The Republic of Sakha (Yakutia) is
the largest subject of the Russian Federation. Territory of the
Republic of Sakha (Yakutia) makes 3 103.2 thousand km2 (including
Novosibirsk Islands), it occupies almost the total north-eastern
part of the Asian continent going 2 000 km from north to south and 2
500 km from west to east. The Republic territory is washed by the
Laptevs and East-Siberian seas. The major area is occupied by
mountains, such as Verkhoyansky and Chersky ranges (the highest
mountain of the latter, Pobeda, is 3 147 m high), and by some other
plateaus and uplands (Sredne-Sibirskoye plateau in the west,
Yanskoye, Oimyakonskoye and some other uplands in the east). In the
north part there are Indigirka and Kolyma lowlands. The largest
rivers are the Lena, Anabar. Olenyok, Yana, Indigirka and Kolyma.
Yakutia features an extreme continental climate with
the annual air temperature variation amplitude up to 100∞C (from
+40∞C in summer to -60∞C in winter). The average air temperature
in January is -43,2∞C, and that in July is +18,7∞C. In the
Oimyakon community there is the Pole of Cold of the Northern
Hemisphere where the lowest temperature of -71.2∞C was registered.
The winter in Yakutia is long, cold, with a few of snow while the
summer is short, mostly arid, with relatively high temperatures.
The average population of the Republic of Sakha
(Yakutia) in 2003 has made 948.2 thousand people.* The average
population density is 0.3 people/km2. The number of economically
active population is 514.6 thousand, or 54.2% (estimate). In 2003
the level of registered unemployment was 1.3%, the level of general
unemployment being of 9.4%. In 2003 the portion of urban population
was 64.5%, while that of rural population was 35.5%. The biggest
cities of the Republic of Sakha (Yakutia) in 2003 (in thousand
people) are: Yakutsk Ч 250.1; Neryungri Ч 89.6; Mirny -39.6.
Within 5 years in republic positive rates of economic
growth are marked: the gross regional product, volume of industrial
The main targets of economic development for the nearest years
can be found in the republican task program named as Economic and
social development of the Republic of Sakha (Yakutia) in the period
up to 2007, as well as in the following main programs, namely:
Provision of RS(Y) communities with gas, Development of gold mining
industry and non-ferrous metals deposits in RS(Y), Development of
diamond cutting industry in the RS(Y), Development of jewelry and
gem cutting industries in the RS(Y), Development of coal mining in
the RS(Y), Development of timber production complex in the RS(Y),
Realization of exporting potential of the RS(Y).
GROSS REGIONAL PRODUCT (GRP)
In 2003 the gross regional product of the Republic of
Sakha (Yakutia) in current prices has made 130 406.6 million rubles
which makes, in comparable price 102.7% as compared to the last
yearТs GRP. The growth was mainly due to the industry,
agriculture, construction, transportation and communications, retail
trade. As to the GRP value per capita, the Republic of Sakha
(Yakutia) in 1999-2003 was taking the 3rd Ч 4th place in the
Russian Federation and the 1st place among the regions of the Far
East Federal District.
In industry which is the major branch of the Republic
economics there are some 700 enterprises with various forms of
ownership that employ 92.8 thousand of people. The main branches of
the Republic of Sakha (Yakutia) are: non-ferrous metallurgy, power
industry, fuel industry combining more than 90% of the total
The nearest years in the industry the following targets are
determined: switching to a finer processing of raw materials
produced, creation of new facilities on the bases of active use of
modern technologies, research developments and implementation of all
market mechanisms; diversification of the industrial structure with
the purpose of increasing the portion of products featuring a high
level of natural resources processing, transition from the raw
material export to export of the final products and services.
Fuel-energy complex. Availability of fuel and energy resources
and a state support has made it possible to create in Yakutia a
rather developed power base taking one of the leading places in the
Far East of Russia. The Republic produces 34.4% of coal, 44.5% of
natural gas, 20.7% of electric power in the Far East Federal
Power industry. The portion of power industry in the total
industrial production is 12.2%. The biggest power stations in the
Republic include a Vilyuisk coordinated hydroelectric system which
is the most powerful one in the Far East Region (two hydroelectric
power stations with total capacity of 680 mW, the third stage of the
system with capacity of 90 mW will be commissioned in 2004),
Neryungry Power Station (570 mW), Yakutsk Power Station (260 mW).
