .

SOUTHWEST ZONE is presented by Volosovsky, Kingisspesky, Luga, Slantsevskim rayon and the city of Ivangorodom, specializing on extraction of fuel (slates) and minfacture of chemical production (products of processing of local slates, mineral fertilizers and a sulfuric acid, the goods of household chemical goods etc.). The mechanical engineering is presented by the enterprises, which produce the equipment for the polygraphic industry, the high-quality abrasive tool, various of metalloconstruction. The industry of building materials is considerably developed here also.

EAST ZONE is presented Kirishsky, Volkhovsky, Tikhvinsky, Boksitogorsky raion and cities of New Ladoga, Pikalevo and Volkhov, is the largest industrial region of area. Enterprises of Russian value representing oil refining, wood, wooden and a pulp and paper industry, nonferrous metallurgy functions on this territory. The mechanical engineering is presented by a number of the shipbuilding and ship-repair enterprises.

NORTHEAST ZONE is presented by Lodeinoppolsky and Podporozhsky rayons of the oblast. A number of the enterprises of shipbuilding, building materials, and also wood and wooden industries.

Basic changes in territorial specialization are not supposed in intermediate term prospect till 2006. Development of territories will be based on available natural resource and industrial potential. Changes of territorial aspects of social and economic development will have basically structural character and will be caused by changes in system of the organization of local self-management.

Now in theoblst there are 29 cities, including 6 cities of regional submission, 38 city settlements and over 3167 rural settlements. All settlements are organized in 29 municipalitites.

It is planned to form 17 municipal rayons on the basis of existing, including in their structure of cities of regional submission and one city rayon according to norms of the project of the federal law " About the general principles of the organization of local self-management in the Russian Federation " and prognosing estimations for 2004 institutional changes of local self-management system in territory of Leningrad Oblast. The general number of municipalities can be increased repeatedly. In this connection the problem of non-uniform development of separate municipality can become more actual.

The potential of economic development of municipaity with acceptable accuracy is characterized by its taxable base. Non-uniform distribution on territory of Leningrad Oblast of taxable base reflects existing disproportions of economic development of municipal municipalities

So, the taxable base of the most economically advanced municipality (education) in 2001 was 16,5 times more than those who are less advanced.

Thus, the disproportions of social development described by development of a social infrastructure, much below also does not exceed 2 multiple differences.

As a result of work of the regional government on alignment of scales of disproportions are gradually reduced in incomes of budgetary system after interbudgetary regulation. If in 1999 the volume of disproportions of incomes of budgetary system (coefficient of limits of incomes in budgetary system of area) reached 22 times its size in 2002 has decreased until 12 times. Processes of redistribution by means of the mechanism of financial help rendering to local budgets from the regional budget resulted in decrease of disproportions in 2002 up to 4 times (coefficient of limits of incomes of budgets of municipalities considering the financial help).

In conditions of the varying tax, budgetary legislation and the legislation on local self-management, in short-term prospect, preservation or some reduction of existing distinctions in security objects of social sphere of municipalities could be possibly assumed. Thus, distinctions in economic development will tend to increase for the reasons of investment attractiveness of municipalities (nearness to Saint Petersburg, regional ports), and various ensuring of a transport and engineering infrastructure, natural resources also. Changing legislation on local self-management and processes of "centralization" of profitable base of local budgets influence on the financial condition of municipalities. In this connection, the role of the financial help to local budgets will grow, leading to reduction of disproportions in incomes of local budgets. Except for the financial help, distribution of specifications of deduction from regulating sources of incomes renders a significant influence on decrease of disproportions. During distribution of deduction normatives it is necessary to take into account objectively usual distinctions in security of municipalities by objects of a social infrastructure and potential of economic development.

In order to avoid consequences of reform of the local self-management, connected with increase of number granted territories, the regional government plans an acceptance of necessary measures for development of problem and depressive rayons of region. Among the other measures development specified privileges for the investors, ready to realize investment projects in northeast of Leningrad Oblast is supposed.

Incomes of the consolidated budget of Leningrad Oblast for 2003-2006 years are determined on the basis of the forecast of social and economic development of Leningrad Oblast till 2006 according prognosed opportunities of mobilization of incomes and attraction of the state loans and financing of the basic expenditure of the budget.

Expenditure of the tax and budgetary legislation in 2004 can lead to reduction of weight of own incomes in volume of GRP up to 11,6 %, that is lower in 1,1 %, than in 2003 (12,7 %), and in 2005 - up to 10,7 %. For 2006 the increase of own incomes in volume GRP on 0,5 % is expected due to escalating volumes of manufacturing, and also due to additional receipts from the enterprises - investors located in territory of Leningrad Oblast, in connection with the ending of times of recovery of outlay of investment projects.

Real practice of financial planning of expenditures according to the current legislation does not provide formation of the consolidated volume of expenditure on area in a section of branches as municipalities form structure of charges independently within the limits of predicted incomes.

The structure of charges of the consolidated budget of Leningrad Oblast on 2003 - 2006 is defined by the structure of an account part of the regional budget which has been usual under the budget for 2003, and structure of charges of budgets of municipality according of prospective changes in the legislation on local self-management and policies of regions on leveling of disproportions.

In the consolidated budget of Leningrad Oblast expenditure on housing and communal services, education, public health services and a social policy are significant (on the average 56 %), therefore special is necessary to pay a special attention to these very expenditure.

In several municipalities the weight of these expenses in structure of local budgets considerably exceeds at the same average level. In this connection on intermediate term prospect it is extremely necessary to realize an effective policy of resourses keeping, as major coefficient of reduction of the cost price of municipal services.

In housing and communal services work on realization of housing reform and stage-by-stage transition to the full indemnification inhabitants of expenditure of given housing-and-municipal services will be continued. In 2003 the share of payments of the population should increase up to 90 %. Increase of the volume of payment of dwelling and municipal services will be carried out together with measuring of social protection as granting to citizens of deductions on payment of housing and municipal services. Therefore, the share of expenditure on housing and communal services in a total sum of expenditures will not be reduced, even in case of reduction of its variations in local budgets.

It is planned to direct the liberated funds from reduction of expenditure on housing and communal services in intermediate term prospect on financing of branches of welfare sphere and to increase a share of these charges in the general expenditure of the consolidated budget from 43 % in 2003 up to 50 % in 2006.

The main factors to enhance investment in Leningrad Oblast are the following:

• favourable foreign trade situation, primarily, high world prices on energy resources which ensure the growth of investment activity in the fuel and energy sector;
• decrease of income from ruble financial instruments which stimulates investment in real economic sector by private investors;
• increase of production output;
• growth of investment resources of population on account of the rise of real financial incomes;
• stabilization of the Russian banking system which enabled companies to activate their investment policy in conditions of a lack of own financial resources.

The main factors reducing investment activity are:

high dependency of the national economy, state finances and liquid balance on foreign economic situation taking into account the real structure of GDP;

exessive administrative barriaes for business activity;

lack of effective mechanisms of stimulation for investment activity of tax-payers (especially since 01.07.2001 after profit tax benefits were abolished) with obvious constant high tax load on business;

high cost of commercial credits and complicated procedures of getting credits for realization of investment projects;

lack of effective mechanisms of transformation of public savings;

insufficient level of development of the stock market;

insufficient legal support of native and foreign investors, poor law practice.

The investment policy of Leningrad Oblast in the concerned period will be aimed at the maximal use of discovered favourable factors and the decrease of influence of listed negative factors.

In particular, the Government of Leningrad Oblast intend to take measures aimed at broadening the investment demand due to increase of incomes of enterprises that is conditioned by preservation of favourable foreign trade situation. The most weight in investment as before will be carried by the fuel industry. In this sector direct and portfolio foreign investment are expected to increase considerably, also the growth of foreign borrowed resources is envisaged. At the same time the growth of real rate of exchange will contribute to the comparative reduction of prices on imports of high-tech investment commodity for all sectors.

They expect considerable increase of investment in branches of transport and housebuilding and in the field of market services, that is caused in many respects by the growth of aggregate demand. At the same time the decrease of the rate of income tax, the growth depreciation deductions, holding some tax novations to stimulate invest activity allow to increase home sources of invest financing for enterprises of processing branches. On the whole average annual increase of acceleratian of profit in 2004-2006 will come about 15%, which will be caused by high exports prices, the increase of labour productivity and dimensions of production, decrease expenses as a result of the tax reform.

The high growth of native demand for import replacing production caused by comparative rise in prices on import will make investment in mechanical engineering, food and light industry more attractive. The lower real the rate of exchange will have influence on yield of export of chemical and petrochemical industry, also industry of ferrous and non-ferrous metal, that will influence on the growth of invest activity in these sectors.

As a result of joint politics of the Government of Leningrad Oblast and leaders of enterprises of the main branches of economy complex the volume of property resources, remaining on enterprises of Leningrad Oblast must rise in 2004-20006 in 1.33-1.45 time, plus the profit will rise in1.21-1.42 time, the amortization – in 1.45 time. The improvement of invest situation will reflect on reduction of capital delivery and the growth of deal of property resources, using in investment (the reaction on improvement on institutional and tax conditions). This deal will rise from 60.5% in 2002 to 65% to 2006.

