More than 100 companies have announced their readiness to become residents of the Arctic zone
So far, on the Arctic Russia portal, 114 potential projects have been registered in the personal account of one investor in the Arctic zone, including 33 projects that are planned to be implemented in the Murmansk region.1 October 2020
The Far East Development Corporation began accepting applications for the resident status of the Arctic zone a month ago.
According to the website of the Ministry for the Development of the Russian Far East and Arctic, with reference to the Far East Development Corporation, the Murmansk Region is the leader among the Arctic zone regions in terms of the number of potential residents.
'Three investment projects in the Murmansk region have already passed the selection process, and the procedures to conclude the agreements are currently underway', says Aleksandr Shutov, director of ASEZ 'Stolitsa Arktiki' LLC (ASEZ 'The Capital of the Arctic', a subsidiary of KRDV JSC). Nord Star plans to reconstruct the Belomorskaya oil terminal and the Vitino seaport. Port Liinakhamari, a potential investor, plans to create a tourist complex in the Pechengsky district. Flogopit LLC plans to produce phlogopite in the Kovdorsky district.
Two applications, submitted by the companies Terminal Udarnik and Renaissance Arctic, are under consideration for entering into an agreement on investment activities in the ASEZ 'Stolitsa Arktiki'.
According to Aleksandr Shutov, by the end of the year, applications are expected from two more anchor investors in the advanced special economic zone: TULOMA Sea Terminal, with a project to create a terminal for mineral fertilisers and apatite concentrate at the Murmansk seaport, and Lavna Commercial Seaport, with a project to build a new a coal terminal at the Lavna commercial seaport on the western shore of the Kola Bay. Applications are also expected from key contractors of the Construction Centre of Large-capacity Marine Structures, which is being established by NOVATEK-Murmansk LLC (a subsidiary of NOVATEK PJSC), the first resident of the ASEZ 'Stolitsa Arktiki'.
'Residents of the Arctic zone are granted benefits on federal, regional and local taxes, in particular, the federal capital gains taxes have been reduced to zero for 10 years; 75% of the number of insurance contributions will be subsidised for newly created jobs; mineral extraction tax reliefs are granted in the amount of 0.5 of the current rate for solid minerals at new deposits. Regional benefits on property tax, land tax, and the regional portion of income tax will be adopted by the end of the year', said Dmitry Tetenkin, General Director of KRDV JSC.
He also noted that in addition to this, several non-tax preferences are provided. 'These include a customs-free zone, a simplified procedure to obtain land, and a reduction in the duration of inspections by control and supervisory authorities. The implementation of the announced projects in the Arctic zone of Russia will contribute to the development of the region's productive capacity and strengthen Russia's export position', noted Tetenkin.