murmansk region - Euromoney Institutional Investor PLC

25. MURMANSK REGION [51]2Over the past few years, the Murmansk Region has been a continuous focusof attention. This is due not only to the prospects for the development ofoil and gas in the Arctic zone, but also to the newly opened opportunitiesof transcontinental transport corridors along the Northern Sea Route. The vastnatural resources of the Kola Peninsula, the developed industrial and social infrastructureof the Murmansk Region, and the favorable market conditions prevailingin the Region are well known both within Russia and abroad.The Murmansk Region is a major industrial center. Its major sectors aremining, non-ferrous metals, and fisheries. The Region produces nickel, copper,cobalt, raw and dressed ore, and aluminum. Fishing companies produce a widerange of fish products: canned, frozen, fresh, smoked, and dried fish, and balyk.Ship-repair and fishing equipment manufacturing and packaging sectors haveemerged in the Region to serve its core sectors.The Murmansk Seaport plays a special role as the starting point of theNorthern Sea Route linking Russia to Scandinavia, the UK, Canada, and the USA.Insufficient information on investment activity, investment projects carried outby companies in the Region, and research and development in new technology andnew materials has in the past acted as a deterrent for investors and trading partners.In order to overcome this drawback, the Regional Government has issued a Catalogof Investment and Innovation Proposals. This publication represents a step in theimplementation of the Region’s program for social and economic development.Numerous companies and organizations in the Murmansk Region are currentlyimplementing development projects. The Regional executive and local authoritiesare assisting in the implementation of a number of proposals and projects and facilitatingthe establishment of inter-regional and international economic links.Investment and innovation projects form the basis of the Economic DevelopmentFramework for the Murmansk Region through 2015, which was adoptedby the Regional Government in 2001 and is currently being implemented.I wish every success to all potential investors in their search for new ideasand partners and in developing their business, and I hope that the projects andproposals set forth herein will be of interest to them.Yuri Evdokimov,GOVERNOR OF THE MURMANSK REGIONIINORTH-WESTERN FEDERAL DISTRICT

25. MURMANSK REGION [51]31. GENERAL INFORMATIONII1.1. GEOGRAPHYSituated in Russia’s north-west on the KolaPeninsula, the Murmansk Region covers a totalarea of 144,900 square kilometers. To the west,the Region borders Norway and Finland, to thesouth – the Republic of Karelia, and to the north,east, and south-east the Region is washed by theBarents and White Seas.1.2. CLIMATEThe Murmansk Region has an arctic maritimeclimate.The average air temperature in January is–5.3°C, rising to +14.1°C in July. The average annualprecipitation is 350–1,000 mm.1.3. POPULATIONAccording to preliminary 2002 census results,the population of the Murmansk Region totaled893,000 people. The average population density is6.2 people per square kilometer. The economicallyactive population amounts to 580,000 people. 2002official unemployment was 12.8%.Demographically speaking, some 68.2% are ofworking age, 16.9% are below the statutory workingage, and 14.9% are beyond the statutory working age.As of 2002, the Region’s major urban centerswere Murmansk with 336,700 inhabitants, Severomorskwith 77,800 inhabitants, and Apatity with68,300 inhabitants.NORTH-WESTERN FEDERAL DISTRICTPopulation2. ADMINISTRATION75, pr. Lenina, Murmansk, Murmansk Region, 183038Phone: (8152) 48 6200; fax: (8152) 45 1054. E-mail: obl.admin@murman.ru; http://gov.murman.ruNAME POSITION CONTACT INFORMATIONYuri Alexeevich Governor of the Murmansk Region Phone: (8152) 48 6201EVDOKIMOV Fax: (8152) 47 6503Alexander Anatolievich First Deputy Governor of the Murmansk Region Phone: (8152) 48 6210SELINТАBLE 11992 1997 1998 1999 2000 2001 2002Total population, ‘000 1,165 1,051 1,034 1,018 1,001 989 893Economically