Russian President Vladimir Putin has signed a new law concerning the Arctic—Federal Law No. 452658-8 'On Amendments to Certain Legislative Acts of the Russian Federation.' It introduces several changes to the existing set of laws for the Russian Arctic zone—for example, it simplified the process of obtaining federal subsidies for large infrastructure investment projects and extended the transit period for goods destined for residents of Advanced Special Economic Zones, the Free Port of Vladivostok, as well as the Arctic Zone of the Russian Federation, applying free customs zone rules. Now, when calculating timeframes, it will be possible to consider navigation seasons, weather conditions along routes, infrastructure status and other characteristics of remote territories. Previously, storage periods were calculated at a rate of 1 month for every 2,000 km of the route.

Indeed, the AZRF's preferential regime is not a static set of laws; it evolves over time. For example, last year, the timeframe for issuing land plot urban planning certificates was reduced to 10 days, a 5-year validity period for technical conditions for connecting to engineering and technological networks was established, and the procedure for obtaining resident status was simplified. Additionally, the application of monetary criteria for transitioning to Tax Monitoring, as established by the Russian Tax Code for free economic zone residents, was eliminated, and Russian cruise ships were exempted from following border regime rules in Arctic and Far Eastern waters.

The AZRF itself is also changing. This winter, the economic Arctic expanded with two new territories—the Beloyarsky and Berezovsky districts of the Khanty-Mansi Autonomous Area. It is expected that this special economic status will enable the implementation of large energy and mining projects, particularly quartz mining, increase current hydrocarbon exploration, extraction and processing volumes, and allow for the rapid construction of large-scale infrastructure.

In fact, the current amendments are primarily aimed at stimulating infrastructure development and improving logistics efficiency, which the Arctic desperately needs. Today, there are over 750 Russian Arctic zone resident companies, with a declared investment volume of RUB 862 bn. Growth in the number of special economic zone participants is impossible without developing extensive infrastructure, which is often simply absent in the Arctic. Large companies often have the resources to build roads, boiler houses, extend power lines and bring other benefits of civilisation to very remote and sometimes completely undeveloped areas. At least, this sentiment can be inferred from the adopted document.

Meanwhile, AZRF residents with more modest capabilities and requirements still have room to develop. Special economic zone participant status provides access to a wide range of support tools. These include subsidised insurance premiums, reduced profit, property and land taxes, mineral extraction tax deductions, as well as deductions for simplified taxation systems based on 'income' and 'income minus expenses.' Depending on the special economic zone's region, the duration and amount of assistance provided may vary. For example, in the Murmansk Region, the profit tax rate for the first five years is 5%, in Karelia, it's 0%, while in the Krasnoyarsk Territory, there is no such benefit and companies must pay the standard 20%. Representatives of the country's leadership and regional authorities have repeatedly stated that the AZRF is a rather dynamically changing structure that addresses the current development needs of Russia's Arctic segment. Depending on a region's needs, its level of economic development and business activity, a specific model is applied, allowing the government to help businesses establish themselves as quickly and efficiently as possible.

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