NEWS

Swedish companies work in Russia, but them should be more

The first half of 2009 Russia was in the eleventh place in the export statistics, and constituted only 1,4 percent of Swedish exports during this period.

During the period from 2007 to september 2009 the Swedish direct investments in Russia estimated to be about SEK 12 billion. This puts Sweden in the eighth place among foreign direct investors.

But the Swedish investor, Ikea is not included in the figure. The reason is that Ikea's Russian investments are channeled in from Germany. Ikea currently has twelve department stores in Russia and plans to build a department store in every town with at least one million people.

The Stenbeck-owned telecom operator Tele2 is also a major player in Russia.
It is the fourth largest company in the Russian mobile market with 14 million customers and investments amounting to approximately SEK 15 billion.

Other major Swedish actors in the Russian market are Oriflame, Volvo Trucks, Ericsson, TeliaSonera, SCA, SKF, Sandvik and Scania.

During the meeting between the Swedish Prime Minister and the Russian President, a number of contracts were signed.

The agreements concern including launches of Swedish satellites, simplified bureaucracy for the Swedes working in Russia and cooperation on energy efficiency.

This can give Swedish companies large orders if the relatively small Swedish companies can unite their forces and act together towards Russia.

Fewer foreign tourists to Finland

Even the British and the Germans' interest to visit Finland has cooled. The decrease is 25 and 15 percent. On the other hand, the number of tourists from Estonia, Holland and USA has raised.

Promoting women's entrepreneurship in 2010

Sweden's county councils/regions get together 45 million SEK in 2010 to distribute to the future project-owners. For Norrbotten it is about 1 865 000 SEK for 2010.

Who can apply?

Both private and public bodies can apply for a grant to start a business or innovation development. Note: Companies cannot apply for funding to develop their own company.

What type of project one can apply for?

The project can for example include consulting, coaching, mentoring, networking and/or training or equivalent tools and techniques that promote women's entrepreneurship.

What is the target group?

• Women who run their businesses, by themselves or with others, who want their businesses to be developed
• Women who want to start a business
• Women who intend to start a business

Priorities

Priority will be given to projects that offer activities throughout the county or most parts of the county, have a clear target group, are well grounded, have a project manager with knowledge of gender issues or explain how this condition is otherwise solved.
The project should address issues of women in

• Green industries in the backcountry and rural areas
• Efforts to business-oriented IT and Web use in the backcountry and rural areas
• Service-sector
• Creative and cultural sector
• Health and social care
• Education

Which costs are covered by the grants?

• Salary costs
• External services
• Cost of premises and equipment
• Compensation to speakers
• Travel expenses
• Other expenses
• Own work (maximum 20%)

Financing

Action 1 is funding 65% and the County Board of Norrbotten is funding 35% of the costs.

Project

Projects can last to 31 December 2010.

How to apply

Fill out the application form, which you can download here. Application deadline is March 22.

Have questions?

Contact: Monica Lion, +46 (0)920-96230, monica.lejon @ lansstyrelsen.se

The whole programm is available at Tillväxtverket website.

Barents Bar re-opens in Murmansk

Located within the walls of Park Inn Poliarnie Zori, the Barents Bar was earlier owned by private Russian investors.
The opening ceremony took neither solemn speeches nor photo shoots. The bar remains as cozy and informal as it has always been.

The hotel, as a new owner of the bar, did repainting and cleaning works, updated the menu and introduced a new music tradition – live jazz on Saturday afternoons.

Can travel freely across the border

Moreover, the agreement shall be approved by the Russian Duma, which means that it still will take a year before the scheme comes into force.

One of the preconditions for getting a cross-border ID is that one has to have lived three years in Sør-Varanger.

Mayor of Sør-Varanger municipality, Linda Randal, is happy that the cross-border ID will be available in Sør-Varanger.

- I believe that the agreement will mean a lot of contacts between the countries. Both that the people going to travel to Nikel to go to a pub or a restaurant, and we can also exchange Russian and Norwegian workers. I think this is going to open opportunities that are currently not exploiting, both in terms of business and other areas.

Police in East Finnmark has been concerned that more open borders will result in increased drug traffic from the East. This mayor of Sør-Varanger is less concerned about this.

