Putin promises special preferences for companies investing in Russia’s Arctic

The Arctic region accounts for more than 10 percent of all investments in the Russian economy, according to President Vladimir Putin. The country is working on a new strategy for the region’s development, he added.

Speaking at the 5th International Arctic Forum in St. Petersburg, Putin said that he has instructed the government, experts, and business representatives to draft a federal law on a “special system of preferences for investors” in the Arctic zone.

“I am asking you to carry out this work promptly so that the law will be passed by the State Duma in the autumn session,” he said.

According to the president, preferences for investors “should be and will be even more advanced, more stable,” considering the peculiarities of the Arctic region.

When asked about tax breaks, Putin said “we are creating and will continue creating beneficial conditions for companies working in the harsh Arctic conditions.” That is due not only to the lack of infrastructure development, but also to the need of investing money in technologies that would help to preserve the nature of the region, he explained.

“We intend to prepare and approve a new strategy for development of the Arctic by 2035… this year,” the president said, noting that it “should consolidate activities of our national projects and state programs, investment plans of infrastructural companies and development programs of the Arctic cities.”

Putin also said that Russia will modernize ports on the Arctic coast and renew its icebreaker fleet. He has invited foreign partners to cooperate in shipbuilding, communications, security, and mineral production in the region. The president said that sanctions will not disrupt Russia’s plans for developing the Arctic.

The two-day International Arctic Forum kicked off in St. Petersburg on Tuesday, gathering about 350 Russian and foreign businesses.

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