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INDUSTRIAL PRODUCTION IN IRKUTSK OBLAST

A specific feature of the economic-geographical position of Irkutsk Oblast in the southern part of East Siberia (almost in the center of Asia) is its remoteness, both in terms of distance from the main economic centers of European Russia (the distance from Irkutsk to Moscow is over 5,000 km) and the distance from major sea ports (the Baltic Sea is about 5,500 km away, the Pacific Ocean over 4,000 km). The location in the midst of Siberia is partly compensated for by the availability of good transit transportation routes (e.g., the Transsiberian and Baikal-Amur Railway, the Moscow Highway, and air routes). This gives the region a comparatively favorable position relative to the neighboring regions, which have to depend on the supplies of many products from Irkutsk, mainly due to their lower industrial potential.

The economic profile of Irkutsk Oblast is dominated by industry, which produces 80 percent of its aggregate gross output. The Oblast is one of the 15 industrially most developed regions in Russia. The most important branches are: fuel-and-power (highly efficient hydro-power engineering), metallurgy (non-ferrous, represented by aluminum production, and ferrous metallurgy — producing iron ore concentrate and fire-proof materials), petro-chemistry, inorganic synthesis chemistry, forest industry, mining (gold). Construction materials, foodstuffs and light industries are of primary regional importance.

Irkutsk Oblast has 35 percent of Russia’s total aluminum production capacity, 20 percent of the country’s pulp production capacity, 15 percent of its caustic soda, 12–13 percent of its veneer and logging, 12 percent of its artificial resins and plastics, over 6 percent of its capacity for mining gold, iron ore and coal, electric power production, and it produces a significant share of its gasoline, diesel fuel, certain types of petrochemical, chemical, and machine building products. In recent years, there has been a growing importance of aluminum, pulp, oil primary refining products, etc., in the total industrial output of the Oblast. The access to effective fuel-and-power bases as well as low electric power tariffs, make it possible to ensure a stable and efficient performance of the energy-intensive industries that constitute the skeleton of the regional economy.

The basis of exports from Irkutsk Oblast are aluminum, oil refining products, pulp, forestry products, which together cover 77 percent of the total export volume. The largest share of imports (6%) consists of raw materials for the aluminum industry.

The Oblast is rich in natural resources, first of all, in coal. New areas have been discovered that are quite promising for oil and gas production. On almost all of the MidSiberian Highland territory layers of rock salt can be found at depths of 400–1,000 m. In the northern part of the area there are potash salts. The main deposits of gold and mica are located in the northeastern part of the Oblast. Prospected reserves amount to 290 million tons of oil, 5.07 billion tons of coal, 20.36 billion tons of iron ore, and 620 billion m3 of natural gas. The total timber reserves amount to 9.14 billion m3 .

A particular role in the economy of Siberia as a whole, and Irkutsk Oblast in particular, can be attributed to Lake Baikal. It has enormous reserves of fresh water (232 km3 ) and the role of the lake in the socioeconomic development of the Oblast as an enormous accumulator of fresh water and hydro power resources (the potential is estimated to be 201 billion kWt/h), promoting the development of the regional economy and tourist industry, is believed to increase.