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Ilya Chernov: Over a thousand residents implement projects in various business sectors of the Arctic Zone of the Russian Federation
Ilya Chernov: Over a thousand residents implement projects in various business sectors of the Arctic Zone of the Russian Federation
Arctic.ru: Discover how Russia implements its development goals in the Arctic and the Far East
2026-07-24T10:00
2026-07-24T10:00
2026-07-24T10:00
expert opinion
far east and arctic development corporation
/img/07ea/07/17/1634073_0:0:1920:1080_1920x0_80_0_0_67ce9a41cdcb3e3e9a2d0f7074418c13.png
Business projects of various scale and in various sectors are being implemented in the Arctic zone, where businesses are working together with the federal authorities to implement urban master plans. In addition, the mechanism of northern delivery is being improved, with the range of goods available in outlying settlements increasing and prices going down.Arctic.ru interview with Ilya Chernov, Deputy Director General for Arctic Development at the Far East and Arctic Development Corporation, on the most in-demand benefits for business in the Arctic Zone of the Russian Federation (AZRF), the main result of the first year of the implementation of the federal law on northern delivery, and plans for cooperation with marketplaces.Question: Mr. Chernov, which federal and regional mechanisms are being used in the Arctic zone to attract investments?Ilya Chernov: The most successful practices tested in the Far East are being used in the Arctic zone on a larger scale.In addition to priority development areas (there are three of them in the Arctic), we have established the largest special economic zone with an area of 5 million square meters here. Its residents have access to nearly all benefits available in the Far East, such as tax and administrative incentives, and land allocation benefits. But insurance contribution relief is the most in-demand benefit.We have won the trust of over a thousand residents from different economic sectors, of different size and with different investment volumes. Taken together, this is certainly advancing economic development in the Arctic.Question: What is the role of businesses in the implementation of urban master plans in the Arctic zone? Will new master plans be developed for Arctic cities?Ilya Chernov: Master plans are one of effective instruments used in the Far East. We have developed 15 master plans for backbone Arctic settlements. They comprise 516 measures aimed at improving the quality of people’s life and infrastructure, with investment estimated at 2.9 trillion rubles, 60 percent of which come from extrabudgetary sources.Businesses invest in public-private partnership (PPP) projects and the creation of engineering infrastructure. Investments in the projects related to backbone settlements alone amount to over 19 trillion rubles for a period until 2035.In addition, master plans are being developed for another three backbone settlements, including two municipalities – the Beryozovsky and Beloyarsky districts in the Khanty-Mansi Autonomous Area, and Khatanga in the Krasnoyarsk Territory. The development of a comprehensive master plan is to be completed this year.Question: The results of the first year in the implementation of the federal law On Northern Delivery have recently been reviewed. What can you say about them?Ilya Chernov: The main result is that all settlements have been supplied with heating, food products, and medications. A total of 3.4 million metric tons of goods for 2 million residents have been delivered to Arctic municipalities.Treasury loans worth 10 billion rubles have been allocated for the first time for the purchase of these goods, and the sum has been increased to 30 billion rubles in 2026. The creation of 13 trade and logistics centers have been completed in the Republic of Sakha (Yakutia), which allowed us to increase the product range in settlements from 30˗40 to 700 items, and at the same time to reduce prices. This is greatly improving the quality of people’s life and product affordability. Our plans include the use of this system on a larger scale in other regions.Supplies have become more reliable since the adoption of the federal law. We worked together with the Transport Ministry and Russian Railways (RZD) to monitor cargo delivery. At the beginning, the transportation of about 1,500 containers was at risk of being delayed, whereas now the risk has decreased by over 30 times.Question: What new instruments do you plan to implement to improve northern delivery?Ilya Chernov: One of the methods of enhancing delivery efficiency will be the Federal State Information System for Monitoring Northern Deliveries (the digital platform for monitoring the supply of vital goods – Ed.). We completed the first module last year and are making plans in the digital form now. The second module is to be completed this year, to be followed by the development of a digital network. This will make the northern delivery more transparent and reliable.We plan to expand trade and logistics hubs, which includes developing ties with marketplaces so that we can use their infrastructure and facilitate product deliveries to the people. We will also sign direct contracts with vertically integrated oil companies, and we are considering the possibility of implementing offset agreements for manufacturing northern delivery products.Question: You have been working on a power generation development program for the Far East since 2025. What innovations can be used in this sphere?Ilya Chernov: Far Eastern consumption volumes are growing 100 percent faster than average nationwide volumes; in the past few years, they increased by 28 percent and are set to soar by an additional 30 percent until 2030.As the President said at the recent Eastern Economic Forum, the ambitious projects that are being implemented in the Far East entail a comparable development of power generation. We plan to implement this program in three stages.We will begin by enhancing the reliability and effectiveness of existing capacities. Next, we will create individual conditions for the construction of new power plants within the planned investment projects. And lastly, we will plan the construction of new power plants for a longer period.These projects will be implemented through the use and further improvement of various instruments, such as the companies’ own and borrowed funds, project financing mechanisms, and market mechanisms of return on investment. The implementation of these projects will be greatly facilitated by the use of the Far East wage differential, retained earnings accumulated due to the suspension of dividend payments at RusHydro in 2023˗2029, as well as returns from an increase in the sale of hydroelectric power at а free market prices. If necessary, we will also employ state support measures.BackgroundThe Far East and Arctic Development Corporation (FEDC) is a government institution subordinate to the Ministry for the Development of the Russian Far East and Arctic. Its mission is to create favorable conditions for the implementation of investment projects, and ensure the residents’ access to tax and administrative benefits. Businesses can use the Corporation’s services to lease land and production facilities on preferential terms, receive access to engineering infrastructure, and recruit personnel. The Corporation also monitors the implementation of social development, education and personnel training programs, initiatives aimed at enhancing the quality of life for the people, and the implementation of demographic programs.
https://en.arctic.ru/20260710/1594974.html
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2026
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Business projects of various scale and in various sectors are being implemented in the Arctic zone, where businesses are working together with the federal authorities to implement urban master plans. In addition, the mechanism of northern delivery is being improved, with the range of goods available in outlying settlements increasing and prices going down.
