The republic's Minister of Economy and Viktor Lebedev, General Director of Sakhaneftegazsbyt JSC, signed an important document on the reconstruction and modernisation of oil storage facilities in Yakutia on the margins of the Eastern Economic Forum. This was reported by RIA Novosti, citing the Telegram of Maya Danilova, the Minister of Economy of the Republic of Sakha (Yakutia). 

'The concession agreement was concluded between the government of Yakutia and Sakhaneftegazsbyt JSC,' Danilova said.

As the minister noted, Sakhaneftegazsbyt is a key participant in the northern delivery and is the only company in Yakutia that has its own tank farm.

According to the republic's Ministry of Economy, the annual importation of oil products amounts to 160,000 tons, including 30,000 tons to the Arctic regions. The oil product storage facilities consist of 18 oil depots built in the 1960s to 1980s, with an average technical deterioration of 80%. 'Under the concession agreement, 4 oil storage facilities will be upgraded with a total capex of RUB 5.5 bn: these are the Belogorskaya, Zhiganskaya, Ust-Kuiginskaya and Khandygskaya oil storage facilities. The project will be financed from the federal budget through the Far East concession mechanism of the Ministry for the Development of the Russian Far East and Arctic. The mechanism involves reimbursement of up to 100% of capital costs before the end of the agreement,' said Danilova.