Investors in the Arctic to get federal subsidies
The Government of the Russian Federation published the Resolution adopting the selection rules for the projects to be implemented in Russia’s Arctic Zone. Companies will be able to obtain federal subsidies for capital investment in infrastructure facilities. The document is available on the official website of legal information.
According to the Resolution, in order to receive federal aid investment projects must meet the following requirements: they must be worth at least RUB 300 mln., comply with strategic planning targets and set priorities for social and economic development of Russia’s Arctic Zone.
“The support the Government renders to large investment projects in the Arctic will benefit both infrastructure upgrade and regional economic development,” explained Anton Kobyakov, Advisor to the President of the Russian Federation.
The project must contribute to “creation or modernization of capital facilities that belong to infrastructure”. Total amount of government support for any given project cannot exceed 20% of the announced private investment. The project must result in new jobs and demonstrate high fiscal performance.
“Infrastructural support is government aid for building facilities related to electric energy, railway, outdoor gas line, and large motorways. It means investors put money into building a facility and create jobs, while the government provides subsidies for ‘expensive assets’. Infrastructural support proved effective in the Far East. This is why we decided to use the same principle in the Arcrtic. However, prerequisites for this aid in the Arctic will not be as strong, as we do understand that implementing a large project in Yamal-Nenets District takes more than in Amur Region. In the near future, all preparatory procedures will be completed, and we will launch the selection process for the investment projects that potentially can get a federal subsidy in the Arctic,” shared Alexander Kozlov, Minister for the Development of the Far East and Arctic.
Requirements for legal entities include registration within Russia’s Arctic Zone, no past-due debts or active bankruptcy procedures. The selection will start in the nearest future.
Attracting investment in the Arctic will be one of key topics of the International Arctic Forum in 2021. The Forum business programme will address other issues important for this region’s development, such as creating new technologies, human capital in the Arctic, economic development of the Arctic, rational use of natural resources and the Arctic’s sustainable development. The Forum will be organized by the Roscongress Foundation. For details, please go to the official website of the Forum.