Accounting for available standby electric power sources, the
integrated capacity of all power stations located on the territory
of the Republic of Sakha (Yakutia) makes it possible to produce over
8 billion kW-hrs per year, the Republic own demand in electric power
being less than 7 billion kW-hrs.
Fuel industry. A portion of the fuel industry in the total
industrial output is 10.9%.
In the coal mining the output of coal produced in 2003 has made
10544 thousand tons (106.7% to a level of 2002). Yakutugol JSC, a
holding company which is the main supplier of coal from the Republic
to other RF regions and a big coal exporter to the countries of the
Asian-Pacific Region plays the leading role in the local coal
industry. In 2003 exported from the Republic were some 7 597.6
thousand tons of coal for the sum 7,3 billion roubles (72.1% of the
total output), including 5 087.6 thousand tons delivered to the APR
In the oil industry the output of oil produced in 2003 has made
289.9 thousand tons, 30.9 thousand tons was exported. Under
operation are Srednebotuobinskoye, Irelyakhskoye and Talakanskoye
deposits. The main oil production refers to Lenaneftegaz JSC (over
In the gas industry the amount of natural gas and gas condensate
produced in 2003 was 1609.8 million m3 and 77.2 thousand tons,
respectively. Under operation there are three deposits:
Srednevilyuiskoye and Mastakhskoye gas condensate deposits as well
as the Srednebotuobinskoye oil-gas condensate one. The major gas
production falls at Yakutgazprom JSC (over 84%).
A further development of the fuel-energy complex is connected
with a further development of deposits of the South Yakutia coal
field, development of small coal quarries, completion of
reconstruction of the Process Plant of Yakutugol JSC and
re-equipment of the Neryungrinsky quarry and Jebariki-Khaya coal
mine, Kangalass coal quarry, development of Elginskoye deposit; with
putting into extended operation of gas condensate deposits such as
Chayandinskoye and Srednevilyuiskoye, as well as of the Talakanskoye
and Srednebotuobinskoye oil-gas condensate deposits, which would
allow not only for diminishing the RepublicТs dependence on fuel
deliveries but for obtaining considerable profits from selling fuel
and energy resources to other RF regions and to the APR countries.
Non-ferrous metallurgy. Its contribution to the total industrial
output is 68%.
A share of the diamond production industry in the total
industrial production of the Republic was over 60%. The major
diamond production falls at ALROSA JSC. Diamonds are also produced
by some smaller companies such as Alrosa-Nyurba JSC, Nijne-Lenskoye
JSC, AlmazyAnabara Ltd. and KDM Olenyok Ltd. In 2003 the production
amount was 1 764.6 mln. USD in prices adopted in the diamond
In the diamond-cutting industry a production index has made
123.1% as compared to that of 2002 and its share in the total
industrial production has been equal to 3.4%. Among the biggest
companies working in this field are as follows: ALROSA JSC,
Tuymaada-Diamond Ltd., State unitary enterprise of Komdragmet,
EPL-Diamond Ltd. and Choron-Diamond Ltd. In 2003 the production
amount of natural graded cut diamonds was 246.5 mln. USD, the total
amount of sold products being 273.3 mln. USD.
In the gold-mining industry the gold production has increased by
10.8% in 2003 making a share of 7.3%. in the total industrial
production. The biggest gold producers are: Aldanzoloto JSC, Aldgold
JSC, Zolotinka Ltd., cooperatives Zapadnaya and Seligdar, Nirungan
Ltd., Neryungri-metallic Ltd., cooperatives Novaya and Drazhnik. The
amount of gold produced in 2003 was 7.2 billion rubles in current
prices. The total amount of gold sold beyond the Republic was 4.6
billion rubles, gold sale have being increased by 3%.
In the jewelry industry in 2003 the production index has made
103.1% with the total price of articles produced of 558.8 million
rubles, of that amount of jewelry sold beyond the Republic was 236.2
million rubles. The main producers-suppliers are: Zoloto Yakutii
JSC, Sakhayuvelir JSC, Aldanzoloto JSC.
