MOSCOW, October 11. / TASS /. The wider land borders of the Russian Arctic area, which were formalized in 2020, and the incentives offered have attracted investors to the High North. According to the presidential envoy to the Far Eastern Federal District, Deputy Prime Minister Yuri Trutnev, the investments made reach 1.1 trillion rubles ($ 15 billion).
In October 2020, President Putin signed an ordinance to extend the land borders of the Russian arctic zone, including the municipalities of the Krasnoyarsk region (part of Evenkia), to the regions of Arkhangelsk, Karelia and Komi.
“As part of the new arctic preferential regimes, from 2020 began the implementation of the first investment projects, which currently number 294,” he told the Federation Council in a statement. report on the progress of the development strategy for the arctic zone. “The amount of investment in the projects is 1.1 trillion rubles.”
Most large projects are located outside populated areas, he continued, stressing the importance of state support. For example, the development of the Baimskaya mining area requires the construction of a marine terminal and a road, connecting the Baimsky processing plant, Bilibino and Cape Nagleinyn. A floating nuclear power plant and a new grid line will be located near the seaport of Pevek.
“It’s a big job, but this project will double the budget of Chukotka and promote quality changes in its economic structure,” he said. “In fact, it will be different Chukotka.”
Major projects and plans for the Northern Sea Route
As part of the Arctic LNG-2 project, the investor will make the Murmansk region a center for the construction of large-tonnage offshore structures, unique in Russia. From the developing Syradasaysky deposit, the coal will be transported along the Northern Sea Route – 7 million tonnes per year by 2026, and further the quantity transported will increase to 12 million tonnes per year, a- he declared.
The development of the Northern Sea Route (NSR) is a system-level task for the implementation of most projects in the Arctic. The route will be used to transport the necessary construction materials and structures, as well as raw materials and products. It literally “bends” the Russian North, so it is a strategic task to develop it into a new global transport line, the deputy prime minister said.
âAs for the competition with the Suez Canal, I must say that the Northern Sea Route is 40% shorter; at the same time, NSR transports 33 million tonnes of cargo per year, while the Suez Canal – over one billion tonnes per year, yet the flow of transport along the Northern Sea Route has steadily increased. grow. For real competition with the Suez Canal, we have to do a lot: build icebreakers, improve transport infrastructure, provide satellite communications, the Internet, weather forecasts and ice radars, establish a rescue system, build the fleet suitable for arctic conditions, “he said.” An important task is to improve the lives of people in the settlements along the NSR. “
The ice-class bulk fleet will triple by 2030, and 30 new meteorological stations will be organized in the Russian arctic zone by 2023. Rescue stations will be located in Pevek, Sabetta, Dikson and Tiksi, the necessary aeronautical equipment for already been purchased. For rescue purposes, the government has allocated 37 billion rubles ($ 514 million) until 2026. The main objective is to guarantee all the necessary assistance to any place along the whole of the northern sea route.
Development of Segezha district
In October 2020, the Segezha district in Karelia was included in the Russian arctic zone. The city will have a new pulp and paper mill with an expected annual capacity of 1.5 million tonnes. The Segezha group is planning investments of 178 billion rubles ($ 2.5 billion). The new factory will boost the city’s infrastructure and social development, the regional government said.
“Segezha Zapad (West) will be the first project to build a pulp and paper mill in the past 40 years,” said the Deputy Prime Minister.
The Regional Ministry of Economic Development informed TASS of the plan to build by 2022 a road to the hotel in Segezha and other transport infrastructure to the new mill: these would be new railway viaducts and roads renovated.
âThis traffic infrastructure will be used not only by the factory, but also by the people of Segezha. It should be noted that the inhabitants of the arctic zone, implementing major investment projects, actively participate in the social sphere of the Segezha district, in particular by financially supporting the local hospital during the pandemic and plans to improve the ‘heat supply and develop a comfortable urban environment,’ the regional authority told TASS.
New jobs, tourism and hectares
The Deputy Prime Minister went on to stress that it is impossible to develop a region exclusively with budgetary incentives. The development of the economy, the construction of new businesses, new jobs will spur improvements, and the priority task of the government is to provide comfortable living and working conditions in the Arctic.
For example, Karelia implements projects in tourism, services, information technology and aquaculture. Investments made 2.3 billion rubles ($ 32 million). The projects provide 225 jobs. The total amount of planned investment is 97.7 billion rubles ($ 1.4 billion), and the number of new jobs is reportedly 1,400.
The administration of the Arkhangelsk region told TASS that residential status in the arctic zone has been granted to 61 companies. Planned investments are over 26 billion rubles ($ 361 million), the projects will provide more than 1,700 jobs. Inta of Komi, Usinsk and Ust-Tsilemsky district were included in the Russian arctic zone a year earlier. My business center, which oversees Arctic projects in Komi, told TASS that in one year, the region had registered seven new residents for a total announced investment of 1,454 billion rubles ($ 20 billion). They will employ 411 people.
“Promising tourism projects are underway in practically all Russian regions, inside the arctic zone,” said the Deputy Prime Minister. “These are Lenskiye Stolby (Pillars of Lena), Karelia, Murmansk, Krasnoyarsk – practically all regions are considering tourism projects. This is very important, because tourism demand is very high now. Almost 1.5 million people visit the regions every year. “
Far Eastern and Arctic Development Minister Alexei Chekunov spoke to TASS about the Arctic hectare program. From August 1, 2021, residents of the Arctic regions can apply to receive plots of land up to one hectare free of charge. During the first six months, the Arctic hectares will be allocated to local residents, and after February 1, 2022 – to all other Russian residents, as well as to those participating in the national program for the relocation of compatriots from abroad . The authorities report 4,000 requests for the Arctic hectare. The leaders are the regions of Murmansk, Arkhangelsk, Yamalo-Nenets and Karelia.
In the Russian arctic zone currently live the 19 small indigenous peoples of the North.
âPreserving their customs, traditions and ways of life is a key aspect in this multinational country,â said Yuri Trutnev. “The necessary financial means will be included in the budget of the Russian Federation.”
When investors are granted the status of residents of the arctic zone, they are readable for preferences and tax benefits. According to Artur Gayulsky, vice-president of the Association of Indigenous Peoples of the North, Siberia and the Far East, these options must be accessible to local ethnic communities as well.
âThe Act on Doing Business in the Arctic has come into force, but it mainly applies to large companies or new businesses,â he said. “They get incentives, tax breaks, and the people who have been developing the Arctic since the 17th century and living there are left out, they don’t get residency status.”
According to him, to solve the unemployment problem in the Far North, the local population must be involved in traditional trades – hunting, fishing, deer herding – in the real economy. âThe task is this: we have to put the traditional trades back into the real sector of the economy, and the ethnic communities (of the few indigenous peoples of the North) have to obtain the status of companies – in this case the people working in the these sectors will have legal relations with the state, âhe said.
A recently organized task force has drafted changes to current legislation, he added.