- It's so that more openness between the countries brings both joys and sorrows. Moreover, statistics show that there actually are not more villains in Russia than in Norway, so I think it's a focus we should put down, said Randal.

The prise for the Entrepreneur of the Year in the Barents region is appointed

The whole idea of the Barents Reunion Convention came in connection with the opening of Ikea in Haparanda in November 2006. Ingvar Kamprad allocated ten million SEK to bring together the five nations in the Barents region, namely the North-west Russia, the northern parts of Sweden, Finland, Norway and the Sami.
  
Last Friday there has been a little different press conference before the Barents Reunion Convention will be held in Haparanda 16-17 June. In addition to the media that attended the press conference there were 200 other media following it via Internet, according to the organizers of Barents Reunion.
    
- Ingvar Kamprad has hatched the idea of founding a prize for a company that could serve as a model for other entrepreneurs in the Barents region, says the mayor of Haparanda Sven-Erik Bucht.

The press conference’s hosts were also the Mayor of Tornio Raimo Ronkainen, the Director General of the Swedish Agency for Economic and Regional Growth Christina Lugnet, and the moderator Malcolm Dixelius. They all include the steering group that will appoint the winner.
  
- The criteria is that the company has to be run in at least three years and it is active in the Barents region, preferably over the borders. The one who wins is also appointed to be the mentor for the next coming company, says Malcolm Dixelius.

Christina Lugnet sees great opportunities for the tourism industry in the Barents Region.
  
- Entrepreneurship in the Barents Region is very commodity-intensive, so more companies in other branches are needed, she says.

Significant increase in tourism consumption in Sweden in 2008

Export, the value of foreign visitors' consumption in Sweden, increased during the same period by more than 100 percent at current prices. Added value and the number employed in the travel and tourism industry also increased significantly during the period. Tourism's share of/relation to Sweden's total GDP fluctuated between 2,77 and 2,94 percent, which shows that the travel and tourism industry's share remains relatively constant in comparison to the overall economy.

Direct bus route from Hammerfest to Murmansk

- This route will tear down the invisible Berlin Wall that now stands on Børselv mountains between East and West Finnmark, says Bjorn Angell at Finnmark turbuss.

If that route goes through Ifjordfjellet, instead of Karasjok and Tana valley on its way eastward, the population of Nordkyn will be provided with the route to the east they do not have today. Nordkyn belongs to East Finnmark, but they have no bus service on the road.

- We plan to run twice a week. On Thursdays and Mondays. This is a project that will last half a year to begin with, we shall evaluate the offer, says Bjorn Angell, who along with Johnny Birkely Andersen will be the drivers of the direct route.

Traveling from Hammerfest today, one cannot expect to be in Murmansk any earlier than two days later. You have to stay overnight in Kirkenes and travel on from there the day after.

Svanstein invests heavily in ski tourism

- We have renovated the cottages and rooms at Svanstein Manor, but they are not enough to meet the demands, said Linus Rova, CEO of Svanstein Gård AB, where Svanstein Ski included.
  
Therefore, it now takes a big step to become a big tourist destination, with an emphasis on skiing and adventure tourism. If everything goes as it’s planned, there will be investments of 500 million SEK initially. The well-known Stockholm architect Lars Liedegren is involved in the project's creative design.

- Yes, that's right. But we should not be anything like a new Levi, but rather a complement to it. We will do this in our own way, imbued with a long-term sustainability and environmental awareness. We do not compromise about nature. Guests will get close to nature's unique experiences, said Linus Rova.  

There will be a number of hotels, ski-lodges and restaurants built if all goes without a hitch. The whole area will be car-free, fully in line with environmental thinking.

The world's largest sauna is being built in Haparanda

The sauna is built on four levels. It begins on the ground floor with 40 degrees, on the first floor it is 60, the next floor has 80 degrees, and the top it is 100 degrees, for the real saunas-lovers. And on top, there will also be a steady snow from the artificial snowfall.

The world's largest sauna will be 125 square meters large and with 8-meters ceiling height.

In June 2010, the sauna will be ready.

Economic crisis hits Santa Claus

Airports in the north of Finland expect to get 132 fewer charter flights of Christmas tourists than last season. The decline is the largest in the history of Christmas tourism in the north of Finland, Yle.fi wrote in the beginning of December.