It is possible to prognosticate the increase of foreign invest volume at the cost of the state industrial politics, aimed into creation competitive joint enterprises, in particular in car-building, the growth of invest level of the whole country and separate enterprises and enter wider number of organizations to international capital market.

As a result of intensive actions of the Government of Leningrad Oblast the liquid volume of assets, using in investment to principal capital will rise in 1.9-2 in 2003-2006, that corresponds to real increase in 1.33-1.37, and average annual investment increase will be 7-9%.

The event that influenced foreign investment is that Russia was given the status of the country with market economy in 2002. So 06.06.2002 the Trade Department of the USA made the decision to give such status to Russia and on 06.11.2002 EU declared Russia the country with market economy.

Favourable conditions for foreign investment, growth of their volume and diversification of the structure in economic branches and regions of Russia remain the most prior work direction of the Government of Leningrad Oblast. In the present time they do a lot to form the favourable image of Leningrad Oblast, also to inform foreign investors about invest possibilities in separate regions and sectors of Russian economic. The realization of civilized form of land relations and economic debureacracy aimed into decrease of administrative pressure on business, reformation of natural monopolies and some other measures will assist to rise direct investment.

In 2003 they mark to expect the growth of invest activity in more rates than last year and her next growth in 2004-2006. From this there is the necessity of the actions from the side of the Government of Leningrad Oblast, aimed on the structural adaptation of production and employment, on the formation and the next realization of industrial and investment policy, which must mirror the main aims, priorities, principles of structural reorganization and perfecting of the regional invest mechanism taking into account the time of achievement of the aim and also the directions of regional movement in general dynamic of Russian social-economic development.

The prior measures of investment policy providing by the Government of Leningrad Oblast are the following:

development of investment legislation on regional and rayon levels;

design of the optimum working scheme with investors;

coordination of actions between the center, the federal rayon and the oblast on identifying prior directions of the regional development and jointly realizing investment projects;

construction of a strategy for regional development, forming a regional investment programme.

The results of the realization of the investment policy must lead to the change of branch structure of the regional economic complex in the next main directions: the growth of new branches and productions, the change (reformation, conversion) of real ones, the formation of productions for general industrial purposes, the development of functional ones, the liquidation of those branches (kinds of productions), that don’t correspond to the new demands and problems of the regional development. These are the right directions of economic development to the new structural politics.

Besides, the process of market investment distribution demands qualitative organization providing looks like structure-effective financial market in general and stock market in particular, that allows to move invest recourses between subjects of the process fast. It is necessary to note that in the present time the enough intensive activity on the fund market of Russia factually doesn’t touch the capital market and its the main aim is to serve the process of redistribution, that led to poor development of the institutional market structure.

A typical feature of modern conditions of investment process in the region is large- scale circulation of stock which was caused by the sale of the state packages of shares of privatized enterprises, although auctions and investment tenders have been held they do not lead to the growth of investment.

Strategic directions of investment policy of the Government of Leningrad Oblast for period till 2006 will remain as follows:

To create a favourable organizational, legal and investment climate for existing and developing enterprises;

To implement anticrisis measures by means of creating a system of tax benefits;

To participate in the creation of market infrastructure, in this number are regional goods and fund markets, funds and centres of business support, business-incubaters and bank infrastructure, oriented on support of native producer;

To identify and support most attractive investment projects, including those aimed at the development of small business;

To conduct marketing activities, trade fairs and pressentations of investmentg projects, goods and services in order to promote local manufacturers an dattract investment

To form the regional order (zakaz).

In 2003 realization of large investment ected the annual growth 6%. It is planned the building and the start of the next objects: Leningrad Oblastal college of culture and arts for 156 places in Saint-Petersburg, the culture house and outlook complex for 600 places in the town of Tosno, the culture and sports complex “Nevsky” in the town of Shlisserburg, the school with the culture house in Izvara in Volosovo rayon, of the historical part of Staraja Ladoga of Volkhov rayon. It will be finished the reconstruction of the next objects: Bolshoj Yspenscij monastery – the monument of architecture and history of 1560 in the town of Tikhvin, the complex of Petrovscij bridge – the monument of engineering arts1830-1840 in the town of Shlisserburg, the memorial complex of the State museums of N.A.Rimskij-Kopsakov – the monument of history of XIX century in the town of Tikhvin. All buildings of Aleksandro-Svirscij monastery will be returned to the Russian ortodox church.

Public health, physical culture and social maintenance – it is planned to reconstruct and start the main corpus of permanent establishment of Kirovsk central rayon hospital for 145 bedscluding 6 intensive care beds; construction and l;aunch of ambulance station for 60 visits in a shift in Michurinske of Priozersk rayon, physical-sanitary complex of Marienburg in Gatchina, the swimming-pool in OOO “KINEF” in the town of Kirishi. In 2004 it is planned to finish the building of the swimming-pool by OOO “Kirishinefteorgsintez” in the town of Kirishi, in 2005 the growth will come 5% to the last year and in 2006-3%. In 2004 it is planned to construct and launch a poyclinic for 650 visiting in a shift in the town of Luga, buildings of a children’s polyclinic for 438 visiting in a shift in the town of Volkhov, the children kindergarten “Skazka” of stomatological polyclinic for 100 visitis a shift in the town of Kirovsk, including the polyclinic in the town of Podporozhye.

Fuel industry – realization of the project on the building of hydrocracking plant in OOO PO “Kirishinefteorgsintez”, that will allows to provide the depth of oil-products refining up to 80-85%, the building of energytechnological comlex of deep processing of shale oil into synthetic oil and gas in plants YTT-300 in OAO “Leningradslanets”, the new building of petrochemical plant by companies “Surgutneftegas” and “Rossneft’” in the bay Ermilovscaya near the port Primorsk in Vyborg district with designed capacity 7-8 mln t of oil in year; in 2004 it is expected the growth in 2.2 times to the level of 2003, in 2006 – on 23% to the level 2004;

Food industry – continuation of the project realization of expansion of functinal production (the setting of four newest machines and the line of tobacco processing, that assure the growth of production capacity up to 54 billion siggarets, the setting of new equipment in OOO “Kraft food” that allows to rise the capacity of the plant and widen the assortment range of products;

Non-ferrous metallurgy – the programme is realized of technique reequipment and reconstruction of production in OAO “Boksitogorskij glinozem” and OAO “Metallurg” in 2004 – 95%, in 2006 the growth in 1.4 time from 2005;

Car-building and metal-working –they plan to start the second phase of the plant ZAO “Ford Motor company” on production of passenger automobiles in Vsevolozhsk rayon, technique reequipment and modernization of production in ZAO “Titran” in Tikhvin district, the building of the new enterprises ZAO “Leningrad assembly plant” of assembly of electric and gas ovens with the capacity of 120 thousand a year, the building and the start of production of aluminum tins for drinks with capacity 1.5 billion a year; the second phase of the building of the production of hot-water equipment of the trade mark “Ariston” by the company “MerlonyTermoSnitarySpa”;

Medical industry –building and start-up of production of medical articles from glass with capacity 63.8 mln in a year in FGUP “The plant of chemico-laboratory glassware and instruments” in Druzhnaya Gorka of Gatchina rayon;

Printing industry - the continuation of the building of packing materials production for food industry in ZAO “Ekotek-plus”in Lomonosov district and the building of the printing production in OOO “MDM –pechat’’ in Vsevolozhsk district, the start the exploitation of the printing production in OOO “MDM –pechat’”;

The increased demand for glassware has activated the building of new glass plants and also the reconstruction of existent enterprises. In glass and porcelain industry it is planed to build and start-up of the second phase (the growth of the power up to 600 mln bottles in the year) of production from the light glass in ZAO “Veda-PAK”, the building of the second turn of the plant on production of the dark glassware in “Kirishi glass plant”, the completion of the reconstruction of beer bottle production with the growth of capacity up to 45 mln bottles a year in Ploskoye in Luzhsky rayon; the building of the plant of sheet polished glass in “Northen-west glass ccompany” in Kirishsky rayon;