active population, ‘000 639 563 568 583 583 577 580Sergei Alexandrovich First Deputy Governor of the Murmansk Region, Phone: (8152) 68 1281NIKITAEV Head of the Finance Departmentof the Murmansk RegionVladimir Nikolaevich Deputy Governor of the Murmansk Region, Phone: (8152) 48 6204MOTLOKHOV Head of the Economic Departmentof the Murmansk RegionViktor Alexandrovich Deputy Governor of the Murmansk Region, Phone: (8152) 48 6204MILLER Head of the Construction, Architecture,and Residential and Communal ServiceReform Department of the Murmansk RegionSergei Alexeevich Deputy Governor of the Murmansk Region Phone: (8152) 48 6252SUBBOTIN for Economic SecurityVladimir Mikhailovich Deputy Head of the Economic Department Phone: (8152) 47 7264EVSEEV of the Murmansk Region, Head of the Departmentof External Economic and Cross-Regional RelationsAlexander Nazarovich Head of the Sub-Department of Enterprise Phone: (8152) 48 6319ALIMOV and Innovation of the Economic Departmentof the Murmansk Region

3. ECONOMIC POTENTIAL25. MURMANSK REGION [51]43.1. 1997–2002 GROSSREGIONAL PRODUCT (GRP).INDUSTRY BREAKDOWNThe 2002 gross regional product amountedto $2,250 million, which constitutes 11.4% growthyear-on-year. Per capita GRP amounted to $2,043in 2001 and $2,519 in 2002.3.2. MAJOR ECONOMICGROWTH PROJECTIONSThe Economic Development Strategy of theMurmansk Region through 2015 sets the followingtargets for the Region:Mining: moderate growth (0.5–1%) in the miningsector through 2015, with a focus on output quality;GRP trends in 1997–2002ТАBLE 21997 1998 1999 2000 2001 2002*GRP in current prices, $ million 3,143.5 2,396.4 1,702.7 2,075.0 2,019.8 2,249.8*Estimates of the Murmansk Regional AdministrationIIGRP industry breakdown in 1997–2002, % of total1997 1998 1999 2000 2001* 2002GRP 100.0 100.0 100.0 100.0 100.0 100.0Industry 41.0 40.4 47.6 50.8 45.6 42.5Agriculture and forestry 1.1 0.2 0.9 0.6 1.1 1.0Construction 4.6 4.1 3.8 3.8 7.1 6.7Transport and communications 11.5 12.4 10.6 10.4 11.1 12.5Trade and public catering 11.7 12.6 13.9 11.9 12.9 13.1Other 30.1 30.3 23.2 22.5 22.2 24.2*Estimates of the Murmansk Regional AdministrationТАBLE 3Fuel and energy: energy sufficiency in the Kolaelectricity system by 2015, export generation capacity of500 MW and 3.0–3.5 billion kWh of electricity, constructionof a second nuclear power plant KAES-2 (thefirst unit with generating capacity of 645 MW will becompleted by 2010), development of new oil and gasfields, construction of new pipelines, commencement ofnatural gas extraction at the Shtokman field with estimatedmaximum production of 60 billion cubic meters;Food and beverages (fisheries): a 20%increase in fish catch by 2015 and five-fold fish processingoutput growth;Transport and communications: freightturnover increase to 47-50 million tons per year andthe development of sea transport through the constructionof new ice-breakers and large-capacitytankers, and the reconstruction of cargo ports of theMurmansk Region to expand throughput.3.3. INDUSTRIAL OUTPUT IN 1997–2002FOR THE MAJOR SECTORS OF ECONOMYThe leading industrial sectors of the MurmanskRegion are non-ferrous metals, energy,food, and chemicals. Their combined share intotal industrial output is 82.7%.Non-ferrous metals. Metals account for 27.1%of total industrial output. The aluminum sector is representedby the Kandalaksha aluminum melting companies.The major enterprise is ОАО KandalakshaAluminum Plant (a subsidiary of OAO SUAL). Copper,nickel, and cobalt are produced at OAO Severonickel(Monchegorsk) and OAO Pechenganickel (Zapolyarny)plants. The regional companies extract anddress nephelite, bauxite, and titanium ore.Energy. The sector accounts for 21.8% of totalindustrial output. OAO Kolenergo services the wholeof the Murmansk Region. The company consists of 17hydroelectric power stations, two thermal power stations,two electricity grid companies, an experimentaltidal power plant, and several other enterprises. TheKola Nuclear Power Station, which is comprised offour energy units, is independent of OAO Kolenergo.Food and beverages. The share of this sector intotal industrial output is 17.3%. Fisheries accounts for thelion’s share of the sector with 81.1%. The Union of FishingCompanies Murmansk Trawler Fleet Consortium catchessome 31.4% of the Region’s fish output. The share of theConsortium in the food sector’s total output is 25.5%.Chemicals and petrochemicals. The sectoraccounts for 16.5% of total industrial output. Chemicalcompanies utilize phosphate materials, natural gas, andwaste from ferrous and non-ferrous metal processing.OAO Apatite, the largest phosphate production companyNORTH-WESTERN FEDERAL DISTRICT

