Foreign and private companies can be attracted to the development of the Arctic shelf


Foreign and private companies can be attracted to the development of the Arctic shelf

Vice Prime Minister Yury Trutnev announced the possible attraction of foreign and private companies in the development of the Russian Arctic shelf. He said it in the interview with Interfax.

«As for the legislation, perhaps, change in the subsoil federal law could be the first step. For example that only companies with 50% state participation can work on the Russian shelf. If we can do at least this, then we will show to the whole world that the way to global developments, technologies and investments is open», - Trutnev said.  According to him, there are all prerequisites now for the fact that the interests of certain foreign companies will arise, and our private companies will get good prospects». As for changes in the law this year, Trutnev said that they would try.

Yury Trutnev, who heads the Arctic State Commission since 2018, admitted that now Russia «is not largely successful in working on the shelf track». Over the last years 5 wells were drilled, while in Norway - 345, in the UK – 99.  In the development of the Arctic shelf, according to the Vice Prime Minister, «it would be reasonable to envisage the participation of the government, some state company, to consider options of allocating a share in the project to foreign investor». From the interview we can talk about attracting foreign investments in exchange for a share in the company which will own the license on the shelf.

As known, according to the current legislation, licenses on the shelf areas can be given to state-owned companies with relevant experience of 5 years. Rosneft and Gazprom meet this requirement.  

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