02.09.2021   14:14

Russian Railways and Corporation for the Development of the Far East and the Arctic to cooperate on rail transportation

Russian Railways and the Corporation for the Development of the Far East and the Arctic (CDFEA) have entered into a cooperation agreement on rail transportation and infrastructure development.

Alexei Shilo, the Deputy Manging Director of Russian Railways and Head of the Centre for Corporate Transport Services, and Igor Nosov, the Managing Director of the CDFEA Arctic, signed the document on 2 September 2021 at the Eastern Economic Forum, which is currently being held in Vladivostok.

The purpose of the joint work will be to create favourable conditions for companies based in designated areas which have preferential tax regimes in Russia’s Far Eastern Federal District, in particular advanced development territories (ADP) and the free port of Vladivostok (FPV) in Primorsky and Khabarovsk territories, as well as in the Arctic zone of the Russian Federation (AZRF).

The aim is to attract both existing residents and potential investors to use rail transportation services.

In addition, the agreement envisages the resolution of the issues involved in connecting non-public tracks with the infrastructure of Russian Railways.

The document also envisages, in particular, support for projects on the development of the railway infrastructure of the Nadezhdinskaya ADP in Primorsky Territory for the transportation of goods that are produced by residents of this priority development area.

In turn, the CDFEA will assist Russian Railways in the effective cooperation with industrial enterprises which are resident in the ADPs, the FPV and the AZRF for the development of access lines, taking into account the promising production volumes, and inform the Company about the creation of new enterprises, which will update the promising cargo base in the regions.

According to the CDFEA, more than 2,760 companies with projects totalling over 5.9 trillion roubles are engaged to date in investment activities in the status of residents of the ADPs, FPV and AZRF, the implementation of which is designed to create 191,000 jobs in the regions of the Far East and the Arctic.

More than 410 residents have already implemented their projects after investing a total of about 1.6 trillion roubles in the macroregion’s economy. The launched enterprises employ 70,000 people from Russia’s Far East region and the Arctic.