Arkticheskaya Mnogootraslevaya Konpaniys (Arctic Multi-Branch Company, AMK LLC), which is implementing a project to clean up the territory of the Arctic Yakutia from scrap ferrous and non-ferrous metals and other waste, has received the status of a resident of the Arctic zone of the Russian Federation. The company is ready to begin the cleanup works in the summer of 2022.

Under an agreement with the Far East and Arctic Development Corporation (FEDC), private investors will invest over 100 million rubles in the project and create 38 jobs.

"The main environmental remedial action will be taken in the Ust-Yansky and Bulunsky districts of the Arctic. The company is currently obtaining a license for working with class 1–5 hazard waste. The list includes scrap ferrous and nonferrous metals, which will be exported for further processing to metallurgical plants outside the republic," says Igor Gorbunov, the CEO of AMK.

According to him, the status of a resident of the Arctic Zone of the Russian Federation will grant AMK LLC access to state support in the form of tax and non-tax benefits, as well as administrative preferences.

"All this will significantly reduce the cost of launching a new project and increase the economic efficiency of the enterprise, positively affecting the process of its formation and development," adds Igor Gorbunov.

AZRF residents enjoy income tax benefits and the subsidising of 75% of their insurance premiums. "Zero income tax applies for the first five years after an enterprise first generates profit. For the next five years, an income tax benefit of 50% is provided. Investors can also take advantage of the simplified land plots registration procedure. In Yakutia, residents of the Arctic zone are exempt from property tax until 2025. Some municipalities provide reduced land tax rates," says Alexandra Pakhomova, Deputy Director for Arctic Zone Issues of the management company of the Yakutia advanced special economic zone (a subsidiary of FEDC).