MOSCOW, October 27. /TASS/. The federal law on Northern Supplies will favor cutting shipment terms by about 25% and cutting retail prices by up to 20%, Minister for Development of the Far East and Arctic Alexey Chekunov said at a meeting chaired by President Vladimir Putin.

Earlier, the minister said due to the law the prices on vital goods would fall by 15% at the initial stage.

"The implementation of the law's provisions will favor cutting shipment terms by about 25% and retail prices by up to 20%," he said.

The law provides for the Northern Supplies' priority in transportation and handling. The law also provides for budget loans to purchase vital goods. The Northern Supplies will have a single maritime operator to organize regular coastal shipments at preferential tariffs.

The federal law on Northern Supplies was adopted on August 4, 2023. It will come into force from April, 2024.

Northern Supplies is a program to deliver food, medicines and fuel to remote villages and regions, including in the Arctic, which due to complicated weather conditions remain cut off in winter.