The Ministry of Industry and Trade will allocate 60.3 million rubles from the federal budget to the Republic of Karelia for industrial development. The regional fund for industrial development will receive the funding to grant preferential loans to industrial enterprises for modernization of production facilities.

According to the republic's Ministry of Economic Development, the loan rates on attracted capital from 5 to 100 million rubles will be from 1 percent to 5 percent per annum.

"This year, industrial companies have received subsidised loans totaling 41.5 million rubles through the fund. In addition, the fund is working to provide loans worth about 200 million rubles by the end of this year, of which 87 million rubles are federal resources," said Denis Gurkov, Deputy Minister of Economic Development of the republic.