The Government of the Russian Federation has already reviewed the system of preferences in the Arctic zone of the Russian Federation and will submit it to the President within a few weeks. Yury Trutnev, Deputy Prime Minister and Plenipotentiary Representative of the President of Russian Federation in the Far Eastern Federal District, said this at the meeting of the State Commission for the Development of the Arctic in Moscow on Thursday.
“We are preparing a system of preferences in the Arctic [zone] - it is already ready. In the coming weeks, the Russian President will be informed and concrete decisions will be taken. The discussion in the government has already taken place,” he said.
The system of preferences was adopted as a basis, which exists in the Far East and, according to Trutnev, works quite effectively. At the same time, the Deputy Prime Minister noted that the system of preferences for the Arctic was tried to be made more flexible.
At the end of April, the Ministry for Development of Russian Far East and the Arctic published a draft law on preferences for projects in the Arctic. According to the draft law, all investors in the Arctic zone can rely on the application of the non-deterioration of tax conditions for the entire period of the project implementation. It is assumed that the residents will have a free customs zone regime, reduced cargo clearance periods, also provides for tax cuts, for example, a profit tax of 7% for the entire duration of the project.
According to the draft law, tax benefits are provided for four groups of investors - in the field of hydrocarbon production in the new offshore fields on the Arctic shelf, for projects in the field of hydrocarbon production on the continental part, for projects in the field of LNG and for other projects in the field of mineral resources. For all categories, a reduced premium rate was determined - 7.6% instead of 30%. However, the increasing coefficient for exploration expenditures, on the contrary, increased to 3.5. Besides, separate tax deductions are provided for the creation of infrastructure.