Rovaniemi, the Finnish Santa Claus capital, is losing its position as the centre of Christmas tourism. This season, 132 charters will land at the Rovaniemi airport. A year ago the number was 187, indicating a decline of nearly 30 percent.

Kittilä, host of the successful Levi ski resort, is gaining at Rovaniemi’s Expense. Kittilä airport is expected to receive 141 planes this season. This is still less than one year ago.

Some 600,000 people visits Levi ski resort annually and the construction boom continues. As BarentsObserver reported, some €450 million is invested in new hotels, restaurants and apartments over the last three years. This year, a €20 million new spa-complex is under construction and 17 new pools will soon be opened.

The whole world in Tromsø

In addition to participation at the conference, the companies had the opportunity to book meetings with many of Innovation Norway's offices. Almost 70 intentions to hold meetings were reported, and 57 meetings were conducted with the representatives from offices in Europe, USA, Asia and South America.

Feedback from businesses has been overwhelming! They have expressed great satisfaction with the conference and the concept to be able to meet representatives from Innovation Norway.

The plan is that the International Arena will be held again in two years and in the meantime Troms Chamber of commerce and IN Troms would follow up the success of the smaller events.

Vardø is the least business-friendly municipality in Norway

The best municipality in the country in this survey, is Ullensaker, which excels on to attract people and develop good business.

Businesses struggling
- People moving out from Vardø, and companies are struggling with growth and profitability. If I were to select a municipality to be mayor of, I would rather NOK selected Ullensaker above Vardø, says Knut Vareide at Telemark Research.
On behalf of the NHO they also made this year a list of economic development, and another list of attractiveness. They also made a total list, and it is on this list Vardø to score the worst.
- Vardø is the last overall. On industrial development is the number 429 of 430 municipalities. Only Bjarkøy is under, says the researcher.

Worse in Alta and Hammerfest
When it comes to attractiveness, it goes on moving to and from. The figures are adjusted for job growth.
- So, people move to a municipality even if they do not have work?
- Yes, they do. Either working in the neighboring municipality, or being pensioners or retirees, or staying at home with children.

Economic Development
When it comes to economic development, one has seen start-ups, growth and profitability in existing businesses.
There are also some municipalities in northern Norway which makes it good.

Good in Narvik
- Something that is a bit funny, that many municipalities of Norway do well. Narvik is good for business start-ups. On the 14th place in the country with regards to the new entrants.
For industrial development as a whole, is Rana on the 12th place in the country. Meløy is located at No. 48. These municipalities perform the best in the north.
Among municipalities in Finnmark who "do not do it so bad", is Sør-Varanger on the 90th place. Then comes Kautokeino on the 160th place.

Poor in Alta and Hammerfest
Perhaps a little surprising, that municipalities, that have previously been doing well, such as Alta and Hammerfest, are scoring low now.
- Alta is number 267, the worst Alta has been for a long time. Last year it was number 31. And Hammerfest has dropped down to 289 place.
In 2005, Hammerfest was number 38. Also Tromsø has made it much worse than before, 217.

Value creation and job satisfaction
- Businesses are interested in how the country drives the value creation. But in addition they must also place them in an area where employees thrive and want to stay, said John G. Bernander, president of NHO.

Governor of Arkhangelsk Oblast Ilya Mikhailchuk believes that the administration for the Northern Sea Route will be located in Arkhangelsk.

An administration office for the Northern Sea Route could give Arkhangelsk Oblast a boost in development through increased freight traffic, fleet enlargement and expanded authority, Mr. Mikhailchuk says.

Ilya Mikhailchuk earlier this year urged that Russia should speed up the development of the Northern Sea Route, since climate change soon might make it possible to use the North East Passage outside the Russian 200 miles zone.

The Northern Sea Route is Russia’s main arterial sea road in the Arctic. Along this route, all ports along the Russian northern coast are provided with fuel, materials and supplies, and timber and other natural resources are being brought out of the area. The main users of the route are Norilsk Nickel, Gazprom, Lukoil, Rosneft and Rosshelf.

In september, BarentsObserver could report that two German merchant vessels became the first foreign commercial vessels to make it through the formerly impenetrable passage without assistance of icebreakers.