25. MURMANSK REGION [51]5Industry breakdown of industrial output in 1997–2002, % of totalТАBLE 4IINORTH-WESTERN FEDERAL DISTRICT1997 1998 1999 2000 2001 2002*Industry 100.0 100.0 100.0 100.0 100.0 100.0Non-ferrous metals 36.0 32.8 38.5 37.7 28.4 27.1Energy 24.0 22.6 13.2 13.5 18.1 21.8Food and beverages 13.3 17.1 19.4 18.0 18.8 17.3Chemicals and petrochemicals 11.0 10.9 11.9 14.3 17.4 16.5Ferrous metals 8.0 9.9 10.0 9.3 9.9 9.9Machine engineering and metal processing 4.8 3.9 4.2 4.5 4.9 5.4Construction materials 1.2 1.0 0.7 0.8 0.9 0.8Flour, cereals, and mixed fodder 0.8 0.7 0.8 0.7 0.6 0.5Forestry, timber, and pulp and paper 0.3 0.4 0.3 0.3 0.3 0.2Light industry 0.3 0.3 0.2 0.2 0.3 0.2Fuel 0.1 0.1 – 0.2 0.1 0.1Glass and porcelain – – – 0.0 0.3 –*Estimates of the Murmansk Regional AdministrationFuel and energy sector productionand consumption trends, 1997–2002ТАBLE 51997 1998 1999 2000 2001 2002Electricity output, billion kWh16.2 16.1 16.5 17.4 16.7 16.5Electricity consumption, billion kWh13.3 12.8 12.6 12.7 12.6 12.4in Russia, supplies over two thirds of Russia’s phosphateraw materials to the domestic and external markets.3.4. FUEL AND ENERGY BALANCE (OUT-PUT AND CONSUMPTION PER RESOURCE)The Murmansk energy system enjoys excessivecapacities. The installed capacity of OAO Kolenergo is2 GW. The Kola Nuclear Power Station generatessome 60% of the Region’s electricity. Its 2002 outputreached 9.6 billion kWh of electricity and 90,000 Gcalof heat energy. OAO Kolenergo and the Kola NuclearPower Station fully satisfy the Region’s demand forelectricity. Surplus electricity is exported to theRepublic of Karelia, Finland, and Norway.3.5. TRANSPORT INFRASTRUCTUREIn 2002, freight transportation grew by 1.6% to33 million tons. Sea cargo turnover increased by 13.2%and railway cargo turnover by 1.4%. Road and air transportaccount for a considerable but decreasing share offreight transportation at 30% and 9.1%, respectively.Roads. The Region has 4,200 kilometers ofpaved public highway. Annual freight turnover is500 million tons.Railroads. The Murmansk Region has 891 kilometersof railroads. Railroad routes provide access toMurmansk and the port of Murmansk, and link theRegion to Central Russia.Airports. The Region has two large airports –the Murmansk Airport at Murmashi and the KhibinyAirport at Apatity. The Murmansk airport operatesinternational routes to Kirkenes and Tromso inNorway, Rovaniemi in Finland, and Lulea in Sweden.Sea transport. The 49 vessels of OAO MurmanskShip Lines, including nuclear-powered ice-breakers, providefreight and passenger transportation services.Seaports. The Murmansk Commercial Seaportis the largest Russian seaport above the Arctic Circlewith year-round operations. The port ranks fourthin freight transshipment volumes among Russia’s42 ports. The port is the main processor of freightto the Far North and Arctic areas, and for extra-CISexports. The port achieved a record freight processingvolume of 9.7 million tons in 2001. Its throughputcapacity is 12 million tons of freight per year.3.6. MAIN NATURAL RESOURCES:RESERVES AND EXTRACTION IN 2002The Kola Peninsula has more than 60 largedeposits of various mineral resources. Currently,the Region extracts some 30 types of minerals,the most valuable being phosphorus, titanium,iron, aluminum, copper, nickel, and zirconium ore.The region is rich in mica, ceramics and buildingmaterials, facing stone, and semi-precious anddecorative stones.Oil and gas fields have been discovered under theBarents Sea, including the Shtokman gas condensatedeposit with a reserve of 3 billion cubic meters.