In 2004 in the transport sector the growth of investment is expected by 15.9% against the last year, in 2005 and 2006 – on 2 and 13% accordingly (on intermediate perspective transport investment will come more than 30% from whole investment). The building and the start in 2005: in the port “Vysotsk” of Vyborg district – the complex of oil and petrolproducts loading with capacity 10.75 mln t in a year, in the port “Ust’ - Luga”of Kingiseppsky rayon: the terminal of fertilizers (the turn of goods for 2005 is 0.5 mln tons with the next growth up to 5.5 mln tons fertilizers in a year), wood terminal (0.2 mln tons up to 1.1mln tons), ore terminal (0.5 mln tons up to 1.8 mln ons), the first turn of ferry communication “ Ust’ - Luga –Bultijsk – porty Germanii” (1.2 mln tons up to 3.2 mln tons). The building and the start in 2006 of the next terminals: corn terminal on 1 mln t in a year, the terminal of food products (the turn of goods in 2006 is 0.4 mln tons with the next growth up to 0.9 mln tons in a year) and gencargo (1.0 mln tons up to 3.5 mln tons), The fist stage of the building of container terminal with capacity from 820 thous. TEUs to 3.0 mln TEUs in a year; the building of objects of Baltic pipe line system, the volume of delivery will rise 42 mln t of oil in a year in 2004, in perspective the growth of annual power is to 50 mln t of oil, the building and the start in 2005 of the first turn of oilproducewire on the area Kirishi – Primorsk with carrying capacity 10mln t with the next growth up to 20 mln in a year, the building and the start in 2006 oilproducewire Kirishi – the bay Batarejnaja and the first time of the sea terminal on reloading of light petrolproducts with campasity 7.5 mln t in a year; the intensification of railway approaches to port complexes in Primorsk and Vysotsk, electrification of frontier directions “Gatchina-Ivangorod”, the building of the station in the towns of Kingisepp and Picalevo by FGUP “October Railway Station”; the completion of the building of trolleybus line with extension 8.5 km in Gatchina; in 2004 at the cost of subsidies from federal budget and assets of territorial road fund the start of bridges on 173.8, moto roads with extension 19.5 km, in 2005-2006 – the completion of the building and the start of objects of building and reconstructions: parts of the ring road (KAD) –a/d “Saint-Petersburg - Sortavala “ on the part “Saint-Petersburg - Skotnoye”, a/d “ Saint-Petersburg - Koltushy” - on the part “Saint-Petersburg - KAD”, a/d “Saint-Petersburg – Morje “Doroga zhizni” on the part “KAD – Romanovka”, a/d “Saint-Petersburg –Pargolovo –Ogon’ki”, 2 bridges over the rivers Mojka and Svyatka on a/d“ Saint-Petersburg - Petrokrepost’.

Communication – providing of installation of telephones in the housing sector, modernization and the next development of the net, the start of the base station tower of mobile radio-telephone tie on 71 m in Chercasovo of Vyborg district by OAO”Telecom XXI”; building and start-up of digital telephone stations in the town of Tikhvin on 7 thousand numbers, in the town of Volkhov on 7.8 thousand numbers, in the Vyritsa of Gatchina district on 1.7 thousand numbers, the building fiber-optic lines of the ties between towns: Vsevolozhsk – Kirovsk, Gatchina – Volosovo – Kingisepp, that will rise quality and quantity of services, introduction of radio access by technology DEST in the next country districts: Gatchina, Vyborg, Vsevolozhsk, Kirovsk, Lodeynoye Pole and Pikalevo on 1000 numbers, in Nevskaja Dubrovka of Vsevolozhsk district, Glazhevo of Kirishi district, Elizavetino, Rozhdestveno, Verevo, Novy Svet,Tajtsy of Gatchina district, Glebychevo of Vyborg district and Mga of Kirovsk district on 100 numbers, the building of broadcusting stations in the towns of Sosnovy Bor, Tosno, Priozersk, Tikhvin and Podporozhye, the building of televisional stations in the town of Volosovo, Lodeynoye Pole and Podporozhye districts, modernization of receiving televisional net in 9 municipal districts and the next broadening of Internet Web;

Trade and catering – it is planned to build 6 enterprises of retail trade on the commercial area of 645 sq.m. and a cafe’ for 26 sets in Volkhov district, the building and the start of the trade-commercial center by the company “IKEA” in Vsevolozhsk district; also to open the domestic center in Elizavetino and a workshop in Tajtsy, a hairdressing saloon in Novy Svet of Gatchina district.

In other production branches in 2004-2006 the building and the reconstruction of working objects will continue.

In 2003 in comparison with 2002 the volumes of investment into the building of nonproductive sphere will rise. According to estimation of the year the invest volume into nonproductive sphere will come 103% to level 2002.

In 2004 the invest volume into nonproductive sphere will keep on the level of 2003 and in 2006 13% from whole investment will direct to development of nonproductive branches, the growth of investment will come 3.3% and 52.5% from them will be directed to house-building, Principally at the cost of investment into house building assets of population and banks credits (65%). In perspective it is planned the annual growth (on 3-4%) housing, in 2004-2006 it will be 1.4mln sq.m, in this number at the cost of individual developers – 1.0 mln sq.m (71% from the whole) and on mortgage lending;

Culture and arts – it is continued the building of the culture house in the town of Tosno and the reconstruction Leningrad Oblastal college of culture and arts in Saint-Petersburg, it is planned the assets from federal budget (4.5 mln rubles) for reconstruction architectural and arts monuments in the towns of Tosno and Shlisserburg; in 2004 it is prognosticated the invest growth in 2.2 times and in 2005-2006 it is expected the annual growth 6%. It is planned the building and the start of the next objects: Leningrad Oblastal college of culture and arts for 156 places in Saint-Petersburg, the culture house and outlook complex for 600 places in the town of Tosno, the culture and sports complex “Nevsky” in the town of Shlisserburg, the school with the culture house in Izvara in Volosovo district, of the historical part of Staraja Ladoga of Volkhov district. It will be finished the reconstruction of the next objects: Bolshoj Yspenscij monastery – the monument of architecture and history of 1560 in the town of Tikhvin, the complex of Petrovscij bridge – the monument of engineering arts1830-1840 in the town of Shlisserburg, the memorial complex of the State museums of N.A.Rimskij-Kopsakov – the monument of history of XIX century in the town of Tikhvin. All buildings of Aleksandro-Svirscij monastery will be returned to the Russian ortodox church.

Public health, physical culture and social maintenance – it is planned the reconstruction and the start of the main corpus of permanent establishment of Kirovsk central district hospital for 145 bed in this number 6 bed for reanimation; the building and the start of ambulance station for 60 visiting in a shift in Michurinskoe of Priozersk district, physical-sanitary complex of Marienburg in Gatchina, the swimming-pool in OOO “KINEF” in the town of Kirishi. In 2004 it is planned to finish the building of the swimming-pool by OOO “Kirishinefteorgsintez” in the town of Kirishi, in 2005 the growth will come 5% to the last year and in 2006-3%. In 2004 it is planned the building and the start of policlinic for 650 visiting in a shift in the town of Luga, buildings for children policlinic for 438 visiting in a shift in the town of Volkhov, the children garden “Skazka” for stomatological policlinic 9the second return) for 100 visitings in a shift in the town of Kirovsk, the policlinic in the town of Podporozhye, in this number the branch of ambulance station in Vazhiny of Podporozhye district for 350 visitings in a shift (for adults) and 200 (for children), the culture-sanitary complex in the town of Ivangorod, the obstetric complex with antenatal clinic for 60 beds in the town of Volosovo; the regional oncological dispanser (the reconstruction of the corpus ¹ 10) for 40 beds in Kyz’molovo of Vsevolozhsk district, the traumatological corpus of the district hospital in the town of Tosno, administrative building into the hospital of Alekhovschina in Lodeynoye Pole district, the swimming- pool “Del’fin” in the town of Pikalevo; the center of reabilitation for disabled children for 100 places in the town of Tosno, in 2005 it is planned the start sports complex for 6000 places in the town of Tikhvin; also the building and the reconstruction of anti-tubercular sanatorium “Vyborg-7”, regional tubercular isolation hospital for 120 beds in Luban of Tosno district, the main corpus of phtisio-orphthamological sanstorium “Krasny Val” for 150 beds in Luga district, the children hospital complex in the town of Kirishi, the ambulance station in Shugozero in Tikhvin district, the narcological dispanser (the corpus ¹ 2) in the town of Tikhvin, the children policlinic in the town of Tikhvin, the children policlinic in the town of Sosnovy Bor, the children-youth school ¹2 of judo and sambo in the town of Tosno, the covered ice palace in Sosnovy Bor, in 2006 they plan to start the next objects-the regional unty-tubercular hospital for 108 beds in the town of Tikhvin and the medical-surgical corpus in Priozersk.

Education – it is planned to start exploitation of 2 annexes for 450 places to the school ¹1 in Siversky of Gatchina district and to the school of Plodovoye of Priozersk district, the out look complex for 750 places in the town of Tosno.

In comparison with 2003 in 2004 investment will rise on 11% and during the next two years the volume of investment will come to 367,7 mln rubles (like level of 2004). In 2004 it is planned to start exploitation of the next objects: the school ¹4 for 750 school places in the town Tosno, the school for 624 school places in the town of Sertolovo, in 2005 they plan to build school for 200 school places in Radophinnikovo and the children house for 132 places in the town of Nicol’skoye in Tosno district in 2006 - the building of children garden in Torosovo for 80 places and the school for 300 places in Ysadische, in the town of Vyborg - the school for 625 places in mkr “D”.

Science and science-related services - the building of the high reactor PIK with power 100 mVt by PIAF in the name of Konstantinov in the town of Gatchina, the realization of the project of construction of North-western sience-industrial center of automic energetigs for comprehensive complex treatinent of power units in ÀÝS of new generation with reactor BBER – 640 NITI in the name of Aleksandrov in the town of Sosnovy Bor, the project of optic-electronic apparatuses for industry, medicine and energetics NII of complex tests of. optic-electronic apparatuses and systems. In 2004 the invest volume will rise insignificantly and during the next years the annual growth will come not more than 1%. They plan to continue the building and the start of the bigstend for design of accident process AES of the new generation NITN in the town of Sosnovy Bor, reactor “PIK” power 100 kvt “PIAF” in the town of Gatchina; in 2005-2006 – continuing of the building of objects, completion of improved complex for light-technical tests FGYP “NIIKI optic-electronic apparatuses and systems” in the town of Sosnovy Bor, and technique reequipment of reactor complex “VVR-M” for 18 Mvt “PIAF” in the town of Gatchina.

