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Arctic land for free: How to build a business on the Arctic hectare?

FEDC and RANEPA launch new season of entrepreneurship project

10 july 2024

The Far East Development Corporation and RANEPA's Primorsky branch are launching a new season of the Hectare in the Arctic Programme Participant Academy educational project. The course starts on 19 August 2024 on the освойгектар.рф website, and any programme participant can apply. Three modules are planned: 'Organising a business on a Far Eastern and Arctic hectare,' 'Organising agriculture on a land plot' and 'Features of organising and managing a tourism business on a land plot.' Over 250 hours, entrepreneurs will learn about the legal and theoretical rules for setting up their own enterprise on a land plot, conducting design and estimate work, attracting investments and business planning.

According to Klavdia Olesova, Head of the FEDC's Far Eastern and Arctic Hectare Programme Implementation Department, the educational programme was developed based on the experience of entrepreneurs who have already developed their hectares, as well as students. The main focus will be on developing entrepreneurial skills, creating business plans and fostering cooperation within consumer communities and agricultural industries.

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'In the 2024 programme, we plan to pay special attention to doing business in areas equivalent to northern territories and the state support measures available in Russia's Arctic zone,' the project curator emphasised.

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According to the Ministry for the Development of the Russian Far East and Arctic, over 5,000 people received an Arctic hectare from 2021 to 2023. The Murmansk Region was the clear leader, with 3,026 approved applications, followed by Karelia with 698 applications and Arkhangelsk with 503 new plot owners. About 40% were granted for private home construction, 12% for tourism projects, 11% for agriculture and other activities, and 26% for other types of businesses. There are several support measures for Arctic hectare owners—for example, in the Murmansk Region, it's possible to receive a grant of up to RUB 1 mn to create tourism infrastructure and purchase ecotourism equipment. This region also offers the Governor's Startup programme, which provides up to RUB 2 mn for purchasing fixed assets, advertising cost compensation, capital construction expenses, etc. There are programmes for farmers—Agrostartup offers grants of up to RUB 5 mn for livestock farming and up to RUB 3 mn for other types of production. Additionally, the Murmansk Region offers grants of up to RUB 1 mn for purchasing a franchise and up to RUB 1 mn for organising socially significant production. The освойгектар.рф website provides a full list of possible benefits for Far Eastern and Arctic hectare owners—entrepreneurs can access preferential lending solutions, one-time financial assistance and grants, while farmers can expect various grants for establishing family and cooperative farms, purchasing equipment and much more.

This support allows entrepreneurs to quickly realise their hectare's potential, which is necessary given the economic growth and increasing tourist flow in the Russian Arctic. Last year, over 1.1 mn tourists visited the Arctic, and the Minister for the Development of the Russian Far East and Arctic, Aleksey Chekunkov, named the polar destination as one of the most promising in the country.

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'Here in the Federation Council, as part of one of our Arctic Council meetings, sociologists were reporting the results of a survey of Russians' satisfaction with travelling around the country. The highest percentage—97%—gave the most positive assessment to Arctic travel,' he emphasised in an interview with TASS.

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And it's not just large campsites or ski resorts—a modest guest house in Karelia is equally successful. Its owner, Oyvo Timonen, is confident of this, having built a northern bungalow on his Arctic hectare for fishing enthusiasts and paddleboarders on Lake Kuytto. This is his second project implemented with state support. It's not necessary to create a business from scratch—there are 20 ready-made solutions for hectare owners that can be launched within three months. These include fish, berry or milk processing plants, cheese factories, coffee shops, modular hotels, boiler houses, hotels and much more.  


Image attribution: Shutterstock

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