The Hectare in the Arctic programme is expanding—in July 2024, a bill was submitted to the State Duma to extend the practice of distributing free land to the territories of Beloyarsky and Berezovsky districts in KhMAA. By September, deputies had already been discussing the inclusion of regions in the Ural Federal District that were still unknown to the general public. Some 'hectare' owners build homes, plant gardens or set up apiaries on their land, while others start their own businesses.

According to data from the Ministry for the Development of the Russian Far East and Arctic, 26% of all applicants for free land chose entrepreneurship, 12% plan to implement tourism projects, while 11% each are focused on agriculture and other types of activities. The Far East Development Corporation (FEDC) and the Ministry for the Development of the Russian Far East and Arctic have prepared 16 standard business projects to ease the start of new businesses on the Arctic hectare. These projects include a bakery, a fish farm, a poultry farm, furniture veneer production, a tourist base, a goat farm and much more. All the projects share a common approach—standard roadmaps have been developed for entrepreneurs to help save time during the initial planning phase.

Specialists have developed an initial business plan model that takes into account Arctic characteristics and benefits. They vary from region to region, but overall, they constitute a broad range of preferences and opportunities for receiving grant support. The business plans for the hectares include a description of the idea, products or services, marketing strategy and production technologies, as well as key technical and economic characteristics, financial and economic justification for project implementation, and an overview of potential risks. Users are also provided with a financial plan that outlines a sample sales plan, production costs, necessary investments and projected financial performance indicators. Of course, this document needs to be adapted to current conditions—the models were created in 2022, and since then, some indicators have significantly changed. The project's website also includes instructions on how to tailor the business plan to current conditions and the specific wishes of the entrepreneur. Specialists have created a formula rather than a ready-made proposal detailed down to the last comma, allowing for flexibility in any corner of the Arctic.

Entrepreneurs on the hectares are encouraged to build small enterprises that take local specifics into account. Thus, the Arctic has a demand for infrastructure development and the service sector—bakeries, cafés and auto repair shops will always have clients in the Polar regions. For example, the total funding for a new bakery will amount to nearly RUB 18 mn, which includes both the entrepreneur's invested funds and borrowed capital. According to the calculations by the FEDC specialists, the annual discount rate is equal to the weighted average cost of capital at 14.13% per annum. In turn, the discounted value of the project in the post-forecast period amounts to nearly RUB 7 mn. The payback period for the project will be 8 years, and the profitability index is 1.20. For the fish farm, the payback period will be around 10 years, but the profitability index increases to 1.33. Significant investments will also be required, but the market has its attractive niches for sales.

It is important to note that those who decide to use standard business development models in the Arctic can apply for resident status in the AZRF and receive grants from regional governments. The website states that the project documentation, after adjusting the indicators to reflect current values, can be immediately submitted for review to the relevant authorities. Currently, 754 companies are residents of the Arctic Zone of the Russian Federation, with a total investment volume of RUB 862 bn. They are eligible for subsidies on insurance contributions, reduced income tax, property and land tax, tax deductions and other forms of support. However, the level of support may vary depending on the region of the Polar areas, so it is important to pay attention to this.

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