OREANDA-NEWS. December 29, 2008. In its third crisis meeting this month, the Murmansk regional administration discussed enhanced control over the region’s metallurgy and mining industry, which is under serious threat by the aggravating economic crisis.

Especially the situation in the Kandalaksha Aluminium Plant, an enterprise owned by Rusal, is of concern for the regional authorities. Lower domestic and international demand and lower prices has already resulted in major cuts in production. The work staff is subsequently threatened by dismissals and unpaid salaries.

The situation is similarly serious in the Kovdorslyuga plant and the Lovozero mining and metallurgy plant, a press release from the regional administration reads.

The Murmansk government is under major pressure to introduce stricter budget spending next year following an anticipated significant cut in tax revenues in 2009. Among the priorities discussed is a enhanced spending from the region’s reserve fund as well as an enlargement of the fund.

The regional government will in addition prepare a set proposals on which companies will be entitled to get federal and regional support by means of state regional guaranties.