The Karelian economy will expand through the hookah tobacco production


Smells like money

At the meeting of the Government of Karelia, the Minister of Economic Development of the Republic Oleg Ermolaev announced the launch of tobacco goods and hookah blends production in the Lakhdenpohsk region in March this year. Contracts have already been signed for the supply of the bulk of the products for export, mainly to India.

The official estimates planned volume of production at about 30 tons of tobacco monthly, but according to the investor, the amount of funds planned to be invested approximates 360 million rubles and production output will be up to 300 tons. There has been an investment project competition with the Leningrad Region because of the foreign capital getting involved.

About the manufacturer: LLC “GENEL SMOKE” was registered on 04.07.2019. The authorized capital is 10,000 rubles. General Director Kachan Pavel Valerievich.

Head of Karelia Artur Parfenchikov commented on the opening of a new production facility in the republic:

“It is clear that we are all against smoking, but if to India … If there are countries that are ready to order and they keep ordering this product, then, well, let’s produce it. There is probably nothing wrong with that. If it’s sold out well and there is a demand, why not produce it on the territory of the Lahdenpohsk region? “

The former director of the Federal Service of Court Bailiffs, the Actual State Councillor state adviser of justice of the Russian Federation of the 1st class, knows for sure: if there is demand, it is necessary to “do business”. Let it be a little embarrassing “that’s not really vitamins” … On the other hand, this is not for ourselves.

Well, then given that logic, there is a danger of taking things too far. After all, “demands” might be quite different, and in some countries became even legalized.

Today the industry of the region is going through hard times. A number of once large enterprises, such as the Onega Tractor Plant or the Karelian Meat Processing Plant, are going into bankruptcy and move from one “effective owner” to another. In a situation like this, the launching of any workshop is easy to present as a fact of “regional economic development”.

One can only be glad for the republican officials. New jobs have been created (maybe even high-tech ones, as V. Putin once promised), the export-oriented industry has been built up in the region, and diversification of the Karelian economy took place as well. There is nothing but “pros” for “business people”.

There is no doubt that “foreign investors” investing millions of dollars in the production of hookah mixes in the north of Russia for supplies to distant India act selflessly out of altruism. The employees of the new company will learn that the hard way in the very near future.

In order for people to do what they really need, so that work brings joy and pride in the work done, so that the results of this work are not appropriated by “foreign investors” and individual local businessmen, but benefit the whole society, the economy needs to be fundamentally changed.