Following the climate changes and rapidly decreasing sea ice in the Arctic, there is a growing interest in exploitation of the Northeast Passage. This is the shortest sea route between the Far East and the European parts of Russia. The distance from St. Petersburg to Vladivostok is 14.000 kilometers, compared to 23.000 kilometers through the Suez Canal.

Maud Olofsson presented the priorities during the Swedish presidency of the Barents Euro-Arctic Council

- The transition to the eco-efficient economy will be an overarching priority for our presidency of the Barents Council. An eco-efficient economy is about the creation of wealth, while a shrinking amount of natural resources consumed, which in turn leads to a reduced environmental impact.

- It's about exploiting the growing demand for environmentally friendly products and services when the world performs the necessary transition to new forms of housing, production and transportation. It is about creating conditions for development of new technologies, new solutions, new industries, jobs and prosperity that create sustainable economic growth, said Olofsson.

Investment in cleaner technology
Maud Olofsson told also that the Swedish Presidency will intensify cooperation in the fields of renewable energy and energy efficiency.

- We also want to build networks and awareness of sustainable consumption and production in the Barents region. Training on cleaner production and consumption must go hand in hand with concrete investments in cleaner technology, said Olofsson.

Economy ministers meet in Umeå 2010
During the next year Maud Olofsson will collect the Barents region's economy ministers at the meeting in Umeå to discuss renewable energy and energy efficiency.

- We will discuss how we can jointly tackle the challenges that Barents region is facing. Not least, we will discuss common opportunities we have. To cope with the climate challenge, big investments must be made in the coming years, and it opens up opportunities for business in the region, said Olofsson.

Areas with severe environmental problems identified
The Swedish Presidency will also give special attention to the handling of objects from the list of identified "hot spots", i.e. environmental problems in Northwest Russia.

- The time is now ripe to more strategically manage the items that appear on the list. Close cooperation is needed with the Russian regions, and between our countries, said Olofsson.

The Arctic Council includes Norway, Sweden, Finland and Russia. Although Denmark, Iceland and the European Commission subject. The cooperation covers virtually all areas of cooperation such as health, youth, culture, economy, environment and energy.

Finland and Archangelsk Forge Stronger Ties

The area is rich in natural resources from oil to diamonds, forests and the metals industry and a trained labour force. Despite its large area, only one per cent of Russia´s population lives there.
 
Of great concern is better utilisation of the region´s forest resources. Väyrynen promised that the topic will be studied in a seminar of experts. The Archangelsk participants suggested that Finland set up a consulate there. According to Väyrynen, this will not be considered in the present circumstances, but he left the door open in case ties between the region and Finland should become clearly more solid.
 
Fifteen leading Finnish companies and a delegation of civil servants participated in the export promotion and internationalisation trip to Archangelsk led by Minister for Foreign Trade and Development Paavo Väyrynen on 6—8 October.

A TV-team from Murmansk and Arkhangelsk

You can watch some of the stories on our website. The stories are in Russian, but you can feel the entrepreneurial and cultural atmosphere that covered Haparanda the last days of June 2009.

BP Forecasts Arctic Ocean Holds 200 Billion Barrels of Oil

It´s a “huge frontier," Mike Daly, BP head of exploration and access, said in an interview for the London-based company´s in-house magazine, Horizon. BP is exploring Arctic waters off Russia, Canada and Alaska.
The British company is cooperating with Russia´s state- owned OAO Rosneft to search for oil and natural gas in the country´s Far East and Arctic. In January, it hired CGGVeritas, the world´s largest seismic surveyor, to explore its acreage in the Beaufort Sea off Canada´s northern coast.

Oil companies have to drill deeper wells and move into new exploration frontiers to discover oil and gas and replace reserves from depleted fields. BP today reported a “giant" oil discovery at the Tiber prospect in the U.S.´s Gulf of Mexico that may contain more than 3 billion barrels, after drilling the world´s deepest exploration well.
BP has about 40 percent of its exploration portfolio in the Gulf of Mexico, Angola and Egypt.
“Recent acreage access in the Gulf and Egypt has secured a prospect inventory to" sustain resource growth “for much of the next decade," Daly said in the interview.

The countries of the Barents region will be exchanging specialists.