In the period of 2004-2006 the main emphasis will be given to the
following: development of the diamond production industry due to
switching to underground production in the actual mines such as
Aikhal, Mir, Udachnaya, in a standby explored deposit of the
Komsomolskaya pipe, and due to a further development of the
Nyurbinsky and Botuobinsky quarries; development of the diamond
cutting industry due to its upgrading on the basis of terms of
long-term and short-term leasing, crediting, organization of R&D
programs for upgrading and development of jewelry and cutting
technologies; organization of regular activity of the Diamond
Exchange; creation in the RS(Y) of a specialized customs point;
development of gold production due to development of a group of
deposits of the Kuranakhsky and Nijne-Yakokitsky ore fields;
realization of investment projects on development of Nezhdaninskoye
and Kyuchyus gold deposits; implementation of a heap-leaching
technology when involving into production of mediumЧ and low scale
gold deposits of the Verkhne-lndigirsky and South Yakutia gold
production provinces; organization of a stable production of tin and
antimony accounting for economic efficiency and market
opportunities; development of the jewelry industry due to creation
of cutting and jewelry enterprises; re-equipment and upgrading of
the existing facilities, implementation of modern technologies of
gem-cutting; development of facing stone deposits such as Mariyka,
Taloye, Ogonyor and Nadezhda.
A share of the timber industry in the total industrial production
has made 0.9%. The biggest producers are: Sakhales JSC,
ALROSA-Lesprom, Aldanlesprom JSC and Mass Ltd. In 2003 sold beyond
the Republic were 8.05 th. compact m3 of timber and 16.8 th. m3 of
In structure of industrial production the industry of
construction materials takes 0,9% that makes 927 million rubles. In
2003 produced were 223 th. tons of cement and 797.6 th. m3 of
non-ore construction materials.
Food industry. Its share in the total industrial production is
1.8%. The main trends in this industry are: production of meat-,
milkЧ and fish products with various levels of processing,
production of alcoholЧ and non-alcohol drinks. The biggest
producers are: State unitary enterprise Yakutia, State unitary
enterprise Yakutsky khle-bokombinat, Yakutsky gormolzavod JSC,
The output of production of an agriculture for 2003
has made 9219,4 million roubles in established prices or 101,9 % to
a level of 2002, in a comparable estimation. The share of an
agriculture in a total regional product has made 3,4%. Among regions
of Far East Federal District on total amount of manufactures of
agricultural production the Republic of Sakha (Yakujia) takes 1
The main targets in development of agriculture are: improvement
of marketability and profitability of agricultural production,
development of various forms of integration and cooperation between
the existing enterprises, between communities and districts, between
agricultural and industrial companies, organization of material and
equipment procurement on the basis of leasing terms, development of
traditional northern occupations, increasing of the amount of
stocked products, creation of new jobs by introducing new types of
production, creation of conditions for a natural reproduction of
The Republic of Sakha (Yakutia) extends for 2 000 km
from north to south and for 2 500 km from west to east.
The total length of roads in the Republic of Sakha (Yakutia) is
19.8 thousand km, including 2.1 th. km of federal highways and 17.7
th. km of regional roads. A share of highways of general use with
improved pavement is 0.59 th. km (3%) while that of roads with hard
surface is 7.36 th. km (37%). By auto transport in 2003 it is
transported to 2653 th. tons of cargoes and 97291.5 th. person, the
cargo turnover has made 234.8 mln. ton-km, a passenger turnover Ч
574,5 mln. passenger-km.
Water transport. The route length of internal navigable waterways
of general use in the Republic of Sakha (Yakutia) is over 16 th. km.
The water transport of the Republic comprises six river ports
(Yakutsk, Nijneyansk, Belaya Gora, Lensk, Olyokminsk, Khandyga), two
sea ports (Tixi and Zelyony Mys). The main waterways of the Republic
are the following rivers: Lena, Vilyui, Aldan, Kolyma, Indigirka and
Yana. By internal water and sea transport it is transported to
2950.5 th. tons of cargoes, the cargo turnover has made 3394.5 mln.
ton-km. By an internal sailing charter for 2003 it has been
transported 96.5 th. passengers, the passenger turnover has made
14.7 mln. passenger-km.
