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The discussion dealt with the development of Far Eastern and Arctic areas, with special emphasis on building social infrastructure facilities in Buryatia and the Trans-Baikal Territory.

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President of Russia Vladimir Putin: Please, welcome.

Let us start with how the mechanisms and tools that we have created to develop the Far East and the Arctic are working. We do understand what we are talking about here– PDAs, etc. Please, go ahead.

Deputy Prime Minister of the Russian Federation and Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev: Mr President, pursuant to your instruction we continue developing the Far East. To date, 2,283 projects are being implemented in the Far East with government support. The total amount of investment already made in the area has exceeded one trillion, as of today it amounts to 1,160 billion rubles. These funds came mainly from investors: 22.5 rubles of private investment per each ruble in budgetary contributions.

The industrial growth rate in 2019 was six percent. It should be noted that the industry and investment in equity growth rates have been 2–2.5 times higher than Russia's average for five years already. At the same time, we understand that it is all right that there is still a lot of work ahead before people feel anything. As you instructed, we began dealing with the social sphere. In total, 93 billion have been invested over a period of three years. Already 300 facilities have been built and over 200 sites have been refurbished. This work continues, including in Buryatia and the Trans-Baikal Territory, which were integrated into the Far Eastern Federal District by your decision.

The One Hectare programme is underway: almost 80,000 people have received land plots. It takes 34 days on average.

Also, according to your instructions, a system of incentives for the Arctic zone is being developed. The draft law has been prepared; it contains two parts. The first part consists of projects related to production. The second part involves projects in shelf hydrocarbon production, LNG production, gas processing and other aspects not related to production. The draft law has been adopted in the first reading; we will continue working on it.

Vladimir Putin: Good.

As for Buryatia and Trans-Baikal: priority development areas were created in both regions. In Buryatia, plans call for constructing three hospitals, one rural health post, one school and 12 sports complexes and grounds, as well as renovating 70 facilities. The Trans-Baikal Territory will see 40 rural health posts, two schools, three kindergartens, two sports complexes, 60 sports grounds, and eight cultural facilities built, as well as 136 facilities renovated. What about the financing? How is work proceeding at these facilities?

Minister for the Development of the Russian Far East and Arctic Alexander Kozlov: Mr President, Mr Trutnev,

We have been allocating funds since 2019. Work worth 3 billion rubles has been carried out in each region. Each of the facilities is at a different stage of construction or renovation. Large facilities such as schools and kindergartens will be built first. It took us six months to carry out all the necessary procedures and design work; construction is currently underway.

Vladimir Putin: What about tenders?

Alexander Kozlov: All tender procedures have been taken care of.

As for the quick victories plan, as we call it, it includes support for growth areas not in terms of permanent construction or other things. Say, we made a decision based on the example of Ulan-Ude, where we purchased 15 tramcars and renovated 6 kilometres of track. The last tramcar in the city, just one, was bought in 2008; 8 cars were purchased in 1996. We purchased 15 new cars for Ulan-Ude last year alone. As for Buryatia, you can see the figures in the presentation: 6.7 billion and 9.5 billion in the Trans-Baikal Territory. Mr Trutnev held a meeting of the subcommission where additional facilities were considered more professionally to deal with the issue of assigning land plots for the construction. The issue was addressed during the latest trip to Buryatia, and as part of this decision, we will develop Ulan-Ude in its entirety, not to just implement the budget, but to achieve results.

Mr Usmanov is implementing the Udokan project in the village of Chara, in Trans-Baikal Territory. Last week we visited the village; it has a population of 3,000. We toured the school, the Beryozka kindergarten. There is also a museum in the village, and indigenous people live there. All this requires support; so far we have allocated 180 million rubles. We will develop this village and we plan to bring an additional 2,000 people there. Building an airport is also being considered. The design and expert assessment have been completed, and the comprehensive plan includes the creation of a runway. We need to include it in the 2020 construction plans and begin the job because it takes 2.5 days to get there by train and 2.5 hours by AN-24 aircraft, which are 40 years old. This is how matters stand.

We paid a great deal of attention to people’s wishes, including to things that are not present in the national projects and state programmes: the construction for example of ordinary sports grounds in courtyards. A hundred sports grounds were built in the region as part of the programme. It also included automobiles and 88 buses. Various things have been done, including repair work. We have done a lot there and renovated many social infrastructure facilities because many of them really needed to be repaired.

Vladimir Putin: You have already mentioned the Arctic, but let us get back to it. How are things going there?

Yury Trutnev: We divided everything into five groups with different preferential systems depending on what taxes are the most significant for each group, for certain production areas. We agreed upon them with all the companies, federal agencies and the executive authorities. I am sure that this system will boost the development of the Arctic zone.

Vladimir Putin: There are many large-scale projects there.

Yury Trutnev: Yes. We intend to reach all the goals you outlined related to giving a full load to the Northern Sea Route and need to tie all this together.

Vladimir Putin: Am I right in thinking there are both production and non-production projects?

Yury Trutnev: And non-production ones, yes. Because there must be hotels and restaurants so people would have ways to spend their free time.

Vladimir Putin: The preferential treatment that is already in force, is it noticeable?

Yury Trutnev: It is. The system is slightly different from what we suggested, as well as from the adopted laws on the Far East. As a rule, there are no zero rates; preferential rates are lower by two thirds, but have to be paid starting from the first year. We consulted with companies; they are fully satisfied because the preferential term lasts longer this way. On the other hand, territories will begin to receive taxes immediately, so it will provide an addition to the budget due to new investment projects.

Vladimir Putin: Good.

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