The governor of Yamal and the head of the Ministry for development of the Russian Far East discussed new opportunities for economy of Yamal

Dmitry Artyukhov, the governor of Yamal-Nenets Autonomous Okrug, and Alexander Kozlov, the head of the Ministry for development of the Russian Far East and Arctic, discussed opportunities that are being created for arctic territories due to adoption of new mechanisms of business support developed by the Ministry for development of the Far East and the Arctic.

According to the minister, a package of federal laws on state support for business in the Arctic came into force on the 28th of August, making the Arctic zone of Russia the largest free economic zone in the world with a wide range of preferences for investment projects.

“These preferences increase attractiveness of investments in large projects related to extraction and processing of hydrocarbon raw materials, as well as in small and medium-sized businesses. The adopted laws create an opportunity to further increase investments in Yamal-Nenets Autonomous Okrug”, said the head of the Ministry for development of the Russian Far East and Arctic.

“This is a long-awaited package of support measures for those, who are engaged in business in the Arctic. In Yamal the first applications for residency in the Arctic zone are already being formed: both from small entrepreneurs and from large businesses. The pandemic has shown how important it is to promptly correct the system of business support in dependence on the situation and requests of businesses operating in the Arctic”, Dmitry Artyukhov said.

Alexander Kozlov underlines that a number of benefits is associated with development of LNG and gas chemistry industries. For such projects the Mineral Extraction Tax is reset to zero for 12 years, and regions are given the right to reduce the regional part of the income tax up to zero. According to him, these preferences will contribute to creation of new LNG and gas chemical production facilities in Yamal. As he adds, the value added tax on sea transportation services for export cargoes and their icebreaking support has been reset to zero, adding that this preference is important for production facilities already operating in the region that export their products along the Northern Sea Route.

The head of the Ministry for development of the Russian Far East and Arctic also paid attention to signing by Prime Minister Mikhail Mishustin of the decree on subsidizing 75% of insurance fees for residents of the Arctic zone. Thus, the final rate of insurance fees will make 7.5%, and for small businesses - 3.25%.

According to the Minister, a corresponding request from an individual entrepreneur from Salekhard, who plans to invest 17 million rubles in creation of a laundry production facility in the town, was submitted after receiving the opportunity to submit an application through the website arctic-russia.ru for granting the status of a resident of the Arctic zone. He says that the application will be reviewed in a few days, marking significance of the fact that this is a small business project.

“It is important that absolutely all arctic regions would decide on regional and local benefits for entrepreneurs as soon as possible. The overwhelming majority has already decided to establish the widest possible benefits for residents of the Arctic zone on the income tax, the land tax, the property tax, simplified taxation system”, said Alexander Kozlov.

The discussion agenda also included the launch of a mechanism of infrastructural support for investment projects in the Arctic zone of Russia, and an issue of protection of the native environment and the traditional way of life of indigenous ethnic minorities. The issue is extremely relevant for Yamal. According to the press service of the governor of Yamal, for implementation of the latter one the adopted federal laws envisage a set of measures on protection of interests of indigenous ethnic minorities of the North in the process of development of the Arctic zone.