Economy
Industry and Trade Ministry advocates special investment contracts for Arctic projects
© RIA Novosti. Pavel Lisitsyn

Industry and Trade Ministry advocates special investment contracts for Arctic projects

The Industry and Trade Ministry believes that it would be expedient to use special investment contracts for Arctic projects. Deputy Industry and Trade Minister Vasily Osmakov said this in an interview with RIA Novosti before the international forum The Arctic: Territory of Dialogue, which will be held in Arkhangelsk on March 29-30.

"In my opinion, the allocation of incentives should not depend on the territorial principle but on the quality of investment projects and business specifics in a given region. Therefore, it would be expedient to use special investment contracts as a more flexible form of state support and incentives," Osmakov said.

He added that investment activity in the Arctic, with its uninspiring climate, nature and economic conditions, is unlikely to be high without support from the government. "We should certainly offer preferential terms, because Russia is a large country and costs run high. (…) Therefore, we should use special mechanisms such as public-private partnerships, special economic zones, priority development areas and the like," the deputy minister said.

Osmakov recalled that the Industry and Trade Ministry is providing assistance to industrial clusters in the Arctic. "We are supporting two clusters in the Arkhangelsk Region (shipbuilding and the timber industry), each comprising at least 30 companies," he said.