TASS, August 10. A new business resident of the Russian Federation's Arctic Zone, India's SAFFARM, will build in 2027 in the Murmansk Region a pharmaceutical plant to replace foreign analogs, press service of Russia's Corporation for the Development of the Far East and the Arctic told TASS.

"The SAFFARM Company, a new business resident of the Russian Federation's Arctic Zone, in the fourth quarter of year 2027 will commission in the Murmansk Region a big pharmaceutical complex," the press service said. "The new company will produce general, hormone and oncology medicines, and these products will substitute import of such medications into Russia."

According to an agreement with the Corporation, investments in the project will be more than 9.2 billion rubles ($94 million), including Indian capital. The project will offer 280 jobs. The pharmaceutical complex will produce mainly hormonal, general and oncological medications in tablets, capsules, injections, ointments, drops and other forms. In the future, the product line may expand. The company's Director General Kumar Divesh stressed the plant in Murmansk would meet the Russian demand, and, if necessary, about 10% of products could be exported to the CIS countries.

"The binding agreement on a new pharmaceutical plant in the Arctic with the participation of Indian capital develops earlier accords with the Republic of India's government and businesses. The state incentives in the Russian Federation's Arctic Zone are equally attractive for Russian and foreign investors to launch production facilities that are important for Russia, to create jobs, and to improve the quality of life for people in the North. We continue to develop investment cooperation with India, it is important to build up projects in the Arctic and in the Far East. Potential for this does exist," the Corporation quoted Minister for Development of the Far East and Arctic Alexey Chekunkov as saying.

The agreement on the pharmaceutical complex was signed during the St. Petersburg International Economic Forum (SPIEF) in June, 2023. Tax benefits, administrative preferences of the Russian Arctic regime, as well as assistance and support from the Ministry for Development of the Far East and Arctic, the Corporation and regional authorities will favor the project's implementation.

"Jointly with the regional authorities, we will assist the new resident in obtaining a land plot, and we will make sure the tax benefits and administrative preferences will improve the country's pharmaceutical security. In the Far East, Indian investors have been using state incentives to implement successfully a number of projects. It is important to create such success stories in the Arctic to attract actively foreign capital, including the Indian capital," the press service quoted the Corporation's Director Nikolay Zapryagaev as saying.

State incentives in Arctic

According to the Corporation, state incentives have been effective in 645 projects, where declared investments made 817 billion rubles ($8.4 billion), and where more than 24,300 jobs have been created. Business residents of the Russian Federation's Arctic Zone have invested almost 100 billion rubles ($1 billion) in the macroregion's economy and created jobs for 7,400 local residents.