Railways. The route length of railways of general use in the
Republic of Sakha (Yakutia) is 360 km. Under construction is a
Berkakit-Tommot-Yakutsk railway which would provide reliable
transport links in the North-East region of Russia and would
decrease considerably expenses for goods delivery. For 2003 it is
transported 11015,6 th. tons of cargoes, a cargo turnover 1191,3
mln. in ton-km, it is transported 124,8 th. passengers, the
passenger turnover has made 217,8 mln. passenger-km.
Airports. The airport network of the Republic of Sakha (Yakutia)
consists of 33 airports, 2 of them being the airports of federal
level (Yakutsk, Tixi). In 2003 the aviation companies have
transported 666.8 th. passengers, 31.7 th. tons of cargo and mail.
Oil and gas pipelines. The route length of the main gas pipeline
in the Republic of Sakha (Yakutia) is 1 818 km. In 2003 pumped
through the main pipelines have been over 1 600 million m3 of gas
and 223.5 th. tons of oil products.
In 2004 a transport strategy of the Republic of Sakha (Yakutia)
that determines the main trends of the Republic transport complex
development up to 2025 has been developed.
It formulates the main targets increase of motor transport
services, development of transportation infrastructure to provide
for the all Ч the Ч year Ч round railway and road deliveries
to the South and Central zones of the Republic due to development of
the Tommot transport nodal point, construction of an access railroad
to the Elginskoye deposit, completion of the Berkakit-Tommot-Yakutsk
railroad, construction and reconstruction of the following roads:
Lena (from Yakutsk to the boundary with Amur Region), Kolyma
(Yakutsk Magadan), Vilyui, Amga and Kobyai,
development of a small and passenger aviation, upgrading of ice
ships and a small size fleet.
Discovered in Yakutia are more than 1 500 deposits of
various mineral resources, including 150 kimberlitic pipes, around
600 gold-bearing-, 44 tin-bearingЧ and the same number of
coal-bearing deposits, 34 oil-gas fields, 26 mica deposits, 7 iron
ore ones, along with a number of antimony-, zeolite-, apatiteЧ and
many other deposits. The Republic energy resources are also very
considerable: the Republic accounts for 47% of explored resources of
coal, 35% of natural gas and oil of the Eastern Siberia and Far East
as well as for 22% of the total water resources of Russia. Nowadays,
the Republic of Sakha (Yakutia) takes the leading positions in
Russia providing, in particular, 100% of antimony, 98% of rough
diamonds, 40% of tin, 15% of gold and 24% of cut diamonds. According
to the existing estimates, the Republic concentrates the main
explored and probable Russian resources of diamonds and antimony,
40% of tin, 20% of gold, 9% of exploredЧ and 15% of probable
resources of tungsten, 10% of mine able reserves of phosphates, iron
ores and significant reserves of hydrocarbons. Many explored but
currently not operated deposits are known as large, unique deposits
of a complex type.
Diamonds. The total amount of explored resources of diamonds is
capable to sustain the diamond production industry for 40 years.
In accordance with a five yearsТ program of diamond production
industry development in the Republic it is planned to construct and
commission four underground mines (Udachny, Aikhal, Mir,
Internatsionalny); in August 2003 a Nyurbinsky mining and processing
enterprise was put into operation.
Oil and gas. The predominant part of hydrocarbon resources is
concentrated in such oil and gas-bearing provinces as Vilyuiskya,
Nepsko-Botuobinskaya and Predpatomskaya. The largest reserves of
natural gas are located in such deposits as Srednevilyuiskoe,
Srednebotuobinskoye, Srednetyungskoye, Verkhnevilyuchanskoye and
All oil reserves that have been discovered by now are located
within the Nepsko-Botuobinskaya oil-bearing province. Under a pilot
production are being now the following deposits: Srednebotuobinskoye
(with recoverable reserves of 66.1 mln. tons), Irelyakhskoye (with
recoverable reserves of 10.2 mln. tons) Talakanskoye (with
recoverable reserves of 123.8 mln. tons). The existing oil resources
are capable to sustain the initial operation of the oil industry
while those of natural gas are capable to sustain the gas production
for about 40 years at the maximum production rate of 35 billion m3.
