In 2023, the Arkhangelsk Region led in the number of new investment projects initiated in the Arctic. The Governor of the region, Alexander Tsybulsky, shared this information on his Telegram channel. 'The established system of entrepreneur support helps us maintain our standards even under sanctions. The preferential conditions for residents of the AZRF have a significant impact,' he noted in his post.

During the past period, 32 companies implemented their projects, injecting nearly RUB 6 bn into the regional economy and creating approximately 1,500 new jobs. These businesses are involved in timber harvesting and processing, veneer, plywood, wooden panels and boards production, maritime cargo transportation, aquatic bioresources extraction and processing, construction and logistics.

The service sector, including tourism companies, hotels and restaurants in the Russian North, is also experiencing significant growth, leveraging the benefits of the special economic zone. Since the launch of the AZRF programme, 201 special economic zone residents have been registered in Pomorie, collectively attracting around RUB 18.4 bn in investment.   

The most significant project implemented in the Arkhangelsk Region in 2023 was the establishment of a bus enterprise by the Rico Transport Company. The company operates 76 routes in Arkhangelsk with modern buses equipped with facilities for people with limited mobility, light boards, fare validators, climate control systems and USB ports for passenger devices. The total investment to launch the enterprise was RUB 2.6 bn. A new residential complex at the intersection of Sovetskaya St. and Valyavkina St. in Arkhangelsk ranks second in terms of investment volume, followed by Transgaz LLC, which constructed several gas-filling compressor stations in Arkhangelsk. These stations enable vehicles to be fuelled with gas, a popular conversion for both commercial and personal vehicles in Russia. Projects completed last year include pharmacies, auto repair shops, spas and gourmet restaurants.

The special conditions of the AZRF for conducting business have enabled the Russian Arctic to rapidly catch up in service sector development, previously hindered by high creation costs in harsh climates and widespread public prejudice. The Arctic was long considered a region only suitable for military personnel, shift workers and polar bears, with little interest in Pan-Asian cuisine. This trend has now been reversed — the benefits of doing business have outweighed the fear of freezing.

In the Arkhangelsk Region, AZRF residents can subsidise 75% of insurance premiums for 10 years, followed by an additional 30% in the subsequent two years. The profit tax is 5% for the first five years, then 10% for the next five years, and the property tax for the first five-year period is just 0.1%. Depending on the municipality, an AZRF resident in the Arkhangelsk Region may be exempt from 80% to 100% of land tax, and the mineral extraction tax will be 0.5% for the first ten years. For those residents operating under a simplified taxation system, the Arkhangelsk Region offers reduced rates based on the type of reporting. Besides tax reduction, AZRF residents can operate under free customs zone rules and can acquire land plots without participating in auctions.

Overall, several industrial clusters have emerged in the Arkhangelsk Region over the past decades. By 2024, a thriving fisheries complex is in operation, encompassing the extraction and processing of marine bioresources, as well as businesses involved in fleet maintenance and fish farming. The forestry industry is expanding, with companies extracting gold, bauxite and diamonds. In Severodvinsk, one of Russia's major hubs for nuclear fleet construction, significant defence projects are being implemented. The production and transportation of liquefied natural gas has emerged as the new driving force behind the industrial development of Pomorie.