New state programme on Arctic development in 2021-2024 drafted by Russia’s ad hoc Ministry
The Ministry for the Development of the Russian Far East and Arctic says it has prepared a revised version of the state programme “Social and Economic Development of the Arctic Zone of the Russian Federation” for 2021-2024.
The document has been developed in pursuance of the instructions given by Yury Trutnev, Deputy Prime Minister of the Russian Federation – head of the State Arctic Development Commission. On 5 March 2020, Russian President Vladimir Putin approved “Basic Principles of Russian Federation State Policy in the Arctic to 2035”. The foundations of Russia’s state policy in the Arctic constitute a strategic planning document aimed at ensuring national security and have been drafted to protect the country’s national interests. The Strategy for the Development of Russia’s Arctic Zone through 2035 developed by the Ministry for the Development of the Russian Far East is the key mechanism to pursue the state policy in the Arctic. The Strategy has been submitted to the Executive Office of the President.
According to the newly drafted state programme, the current document approved by RF Government in April 2014 expires on 1 January 2021. The current state programme does not foresee enactment of the instruments on social and economic development of the territory which is out of keeping with the targets of Russia’s Arctic development defined by “Basic Principles of Russian Federation State Policy in the Arctic to 2035” and Arctic Development Strategy trough 2035.
The Ministry for the Development of the Russian Far East and Arctic is in charge of the programme implementation.
The programme comprises two sub-programmes. One of them is focused on generation of new jobs in the Arctic Zone.
The mechanism of infrastructure support foresees subsidizing of insurance payments that made it possible to reduce the rate of such payments to 7.5 percent, and to 3.75 percent for small businesses.
The mechanism of subsidizing interest rates on loans for Arctic projects involves subsidizing 6.75 percent of the annual interest.
The other sub-programmes is focused on creation of conditions for sustainable social and economic development including issues related to indigenous minorities.
Allocations under the programme in 2021-2024 will total RUB 22.673 billion.
With the programme implementation, off-budget investments in the Arctic economy are to make RUB 490.0 billion. 28,500 new jobs are to be generated in the region.
The above mentioned state programme is not the only source to finance the Arctic Zone development. All key state programmes contain sections on priority development of Arctic territories and foresee related investments.