Russian Deputy Prime Minister – Presidential Plenipotentiary Envoy in the Far Eastern Federal District, Yury Trutnev, discussed key aspects of the region’s stability, including the industry, investment, the infrastructure, logistics and standards of living, according to the press service of the Ministry for the Development of the Russian Far East and Arctic.

“The Arkhangelsk Region is a major industrial center, accounting for 30 percent of nationwide pulp and cardboard production volumes. Two major shipyards, Sevmash and Zvyozdochka employing over 30,000 workers, operate here. The region implements 271 state-backed investment projects worth 226 billion rubles and this accounts for 17 percent of planned Arctic investment volumes,” Trutnev noted at the meeting.

He added that 47 billion rubles had already been invested in the economy, accounting for 11 percent of all investment accumulated in the Arctic Zone of the Russian Federation. In all, 113 projects are already operating, and over 4,500 new jobs have been created. “The Arkhangelsk Region comes second among the Arctic Zone’s territories in terms of accumulated investment volumes and the number of projects that are being implemented.”

Arkhangelsk Region Governor Alexander Tsybulsky noted that the regional economy was consistently adapting to external conditions. Over the past five years, the gross regional product (GRP) increased by 50 percent, the industry is growing steadily, and substantial, earlier than planned, wage raises are posted; in 2024, they grew by 13 percent and are set to increase by the same amount this year.

The Governor added that the Arkhangelsk seaport retained its strategic significance and was the only Arctic port to expand its freight traffic volumes last year. Merchant marine traffic volumes soared by 30 percent, and export-import volumes have nearly trebled. Due to expanded traffic, regional authorities have launched construction of a new deep-water port that will accommodate ships with a deadweight of up to 75,000 metric tons; and its freight traffic volumes are to reach 25 million metric tons by 2031. The project’s investment declaration is currently being coordinated.

Alexander Tsybulsky reported that the Pavlovsky deposit on the Novaya Zemlya Archipelago had been reactivated. An updated model aims to site a processing facility in mainland Russia, that is, near the future port. The project is to receive investment worth almost 70 billion rubles, and its first stage is to start operating in 2031.

The development of the minerals and raw materials sector of the Arkhangelsk Region, including production of uncut diamonds (that account for 15 percent of profit tax proceeds), was discussed. The meeting participants noted substantial prospects for expanding production at the Lomonosov deposit. The enterprise’s conversion to centralized power supply is a top-priority factor of the project’s long-term development.  

The meeting participants focused on shipbuilding and ship-repair projects. Demand for ship-repair capacities soared by 150 percent, and the region aims to double civilian ship-repair volumes by 2035. Current projects in this sphere include the modernization of the Arkhangelsk Fleet Repair and Maintenance Base and construction of a ship-repair plant by a resident of the Arctic Zone of the Russian Federation.

In an effort to boost local standards of living and to provide people with housing, the region continues to implement the Arkhangelsk Hectare and low interest Arctic Mortgage programs. In all, 985 people have obtained land plots in the Arkhangelsk Region, and almost 11,000 people have purchased homes and apartments using the Arctic Mortgage program.