Artic, 10.5 trillion rubles of private investments over the next ten years.

Apr 27, 2019 10:50 pm

Russia is building a “new Arctic”, with private money

Boosting Northern Sea Route shipping is a big part of the Arctic development plan: Russia is considering offering substantial tax breaks to companies that invest in the Arctic, according to Deputy Prime Minister Igor Trutnev

Trutnev last week told a meeting of the Arctic Commission, the government body for Arctic developments, that investors could have their tax burdens reduced as much two thirds for the duration of projects.

“We are looking at two alternative approaches — one with up to 15-year tax preferences that include zero tax rates on profits and property, land use and extraction, and a second with tax reductions of two thirds for the whole project period,” Trutnev told a press briefing after the meeting.

It is the second option that is the most interesting both for government and the companies, he added.

A cost estimate recently presented by the Natural Resources Ministry outlines the need for a total of 10.5 trillion rubles (€143 billion) of private investments in the region over the next ten years. That includes at least 118 different priority projects in the field of new industry and infrastructure, the ministry said.

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