|Oil and gas industry in the Komi Republic|
The Komi Republic is a democratic republic within the Russian Federation. Power is exercised by the President, the State Council of the Republic and the Constitutional Court of the Republic. The Republic is an independent partaker of international business relations. It may incur foreign debts and conduct business projects which are open to foreign investment and guaranteed by the regional budget. The Republic may also promote foreign investments by offering special operating conditions to international firms.
The Komi Republic has significant natural resources. The major natural resources are: crude oil, natural gas, coal and metal ores. About half of oil and gas reserves in the north-east of the Russian Federation are in the Komi Republic (the reserves are estimated at about 6 billion tonnes). The oil-rich areas are, among others, the basins of the Timan and Pechora Rivers. Coal reserves are estimated at more than 213 billion tonnes. In addition to that, the Komi Republic has the largest titanium reserves in the Russian Federation and the neighbouring countries. The Komi Republic is the largest and the most important supplier of bauxites and magnesium ore. It is possible to discover commercial sulphur, diamond, ruby and amethyst reserves in this area.
The Komi Republic is a relatively well-developed region of the Russian Federation. The industrial infrastructure, the electric power grid using the Republic's own fuel reserves, and transport are well-developed. More than 30 industries are represented in the Komi Republic. Mining and extraction industries are dominant and account for 80% of the total industrial output of the Republic. Nowadays, the Komi Republic produces 22 million tonnes of coal (including 14 million tonnes of coke), 7 million tonnes of oil and gas condensate and 8 million cubic metres of timber a year. The Komi Republic is a significant exporter of oil and gas and other natural resources. Export receipts are estimated at about US$500 million a year.