18 Apr 2022 17:15

Russian government backs subsidizing of interest rates for projects in Arctic, Far Eastern Federal District

MOSCOW. April 18 (Interfax) - The government is backing interest rate subsidies for projects in the Arctic and the Far Eastern Federal District and will allocate 30 billion rubles for this purpose, Prime Minister Mikhail Mishustin said during a meeting with deputy prime ministers on Monday.

"Recently, at a meeting on the development of the Arctic zone, the president set the task of implementing priority investment projects in this region. Today in the Arctic and the Far East, private investors with the support of the state are implementing more than 3,000 such projects, and some of them are enterprises that are still under construction and do not generate profit. As such, they are very sensitive to any changes in external conditions. Especially to adjustments in the cost of loans. The government has decided to expand the program of support for private investment in these regions. From now on, it will be possible to get a soft loan for projects that provide at least 250 jobs with the mandatory condition that the project must be completed as planned. The government will compensate more than half of the key rate this year, we will allocate about 30 billion rubles for this purpose," Mishustin said.

"We expect that the new measure will help companies not to stop plans to invest in these territories, and the enterprises that are set up will be able to provide more than 30,000 new jobs," he added.

Earlier, Deputy Prime Minister Yury Trutnev proposed subsidizing interest rates for projects in the Arctic and for delivery of goods to the north of Russia. "I am obliged to report to you that the actions of unfriendly countries have created a number of difficulties in the implementation of projects, increased the cost of raising loans. Please consider the proposal to subsidize interest rates on these projects. The necessary amount of financing in 2022 is 5.9 billion rubles," he said.

Among the important projects currently being implemented in the Arctic, Trutnev pointed to the development of the Baimskoye ore zone in Chukotka, the creation of the "Segezha West" pulp and paper mill in Karelia, the center of large-capacity marine structures under the auspices of Arctic LNG 2 in Murmansk, and the the development of the Syradasayskoye coal field in the Taimyr.

The development of the Northern Sea Route is a systemic condition for the development of the Arctic, the deputy prime minister said. "Four companies should account for the bulk of transportation through 2024: Novatek Gazprom Neft , Rosneft and North Star. If these companies fulfill their plans, the volume of transportation along the Northern Sea Route through 2030 will exceed 200 million tonnes," Trutnev said.