19 Mar 2019 16:00

Far East Development Ministry sees creation of PDA in Taymyr as premature, system of concessions for Arctic not yet ready

MOSCOW. March 19 (Interfax) - The Russian Far East Development Ministry sees the creation of a priority development area (PDA) within the Taymyrsky Dolgano-Nenetsky District of the Krasnoyark Territory as premature while the system of concessions for the Arctic has yet to be approved, the press service for the ministry told Interfax.

In late 2018, following a meeting on the development of the Arctic, the government instructed relevant ministries in conjunction with involved organizations to study the matter of creating a PDA in Taymyr.

"It's necessary to further consider this question in light of additional information received from the government of the Kranoyarsk Territory and its processing with the relevant federal executive bodies," the press service said.

Particular issues being considered are the availability of investment projects, land and property complexes and infrastructure, with the socio-economic consequences of creating a PDA in the region also being analyzed, the press service said.

Russian Energy Minister Alexander Novak proposed creating a PDA on the Taymyr Peninsula during a meeting on Arctic development in late 2018.

The PDA mechanism should not be applied in the Arctic, Russian Deputy Prime Minister and Presidential Representative to the Far East Federal District Yury Trutnev, who heads the State Commission for Arctic Development, told Interfax in an interview earlier. The mechanism was created for the development of territories more attractive for investment.

"The Arctic is something completely different, isn't it? Not a very investment-attractive territory. Therefore, support should be built in a different way. The Arctic is one big PDA, you have to grant benefits everywhere! Therefore, my personal opinion is that transferring the PDA mechanism to the Arctic is the wrong way to go. In the Arctic, we have to create a unified system of preferences for all new investment projects. The tax holiday regime could be the basic offer for the Arctic. Also under discussion is a tax deduction mechanism for investment in geological exploration, and plenty else. But let's wait for the final approval of the proposals [for the system of concessions for the Arctic]," Trutnev said.