Elena Bezdenezhnykh: To Stimulate Investment in the Arctic, Tax Subsidies and Other Types of Support are Needed for Mining and Industry

A meeting of the State Commission for the Development of the Arctic Region presided by the Deputy Chairman of the Government of the Russian Federation Dmitry Rogozin and attended by Nikolai Rogozhkin, Envoy from the President of the Russian Federation in the Siberian Federal District, took place in the first two weeks of June on the premises of Technoprom International Forum of Technological Development. At the meeting MMCMining and Metallurgical CompanyPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel"Go to the glossaryGo to the glossary Norilsk Nickel was represented by Elena Bezdenezhnykh, Vice President — State Secretary/GR.

The state commission meeting revolved around prospects for developing machine-building industry, application of newest materials that can be used in the Polar Arctic, ways of stimulating renewable energy sources and raising efficiency of power use in light of natural conditions and climate of the Arctic, as well as developing communications systems for the Arctic North transportation net.

In her report at the plenary Forum session titled “Russian Arctic: Strategy and Development Technology” Elena Bezdenezhnykh spoke of priority areas for Norilsk Nickel’s investments in the Arctic, as well as implementation of major environmental investment projects. Ms. Bezdenezhnykh particularly stressed creation and development of transportation infrastructure e.g. in form of public-private partnership in the form of reconstruction of the support complex and facilities of the Norilsk city airport.

Likewise, Elena Bezdenezhnykh noted that Russian mining and metals companies are facing pressure from falling commodity prices and are bearing costs stemming from degrading conditions and quality of mineral reserves and the construction of transportation, energy, and social infrastructure required for development of new mineral deposits. “Development of those deposits is tied with a high capital expenditure and a protracted payback period, which is why we have to bring long-term financing for the projects. Against this background a stable long-term taxation policy is the most vital kind of support the state can give to draw in new investment and build a congenial investment climate”.

To stimulate investment activity in the Arctic Elena Bezdenezhnykh proposed to expand the draft federal bill On Development of the Arctic Zone of the Russian Federation with provisions for taxation subsidies and other types of support for mining, industry and energy/transportation infrastructural projects.