The new enterprise will focus on the production of general, hormonal and cancer drugs; the products will replace the import of such drugs to Russia
A new resident of the Arctic Zone of the Russian Federation (AZRF) - the Indian company SAFFARM LLC - will build a pharmaceutical plant in the Murmansk Region in 2027 with an annual output of 1.3 units of import-substituting drugs.
According to the Far East and Arctic Development Corporation, more than 9.2 billion rubles, including Indian capital, will be invested in the project. New jobs will be created for 280 people. The pharmaceutical complex will ensure the production of drugs in the form of tablets, capsules, injections, ointments, drops and other forms. In the future, the production volume may expand.
“We will be able to meet domestic Russian demand by supplying medicines to public hospitals and selling through medical stores, and, if necessary, we will be able to export about 10% of the total production to the CIS countries,” said Kumar Divesh, CEO of SAFFARM LLC.
"The binding agreement on the establishment of a new pharmaceutical plant in the Arctic with the participation of Indian capital was the development of previously reached agreements with the government and business circles of the Republic of India. The state support measures created in the Arctic zone of the Russian Federation have equally favorable conditions for both Russian and foreign investors to work, allow them to launch important production facilities for Russia, create jobs, and improve the quality of life of people in the North. We continue to develop investment cooperation with India. It is important to increase the number of projects being implemented in the Arctic and the Far East, there is potential for this," said Russian Minister for the Development of the Far East and the Arctic Alexey Chekunkov.
A cooperation agreement for the construction of the pharmaceutical complex was signed during the St. Petersburg International Economic Forum (SPIEF) in June 2023. Tax benefits, administrative preferences of the AZRF regime, as well as assistance and support from the Russian Ministry for the Development of the Russian Far East and the Arctic and help from regional authorities will facilitate the implementation of the project.
"Together with the regional authorities, we will assist the new resident of the Russian Arctic in obtaining a land plot, ensure the application of tax benefits and administrative preferences for a project aimed at strengthening the pharmaceutical security of the country. In the Far East, Indian investors, using state support tools, have already successfully implemented a number of projects. It is important to create such success stories in the Arctic. This will help more actively attract foreign capital in general and Indian in particular in the future," said Nikolay Zapryagaev, Director of the Far East and Arctic Development Corporation.
According to the Far East and Arctic Development Corporation, today 645 projects are being implemented in the Russian Arctic with state support and announced investments of 817 billion rubles. Besides, more than 24.3 thousand jobs are being created in the region. Residents of the AZRF have actually invested almost 100 billion rubles in the macro-region's economy and created jobs for 7.4 thousand local residents.
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