In order to cover the needs in oil products through their
domestic production and sale, it is planned to implement the
Ч construction of a system of main oilЧ and gas pipelines
within a united corridor in the eastern direction and installation
of a central supply point in the Chayandinskoye oilЧ gas
Ч starting a pilot operation of the Srednetyungskoye gas
Ч organization of works for production, transporting and
processing of gas from the Srednevilyuiskoye gas condensate deposit.
To improve reliability of gas supply and capacity of the existing
pipelines, to produce liquefied gas and motor fuel for covering
needs of Vilyui districts and its supply to consumers of the Central
region of Yakutia, under construction is a third line of the
Mastakh-Berge-Yakutsk main pipeline from the Srednevilyuiskoye gas
condensate deposit that is financed from both the Federal budget and
from the state budget of RS(Y). Completed is the construction of a
LPG Plant in Yakutsk.
Coal. As to geological resources of coal, the Republic of Sakha
(Yakutia) takes the first place in the Russian Federation with more
than 40% of the total Russian coal reserves. By now only 44 deposits
are enlisted in the State Balance totaling 9.6 billion tons. A
considerable part of the reserves represents high-quality coking
coals: Neryungrinskoye and Elginskoye are the deposits for open
mining with respective reserves of 307.3 and 2047.8 mln. tons;
Denisovskoye and Chulmanskoye are the deposits for underground
production with respective reserves of 28.8 and 758.3 mln. tons.
As to the Elginskoye deposit, a study of coal quality is being
carried out in conformity with international standards, as well as
some survey work has been done along a Elga-Ulak railway and on the
In January 2003 there was an open tender for a state holding of
shares of the Denisovskoye JSC (coal quarry) representing 49% of the
authorized capital stock. Seven companies incorporated in Moscow and
Elista (Kalmykia) took part in the tender. A company from Moscow,
SEAR MF JSC (related to Evrazholding) was the winner.
Gold. The gold resources base is one of the largest in Russia
(over 20% of the total Russian reserves). Gold is widely spread over
the entire territory of Yakutia but the industrial gold-bearing
capacity is concentrated in the Eastern and South Yakutia, mainly,
in the basins of Indigirka, Yana and Aldan rivers. Conditional life
of supplying gold producers with gold reserves is 67 years on the
whole for the Republic, including over 200 years for ore gold and 34
years for placer gold.
To increase gold production and improve the efficiency of using
gold resources, a program of gold industry development and
non-ferrous metals deposits development in the Republic of Sakha
(Yakutia) has been worked out and being implemented now.
It is planned to put into operation new ore deposits of gold and
those of non-ferrous metals, in particular:
Ч development of the Nezhdaninskoye ore gold deposit;
Ч development of deposits of the Kuranakhsky and
Nijne-Yakokitsky ore fields;
Ч operation of the Tabornoye and Zaderzhninskoye ore gold
In December 2003 the first starting complex of Nezhdaninskoye
mining and processing enterprise was commissioned. Examination of
the deposit total reserves is being now completed.
Silver and polymetals. The Republic has large resources of silver
and poly-metals. Being prepared are investment projects on
development of large silver-complex ores deposits such as Sardana,
Verkhneye Menkeche and Prognoz. Reserves of the deposits are
prepared for industrial mining.
In the nearest future, it is planned to create a mining
enterprise for a pilot operation of Sardana and Prognoz deposits.
Tin. As to tin reserves (about 50% of the Russian total) and
production (about 40% of the Russian total) the Republic takes the
first place in the Russian Federation. Small-scale exploration works
are carried out only on the Churpunyinskoye deposit replenishing
some 10% of mined reserves.
Antimony. Explored and probable antimony reserves in the Republic
make over 90% of the Russian total. A raw mineral base is
represented by the large Sarylakhskoye and Sentachanskoye
gold-antimony deposits as well as by the small Maltanskoye,
Kimovskoye and Tanskoye gold-antimony deposits with low grade
associated antimony. The reserves of Sarylakhskoye and
Sentachanskoye deposits are estimated to be 210 th. tons of
antimony. It is planned to develop a feasibility study to make a
decision about a possible creation of a metallurgy plant for
producing antimony as a final product, and to diversify production
facilities of Sarylakh-Surma JSC.
