Volumes ofindustrial output (large and medium-sized companies), M RUR
Physical volumeof industrial output index (all companies), as % of preceding year
The reasons why industrial output inKaliningrad Oblast took a deeper dive than the Russia’s average are asfollows:
the region’s industries are highly dependent on raw materials, fuel, power andcomponents supplied from outside;
specific cross-industry structure of the region’s economy: experienced the deepestplunge in the early 90’s (that is mechanical engineering with a strong tilt towardsmilitary production, wood-working and paper-pulp industry and fishery)accounted for over 70 % of industrial output in the region;
break-off of traditional economic ties caused by separation of theregion from Russia’smainland by borders of newly independent states which pursue a discriminatorytariffs policy with respect to transit shipments between Kaliningrad oblast andthe rest of Russia.
The fuel sector prevails in thecross-industry structure of the region’s economy with its 28.3 %(Table 3); it is followed by food-processing industry, primarilyseafood-processing industry, with its 23.3 %; mechanical engineering andmetalwork (19.1%); the share of woodworking and paper-pulp industry is13 percent, while power engineering accounts for 10.2% of theeconomy.
Cross-Industry Breakdown of Large andMedium-Sized Companies (% to totaloutput)
Total of industrialoutput
Iron and Steel Industry
Chemical and PetrochemicalEngineering
Mechanical Engineering and MetalworkIndustries
Wood, Woodworking and Paper-PulpIndustry
Production of ConstructionMaterials
Grist-, Grain- and Feed-MillingIndustry
Fishery has traditionally been one of theleading industries in the region. In 1990-2000 the yield of fish and other seaproducts dropped nearly threefold, with the share of the sector plummeting from30 down to a mere 15% of regional industrial output. The number of jobs shrankby half, thus giving rise to social unrest.
The leading industries in the farming sectorare dairy-farming and beef / pig breeding, the growing of potatoes and othervegetables, and also aviculture and fur farming.
In 2000 the Oblast produced a RUR 3.8 bnworth of farming produce (Table 4). As of 1999, more than 80 % of all farmingoutput was produced by farming (cooperative) organizations, 19 % fell on farms,with a mere 0.2% produced by individual farmers.
Agricultural Production (across the sector,all types of enterprises)
Total FarmingOutput, RUR M
Farming Products Physical VolumeIndices, in comparable prices, as % of preceding year
The farming sector has been experiencing asharp decrease in cattle stock over the last years, against the backdrop ofcontracting land under cultivation of cereals, forage crop and vegetables.Productivity rate has taken a nose-dive in cattlebreeding and farming. See Table 5 for detailed data about major farmproducts.
Most Important Farm Products (produced byall types of farming organizations across thesector) (thous. tons)
Bread grain (as weighed afterprocessing)
Meat – ready to sell (liveweight)
Due to financial hardships the farming sectordid not make it through the crisis and lost the momentum. This, the fleet oftractors and other farming machinery is now half the size of what it used tobe, with the remaining hardware being worn out by over 70 %, productionpremises must undergo a thorough overhaul, the auxiliary infrastructure hasbeen severely impaired.
Agrochemical support to farmers and landreclamation works have practically stopped. Land reclamation systems are in badneed of repair, as their conditions fall way behind the establishedstandards.
As regards the transportation sector inKaliningrad oblast, one of the main concerns is under-utilization of its ports.Across most types of cargoes, ports are utilized at less than 30 % of theirrated capacity, which is particularly true of the terminals that specialize intransshipment of mineral fertilizers, oil products, refrigerated cargoes,metals and coal.
The ports’ capacities are under-utilized dueto the following reasons: freight and delivery costs have gone up considerablywith the need to transit cargoes through territories of foreign states, theport infrastructure is underdeveloped, the sea canal is too narrow to allow forthe needed throughput, and the waters in Kaliningrad ports are not deep enough,which limits their ability to accommodate deep-drawing vessels.
Goods and passenger traffic, commoncarriers
Total goods carried, Mtons
Total passengers carried, Mpeople
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Given the new political and economicenvironment, foreign trade began to play an increasingly more important role inthe region’s economy.In 2000, the volume of foreign trade grew 15.5 % against 1999 coming to USD1,340.3 M (Table 7), with export amounting to USD 452.5 M (1.6 times growth),and import making up USD 887.8 M (1 % growth).
Foreign Trade Statistics (in actual prices,USD, M)
Total ofExported Goods
Total ofImported Goods
Retail Trade Turnover Figures
Retail trade turnover, RURM
Index of Physical Volume of RetailTrade Turnover, % of preceding year
Prices (Tariffs) Index (Dec. 2000 to Dec.1999, in %)
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