Economy
Kobylkin: Arctic Energy project to net nine trillion rubles in tax revenue
© RIA Novosti. Vladimir Smirnov

Kobylkin: Arctic Energy project to net nine trillion rubles in tax revenue

The Yamal-Nenets Autonomous Area's Arctic Energy project to build infrastructure to implement the Arctic's innovation and investment potential will generate about nine trillion rubles in new tax revenue for budgets at all levels by 2020, Yamal-Nenets Governor Dmitry Kobylkin told participants in the 5th Murmansk International Business Week, RIA Novosti reports.

"The infrastructure project will merge with transport flows in the Russian Arctic's central sector, and delivery routes between West Siberia and European Russia will be shortened by 700 kilometers," the governor's press service said in a statement. "Key facilities are to receive over two trillion rubles' worth of investment by 2020."

According to RIA Novosti, the Arctic Energy project includes construction of the northern latitudinal Obskaya-Salekhard-Nadym-Pangody-Novy Urengoi-Korotchayevo railway, the Bovanenkovo-Sabetta railway, the development of the port and transport infrastructure and construction of the Yamal Peninsula's gas transport system. The new Arctic transport corridor will improve access to the Northern Sea Route and guarantee year-round deliveries of Russian hydrocarbons and industrial goods to European and North American markets and to Asia Pacific countries.

The successful development and exploitation of the region's mineral resources depends on comprehensive infrastructure development, Kobylkin noted. Despite negative trends on the global hydrocarbons market, the outlook for Yamal's energy output is positive, he added.

With due account for expanded domestic consumption and the start of liquefied natural gas (LNG) exports, natural gas output is projected to increase six percent by 2019, and gas condensate production to soar by one-third, Kobylkin noted. Since early 2016, oil production in Yamal has grown for the first time in 12 years, he added.