4. TRADE OPPORTUNITIES25. MURMANSK REGION [51]64.1. MAIN GOODSPRODUCED IN THE REGIONThe Region produces 100% of Russia’s totaloutput of apatite and 12% of iron ore concentrate,14% of refined copper, 43% of nickel, and 14% ofedible fish products.Metals. In 2002, the Region produced 7.5million tons of iron ore and 4 million tonsof apatite concentrate.Forestry. Industrial timber output amountedto 87,700 dense cubic meters, and lumber to21,900 cubic meters.Food and beverages. In 2002 fish catch amountedto 680,000 tons, canned fish – 27 million cans, meat –5,600 tons, and bread and bakery products – 42,300 tons.4.2. EXPORTS, INCLUDING EXTRA-CISThe Murmansk Region’s exports to extra-CIScountries amounted to $587.9 million in 2000, whileexports to the CIS totaled $4.7 million. The correspondingfigures for 2001 were $534.5 million and $5 million,and $470.9 million and $1 million for 2002. Some45% of total industrial output was exported in 2002.5. INVESTMENT OPPORTUNITIES5.1. INVESTMENTS IN 1992–2002(BY INDUSTRY SECTOR),INCLUDING FOREIGN INVESTMENTSThe following factors determine the investmentappeal of the Murmansk Region:• Its advantageous geographic location (the Regionis situated at the crossroads of major sea routes andhas sea and land borders with European countries);• Its developed transport infrastructure (year-roundoperating seaport, advanced ice-breaker fleet);• Legislation supporting investment activities(organizational and financial support toinvestment projects and executive authorities’guarantees of business safety);The Region trades with some 80 countries.The main types of goods exported by the Regionin 2001 were non-ferrous metals and metal goods– 124,000 tons, apatite concentrate – 3,065,000tons, fish – 205,000 tons, and raw timber –67,900 cubic meters.4.3. IMPORTS, INCLUDING EXTRA-CIS2000 imports from extra-CIS countries amountedto $125.4 million, imports from CIS countriestotaled $4.9 million. The corresponding figures for2001 were $113.5 million and $7.4 million, and $89.7million and $1.5 million for 2002.The major exporters to the Region are Norway,Finland, the UK, Germany, Sweden, and theNetherlands.4.4. MAJOR REGIONALEXPORT AND IMPORTENTITIESDue to the specific features of trade in theMurmansk Region, export and import operationsare performed mainly by industrial aluminum andchemical companies.• Its highly qualified workforce;• Cheap electricity;• Availability of natural resources.5.2. CAPITAL INVESTMENTIndustry accounts for the lion’s share of capitalinvestment with 52.8%.5.3. MAJOR ENTERPRISES (INCLUDINGENTERPRISES WITH FOREIGN INVESTMENT)As of 2001, the Region hosted 97 companieswith foreign investment. The following companiesare participating in the exploration and developmentof the Shtockman oil and gas field: OAOGazprom, Conoco (USA), Total (France), NorskHydro (Norway), and Fortum (Finland).IINORTH-WESTERN FEDERAL DISTRICTCapital investment by industry sector, $ millionТАBLE 61997 1998 1999 2000 2001 2002Total capital investment 412.8 182.4 223.6 255.6 376.3 239.9Including major industries (% of total):Industry 58.8 55.6 52.2 46.2 57.4 52.8Agriculture and forestry 0.3 1.3 1.7 3.0 1.3 2.0Construction 3.2 1.0 0.7 1.6 0.8 0.9Transport and communications 17.0 23.2 13.6 31.4 24.6 23.9Trade and public catering 3.6 0.7 2.6 2.0 0.8 1.3Other 17.1 18.2 29.2 15.8 15.1 19.1

