Benefits for the Arctic companies


Benefits for the Arctic companies

A meeting of the President of the Russian Federation Vladimir Putin with the Minister for Development of the Far East and the Plenipotentiary Envoy in the Far Eastern District was held in Kremlin. Alexander Kozlov and Yuri Trutnev said that almost a trillion two hundred billion rubles have already been invested in the development of these regions. Moreover, private investment is 23 times more than budget ones.

Yuri Trutnev said that 2283 investment projects are being implemented with the state support in the Far East today, and the total amount of investments has already reached the level of ₽1.16 trillion. At the same time, each ruble of budget investments is accounted for 22.5 rubles of private funds. The growth rate of industry in the Far East was six percent in 2019.

Special attention was paid to the system of preferences for the economic development of the Arctic zone of Russia. It is a package of bills, which provide state support for business in the Arctic. One of the documents aimed at supporting hydrocarbon production projects has already passed all the stages of approval and was signed by the head of state in March. The work on three more bills, which are now in the State Duma of the Russian Federation, is continuing. The second reading is scheduled for April. According to the Deputy Prime Minister of the Russian Federation Yuri Trutnev, this system of preferences will give impetus to the development of the Arctic zone and will make it possible to fulfill the tasks of the Northern Sea Route loading.

As it was noted by Vladimir Putin, a sufficient number of large projects, both mining and non-mining, are expected. The president was interested in the question of how significant the preferences applied in the Arctic will become.

“It is noticeable. This system is slightly different from what we proposed and from the laws adopted on the Far East. There are no zero privileges here; the rate is reduced by about two thirds, but payments start from the first year. We have consulted with the companies; they are fully satisfied with the existing order of business, because the period of benefits is longer now. On the other hand, the territories will immediately begin to receive taxes, that will provide the increase in the budget due to new investment projects”, answered Yuri Trutnev.


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