The social and economic development of the Chukchi Autonomous Area is marked with the growth of major indices this year, Governor Roman Kopin said during Friday’s meeting with Russian Prime Minister Vladimir Putin.

The Gross Regional Product is expected to reach 32 percent in 2009, which is 13 percent more than in 2008, the governor said.

In addition, an average monthly wage in nominal terms increased by 9.7 percent to 42,000 roubles in 2009, he said. However, there was no wage increases in real terms in the area, Kopin said, replying to Putin’s question.

Chukotka’s inflation was about eleven percent this year, the governor added.

“In other words, the situation did not change as compared to 2008. This is not bad under the crisis conditions,” the Russian prime minister said.

“The autonomous area had certain problems with revenues caused by the decline in taxation. You received assistance from the federal budget. How is it going now?” Putin asked.

According to Kopin, the taken steps made it possible to increase incomes. “In 2009, the autonomous area raised tax collection by almost 40 percent, as compared to previous years, thus cutting budget subsidies,” he said, adding, “The share of federal transfers decreased from 73 percent to 46 percent over the year.”

“It is impossible to say that Chukotka will turn into a self-sufficient region today or tomorrow,” the governor said, stressing, “But I am confident that we chose right course.”

The prime minister also asked whether the area received funds for the implementation of the employment programs. The governor confirmed that the aforesaid funds were received on time and spent for reducing tensions on the regional labour market.

“About 700 people took part in the program, in which the area spent 17 million roubles,” he said.

Putin asked the Chukchotka governor about details of their work in that sphere.

In Kopin’s words, the local administration anticipates possible problems with monitoring of enterprises and retraining or resettlement of personnel in case of redundancy dismissals.

“Imbalance is a feature of the Chukotka labour market. There are populated centres with surplus labour force and another centres with manpower problems,” the governor said.

Next year, the region plans to continue the above-mentioned social programs, Kopin said, adding that the autonomous area is extremely interested in their implementation.

The Chukchi Autonomous area is a federal subject of Russia located in the Far Eastern Federal District. It is the most northeastern region of the coutnry.

The development of Chukotka’s economy is affected by unfavourable climate (cold) and geographical (remoteness from the administrative and industrial centres of Russia) factors. However, Chukotka has its own resource base, high-capacity energy resources, a stable management and supply system and its attractiveness as a subject of investment is becoming more vivid.

Chukotka has large reserves of oil, natural gas, coal, gold, and tungsten, which are slowly being used, but much of the rural population survives on subsistence reindeer herding, hunting, and fishing. The urban population is employed in mining, administration, construction, cultural work, education, medicine, and other occupations.