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Igor Orlov: "Investing practice in the Arctic zone to change significantly"

Preferences for the entrepreneurs operating in the Arctic zone of the Russian Federation were discussed earlier today at a meeting of Mr Igor Orlov, the Governor of the Arkhangelsk Region, and Mr Alexander Krutikov, Deputy Minister for the Development of the Russian Far East and Arctic, with investors of our region.

Mr Krutikov informed that the Russian parliament had been considering a package of draft laws to support entrepreneurship in the Arctic zone, which would grant broad tax preferences and non-tax support measures. They would affect different areas of activity, such as offshore drilling, liquefied natural gas production, new oilfields development, solid minerals extraction, as well as non-mining projects, including small and medium-sized businesses. Each of these areas would have its own set of benefits.

Deputy Minister especially emphasized that a part of preferences would be aimed at the reduction of tax burden for small and medium-sized businesses: reduced insurance rates would be applied for new jobs in non-mining projects – 7.6% instead of current 30%. He also noted that it was Mr Igor Orlov, the Governor of the Arkhangelsk Region, who had been especially active in the defence of the interests of small businesses in the Arctic.

Besides, regardless of types of projects, a resident of the Arctic zone of Russia would be able to count on the regime of free customs zone and protection of business from surplus audits.

"We expect that not later than this summer the package of draft laws will enter into force, so it will be possible to submit requests for the resident of the Arctic zone status to take advantage of the whole system of preferences", noted Alexander Krutikov and then asked business representatives to adjust their investment plans

"This is a unique legislative initiative, which changes the practice of investing in the Arctic zone. Our aim with you is to make best use of the new opportunities resulting from the legislation", Igor Orlov appealed to the representatives of local business, "Today there is an apparent interest of us and our partners towards investments in the Arctic zone of the Russian Federation"

Press Office of the Governor and Government of the Arkhangelsk Region