OREANDA-NEWS. August 14, 2012. In the Finnish town of Mikkeli Head of Karelia Alexander Khudilainen and Elli Aaltonen, Director General of the Regional State Administrative Agency of Eastern Finland, have held talks on cooperation and signed a Memorandum on results of negotiations. According to this document the parties within their authorities promote development of trade and economic relations and investment cooperation, implementation of joint projects, joint activities in the field of public health services and social security, education, culture, youth policy and sports, transport, labour and employment of the population, cooperation between rescue services and law enforcement bodies. Issues of financing are decided for each joint project separately.

To strengthen trade, economic and other cross-border relations the parties promote implementation of projects of creation and development of Syvaoro-Parikkala international automobile customs station assist, further development of Wartsila-Niirala international check point, as well as improvement of the road communication through the specified check points.

As Ms. Aaltonen mentioned, Alexander Khudilainen's visit has become the first large-scale state visit to Eastern Finland afetr the recent changes in the Finnish system of government.

In the course of negotiations Head of Karelia has paid special attention to possible consequences of to Russia's accession to WTO. In the opinion of Alexander Khudilainen, it will result both in the improvement of economic cooperation between Karelia and Finland, and also in the improvement of quality of Karelia's own economy. Answering the question about the impact of Russia's accession to WTO on deliveries of Karelian timber to Finland, Head of the republic has noted that, on the one hand, it will cause reduction of export duties, and, on the other hand, it will intensify competition and, thus, will urge on development of the full cycle of timber processing in territory of Karelia. "Earlier we used to harvest 18 million cubic metres a year in the republic, and now it is 5 million cubic metres. So, welcome to Karelia, – Alexander Khudilainen said. – However, we are interested to have the harvested timber processed within the republic, and there are successful examples of that already, including, with participation of the Finnish partners. We shall encourage and stimulate similar investments."

Head of Karelia went into detail on the issue of encouragement of investors. According to the head of the region, currently the new Government of the region works on development of a package of bills to be considered by the parliament of Karelia in autumn. In particular, depending on the amount of investments, industry and a number of created jobs it is supposed to extend the terms of preferential tax treatment to the period of more than 5 years. Investment funds for preparation of documents on investment projects and creation of technological communications on investment sites will be established.

Alexander Khudilainen has also has told about plans on transport infrastructure development. So, by the end of 2014 it is planned to complete reconstruction of the road from Lahdenpohja to Syvaoro check point, the issue of transfer of the road from Sortavala to the international check point Wartsila into the federal ownship is being settled, at the meeting withHead of Karelia within the scope of the St.-Petersburg Economic Forum head of Russian Railways V.Yakunin has confirmed joint plans of the railwaymen and the republic on possible start-up of the train from Petrozavodsk to Joensuu through Sortavala.

The urgency of issues discussed was confirmed by Trade Representative of the Russian Federation in Finland Valery Shlyamin. "I've been waithing for it for 10 years. Russia and Finland are strategic partners, – head of the Trade Representation said. – Russian orders provide employment of 57,000 Finns, 8,000 more work within the framework of cross-border cooperation. In Karelia thousands of workplaces depend on the Russian-Finnish cooperation. After Russia's accession to WTO both parties will lose without partnership at all levels. For success it is necessary to combine our frontier strategies, including Karelia and Eastern Finland. I'm sure that Finland as atrade and economic partner will have a worthy place in the Concept of Development of the republic developed by the new team. On its part, the Trade Representation will render its assistance, as we understand how difficult it is to build a new image of Karelia as of the investment and innovation partner. New projects are arise not in offices, but in business, and the art of management is to notice and support them at proper time, and it concerns both large projects, and medium, and small ones."

In the opinion of Valery Shlyamin, "the new impulse in Karelian-Finnish relations is important for Russia as a whole." "Karelia is a region rich with resources, and first of all, it is an intellectual resource without which natural riches remain more liabilities, rather than assets," – head of the Trade Representation summarized.

One of the focus points at the meeting was granting Syvaoro-Parikkala check point the international status and of further intriduction of passenger communication through this check point. For this purpose resources of two programs of the European Union have been involved, and both applications for financing of the reconstruction of roads leadinf to Karelian check points in territory of Russia have already been approved in Bruxelles.

As for the most perspective branches for cooperation, that, according to Valentin Chmil, Deputy Head of the Republic of Karelia and Minister of Economic Development, the republic is more attractive to investors, than the Leningrad region, especially for foreign investors. "In Karelia there is everything, except for oil, although its economic potential is used poorly, – the minister mentioned. – In the past 5-8 years technological chains were developing poorly, and tax revenues from business were, I guess, three times less than they could be."

First of all, Valentin Chmil considers the necessary to generate the system of small business as the means to provide employment of the population, to achieve effective use of agricultural land, honesty and transparency in payment of taxes, to organize a full cycle of local processing of raw material.

"We'll let those have an access to natural resources who provide their processing in territory of Karelia," – the minister emphasized.

Valentin Chmil mentioned that development of economy is not an end in itself. Due to development of the economy budget revenue will grow, as well as social guarantees for the people.

In his concluding remarks chairman of the Chamber of Commerce of Eastern Finland Markku Kakriainen has told: "In the speech of Head of Karelia there was a keyword – trust. It is the keystone to success in the future."

The Finnish party has also pointed out that Karelia now is represented by a person speaking fluent Finnish.