Some Preliminary Results in the Arctic Development

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Over the past four years, 12 federal laws and more than 70 government acts have been adopted in the interests of the development of the Russian North, the Telegram Channel “sevmorput” writes, citing a report by the Head of the Ministry for the Development of the Russian Far East and Arctic.

The publication highlighted the federal law "On Northern Delivery" as one of the most important laws passed in 2023. The Northern Delivery plays an important role in the lives of residents living in the Far North, Siberia, the Far East and the European part of Russia. It provides 21 Russian hard-to-reach regions with vital goods in the run-up to the winter season. The law will significantly improve the reliability of supplies, reduce delivery times and the cost of goods in the Russian Arctic regions.

In addition, the Russian government is implementing several measures to develop businesses in the Arctic zone, as well as to attract a labour force.

For example, Russia adopted a broad package of economic incentives for the development of the Arctic Zone of the Russian Federation (AZRF). Businesses running in northernmost territories can enjoy a wide range of economic benefits and allowances. The Development Strategy for the AZRF was also adopted. The strategy envisages stimulating the construction of new industries in the regions belonging to the Arctic zone, intensifying the geological study of subsurface resources, and developing new mineral deposits. In addition, the Arctic has a special economic regime for private investment in the creation of new production facilities and the modernisation of existing ones. 

Thanks to the measures taken, 795 investment projects with a planned investment volume of RUB 1.8 trillion [$19,9 billion] are being implemented in the AZRF regions. In fact, RUB 425 billion [$4,7 billion] has already been invested and 42,000 jobs are being created.

To attract people to the Arctic regions, the Russian government introduced an Arctic mortgage, namely, preferential mortgages at 2% per annum.  As a result, over 1,000 families received a preferential Arctic mortgage in December 2023.

The Northern Sea Route (NSR) remains the key infrastructure project in the Arctic. It is considered the only alternative to connect China with the world ocean in case the situation in the South China Sea escalates.

It is planned that cargo traffic along the NSR will exceed 150 million tonnes in six years. To achieve the aim, 155 measures are being implemented to develop the cargo base, create a cargo and icebreaker fleet, transport infrastructure, manage and develop shipping and security infrastructure.

Consequently, the development of the Arctic regions, as well as special attention to the NSR, can be seen as key focus areas.

Source: Telegram Channel “sevmorput”