Niobium, rare earth metals. The Tomtorskoye deposit situated in
the north-west part of Yakutia is a promising and large source of
rare metals, including niobium and yttrium. Developed is for
industrial production a large raw mineral base containing niobium
and rare elements of the yttrium group that is capable to satisfy
the proper Russian needs for a long term. In 2004 it is planned to
start pilot operation at the Tomtorskoye deposit.
Titanium and iron ores. At present coming are to the end
assessment survey works on the Torginskoye titanium deposit of the
Murunsky ore massif in the South Yakutia.
The center of Murunsky ore massif is at the same time the center
of the largest Charo-Tokkinskoye iron ore deposit. In addition to
the Charo-Tokkinskoye deposit, there are many other iron ore
deposits prepared for industrial mining (Tayozhnoye, Desovskoye,
Tarynnakhskoye, Gorkitskoye and
Imalykskoye). A long-term prospect of developing the iron ore
deposits of the South Yakutia is due to a necessity of creating here
a large coal-metallurgical base.
Apatite etc. In future a great role in social-economic
development of the Republic will be played by deposits of apatite in
the South Yakutia (for example, Seligdarskoye deposit), by deposits
of piezooptic minerals (Perekatnoye, Pyat Paltsev (Five Fingers),
Tabornoye and others), by deposits of gems (Inagli, Sirenevy Kamen
(Purple Stone), Mustakh etc.), by those of construction materials,
rock salt, mineral waters, zeolites and phlogopite.
FOREIGN TRADE ACTIVITY
In 2003 the foreign trade turnover was 1 366.6 mln.
USD making an increment of 19.7% as compared to 2002. The amount of
export (1 271.5 mln. USD) has 7 times exceeded that of import (95.1
The greatest share in the range of export merchandise belongs to
cut and rough diamonds, and to coal. The shares of merchandise
exported to CIS countries and to the other ones were 2% and 98%,
respectively. Among the main countries importing locally produced
merchandise are: the UK (50.1% of the total figure), Belgium
(11.1%), Japan (10.9%), Israel (9.7%), the USA (6.1%).
In 2003, the main place in the range of merchandise imported by
the Republic was taken by various equipment and mechanic devices
(43%), trucks (17.6%), rubber and rubber products (13.6%). The main
exporting countries are: the USA (37% of the total import figure),
Sweden (24.3%), Japan (11.7%).
AMOUNT OF INVESTMENTS
IN THE REGION
The main factors providing for an investment appeal of
the Republic of Sakha (Yakutia) are as follows:
Ч availability of considerable resources of raw materials and
Ч presence of ALROSA, an export-oriented and local
Ч availability of gold-producing and jewelry enterprises;
Ч availability of the mining industry allowing for exporting
Ч readiness of the State and local authorities for carrying out
specific negotiations with possible investors on forms of their
participation and on warranties regarding the returning of capital
Ч a high level of entrepreneurship and business activity;
Ч nearness to sale markets of the APR countries;
Ч a unique tourist potential.
In the economics structure the major investments in the fixed
capital fall at the industry, construction, transport and
communications, and housing and communal services.
The Republic of Sakha (Yakutia) takes the second place on foreign
investments in the Far East Federal District (after the Sakhalin
THE MOST APPEALING INDUSTRIES FOR INVESTORS
The most appealing for investors are the diamond-cutting and
gold-mining industries as well as the fuel and energy complex
(oil-gas production, coal-mining and power industry).
A list of deposits coordinated with the RF Ministry of Nature
Resources and approved for tendering in 2004:
1. Verkhne-Munskoye kimberlite field (ledge diamonds), Olenyok
2. Sardana deposit (poly-metals), Ust-Maisky district.
3. Derbeke deposit (placer gold), Tomponsky district.
4. Denisovskoye deposit (coal of D15, D11 and D19 categories),
territory under authority of Neryungri municipal administration.
5. Verkhneye Menkeche deposit (silver, pol-metals), Tomponsky
6. Lunnoye deposit (ore gold, silver, uranium), Aldan district.
7. Tomtor deposit, Buranny site (rare earth elements), Olenyok
8. Malo-Tarynskoye ore field (ore gold), Oimyakonsky district.
9. Chayandinskoye oil-gas condensate deposit, Lensky district.