Even the Norwegians are now talking about the lack of jobs, even if Norway has the lowest percentage of unemployment compared with other countries in the Barents region - only 4%.
Director of the Employment Service of Finnmark fykeskommune, Norway Runar Hartvigsen said: "Over the years we have been successfully developing at the expense of oil and gas industry and construction. In 2009 the companies began to invest less and the number of orders for ships significantly reduced."

How to fight unemployment was the main issue on the agenda. One of the ways is running the refresher courses, which help to find a new place on the labor market. Neighbors from Finland have placed great hopes on it. Head of the Department of Economic Development of the Employment Center in Oulu, Finland, Kalevi Seppänen said: "This year the unemployment in our country is constantly growing. To reduce its level we have allocated additional budget funds. With these tools our citizens may enter another more demanding profession. We also pay much attention to people with disabilities. We give them financial support."

The participants concluded that only the successful cooperation can improve the employment situation. Meanwhile, the united labor market in the Barents region is being formed, according to experts, very slowly. Last year, for example, only 120 residents of Russia were able to get the jobs in Norway. The employment in Russia of our northern neighbors is also rather inactive. A draft project is being developed, according to which there will be the exchange of experts among the countries of the Barents region. Russia is interested in attracting foreign experts. Especially when it comes to the Shtokman gas field and development of maritime transport hub.

You can watch this story at Murman TV website.

Ikea, Barents Reunion, environment

The items for peace and cooperation in the Barents region

- The idea of Nordkalott Committee is that it should be the people's voice, the people's diplomacy, said Birgitta Ahlqvist.
On Saturday, they agreed on nine items as they will send both to the media, policy makers and governments in the four countries.
They require, among other things, that all chemical and nuclear weapons dismantled in northern Europe. They express concern over U.S. plans to establish a missile shield in eastern Europe, but also an appreciation of the U.S. and Russian Presidents that today are actively working for disarmament.

Regarding communications, they want the air routes between Tromsö and Luleå as well as between Luleå and Murmansk to be restored, the Norrbotnia railroad finalized and that visa requirements abolished.

- I'm sure we can get what we want, although some things will take a long time, says Birgitta Ahlqvist.

Ingvar Kamprad made his radio show

Ingvar grew up in Ljungby municipality on the farm Elmtaryd, which was the largest in the area. As a businessman he started early to sell pens and seeds. Then there were chairs and sofas. Now he has not only furnished the Swedish welfare state but homes in 24 countries.

- My Summer Program is a simple chat, said Ingvar Kamprad. - I have never learned to climb the tree of knowledge. But the fairly long life has given me a reasonably good experience of many things. At least some might interest you?

The War Opera in Haparanda

The performance is in four languages - English, Finnish, Russian and Meänkieli. The number of costumes needed is more than 200 time-typical 1800-century clothing and uniforms.

Minister Visits Tornedalen

Torne Valley is known for Ewa Björling, whose grandmother and grandfather are from this area.
 
This visit is, actually, a number of business visits on both sides of the border to create an insight into their view of the border.

Major focus has been set on the Northland Resources? planned mining, but also Mikromakarna's positive development has impressed the minister who visited these two companies.

- The mine is a fantastic project which shows the importance of cooperation between companies on both local and national levels. The fact that Mikromakarna is unaffected by the financial crisis is unbelievable, says Ewa Björling.

Of all the views expressed the introduction of the Euro is high on the list. But even the need for more businesses and skilled workers.

- The question of the euro is discussed all over the country. We have promised to respect the referendum and will not review it until after the election, says Ewa Björling.

Then the trip continued to Tornio where it was the visit to Outokumpu and a meeting with Haparanda and Tornio municipalities' leaders.
 
- I see a very different future in Tornedalen today than ten years ago, says Ewa Björling.

The Finninsh Prime Minister Matti Vanhanen's Barents Strategy

Northern Finland felt that Finland's strong Russia-related expertise, and the provided opportunities of the Barents region are having too little attention. This situation should be improved by the consistent communication of the State with the Barents region's key players. Also Finland's visibility should be improved in the Russian Barents Sea region. It is also important to develop transport links in northern Finland and the Russian part of the Barents region.
 