Housing services - it is planned to reconstruct and to launch 19 objects of heat and water supply in the rayons of the region. The largest of them are: boiler-house ¹28 in the town of Volosovo (power is 28 Gigacalories /hour), boiler-house with turning to gas working in the town of Ivangorod (power is 135 Gigacalories /hour), boiler-house of 13-14 blocks of buildings and setting of 2 boilers ÄÅ-16-ÃÌ in Luga rayon (power is 48,2 Gigacalories /hour), district heating systems (length is 5600 running meters), sluice “Yushkovo” in the town of Novaya Ladoga (length is running meters 1500 m). For water supply and water diversion systems development and reconstruction in the towns Gatchina, Kirovsk, Pikalevo and Tikhvin there are foreign investments are attracting in total 12 mln. Rubles according to “Northern Initiative” programme. Gas pipelines construction and launching in the rayons of the Leningrad Oblast (120,4 km) is planning according to gasification programme.

completion of 2 blocks of modular boiler-house construction on the basis of liquid fuel

with power of 3 Gigacalories /hour in the Bolshoy Sabsk village of Volosovo rayon and with power of 4 Gigacalories /hour in the Phalileevo village of Kingisepp rayon;

According to the programme of water supplying objects reconstruction and modernization the following measures are planned:

According to programme of gasification it is planned to start up the admissing gas pipeline Vartemyagi – Oselki – Leskolovo with length of 15 km in Vsevolozhsk rayon in 2004. For municipal economy objects construction in 2005-2006 there is forecasting investment volume as 1,6 bln. roubles; sizeable investments are anticipated according to “gas pipe lines and gas vents construction address programme”, the most important of them are:

(according to the agreement between the Leningrad Oblast Government and JSC “Gazprom”, the programme customer is “Lentransgaz” Ltd.)

In the context of these programmes the following tasks will be solved in specific sectors:

Providing for teenagers and social non-protected women with hormone contraceptive devices;

Improving diagnostic quality and quality of mental diseases treatment by:

Computer local network setting up (getting 8 computers Pentium-2 and modem).

Staff training in the sphere of psychiatry (to train 45 adult and 14 child psychiatrists, 46 psychotherapists, 29 psychologists, 43 social workers; to increase qualification of 66 adult and 10 child psychiatrists, 17 psychotherapists, 13 psychologists, 17 social workers)

Medical staff training in vaccinal prevention;

Regional center for vaccinal prevention working organization on the base of regional children's consultative polyclinic;

Development of the system of distribution of information about preventive measures for “managing” infections among inhabitants;

Issue of inoculative certification.

Cost efficiency providing in total about 80000 thousand roubles due to damage of infectious diseases reduction (about 20000 thousand roubles annually);

Annual increase of doctors and medical staff, vocational training in the sphere of immunoprophylaxis.

Technical support of medical activity in medical and preventive institutions of Leningrad Oblast:

Tuberculosis spread reduction to 250 per 100000 of population (to 260 in 2003, to 257 in 2004, to 254 in 2005, to 250 in 2006).

Preventing antituberculous actions providing among children:

Improvement of the quality and timing for tuberculosis diagnostic:

Increasing of consumptives treatment effectiveness:

stopping tuberculosis death growth and decrease to 16,0 per 100000 (2003 – to18; 2004 – to 17,5; 2005 – to 17,0; 2006 – to 16,0);

Improvement of system of tuberculosis monitoring;

Improvement of conditions of hospital stay.

Opportune and quality treatment providing for complications of diabetes, including:

Diabetics providing with medical product;

Modern computer acquisition to provide works with Regional register of diabetics;

Improving work of diabetic services in Leningrad Oblast.

To achieve reduction in compictaions in diebetic patients by 3% (with the average annual decline rate of at least 1%);

To achieve reduction of diability level among diebetic patients by 3% by 2005 (with the average annual decline rate of at least 1%);

To improve standards of living of diebetic patients.

To develop system, responsible for informing population about personal and public prevention measures against AIDS infection.

To provide safety of medical manipulations, donor blood biological liquids, organs and tissues. To train staff, qualified in questions of diagnostics, treatment, epidimology and prevention of AIDS.

To provide modern level of AIDS infection diagnostic and treatment

To fortify material-technical base of specialised public health establishments.

To master epidemiological control over AIDS expansion and to master state control over conducting prevention and epidemiological actions

Restraining of violent expansion of AIDS among population, preserving of health and work abilities of young people and people of reproductive age, improving birth rate, reducing number of orphans and lonely elderly people ëþäåé.

Economic efficiency is achieved due to reducing of number of disable patients and treatment cost savings, which can reach sum of 1.5 billion rubles by 2007 year.

Preserving of working ability for 30 thousands of young people, not infected with AIDS, will allow to save manpower and to bring in 850 billion rubles (converting to regional produce) to the budget of Leningrad Oblast annually.

- To purchase ambulance cars.

- To update and modernize telecommunication systems

- To implement computer managing technologies

- To reequip ambulance stations and departments with modern medical devices and equipment

- To train and retrain medical staff of ambulance stations and departments

To teach of essential principles of first medical self-aid and mutual aid between fire prevention staff, transport inspectors, municipal militia and drivers of all types of vehicles should be conducted

To improve working conditions and social guarantees for medical staff of ambulance stations and departments:

- To provide medical staff of ambulance stations and departments with special seasonal footwear and uniform.

- To insure ambulance staff against accidents

Increasing efficiency of work of ambulance stations and departments

Improving quality of medical aid at pre-hospital stage.

Raising the level of ambulance staff skills

Improving working conditions of ambulance personnel

Improving quality of first medical aid at road/car accidents

Reducing numbers of irrepairable losses by 1%, disablement by 2%, reducing number of days, stayed at hospital by patients, suffered at car accidents or acute diseases by 1-2 days (30% of all patients). All items, mentioned above will allow reducing treatment costs at hospital for the sum of 5000 rubles annually.

Successive, priority-driven and centralized acquisition of medical devices and equipment on competitive base;

Distribution of acquired equipment and devices between rural medical establishments of municipal formations should be done based on requests, taking into account their availability, actual needs and fulfillment of municipal part of the programme.

Providing rural citizens with timely medical aid, increasing its accessibility.

Realization of state guarantees of providing rural citizens with free medical aid.

Providing of diagnostics and disease treatment at early stages, which will allow reducing medical treatment of rural citizens by 1-2 days and consequently reducing treatment cost at hospital for the sum of 8526.0 rubles. Improving final treatment results, stabilizing demography situation, reducing death-rate and disablement of rural population at the region by 1-2% (annual economic effect from reducing of disablement percentage will equal to 366.0 thousands of rubles)

Improving of working conditions of rural medical personnel, stabilization and further improving of human resources situation at rural public health regional service; postponing process of elimination of medical assistants/ obstetrical posts due to their unsatisfied material-technical base..

Preserving activity of 8 medical assistants/ obstetrical posts (10 working positions), supplying 6000 of rural citizens with medical service.

Increasing numbers of beds of oncological profile:
performing of repairing works, acquiring of technological equipment.

Purchasing of car pool.

Equipping of medical establishments with medical devices, agreeable to modern diagnostic and oncological treatment requirements, creating of local computer network, improving conditions at hospitals, quality of diagnostic and treatment of oncological patients, creating room of out-patient chemical therapy and pain reducing room

Acquiring of anti-tumor medicines and training of corresponded staff

Improving diagnostic quality of malignant new growths, radical reducing of primary uncared oncological patients, increasing number of revealed oncological diseases at prophylactic examinations up to 9 percents at 2002 year and up to 10-11 percents at 2004 year.

Increasing numbers of first revealed patients of 1 and 2 stages of the disease up to 40 percents at 2002 year and up to 45 percents at 2004 year.

Improving conditions and enlarging life duration of oncological patients.

Providing complex treatment for 50 percents of first revealed patients by 2004 year.

Improving effectiveness of oncological aid for population of Leningrad Oblast.

Reducing disablement and death rate from oncological diseases by 4 percents

Modernization of management system of stomatological service at difficult social-economic conditions of:

Working out normative documentation, determining scope of provided free aid for the population.

Working out normative documentation and determining rules of providing free prosthesis for patients, who have special privileges.

Working out and implementing of information system “Network of stomatological establishments of the region”

Development of material-technical basis of stomatological establishments.

Acquisition of stomatological units in accordance to the priorities.

Acquisition of sterilization complexes.

Acquisition of X-rays devices.

Prevention of stomatolgical diseases among children population.

Training of doctors and other medical staff how to conduct preventive measures among children of different age groups.

Training of all population groups how to take sanitary care of mouth. Training should be conducted by doctors and other medical staff (lectures, sanitary lessons with distribution of information leaflets).

Analyzing of stomatological sickness rate of different age children

Conducting of endogenous and exogenous prevention actions among organized children population

Application of pressurizes for school children of 0-3 classes

Achieving of equal availability of free stomatological aid at guaranteed scope for the population:

Approaching of aid quality to world standards;

Reducing index of caries appearance by 30 % among school children;

Reducing of teeth treatment and bite anomalies costs by 6615.0 thousands of rubles among school children;

Reducing sickness rate of odontogenous inflammatory diseases by 30 %;

Improving working conditions of stomatological medical staff and safety of staff and patients.