25. MURMANSK REGION [51]7Foreign investment trends in 1996–2002ТАBLE 71996–1997 1998 1999 2000 2001 2002Foreign investment, $ million 6.3 9.6 14.6 44.0 12.4 20.2Including FDI, $ million 4.9 2.2 8.2 29.3 2.3 2.3IINORTH-WESTERN FEDERAL DISTRICTLargest enterprises in the Murmansk RegionCOMPANYOAO Kola Mining and Metal CompanyOAO Kandalaksha Aluminum PlantOAO Kovdor Ore Dressing PlantOAO OlkonOAO KolenergoOAO ApatiteOAO KovdorslyudaUnion of Fishing Companies Murmansk Trawler Fleet ConsortiumOAO KhlebopekOAO Murmansk Bakery5.4. MOST ATTRACTIVESECTORS FOR INVESTMENTMining, fuel and energy, and transport andcommunications are the most potentially appealingsectors for investment.The development of the oil and gas reserves ofthe Arctic shelf will necessitate the upgrading of thetransport infrastructure, including pipeline transport.5.5. CURRENT LEGISLATION ON INVESTORTAX EXEMPTIONS AND PRIVILEGESThe Region has passed several laws regulatinginvestment activity in the Region:• On Investment Tax Credits in the MurmanskRegion;• On Investment Activity and Guaranteesin the Murmansk Region;• On Economic Development Zones in theMurmansk Region.Pursuant to the Law On Investment Tax Creditsin the Murmansk Region, the Region provides investmentcredits for the regional component of profit orproperty tax. Investors performing investment projectslisted in the Region’s investment program enjoypreferential rights to investment tax credit.In compliance with the Regional law, investorsperforming investment projects listed in the Region’sinvestment program are eligible for state guaranteesand tax privileges.Tax privileges provide for reduced payments oflocal taxes and non-budgetary fund contributionsfor the project payback period (subject to grantedprivileges). Exemptions and privileges include:Tax on property created or acquired duringthe implementation of an investment project;Tax on profit from sales of products, works, andservices, produced at the facilities created (acquired)during the implementation of an investment projectsorusing a technology put into operation during the project;Tax on profit from assets granted to aninvestor to implement the investment project.SECTORNon-ferrous metalsNon-ferrous metalsFerrous metalsFerrous metalsEnergyChemicalsConstructionFishery, foodFood and beveragesFood and beveragesТАBLE 85.6. FEDERAL AND REGIONALECONOMIC AND SOCIALDEVELOPMENT PROGRAMSFOR THE MURMANSK REGIONFederal targeted programs. The Regionis implementing the federal targeted program forthe Modernization of Russia’s Transport System2002–2010, which envisages the constructionof a bridge over the Kola Bay to link the Regionto Scandinavia, and the development of shippingtransport and cargo port infrastructure.The Murmansk Region is participating in thefollowing programs: Energy Efficient Economy2002–2005 and through 2010 and The Eliminationof Inequalities in the Social and Economic Developmentof the Regions of the Russian Federation2002–2010 and through 2015.Regional programs. The Region has draftedmore than ten targeted programs, includingthe priority Scientific and Technical Programfor the Murmansk Region 2003, which aims toimprove science and technology in basic sectorsand life-sustenance systems in line with the economicdevelopment strategy approved by ResolutionNo. 251-PP of the Murmansk Region ofDecember 20, 2001.

25. MURMANSK REGION [51]8Regional entities responsible for raising investmentТАBLE 9ENTITY ADDRESS PHONE, FAX, E-MAILNorthern Chamber 10, per. Rusanova, Murmansk, Phone: (8152) 47 2999, 47 3459of Industry and Commerce Murmansk Region, 183766 Fax: (8152) 47 3978E-mail: ncci@online.ruhttp://www.ncci.ruUnion of Industrialists 2, ul. Sofyi Perovskoy, Murmansk, Phone: (8152) 45 3513and Entrepreneurs (Employers) Murmansk Region, 183016 Fax: (8152) 45 0599of the Murmansk RegionE-mail: sppmo@dionis.mels.ruhttp://www.sppmo.ruEconomic Department 75, pr. Lenina, Murmansk, Phone: (8152) 45 1054of the Murmansk Region Murmansk Region, 183038 E-mail: obl.admin@murman.ruhttp://gov.murman.ruII6. INVESTMENT PROJECTS1) Expected resultsIndustry2) Amount and termsectorof investmentand project 3) Form of financing 1 Contactdescription 4) Documentation 2 information1 2 3MINING25R001■ ● ▲ OAO Kovdor Ore Dressing PlantAcquisition of equipment and machinery 1) Total extraction of 12 million 5, ul. Sukhacheva, Kovdor,for ore extraction from deep pit layers. tons per year Murmansk Region, 184141Project goal: to increase output through 2) $6.3 million Phone/fax: (81535) 71 815, 76 013deeper pit extraction. 