MOSCOW, October, 6. /TASS/. The Far Eastern Concession mechanism will be used in the Arctic, Russia’s Minister for Development of the Far East and Arctic Alexey Chekunov said on Thursday.
Under the program, which the Ministry for Development of the Far East and Arctic designed jointly with the Corporation for the Development of the Far East and Arctic, the government compensates to investors for up to 100% of infrastructure costs within 10-20 years after a project is commissioned.
"The federal budget contains a line on the Arctic zone’s social development, and the Far Eastern Concession terms will be applicable in the Arctic as well," the minister told the State Duma commission on development of the Far East and Arctic. "We will be able to support organization of social development in the Arctic regions, involving off-budget sources."
The Far Eastern Concession, the minister continued, is an option to make social facilities proactively.
The government also re-launches a mechanism of concessional financing for investment projects, which formerly worked under the brand of the Far East Development Fund. Presently, this function is carried out by VEB.RF.
"The draft budget plans 20 billion rubles ($330 million) for VEB’s additional capital to implement priority investment projects. We have been focusing VEB’s team on technology projects," the minister said. "For example, a recent project is where Rosatom’s subsidiary will build a new dock for composite shipbuilding on the Sakhalin. This break-through project is implemented not just to replace former imported products. It most likely is at the best international level in terms of building Rosatom’s big vessels of composite materials."
The Far Eastern Concession program was launched in the Far East in September, 2021.