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Modern budget for traditional production: measures to support indigenous minorities in the Russian Arctic

Subsidies for reindeer herders and marine hunters

25 november 2024

The federal budget of the Russian Federation for 2025–2027 includes an annual allocation of approximately RUB 405 mn to support the indigenous small-numbered peoples living in the Arctic. These are direct state subsidies to the regions, allocated through the state programme for implementing national policy. Ildar Gilmutdinov, First Deputy Chairman of the Russian State Duma Committee on Nationalities, noted that the Duma is ready to increase this figure 'if there is a result.'

According to the 'Programme of State Support for Traditional Economic Activities of Indigenous Peoples of the Russian Federation,' regional and federal authorities are working to integrate the traditional economic activities of indigenous minorities into the modern economy. This is a fundamental problem that no state has yet been able to fully solve.

The culture and language of the Nenets, Sami, coastal and tundra Chukchi, Inuit, as well as other small-numbered peoples who were at the time of contact with civilisation at a deeply pre-industrial stage of development, tend to quickly dissolve and disappear. Moreover, the people themselves are also suffering—finding themselves in the modern world, the majority cannot adapt and are rapidly marginalised, falling prey to alcohol and drugs. For example, among Canada's Inuit from 1992 to 2015, researchers found a significant increase in substance use compared to the rest of the population.

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According to Dmitry Oparin, Candidate of Historical Sciences, anthropologist and a major expert on Inuit, the reasons were 'the crisis of national identity, difficulties associated with integration into the new capitalist Euro-Canadian society for the Inuit' and other factors. 

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The breakdown of traditional kinship systems, rule changes, including the introduction of Canadian law de facto rather than de jure as in the first half of the 20th century, together with the lack of ways within Inuit society to cope with the realities of Western civilisation, created many problems that took hundreds of lives. It cannot be said that Russia was free from similar problems during the period in question, albeit on a smaller scale—the continuity of the policy of preserving indigenous peoples has borne fruit, avoiding mass social cataclysms.

Today, the Russian Arctic has set a course for the 'careful integration' of indigenous minorities—it is necessary to preserve traditional economic activities and make them profitable. This is impossible without subsidies and assistance—the investment potential of these industries is still quite low, not to mention the traditional problems with logistics in the Far North. For representatives of traditional industries, in particular, the sea-hunting industry, reindeer herding and hunting, there is a system of subsidies for part of the costs of improving the material and technical base of collective and individual farms, local authorities create a market for products and set prices. For example, Yamal regularly expands quotas and increases the purchase price—in 2024, reindeer herders will be paid 10% more. Most of the venison is used for the needs of social institutions in the region. The Arctic regions are also building modular factories for meat processing, as well as incentivising various crafts related to traditional natural resource use—the production of clothing, souvenirs and musical instruments helps to support traditional economies. Ethno-tourism, which creates an incentive not only to earn money but also to preserve their own culture, which turns into an independent means of production, helps to expand the opportunities for indigenous peoples to integrate themselves into the modern economy.

Of course, in addition to economic activities, the state also resorts to direct assistance. These are, above all, assistance to young families at the birth of a child, investment in education and help with employment. Tundra nomads are provided with new chums, sledges and other useful things for their households, and there are privileges for them when entering higher and secondary professional educational institutions, as well as special programmes for personnel training. For example, from 2025, indigenous students will be entitled to RUB 80,000, which can be spent on clothing, housing and travel.


Image attribution: Shutterstock

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