3) E, L Fax: (81535) 72 7634) FS E-mail: Bbw@kovgok.ruIgor Vyacheslavovich Melik-Gaikazov,CEONORTH-WESTERN FEDERAL DISTRICTENERGY25R002■ ● ★ ▲ OAO KolenergoConstruction of the Iokanskaya 1) n/a 2, ul. Kirova, Murmashi,Hydroelectric Power Station. 2) $53.5 million Murmansk Region, 184364Project goal: to produce electricity 3) E, L, Leas. Phone/fax: (8152) 64 9017from hydro resources. 4) FS E-mail: common@kolen.elektra.ruEvgeny Georgievich Gorbunov, CEOMACHINE ENGINEERING AND METAL PROCESSING25R003■ ● ★ ▲ GTEP TEKOSConstruction of facilities for the 1) Up to 100 km of pipes per year 15, ul. Promyshlennaya, Murmansk,production of foam polyurethanium 2) $1.1 million/1 year Murmansk Region, 183034thermal-insulated steel pipes for heat 3) E, L, Leas. Phone/fax: (8152) 43 5214and hot water supply systems. 4) FS Igor Vyacheslavovich Saburov,Project goal: to penetrate the market of pipesDirectorfor residential housing construction.1L – Loan, E – Equity, Leas. – Leasing, JV – Joint Venture2BP – Business Plan, FS – Feasibility Study

25. MURMANSK REGION [51]91 2 325R004FOOD AND BEVERAGES▲OOO SevtekchcenterUpgrading of fixed assets 1) n/a South Moorage, Murmanskof a mayonnaise producer. 2) $8.9 million/1 year Fishing Seaport, Murmansk,Project goal: to extend product range. 2) JV Murmansk Region, 1830012) Preliminary FS Phone/fax: (8152) 28 6486E- mail: sevteh@dionis.mels.ruValery Ivanovich Levenets, CEOIINORTH-WESTERN FEDERAL DISTRICTTRANSPORT INFRASTRUCTURE25R004■ ● ▲ Federal State Unitary CompanyConstruction of a reloading terminal 1) Capacity of 3 million tons per year Kandalaksha Trade Seaport,for apatite concentrate and phosphorus 2) $9.4 million/3 years 19, ul. Belomorskaya, Kandalaksha,fertilizers at the operating seaport. 2) E, L Murmansk Region, 184040Project goal: to expand the range 2) FS Phone/fax: (81533) 92 141of transshipment services.Alexander Vasilievich Strashny,General Manager25R005● ◆ Murmansk Commercial SeaportConstruction of a freight moorage 1) 300,000 tons of general freight Administration,at the operating seaport. 2) $22.3 million/2 years 19, pr. Portovy, Murmansk,Project goal: to expand the range 2) L Murmansk Region, 183024of port services. 2) BP Phone/fax: (8152) 42 0232, 48 0021Valery Viktorovich Nikulin, CEO25R006■ ● ◆ OAO Murmansk SealinesEstablishment of an ice-breaker fleet 1) 4 modern nuclear ice-breakers 15, ul. Kominterna, Murmansk,to provide year-round transportation 2) $950.2 million/3 years Murmansk Region, 183038of oil, natural gas, gas concentrate, 2) E, L, JV Phone: (8152) 48 1008,and other goods. 2) BP 48 1048, 45 4842Project goal: to increase the volume Fax: (8152) 45 5629and range of port services.E- mail: postmaster@msco.ruAlexander Mikhailovich Medvedev,CEO,Andrei Alexeevich Smirnov,contact personHOTEL BUSINESS. TOURISM. RECREATION25R007■ ▲ ◆ OOO Khibiny Recreation CenterConstruction of a tourist and entertainment 1) n/a 25, ul. Leningradskaya, Kirovsk,center at the tourist hotel Khibiny. 2) $1.0 million/5 years Murmansk Region, 184230Project goal: to provide tourist services. 2) E, L Phone: (81531) 32 7142) BP Natalia Vladimirovna Krotova,Director25R008SCIENCE AND INNOVATIONS▲Federal State Unitary CompanyDevelopment of a fiber optical system 1) n/a Sevmorneftegeofizikafor linear seismic exploration of off-shore 2) $1.3 million/3 years 17, ul. K. Marksa, Murmansk,oil and gas fields. 2) JV Murmansk Region, 183647Project goal: to create a pilot fiber optical 2) Research and development study, FS Phone/fax: (8152) 45 6049receiver and recording system.E-mail: postmaster@smng.murmansk.ruKonstantin Alexandrovich Dolgunov,CEO