To perform repairing works.

To acquire medical and technological equipment:

- To reequip all departments of the hospital with modern treatment/diagnostic equipment;

- to reequip the hospital with modern technological devices.

To finance retail materials and reagents for expensive equipment

To create conditions for realization right of every citizen to get qualified education of all stages and levels, restarting pedagogical work in educational establishments, development of scientific research and pilot activities in educational system of Leningrad Oblast. All items, mentioned above should be directed to improve quality of education.

To modernize system of obtaining license, certifications and accreditation for educational establishments.

To develop system of uninterrupted pedagogical education;

To fortify cooperation between education and labor market, existing in the region, to work out measures to support pedagogical staff and student of regional educational system.

To develop partnership with educational systems of foreign countries, including CIS countries.

To improve regional legislative and normative base.

To form and to realize economic schemes, which will provide educational system with financial, material-technical and information resources.

Actual improvement of quality of education, determined in correspondence with integral and variant indexes for educational systems of different levels, development of regional component of state educational standard in secondary schools

Summing up of intermediate activity results at 13 federal sites, issuing licenses, certificates and state accreditations for educational establishments of Leningrad Oblast.

Retraining teachers in accordance to social request for educational establishments of Leningrad Oblast: “Psychologist of correctional education " (25 people), "Social pedagogue" (50 person.).

Effectiveness of motivation system for regional educational system staff.

Realization of control-gear in order to improve and check quality of education in regional educational system.

State regulation of activities of regional educational establishments through obtaining licenses, certificates and state accreditations processes;

Finishing of experimental activity at 23 regional sites.

Retraining teachers and coachers in accordance to social request for general educational establishments of Leningrad Oblast, professions of: “Physiologist of corrective education” (69 people) “Social pedagogue” (97 people), “Education manager”, (128 people), “Methodical system manager” (34 people).).

Effectiveness of motivation system for regional educational system staff

Increasing number of international educational projects;

Availability of regional legislative and normative base, which should provide development of regional system of education.

To fortify material-technical base of rural colleges and lyceums

To master modern energy-saving technologies by getting energy-saturated tractors, wide-web agricultural machines, combined harvesters. ;

To prepare tractor operators of following higher qualifications: "Â", "Ñ", "Ä", "Å", "F" for enterprises of agricultural unit of Leningrad Oblast

To unite efforts of state authorities, local self-government authorities for renewing car/tractors pools at rural primary professional colleges at Leningrad Oblast, to increase number of highly qualified specialists for agricultural complex in Leningrad Oblast by 22 percents

To supply system of primary professional education in Leningrad Oblast with different resources.

To replenish material-technical base of primary professional educational establishments with 284 items of tractor equipment and with 4 sets of equipment of farm-laboratories.

To increase quality of teaching and educational process in rural colleges and lyceums

To increase off-budget assets of rural primary professional educational establishments by mastering technology of production of goods by training farms on 2 billions of rubles

To fortify material-technical base of general educational establishments by supplying them with new school furniture sets, technological equipment for school canteens, special equipment for medical rooms.

To provide fulfillment of law, indicating children health safety at educational establishments.

To create conditions for full nourishment of school children.

To work out and renew methods of physical and sanitary estimation and monitoring of pedagogical innovations.

To make alternation in substance of pedagogical education, regarding health safety issues and process of providing valuable development of schoolchildren with.

To work out and to implement educational programmes, dedicated to form conception of healthy mode of life and to understand value of health

To implement measures in order to prevent alcohol and drug addiction, safety of reproduction health

To create experimental educational sites in order to polish teaching and educational model, which allows saving and protecting children health.

To create systems and mechanisms of public support for children health protection and safety, formation healthy mode of life.

To work out, to test and to implement educational programmes, concerning physician training with sanitary inclination.

To master the substance of training, dealing with health safety problems for pedagogical and administrative staff

Improving level of health among schoolchildren over all period of Programme validity:

Reducing appearance of short-sight cases by 12-16%.

Reducing appearance of malfunction of bearing by 16-20%.

Reducing number of smoking schoolchildren.

Prevention of violence.

Preventive measures against alcoholic and drug addictions.

Improvement nourishment of school children.

Increasing number of schoolchildren, provided with hot meal by 70% (excluding range of buffet food).

Bringing sanitary aspects of teaching-educational process to corresponded sanitary rules: Sp 2.4.2.782-99.

Observing sanitary-hygienic, sanitary-medical, and fire protection norms at educational establishment.

Implementation of state standards of general education, which provide facilitation of school education for the sake of schoolchildren health safety.

Creation of regional information database “Schoolchildren health in Leningrad Oblast”

Improving of material-technical base of educational establishments through of general educational establishments by supplying them with new school furniture sets, technological equipment for school canteens, special equipment for medical rooms.

Improving quality of medical aid, rendered for schoolchildren

Fulfillment of Federal Law “Compensation food payments for pupils of state, municipal general educational establishments, professional educational establishments”, dated by August 1, 1996 #107-F3.

Formation concept of priority-driven problems, concerning children health safety and protection among pedagogical collectives

Restarting activity of educational establishments in the field of instructive work and advertising of healthy mode of life.

Creation and implementation of existing and new programmes, dedicated to schoolchildren health prevention

To create financial-economic, organizational, medical, social and legal mechanisms, providing stabilization and development of system, dedicated to children, teenagers and youth rest and spare time in summer time. ;

To create conditions for preserving and further development of establishments, dedicated to organize rest and spare time for children, teenagers and youth and to provide them with normal life activity;

To create conditions for fulfillment of sanitary codes, epidemic ad fire protection safety;

To create conditions, providing children, teenagers and youth with activities, directed to health protection, current medical service, body reinforcement, and formation practice of healthy mode of life, diet observation and living in favorable ecological environment;

To create conditions for development of creative potential of each individuals in the fields of art, scientific research, tourism, study of local lore, for bringing up Russian patriots, citizens of lawful and democratic society, able for socialization in conditions of civil society, for teaching of careful attitude towards historical and cultural heritage of Russian nations, bringing up people, who will actively participate in transformation of modern Russian society;

To create conditions for development of youth rest and entertainment, further development of popular sports and tourisms, for supporting activities of children and youth organizations, for preparation of youth to participate in social and political life of the country and in state activity;

To create and to implement state request for organization of summer rest for children and teenagers, who need special state support: orphans, disable children, children without parental care, children with limited health possibilities, children, who undergo frequent and enduring illnesses, children from forced migrant families, children from military families, who parents died at duties fulfillment, children of unemployed citizens, teenagers, registered in internal affair service, children, settled on territories, affected by radiation after disaster at Chernobyslky nuclear power plant ;

To organize cultural activity, where children, teenagers and youth can spend their spare time reasonably and beneficially and where they will get a possibility to develop their spiritual values and to get acquainted with art and cultural heritage;

To create condition for preventing law violation and crimes among children, teenagers and youth;

To organize temporary employment for teenagers and youth;

To provide children, teenagers and youth during their summer rest with highly qualified teachers and coachers

Enlarging responsibilities of municipal authorities, social complex committee of Leningrad Oblast authorities, off-budget funds for organizing rest and spare time of children, teenagers and youth;

Accomplishing of sufficient and timely principle of financing parts of the Programme;

Improving quality of rendered services in the field of children rest and spare time;

Providing conditions, when rest establishments can be further developed;

Providing conditions for normal children activity in summer camps, for observing sanitary codes, epidemic and fire safety regulations, preventions of traumatism and water accidents; reducing total sickness rate by 10-12 percents among children and teenagers on the eve of school year;

Creating conditions for development of creative potential of each individuals in the fields of art, science, pedagogy, tourism and local lore

Organization of annual tourist hikes, trips and sport competitions for 80850 children, teenagers, and youth;

Formation priorities of healthy mode of life, moral orientation to sport, tourism and physical culture;

Fulfillment of social request of state authorities and parents for organization of rest for 52400 children, who need special state support, which is about 54.3 % of total number of recovered children and teenagers;

Providing 20 000 teenagers and youth with temporary occupation during summer time, including in system of family-relative relations;

Organization of annual work of 1100 camps for 96332 children and teenagers

Creation of annual rest conditions for 5000 teenagers, registered in internal affair service, which is 68.5 of total number of teenagers, registered in internal affair service, which will allow to reduce number of crimes on territory of camps by 3.5 times and by 2 times number of under age citizens, who commit dangerous activity before reaching age of criminal proceedings.

To create conditions for realization of citizens` right for obtaining high-quality education.

To create organizational and economic conditions, allowing preservation of children health and increasement of children physical abilities, development of children sport talents, increase role of sport direction in educational establishments of Leningrad Oblast.

To master preventive measures against smoking, alcoholic and drug addictions.

To reestablish level of sport activity in educational establishments.

To increase quality of education through polishing of physical culture teaching

Preserving and enforcement of children and teenagers health

Reducing level of children chronic diseases by 3%.

Increasing number of children, gifted in sport in Leningrad Oblast from 115 up to 15%.

Growth of individual sport achievements by not less than 1%.