The operational implementation of the years 2009-2013 would require a total of 35 million euros. The state is expected to allocate around 21 million. Northern Finland, for its part is prepared to invest around 14 million.
 
Northern Finland wishes to draw attention to the North-West Russia's economic potential and its importance for Finland and especially for Northern Finland. The Barents region is virtually the solution for the EU's future needs in resources.

Northern Finland can provide a complete business network, the development of cooperation in the Murmansk and Arkhangelsk regions. Northern Finland also has expertise in the areas of research, education and development. Barents Economic Development Strategy is to support the internationalization of North-West regions of Russia. At the same time it has to offer the possibility to create contacts with the Russian business for the Finnish business actors.

German tourists will come to Kiruna

Kiruna has the high expectations that the number of German tourists will increase after the major travel sellers visit.
 
First of all it's rafting at midnight sun, sauna rafting and elks that should attract tourists. It is a bit of what the 90 travel sellers from Germany may experience during their days in Kiruna.

- We will notice the effect already before this winter, I am sure, says Peter Thornéus, CEO of Kiruna Lappland. - The Germans are the people in the world who travel most of all, and they are over 80 million people. So that if we can get a small, small part of the cake, so it creates a huge push for us.

Murmansk will be a new communication hub

The high-speed cable in Murmansk is of interest also for neighboring Norway. The possible extension of the cable across the border to Norway, was discussed in a meeting between Murmansk Governor Dmitry Dmitriyenko and Finnmark County leader Runar Sjåstad last week.
In the meeting, a memorandum of understanding was signed by the parts, opening up for further studies of the project, a press-release from the Murmansk administration informs.
While the Russians have laid broadband cables to the border town of Nikel, the Norwegians have cables stretched to Kirkenes. As Barents Observer earlier reported, regional colleges, hospitals and business now welcome the cross-border cable plans.
Leader of the Finnmark County's business development department, Tore Gundersen, says to BarentsObserver that the MOU with Murmansk signals an interest in a cross-border broadband connection from Nikel to Kirkenes. The connection will strengthen connections between the regions, he underlines.

Euromoney in Pajala?

On its way to the Municipal Council the party would like to introduce euro for payments in the municipality.
 
The party says that there is more and more intensive cooperation with the neighboring municipality of Kolari on the Finnish side, and preparation for future mining in Pajala.

Norwegian Minister for Oil and Energy Terje Riis-Johansen has presented the new organization Norwegian Renewable Energy Partners, INTPOW.

Investment possibilities in Norrbotten

And still the county has been doing quite well in the financial crisis.

- It feels good that we in Norrbotten have passed us better in comparison with the rest of the country, says Anders Viklund.

A Wooden Sky-skraper in Kirkenes

Governor of Arkhangelsk Oblast Ilya Mikhailchuk believes that the administration for the Northern Sea Route will be located in Arkhangelsk.

- I think it is only a question of time when the Northern Sea Route will be administrated from Arkhangelsk, Governor Mikhailchuk told news agency Rosbalt. - The Northeast passage starts from this region, and therefore it is natural that the operating company’s administration is located here, Barents Observer reports.

An administration office for the Northern Sea Route could give Arkhangelsk Oblast a boost in development through increased freight traffic, fleet enlargement and expanded authority, Mr. Mikhailchuk says.

Ilya Mikhailchuk earlier this year urged that Russia should speed up the development of the Northern Sea Route, since climate change soon might make it possible to use the North East Passage outside the Russian 200 miles zone.
The Northern Sea Route is Russia’s main arterial sea road in the Arctic. Along this route, all ports along the Russian northern coast are provided with fuel, materials and supplies, and timber and other natural resources are being brought out of the area. The main users of the route are Norilsk Nickel, Gazprom, Lukoil, Rosneft and Rosshelf.

In september, BarentsObserver could report that two German merchant vessels became the first foreign commercial vessels to make it through the formerly impenetrable passage without assistance of icebreakers.

Following the climate changes and rapidly decreasing sea ice in the Arctic, there is a growing interest in exploitation of the Northeast Passage. This is the shortest sea route between the Far East and the European parts of Russia. The distance from St. Petersburg to Vladivostok is 14.000 kilometers, compared to 23.000 kilometers through the Suez Canal.