Selection of Arctic projects for infrastructure subsidies will start on April 15
The Ministry for Development of the Russian Far East and Arctic will begin the selection of the Arctic projects that will be able to receive a subsidy for the creation of infrastructure on April 15.
Businessmen, who will invest at least 300 million rubles in projects in the Arctic, will be able to claim a non-refundable subsidy of up to 20% of their investments. The selection rules were approved in March by the Russian government.
"From April 15, 2020 the “The Ministry for Development of the Russian Far East and Arctic starts accepting documents from investors who plan to implement a new project in the Arctic zone of Russia to provide state support for the creation of energy, road or other external infrastructure. <...> It is announced by order of the Head of the Ministry Alexander Kozlov that the selection of investment projects will last from April 15, 2020 to June 1, 2020”, the report says.
In order to pass the selection, the projects should contribute to economic and social development of the district, create jobs. The total amount of investment should be at least 300 million rubles, while the project implementation should require the creation or modernization of infrastructure facilities. Availability of experience in implementing investment projects, registration of a company in the Arctic zone of Russia, absence of debts, bankruptcy or reorganization will also be mandatory requirements.
“In order to participate in the selection, the investor should send an application to the Ministry for Development of the Russian Far East and Arctic and attach the business plan of the project, its financial and economic model and a number of other documents to it. The Ministry has developed and published detailed guidelines on the order of execution and submission of document to simplify the process”, the words of the minister are quoted in the message. The State Commission for Arctic Development is authorized to review and agree on the list of selected investment projects.
A set of support measures is being developed for investors in the Arctic. In particular, tax benefits have been prepared and a wide range of preferences for mining companies is expected.