Annual growth number of participants of regional sports and athletics meeting on 300 people or 2.5. percents

Annual growth number of regional schoolchildren, who are physically well trained on 2%.

Psychical culture teachers start to pay more attention to quality of teaching of their subject and to their own qualification (number of teachers, certified on the first and the high qualification categories is supposed to grow on 1 %)

Reducing fluctuation of teachers from regional educational establishments number of teachers, (more than 50 teachers have left schools for the last three years).

Attracting more attention and interest of schoolchildren to physical training lessons and out-of-school activities (more than 5.8 % of children are supposed to be involved in additional sport education in the nearest 5 years)

Increasing number of regional schoolchildren, who pass physical training exams

Abstraction of children from criminal environment, smoking, alcohol and drugs.

Formation of healthy mode of life priority, moral orientation towards sport and physical culture as one of social development factors of Leningrad Oblast.

To provide all region educational establishments with information base.

To use actively new information technologies in educational process

Acquisition: computers - 1753 items, servers - 48 items, sets of network equipment - 198 items, multimedia overlaps - 88 items (for every 8^th school), different types of peripheral equipment and office equipment - 602 items (for every school), anti-virus computer programmeming - 609 sets, specialised software for corrective establishments - 25 sets.

Creation regional center and 29 regional centres of information technologies.

Creation of regional and 29 district service desks for supporting information resources of educational establishments

Formation and development of organizational, scientific, methodical, information and technical infrastructure of information resources of regional educational system.

Creation of network infrastructure of regional educational system

Creation of normative and legal base of information resources of regional educational system.

Supporting and methodic accompany of integration of new information technologies in education process

Formation of information culture and competence of administrative and pedagogical personnel, ability to use effectively technologies and information resources, which are at their disposal.

Train staff of educational system how to use new information technologies rational combination of new and traditional measures in their professional activities.

Training 5000 staff members of pedagogical, administrative and management collectives in a course of 5 years.

To restore the most valuable objects of cultural heritage and to provide their reasonable use in cultural and economic activity, to preserve and to develop art crafts, folk, development of local lore activity, to support revealing of creative potential of regional theaters, creating of theatrical suggestions.

Implementation of new cultural technologies, actual scientific directions in this sphere

- to bring libraries to one format,

- to create new types of information centres.

To preserve and to develop national cultures

To support cultural initiatives, directed to work with youth and socially unprotected population.

To develop staff potentials and to provide its with social protection.

To develop international cultural connections.

To work in a network of “North-West” association.

Restoration and temporary closing down of mostly valuable objects of cultural heritage: monuments of military architecture, wooden architecture, Baroque and classicism architectural styles, country estates, and spiritual monuments of Medieval. .

Preserving monuments of archaeological heritage.

Creation of regional information center “Cultural heritage”, aimed to provide security of libraries` and museums funds

Replenishment of museum funds

Improvement of activity of regional theaters

Rendering assistance to craft centres and folk activities, national culture centres.

Development of cultural / entertainment sphere, including work with children and youth

Providing of legislative support to professional art/musical education

To work out organizational and financial/credit mechanism of state support for youth and new families, who in need to improve their housing conditions, when they build or acquire accommodations.

To create self –financed system, which will assist youth and new families in solving housing problems, when a small part budget support is included

To work out mechanism of mobilization of off-budget resources for improving housing conditions of youth and new families, to form conditions, when young people will be interested in development of regional social-economic and production potential.

Creating system of regional normative documentations provided effective state support of youth and new families, when they build or acquire accommodation with their participation.

Justification for necessary financial resources, getting from different sources, including regional budget. These resources should be used for accomplishment state support for young people and new families, when they build or acquire accommodations.

Support of youth initiatives to improve their housing conditions

1. 1700 new families (100 thousands square meters of housing) is provided with living accommodations, including Programme stages realization:

2. Formation system of state support for youth and new families, including young specialist, scientists, which helps to improve their housing conditions.

3. Attraction of youth and young specialist to work at regional enterprises.

4. Attraction of people savings in a volume of 200 billions rubles.

5. Fortification of families, increasing of birth rate.

6. Increasing efficiency of taken up resources due to repeated use of financial resources.

7. Increasing efficiency of youth policy

To increase number of public institution, carrying out youth policy at the territory of Leningrad Oblast

To increase number of young people, enrolled in youth and children public institutions, to provide growth of public institution, which fulfill state request about realization of youth policy at the region and to increase number of youth police programmes, carried out at the territory of the region.

Increasing number of public institutions, carrying out youth police at the territory of the region up to 30 units (or in comparison to 2000 year not less than by two times).

Increasing quantity of children and youth, participating in activities of children and youth public institutions by 2 percents from total number of youth at Leningrad Oblast (or in comparison to 2000 year not less than by two times).

Increasing allotment of off-budget financing of youth programmes not less than by two times.

To increase role of sport and physical culture in life of Leningrad Oblast, to increase number of people, indulged sport and physical culture by 1.5-2 percents:

1. Popularization of healthy mode of life by means of sport and physical culture in order to prevent law violations and drug addictions among young generation.

2. Creation conditions for development of sport and physical culture among different levels of population.

3. Improvement of sport events organizing and performing processes among disable people.

4. Achievements of great sport results.

5. Fortification of material-technical base, improvement of educational and scientific-methodical provision of physical culture and sport

1. Increasing number of children, indulged in sport and physical culture at places of residence by 20-25 percents.

2. Opening of 6 new sport schools for children in municipal organizations.

3.Increasing number of children sport schools and number of sportsmen of primary stage and stage of skills mastering by 25-30 percents

4. Improving quality of training and sport performance of Leningrad Oblast combined teams.

5. Increasing quantity of physical, sport, mass events conducted in accordance to calendar plan by 15 percents

6. Increasing organization of physical-recovering work with disable people.

7. Increasing number of Russian combined team members by 15-20 people

8. Increasing number of world-class sportsmen up to 350 people

9. Conducting training for 2-4 people, who will become members of Russian national combined team for participation in Olympic games of 2004 year.

10. Increasing results of combined team performance and have strongest sportsmen at all-Russian and international competitions

11. Increasing number of reconstructed and renewed sport sites (in accordance to address programme of capital construction)

12. Increasing quality of annual medical examinations of combined team members and reserved staff.

13. Increasing information, scientific and methodical supplement of physical culture processes.

14. Setting in operation 20 sport and children playgrounds at place of residence.

To form basics of prevention system against non-adequate/criminal behavior among young people in Leningrad Oblast

To create and to equip special establishments, carrying out prevention of non-adequate behavior among young people.

To provide scientific-methodical, information-analytical and manpower base for prevention system.

To increase psychological and pedagogical competences of gown-up population

To reveal timely young people, situated in dangerous social situation to eliminate reasons and conditions, leading to non-adequate behavior of young people.

To provide social, pedagogical and physiological assistance for category of people, mentioned above.

Reducing level of juvenile delinquency, timely revelation home leaving cases, prevention and reduction of suicides among teenagers and young people.

Reducing level of youth addiction to psycho- active matters (in relative values in comparison to corresponded indicators of 2000 year);

Supporting of youth policy establishments activities, which carrying out prevention of non-adequate behavior among young people..

2. To support development of private business in the field of tourism, mostly in of middle and small business.

3. To stimulate development of material base for tourism by attracting Russian and foreign investments for creation and reconstruction of new tourist units.

4. To create conditions for revival and development of Russian traditional tourist centres at Karelian Isthmus and at southwest part of Leningrad Oblast.

5. To develop new tourist districts in eastern part of Leningrad Oblast, which has vast natural, historical and cultural potential.

6. To work out and to implement progressive methods and standards of tourist and recreational services.

7. To create common modern system of training, retraining and raising staff level of qualification, involved in tourist business

8. To carry out active advertising campaign, leading to formation of image of Leningrad Oblast as of tourist center and to advance it to Russian and foreign markets

Formation of modern, profitable tourist industry in Leningrad Oblast

Providing total duration of tourist stay at the territory of Leningrad Oblast within 5.56 bil.man/days;

Increasing internal and external tourist streams up to 2.5-3 billions annually

Providing annual additional income of budget up to 130-140 billions rubles.

Providing growth of working places up to 3321

To carry out events, leading to bringing up Russian citizen and patriot by studying Russian legislative and state systems, memorial dates, symbolism and to conduct events, which will help to increase social activity of youth. .

To update substance of legal, normative and informational base of patriotic education system at the territory of Leningrad Oblast.

To coordinate activity of local self-management authorities and public institution, which in charge of providing patriotic education at the territory of Leningrad Oblast.

To involve people in solving problems of patriotic education through formation of public opinion and interaction with public and private institutions

To increase level of communication with mass media of Leningrad Oblast, concerning patriotic popularization and civil opinion.

To develop regional establishments, performing state policy, regarding patriotic education of youth at the territory of Leningrad Oblast.

To provide financial support for events, leading to patriotic education of youth of Leningrad Oblast.

Improving quality and substance of patriotic education of youth at Leningrad Oblast:

Formation of civil and patriotic consciousness among young people, development of sense of participation in motherland destiny.

