Northern deliveries underfunded by 9.5 bln rubles - Yakutia leader

YAKUTSK. July 3 (Interfax) - The shortfall in financing for deliveries of goods to northern communities in Yakutia totals about 9.5 billion rubles this year, the leader of the Far Eastern Russian republic, Aisen Nikolayev said at a meeting President Vladimir Putin held with the government.

"We are mobilizing about 39 billion rubles to finance deliveries in the navigation season this year. Of this, 29.2 billion rubles had been mobilized as of July 1 [...]. We currently have a deficit in financing for deliveries of about 9.5 billion rubles. We are now working with the country's largest banks to raise loans for our vital businesses that deliver fuel and energy resources foremost," Nikolayev said.

He said subsidies for a portion of the interest rate on commercial loans to participants in northern deliveries for state and municipal needs equivalent to three quarters of the Central Bank's key interest rate would help solve the problem.

Additional financial support for the regional budget will also be needed.

Northern deliveries in Yakutia amount to 1.382 million tonnes annually, or almost 40% of the national total.

Northern deliveries involve supplying fuel, food and medicine to communities in the Far North, Siberia, the Far East and the European Russia ahead of the winter.