Analytics, Employment, Energy, Financial Services, Lithuania, Taxation

"Of course, the city is not going to die. I believe in that, people believe that the new nuclear power plant will be built. It is hard times throughout all Lithuania; I have friends in other municipalities, and I would not say the situation is very good there," said Deputy Head of the Visaginas Department of Education Culture and Sports Nina Bunina to ELTA.

The city of Visaginas that emerged together with the Ignalina nuclear power plant has already experienced two major waves of emigration: the first came straight after the restoration of independence, the second – after the closure of the first unit of the power plant. On hearing about the complete closure of the IAE, people also left in search for a safer tomorrow According to municipal data, last year there were 28, 015 residents in Visaginas. Statistics has shown that 327 people left the city, and 1,298 people moved to live to Visaginas this year, informs ELTA/LETA.

According to municipal data, in the year 2005, when the first unit of the nuclear power plant was closed, 466 people left the city, and 260 moved there. Thus, the population decreased by 206 residents due to the emigration. The biggest emigration wave was recorded in Visaginas in the year 2001, when 602 people left the city and only 146 moved to live there, and in the year 2002, when 549 people left and 215 arrived.

Reviewing the demographic situation in Visaginas Municipality, the specialist was glad that in recent years more children were born than five or ten years ago. In 2000, 227, and in 2008 – 300 children were born in Visaginas.

"Of course, the birth rate declined after the closure of the first nuclear power plant unit. In the year 2001, 256 children were born, and then the birth rate started declining, while in the year 2005, only 233 children were born. The birth rate might start declining again after the closure of the IAE. A part of people, working in the nuclear power plant, will stay in Visaginas, but I think that young families will leave. There are no jobs in Visaginas, no other powerful institution or enterprise was established," said Bunina.

According to the specialist, a little bit less than 600 people were dismissed, around 300 out whom were dismissed during December 28-31, and not all of them contacted the labour exchange yet. In January, when we will register all of them, the unemployment rates will increase," said Sinkeviciute.

According to her, the moods in the Visaginas labor exchange are similar to those in the rest of Lithuania. "People are disappointed. They are disappointed because of the reduction of benefits – unemployment, pre-retirement unemployment benefit. These are the problems of Lithuanian employment in general, not just the problems of Visaginas," said Sinkeviciute.

Upon the closure of the power plant, Visaginas' residents will face the heavier tax burden. According to state enterprise Visagino Energija Director General Zigmas Jurgutavicius, the residents will have to pay 3,83 times more for the energy than they paid before.

"When we are explaining the changes to the residents, we always tell them to multiply the amount that they paid last year by for, and you will know how much you will have to pay," said Jurgutavicius.

If last year the residents were paying on average 80-100 litas (23,20 – 29,00 euros)for heating of a standard two-room apartment, this year they will pay about 320-400 litas (92,82 – 116,02 euros).

According to the head of Visagino Energija, the hot water and coil pipe prices will also increase for the residents of Visaginas. Previously, those who were paying 8,16 litas (2,36 euros) for one cubic meter of hot water in open system and 7,32 litas (2,12 euros) in closed system, will now pay 17,31 (5,02 euros) and 14,08 litas (4,08 euros) respectively.

For now, the electricity prices remain unchanged.