Formation of organizational and methodical base for supporting activity of patriotic education at the territory of Leningrad Oblast

Involvement of public institutions in solving problems of patriotic education of children and youth, including prospective groups

Participation of youth in ht events, carried out in accordance to The Programme (not less than 60 thousands of people foe 3 years)

Publishing of methodic and other information literature, brochures, newspapers and etc. ( not less than 10 thousands for 3 years)

Attraction of local budget resources and off-budget funds for financing patriotic education (not less than 5,6 billions for 3 years).

Further developments of network of establishments, which work with disable children and their families (in 22 municipal units – 8 centres and 14 departments for children with limited abilities)

Mastering of scientific and methodic base, concerning work with disable children.

Organization of interdepartmental system of early treatment (in 9 centres and rehabilitation department for disable children)

Fortification of material-technical base of rehabilitation centres for children and teenagers with limited abilities (22 establishments and 2 children boarding school for disable children).

Mastering system of complex rehabilitation of disabled children in Leningrad Oblast, further development of network of establishments for children with limited abilities (10 rehabilitation centres for disabled children are planned to be opened in a course of programme realization. Their location will be as following: Boksitogorsk, Sosnovy Bor, Slisselburg, Sertolovo, and in Podporojie, Vsevolozsk, Lomonos, Slantsy and Priozersk districts.

2. To conduct actions in order to from system of accumulating pension supplement.

3. To involve in system of private pension supplement staff of enterprises and establishments of all types of property, including staff of budget sphere.

4. To provide population of Leningrad Oblast with additional pensions.

5. To invest pension resources of authorized private pension fund in economy of Leningrad Oblast.

6.To create regional legal base, concerning issues of private pension supplement

Providing employees of budget sphere, retired in a period of Programme validity, employees and pensioners (former employees) of enterprises of all types of property, who participate in the Programme with additional pensions

Total sum of pension fees in favor of budget employees for the period from 2002-2006 is 200 702,385 thousands of rubles.

Total sum of pension payments to pensioners of budget sphere will make 319 367,489 thousands rubles.

Difference (118 665.104 thousands of rubles) between pension fees and pension payments will be covered by investment income of authorized private pension fund, which acts in accordance to following federal Law “Private pension funds”

Amount of additional pensions will make 300 rubles monthly with annual indexation on 10 % by 2002 year and 1016 by 2016 year.

Total number of budget employees, having a right for additional pensions:

2004 year - 2 931 people

2005 year - 3 966 people

2006 year - 5 028 people

Payment of additional pensions to enterprises staff. Which participated in the Programme will be effected in accordance to pension programmes of enterprises, worked out for every enterprise additionally.

To create network of social protection establishments for families and children: 17 centres (departments) of social assistance for family and children, 13 specialised establishments (departments0 for minors, 6 crisis centres for women.

To develop family educational groups in structure of social establishments.

Formation of effective system of social support for families and children.

Creation of optimal network of social services for children in municipal units, including 17 central of social assistance for families and children, 13 specialised centres for minors, 6 crisis centres (departments) for women, 10 departments of urgent physiological help by phone.

To provide elder people with social and medical assistance, benefits and compensations in accordance to law codes.

To provide elderly people with free access to public cultural values, to create conditions for their adequate employment, for realization of their inner potential and for preservation of their dignity

Providing social guarantees for people of senior generation, increasing quality and level of their lives, reducing social tension in the region.

Increasing efficiency of social service at home through implementation of regional social standards, defining scope and quality of services; fortification of material-technical base of 22 municipal establishments of social protections, improving of social and living conditions of elderly people and disable people, staying in 6 boarding houses, equipping them with car transport and medical devices, organization 6 ward of nursing care for pediatric help, reducing rate of people, who need different social services from 70 up to 50 percents .

To implement state social policy, regarding invalids in Leningrad Oblast

To fortify material-technical base of state medical and social examination service.

To develop network and to fortify material-technical base of rehabilitation establishments.

To increase level of medical, social and professional rehabilitation of invalids.

To integrate invalids in society through development of cultural spare time, free access to objects of social infrastructure

To provide invalids` public organizations with state support

To provide state medical and social examination service and invalid rehabilitation service with information and manpower resources.

Fortification of social support and improvement of living standards of invalids (20 thousands of people are supplied with technical rehabilitation means)

Fortification of material-technical base of state medical-social examination service (acquisition of 16 items of transport, 132 computers, training and retraining of staff-34 people)

Development of network and fortification of material-technical base of rehabilitation establishments (opening of 3 rehabilitation departments, acquisition of equipment for 3 departments and 4 boarding houses)

Supporting of elaboration of 5000 individual programmes of invalid rehabilitation in 2003 year, carrying out in a full volume medical, social and professional rehabilitation of invalids at public health and social protection establishments. .

Integration invalids in a society through development of cultural spare time, working out programme of free access to objects of social infrastructure

State support for invalids` public organizations

To prepare and to implement legal, social, economic, technical, organizational, sanitary, rehabilitation and other measures, which will provide employees with state guarantee and legal protection in the field of labor safety.

To work out and to put in force regional legislative and normative acts for supporting management system of labor safety

To work out information-analytical system of estimation and registration of disablement, to prevent disablement and provide rehabilitations for people, became disable due to labor mutilation or professional disease, to implement system, which will allow registration and to analyze rate of professional sickness at enterprises of Leningrad Oblast, to train and to check labor safety knowledge of specialists and management of enterprises of Leningrad Oblast, financed from regional budget, to create regional center of professional ; to work out atomized working place “labor safety specialist” and etc..

Reducing of production traumatism, professional and general sickness rate, improving of social protection of different categories of employees.

Reducing of insurance tariffs for compulsory social insurance from accidents at production and from professional diseases

Financing of programme for the sum of 3.420 thousands of rubles will be reimbursed by 2005 year if loss from traumatism and professional diseases reduces by 0.2 % a year. .

Regional target programme "Assistance for employment population of Leningrad Oblast for 2002-2003 years"

To improve information supplying of policy, dealing with employment assistance

To master manpower potential, considering labor market requests, qualification raising and retraining of unemployed people.

To increase efficiency of measures, taken on labor market

To coordinate activity of regional government authorities in solving problems, dealing with enlarging of working places, which will improve higher level of life

Restraining development of unemployment, providing average registration level of unemployment within 1.7 percents in 2002 year and 1.6 percents in 2003.

Carrying out career-guidance work with more than 67 thousands of people in 2002 year and with 56 thousands of people in 2003.

Granting possibility to get professional skills and knowledge, necessary for future jobs, for 3500 unemployed people in 2002 year and 3700 in 2003.

Providing of consulting services, regarding employment issues for 102.3 thousands of people annually.

Providing employment service with 70 thousands of vacancies annually.

Providing assistance in employment issues to 39thousands people annually.

From total amount of people assistance of job searching process should be given to the following categories of population, who mostly need social protection:

To 17320 women,

To people without job for more than 1 year

To former prisoners –265 people

To disable people and people of pre-pension age (511 in 2002 year, 467 people in 2003),

To people retired form military services and their family members: 409 in 2002 year, 379 in 2003,

To 50 refugees and forced migrants

914 people form population categories, mentioned above participated in public works, 2500 were temporarily employed in 2002, 3000 people will participate in public works and 2500 people will be temporally employed in 2003,

2500 under age people were temporarily employed in 2002 year and 2003 up to 15 thousand.

Supporting of business initiatives 611 in 2002 year and 800 people in 2003.

Dole payments were effected for 11088 of unemployed people in 2002 year and for 13000 in 2003.

Studying grant payments for the time of their training were paid to 3500 of unemployed people in 2002 and to 3700 of unemployed people in 2003

Providing assistance for 175 unemployed people, who loose their right for getting dole payment in 2002 year and to 400 people in 2003

Giving possibility to retire on early pension to 233 unemployed people in 2002 year to 500 people in 2003.

Building stones – 4 million cubic meters,

Facing stones – 50 thousand cubic meters,

Building sand – 1 million cubic meters,

Sand-gravel materials – 500 thousand cubic meters,

Glass sand – 15 million tons

Peat – 23 million tons

150 people – in Vyborg rayon,

120 people – in Priozersk rayon,

60 people – in Kingisepp rayon,

50 people – in Podporozhskiy rayon

Mineral resources extraction tax – 44,5 million rubles

Payments for the usage of the Earth interior – 0,5 million rubles,

Payments for extraction and deductions for reproduction of mineral materials source (clearing of liabilities for the past years) – 1,7 million rubles.

Execution of water preserving and water managing measures, which should provide:

Gradual stabilization of the water quality in the water basins, most of which are the main source of drinking water, places for recreation or fishing industry areas.

Reliable protection of Oredezh river drainage basin inhabitants from buildings’ and lands’ flooding.

Application of informational analytical system of management of water resources usage and protection in Leningrad Oblast at the expense of:

Reconstruction and creation of new sewage purifying systems, restoration of Oredezh cascade hydro technical constructions, restoration of hydro systems flowing in Shlisselburg, searching works for water springs in order to provide the area with guaranteed water supply, verification of existing stocks of water springs, execution of international agreements regarding the usage and protection of water resources.

Commission of sewage purifying structures in Primorsk.

Completion of restoration of flowing and improving of hydro systems in Shlisselburg.

Completion of hydro technical construction works of Oredezh cascade.

