Ministries to develop tax incentives for geological exploration in the Arctic
Prime Minister Mikhail Mishustin has instructed the ministries to work out tax incentives for exploration projects in the Arctic by December 14, 2020.The instruction was issued following his working trip to the Murmansk Region.
According to a statement on the government website, “The ministries are to submit, to the Government of the Russian Federation, coordinated proposals on tax incentives for subsoil users to carry out exploration in Russia’s Arctic zone. The deadline is December 14, 2020,” it said.
Industry ministries are to develop and submit, by December 14, their proposals to expand the integrated geological and geophysical exploration program on the continental shelf of the Arctic and Far Eastern seas until 2025 to ensure hydrocarbon reserve replacement. They are to propose the sources of financing for additional projects in 2021-2025, including through contributions from potential subsoil users.
Furthermore, the Prime Minister also instructed the Ministry of Industry and Trade and a number of other ministries to discuss and submit proposals on import substitution and the development of Russian technologies for geological exploration and offshore drilling by December 1.
Deputy Prime Minister Yury Borisov, who is in charge of the fuel and energy sector, and First Deputy Prime Minister Andrei Belousov will hold meetings before December 10 to draft a program for the development of the resource potential of the Yamal Peninsula based on proposals for the production, processing and transportation of hydrocarbons, as well as for creating conditions for the development of the Achimov deposits.
Mikhail Mishustin also ordered the relevant ministries to submit to the Government by May 31, 2021 a strategy for the development of port, railway and airport infrastructure in the Russian part of the Arctic for the period until 2035.
“A strategy for the development of port, railway and airport infrastructure in the Russian part of the Arctic for the next decade and for the period until 2035 should be submitted to the Government by May 31, 2021. The strategy should provide for a comprehensive infrastructure development in the region and for boosting the traffic of export and through cargo along the Northern Sea Route,” the statement says.
The Ministry of Transport, the Ministry for the Development of the Russian Far East and Arctic and Rosatom state corporation have been put in charge of developing the strategy. By December 4, these agencies along with the Ministry of Energy must also submit a long-term estimate of cargo traffic in the water area of the Russian Arctic.
Mishustin also ordered the ministries concerned to submit to the Government, as well as to Deputy Prime Minister Yury Borisov, by December 25, a draft comprehensive plan for the development of emergency infrastructure in the Arctic.
Also, the industry ministries have been instructed to submit coordinated proposals for improving the legislation regulating emergency rescue activities in the water area of the Northern Sea Route and the Russian Arctic zone. The Emergencies Ministry, the Ministry of Transport, the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Economic Development and the State Atomic Energy Corporation Rosatom are in charge.