Arctic.ru interview with Ilya Chernov, Deputy Director General for Arctic Development at the Far East and Arctic Development Corporation, on the most in-demand benefits for business in the Arctic Zone of the Russian Federation (AZRF), the main result of the first year of the implementation of the federal law on northern delivery, and plans for cooperation with marketplaces.
Question: Mr. Chernov, which federal and regional mechanisms are being used in the Arctic zone to attract investments?
Ilya Chernov: The most successful practices tested in the Far East are being used in the Arctic zone on a larger scale.
In addition to priority development areas (there are three of them in the Arctic), we have established the largest special economic zone with an area of 5 million square meters here. Its residents have access to nearly all benefits available in the Far East, such as tax and administrative incentives, and land allocation benefits. But insurance contribution relief is the most in-demand benefit.
We have won the trust of over a thousand residents from different economic sectors, of different size and with different investment volumes. Taken together, this is certainly advancing economic development in the Arctic.
Question: What is the role of businesses in the implementation of urban master plans in the Arctic zone? Will new master plans be developed for Arctic cities?
Ilya Chernov: Master plans are one of effective instruments used in the Far East. We have developed 15 master plans for backbone Arctic settlements. They comprise 516 measures aimed at improving the quality of people’s life and infrastructure, with investment estimated at 2.9 trillion rubles, 60 percent of which come from extrabudgetary sources.
Businesses invest in public-private partnership (PPP) projects and the creation of engineering infrastructure. Investments in the projects related to backbone settlements alone amount to over 19 trillion rubles for a period until 2035.
In addition, master plans are being developed for another three backbone settlements, including two municipalities – the Beryozovsky and Beloyarsky districts in the Khanty-Mansi Autonomous Area, and Khatanga in the Krasnoyarsk Territory. The development of a comprehensive master plan is to be completed this year.
Question: The results of the first year in the implementation of the federal law On Northern Delivery have recently been reviewed. What can you say about them?
Ilya Chernov: The main result is that all settlements have been supplied with heating, food products, and medications. A total of 3.4 million metric tons of goods for 2 million residents have been delivered to Arctic municipalities.
Treasury loans worth 10 billion rubles have been allocated for the first time for the purchase of these goods, and the sum has been increased to 30 billion rubles in 2026. The creation of 13 trade and logistics centers have been completed in the Republic of Sakha (Yakutia), which allowed us to increase the product range in settlements from 30˗40 to 700 items, and at the same time to reduce prices. This is greatly improving the quality of people’s life and product affordability. Our plans include the use of this system on a larger scale in other regions.
Supplies have become more reliable since the adoption of the federal law. We worked together with the Transport Ministry and Russian Railways (RZD) to monitor cargo delivery. At the beginning, the transportation of about 1,500 containers was at risk of being delayed, whereas now the risk has decreased by over 30 times.
Question: What new instruments do you plan to implement to improve northern delivery?
Ilya Chernov: One of the methods of enhancing delivery efficiency will be the Federal State Information System for Monitoring Northern Deliveries (the digital platform for monitoring the supply of vital goods – Ed.). We completed the first module last year and are making plans in the digital form now. The second module is to be completed this year, to be followed by the development of a digital network. This will make the northern delivery more transparent and reliable.
We plan to expand trade and logistics hubs, which includes developing ties with marketplaces so that we can use their infrastructure and facilitate product deliveries to the people. We will also sign direct contracts with vertically integrated oil companies, and we are considering the possibility of implementing offset agreements for manufacturing northern delivery products.
Question: You have been working on a power generation development program for the Far East since 2025. What innovations can be used in this sphere?
Ilya Chernov: Far Eastern consumption volumes are growing 100 percent faster than average nationwide volumes; in the past few years, they increased by 28 percent and are set to soar by an additional 30 percent until 2030.
As the President said at the recent Eastern Economic Forum, the ambitious projects that are being implemented in the Far East entail a comparable development of power generation. We plan to implement this program in three stages.
We will begin by enhancing the reliability and effectiveness of existing capacities. Next, we will create individual conditions for the construction of new power plants within the planned investment projects. And lastly, we will plan the construction of new power plants for a longer period.
These projects will be implemented through the use and further improvement of various instruments, such as the companies’ own and borrowed funds, project financing mechanisms, and market mechanisms of return on investment. The implementation of these projects will be greatly facilitated by the use of the Far East wage differential, retained earnings accumulated due to the suspension of dividend payments at RusHydro in 2023˗2029, as well as returns from an increase in the sale of hydroelectric power at а free market prices. If necessary, we will also employ state support measures.
The Far East and Arctic Development Corporation (FEDC) is a government institution subordinate to the Ministry for the Development of the Russian Far East and Arctic. Its mission is to create favorable conditions for the implementation of investment projects, and ensure the residents’ access to tax and administrative benefits. Businesses can use the Corporation’s services to lease land and production facilities on preferential terms, receive access to engineering infrastructure, and recruit personnel. The Corporation also monitors the implementation of social development, education and personnel training programs, initiatives aimed at enhancing the quality of life for the people, and the implementation of demographic programs.
