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2009 November 6   15:28

RF Government approves draft contract on Russian part of Saimaa Channel lease

RF Government approved the draft contract on leasing out Russian part of Saimaa Channel with water area and land plots adjacent to it to Finland without right of its natural resources and timber use. The according RF Government Regulation N862 dated October 27, 2009 was signed by Vladimir Putin, Chairman of Executive authority. The assumed period of lease is 50 years. The rent will amount to Euro1.2 mln a year and 18% for each unit of  overall gross tonnage of vessels, exceeding 1.5 mln units.

Under the draft contract Russian party is committed to maintaining, operating and managing as well as piloting and ice-breaking services providing in channels, fairways leading to the Gulf of Finland and used for vessels callings. There is a separate article in the contract defining navigation conditions in Saimaa Channel.

The draft contract is submitted to RF President to be signed.

Saimaa Channel is a navigation channel located in the territory of Finland and Russia in Karelian Isthmus. It links the system of lakes Saimaa in Lappeenraanta with the Gulf of Finland in the Baltic Sea near Vyborg. The channel length is 43 km. Under the contract dated 1962 between USSR and Finland, Soviet part of Saimaa Channel and Malyi Vysotskii island are leased out to Finland for the period of 50 years.

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