Arctic investment projects to get subsidies for infrastructure development
The Ministry for the Development of the Russian Far East and Arctic will provide state support for building energy, road or other surface infrastructure in Russia's Arctic zone. Investors planning to implement such projects can submit applications starting April 15, 2020, a statement on the Ministry's website said.
The Russian Government approved the rules for selecting investment projects in March. The basic criteria include focus on social and economic advancement and creating new jobs. The total necessary investment in a project should amount to at least 300 million rubles, with the project stipulating construction or modernization of infrastructure facilities. Essential requirements for investors include experience in implementing projects, the company's registration in Russia's Arctic zone, and the absence of debts, bankruptcy or reorganization. The companies that comply with all these requirements can apply for a subsidy of up to 20 percent of the declared private investment necessary for the project's implementation.
According to Minister for the Development of the Russian Far East and Arctic Alexander Kozlov, to take part in the selection, an investor must submit an application with an attached project business plan, its financial and economic model, and a number of other documents that can be prepared using detailed and clear guidance notes.
In comparison with the similar mechanism introduced in the Russian Far East, the new system offers less stringent requirement for investors, and the maximum investment amount is doubled, Deputy Minister for the Development of the Russian Far East and Arctic Alexander Krutikov noted.
The selection will take place until June 1, 2020, with the Presidium of the State Commission for Arctic Development to examine and coordinate the list of selected investment projects.