Completion of support dike construction on the Bol’shoye Rakovoye Lake in order to regulate the water level in the lake (nature reserve “Rakovye Ozera”, Vyborg rayon)

Application of technologies of springs localization and purification from oil and nitrate pollution.

Revaluation of springs supplies on the territory of Karel’skiy isthmus.

Execution of search works for water springs in order to provide Gatchina, Boksitogorsk and Kingisepp with water supplies.

Expected economic effect of the programme’s execution – 56,3 million rubles; protection from flooding of 18 populated areas with 7708 inhabitants and 1048 hectares of agricultural land; reduction of water pollution of Neva, Luga and north-western part of the Gulf of Finland for 30,8 thousand tons per year.

Stabilization of ecological situation (condition of steady balance) taking into account the industrial and transport growth, development of the system of ecological education of the population of the Leningrad Oblast, preservation of natural landscape, animal and plant life of the Leningrad Oblast.

Increase of forestry works’ and regeneration effectiveness.

Provision of the forest proprietors with planting material (forestries of the Leningrad Oblast).

Development and improvement of monitoring of the forest recreation.

Guidance, technological, legal provision.

Inspection of the works fulfilled.

Increase of the forest areas by 82,7 thousand hectares.

Assistance to the natural renewal in the area by 47,6 thousand hectares.

Natural growth of 40,2 thousand hectares.

Storage of 26,3 tons of coniferous breeds.

Growth of 405,6 million seedlings, saplings of the coniferous breeds.

Task 1.1. Working out of reference documents (standing plans) and summery plan of the Leningrad Oblast TBC.

Task 1.2. Forming of the Leningrad Oblast TBC database.

Task 1.3. Forming of the basic topographic materials.

Direction 2. Development of the of the Leningrad Oblast TBC normative base.

Task 2.1. Working out of the Leningrad Oblast TBC normative base.

Direction 3. Development of the Leningrad Oblast TBC work.

Task 3.1. Development of the Leningrad Oblast TBC work.

Task 3.2. Working out (making more precise) of the programmes of LO TBC creation for 2003 and 2004-2005.

Task 3.3. Arrangement and management of the LO TBC files (software).

Direction 4. Automation of LO TBC.

Task 4.1. Working out of the assignment for the project of the automated system.

Task 4.2. Working out of the project of the automated system and its execution.

Energization of the investment process in Leningrad Oblast, reduction of the preparation period of the investment process based on:

Reduction of time and increase of the paperwork processing quality.

The functioning of LO TBC will improve the duration of investment project realization. It will be reduced by 61 day, from 367 to 332 days (roughly 8%). Which will help to increase commercial effectiveness of investments at the expense of increasing of the project’s profitability and budget effectiveness at the expense of taxation extension due to newly commissioned site.

Increase of the population’s possibilities to control the decisions of authorities regarding town building and real estate construction.

Decrease of unemployment level due to the area’s investment attractiveness and energization of investment processes.

Life level improvement.

Qualification improvement of architects, town builders and other participants of LO TBC forming.

Inventory of the land.

Formation on the basis of federal and regional municipal lands register of the information database of land plots’ and connected with them real estate registration on the territory of Leningrad Oblast.

Differentiation of the state land property by: the property of Russian Federation, the property of Leningrad Oblast, the property of municipal authorities, by means of carrying out certain actions aimed to prepare and co-ordinate the list of land plots, land works, ownership registration.

Development of programme-technical complexes, supporting the information database and creation of automated system of state real estate cadastre management, based on them in the Leningrad Oblast. This system is aimed for effective management and dispose of real estate in Leningrad Oblast, accomplishing of control over the use of the state land, receiving funds for different level budgets.

Provision of possibilities for the Leningrad Oblast authorities, local authorities, natural and legal entities, to have an access to the information, based in the automated system of state real estate cadastre management.

Training, retraining and qualification improvement of the staff in the system of state and municipal land and other real estate management. This should provide the functioning of the automated systems of state cadastre and support the process of real estate management in the Leningrad Oblast.

Creation in the Leningrad Oblast of the automated system of state real estate management on the basis of database, which contains current information about land plots and real estate sites, closely connected with them. This should save the resources while collecting full and reliable information, which is necessary for making optimum decisions in the sphere of land and property relations.

Carrying out of the state lands’ property differentiation (the list of land plots belonging to the Leningrad Oblast and municipal authorities, land works, ownership registration).

Creation of the electronic data exchange system between the bodies of state and municipal property management, bodies (organizations) responsible for forming, cadastre register, technical inventory, evaluation, registry of real estate rights and deals with it, taxation and other bodies.

Training, retraining and qualification improvement of the staff in the sphere of real estate management, state land and real estate cadastre keeping: Lenoblcomimushestvo (Leningrad Oblast municipal property), Lenoblinventarizatsia (Leningrad Oblast inventory), local authorities.

Regulation and increase by 1,5 times of the land tax and rent receiving into the Leningrad Oblast budget, at the expense of re-registration of the rights of the land plots’ use.

Building and reconstruction of 15 firefighting stations, purchasing of basic and special firefighting cars, instruments and equipment for gas-smoke protection department, combustive-lubricating materials, firefighting overalls and equipment for the personnel.

Provision of relative reduction of the fire losses for about 20-30 per cent, which annually will result in 194 million rubles (prices of 2001) of direct and indirect damage, reduction of human victims and traumatism during the fires.

This programme has a social effect, since it reflects the vital problems of the population, business managers and authorities of the Leningrad Oblast (efficient information of the population about political, economic and cultural life, also informing about extreme situations). This will help to increase by 10 per cent the area, covered with television broadcast; the number of listeners by 8 thousand people.

Preservation of the highly potential agricultural areas of the region, increase of the crop capacity by 10-15 per cent from the hectare per year, bringing capacity of the grain crops up to 25 centners per hectare per year, potatoes – up to 175 centners per hectare per year, vegetables – up to 325 centners per hectare per year.

Acceleration of the agricultural growth, during the past three years up to 3-5 per cent per year.

Increase of the stockbreeding industry products’ volume by 5-6 per cent per year, which will make it possible to increase the profit making of the agricultural industry up to 20-25 per cent. That will reduce the number of unprofitable farms from 25 down to 15 per cent in 2003. The profit will increase.

Noticeable reduction of St.Petersburg and Leningrad Oblast dependence from agricultural import.

Employment of more than two thousand specialists, involved in the execution of the planned actions, aimed for preservation of the fertilized lands for the nearest three years.

Non-execution of the mentioned above actions in the nearest future will result in degradation of the majority of agricultural lands in the region, tremendous reduction of plant industry production volume, crisis in the forage manufacturing industry and finally, decline in cattle breeding industry and rapid increase of St.Petersburg and Leningrad Oblast dependence from agricultural import.

Increase of plant and cattle breeding industries production volume: In 5 years from 2001 to 2005 the volume of elite sabadilla production will increase: grain from 1628t to 1872t, potatoes from 2480 to 3780t, vegetables from 1,8 to 2,9t, perennial grass from 58 to 105t. The growth of agricultural production volume will be accompanied by the increase of farmer’s profits. The profit in five years will grow up 2,7 times.

Arrangement of permanent and planned renewal of sorts.

Creation of new sorts involving world’s genetic fund of wild and cultivated plants.

Reduction of the dependence from foreign and the other regions’ sorts.

Provision of good quality sowing material.

Sort renewal and sort changing. Non-execution of the mentioned above actions in the nearest future will result in degradation of the production, tremendous reduction of plant industry production volume, crisis in the forage manufacturing industry and finally, obstruction of the fields by wild plants and total dependence of Leningrad Oblast from imported sabadilla.

As a result of programme’s execution, the number of saved working places will be 470, created working places – 300.

Provision of inter regional and inter rayon connections by the roads with improved type of surface. Transformation of the rural roads into the roads of common use and provision of their all year round maintenance in order to connect all populated area with the centres of local authorities and main network of car roads, including:

Provision of transport connections with populated areas with more than 500 inhabitants, by roads with hard surfaces.

Transformation of ex farming and local roads of the region into the roads of common use with their reconstruction, repairing and maintenance.

Improvement and development of the federal and main net of roads, liquidation of the accident rates, improvement of the engineering facilities in order to provide safe and comfortable traffic.

Provision of the port complexes under construction on the Gulf of Finland with modern transport connections with federal net of roads.

Construction of detouring roads for big cities.

Construction of new external roads in St.Petersburg.

Development of car roads in the national boarder areas, in order to provide exits abroad.

Increase of the service for the car road users.

In addition:

Formation of new and improving of existing connections to provide international and inter regional transportation.

During 2003-2008 populated areas with more than 500 inhabitants are planned to be provided with hard surface roads (total length – 106 kilometers).

Provision of all populated areas in Leningrad Oblast with all year round transport connections. For that purpose ex farming and local roads of the region (total length 1204 kilometers to 317 populated areas) are planned to be transformed into the roads of common use with their reconstruction and repairing.

Development of international and interstate relationship and trade.

Stimulation of farming complex development in the region.

Improvement of peoples’ transportation from their places of residence to places of work or recreation areas.

Assistance to exploring and developing of the new territories and resources.

Traffic safety improvement.

Employment level improvement (prognosis of the working resources demand – 12000-13000 working places).