The Northern delivery law to help reduce cargo delivery time by 25%, prices - by up to 20%, official says

Seasonal deliveries of stockpiles to Russia’s Far North includes 25 regions

The implementation of the adopted law on seasonal deliveries of basic goods to the Far North of Russia (Northern delivery) will reduce the time of cargo delivery by 25% and goods prices by up to 20%, an official said.

Yuri Trutnev, Deputy Prime Minister and Presidential Plenipotentiary Envoy to the Far Eastern Federal District (FEFD) made a report at the Federation Council during government hour on October 11, 2023. The transcript of Mr. Trutnev speech was published on the Russian Government’s website.

“The law on Northern delivery, adopted with your support, will ensure timely supplies of goods, building materials, everything vitally important to the territory of the Far East as early as 2024. At the same time, delivery times will be reduced by 25%, and the price by up to 20%,” the official was quoted as saying.

Yuri Trutnev, speaking about the economic development of the Far Eastern regions, mentioned that to date, 685 enterprises have been built in the district with state support, and investors have actually invested 3.4 trillion rubles in the regional economy. The main investments are aimed at industries with high added value: gas and petrochemicals, mining and metallurgy, logistics and transport, development, shipbuilding, energy, agriculture and fishing. The number of newly opened business should exceed 1,700 in the Far Eastern Federal District until 2030, with creation of 230,000 new jobs. Binding agreements with investors will ensure investments worth 7.8 trillion rubles, said Yuri Trutnev.

According to him, a new session on the social and economic development of the Far East will be held October 2023 which address proposals on long-term guarantees of unchanged conditions for investors, advanced construction of industrial parks in priority development territories (ASEZ), preferential tariffs for electricity and high-level gas processing projects.

The federal law “On Northern Delivery”, signed by the President in August 2023, establishes the legal basis for the delivery of goods to territories with limited delivery times located within the boundaries of municipalities belonging to the regions of the Far North and equivalent areas, state price regulation for certain types of goods, trade mark-ups, tariffs for certain services.

The law defines such concepts as the Territories of Northern Delivery, Participants, Cargo, the Supporting network of transport and logistics infrastructure facilities, the Federal coordinator and the single maritime operator of Northern delivery.

Currently, the geography of Northern delivery includes 25 Russian regions populated by 3 million people. Every year, they receive with the help of Northern deliveries about 3.4 million tonnes of basic goods.