The Ministry for the Development of the Russian Far East Prepares Amendments to the Array of Laws on the System of Preferences for Businesses in the Arctic
The Ministry for the Development of the Far East and the Arctic, based on the results of the interim monitoring of the law enforcement practice of the array of federal laws on state support for entrepreneurship in the Arctic zone of the Russian Federation, is preparing a number of amendments to improve the operating principles of the preferences.25 September 2020
A little more than three weeks have passed since the documents became effective, and the dynamics of demand for the new set of support measures is much higher than when the regimes of the free port of Vladivostok or the advanced special economic zones were introduced. About a hundred applications from entrepreneurs for almost RUB 200 bn are pending, including both large and medium-sized projects, and a significant number of small business projects, which are the most important factor determining the social standard of living.
In addition to monitoring the enforcement of laws and clarifying some of their provisions, taking into account their operation, the Ministry has no plans to stop at the basic set of preferences, and a new bill will soon be prepared, the adoption of which will be relevant for a number of Arctic single-industry towns, as it would allow to extend the life and modernize existing enterprises in such towns.
Deputy Minister Aleksander Krutikov included the adoption of the document on subsidising insurance premiums among important decisions that have been made recently, which makes it possible to reduce the rate on these deductions to 7.5%, and for small businesses to 3.75%.
The Deputy Minister for the Development of the Russian Far East called the mechanism of infrastructure support another important mechanism arising from the law, to become effective from the new year. It is already adopted, the first 7 projects have been selected, and starting from the new year, investors will be able to receive subsidies and build the necessary infrastructure. The selections will continue.