The Ministry of the Russian Federation for the Development of the Far East and the Arctic has selected Russian banks to participate in the concessional lending program for residents of the Arctic zone of the Russian Federation. The list of authorized banks includes six credit institutions: VTB, Sberbank, Gazprombank, Sovcombank, Otkritie and Moscow Industrial Bank.

These banks will provide loans at a reduced rate to residents of the Arctic zone in accordance with the rules approved by the decree of the Government of the Russian Federation in December last year. Under the program, the final loan rate will be lower than the market rate by one and a half size of the key rate of the Central Bank of the Russian Federation (currently 4.5% * 1.5 = 6.75%), the lower limit is set at 2% per annum.

Following the results of consideration by banks of applications from residents of the Russian Arctic for concessional financing, the Ministry for the Development of the Russian Far East will conclude appropriate agreements with banks on the provision of subsidies from the federal budget.

“We already know about 10 companies-residents of the Arctic zone, which are counting on receiving a soft loan. This measure will additionally stimulate those who plan to start their own business and receive state support. The condition for the provision of concessional financing to the initiator is investment in the project at least 30% of its own funds and the creation of new jobs,” said Olga Kuznetsova, Deputy Governor of the Murmansk Region.

The concessional lending program is part of a wide range of measures to stimulate the socio-economic development of the Arctic. Tax incentives and administrative support are also provided to project proponents registered as residents of the Arctic zone. 26 residents have been registered from the Murmansk region today with projects for a total investment of over 51 billion rubles, more than 1,300 jobs are envisaged. A total of 69 investors in the Arctic zone.

https://gov-murman.ru/info/news/398288/