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Children's centre beyond the Arctic Circle

A resident of the Arctic Zone of the Russian Federation (AZRF) will build a multifunctional entertainment centre in the Murmansk Region

20.01.2023 // MIR DETSTVA LLC, an AZRF resident, is implementing a project to build a multifunctional entertainment centre for children in Monchegorsk, Murmansk Region. For a city beyond the Arctic Circle, this would be a significant moment.

The company received AZRF resident status at the beginning of 2023. The children's centre will start operating in 2026, but design work will take place as early as 2023, and construction of the facility, with a total area of about 1,000 sq m, will begin in 2024. According to an agreement signed with the Far East Development Corporation (FEDC), the resident will invest RUB 36.6 mn in the project.

The population of Monchegorsk today is just over 41,000 people, about 22% are children under 6 years old and teenagers (schoolchildren) aged 7 to 17. There are, of course, further education institutions and clubs at schools and kindergartens in the city, but there is no large leisure centre where the whole family can spend some fun time, buy children's goods, celebrate children's birthdays or organise children's quests, so popular today, for a group of children. There are similar institutions in the regional centre, Murmansk, but the distance from Monchegorsk is more than 100 km.

'In addition to the entertainment area for children and teenagers, which includes a developmental games zone, a climbing wall and a trampoline, the centre will have a recreation area and photo zone, a café where various events can also be held, as well as areas for selling children's goods and clothing are also provided,' said Maria Makarova, CEO of MIR DETSTVA LLC.

According to her, the company receives a great deal of assistance in providing comprehensive support for the project from the FEDC, and AZRF resident status gives specific advantages.

'Administrative and tax preferences, including income tax, as well as the allocation of land for the construction of the centre—all this has a favourable effect on business development and, accordingly, works for the benefit of the hometown and the region as a whole,' says Maria Makarova.

The entertainment centre project was also supported by NGO Monchegorsk Development Agency.

'As part of the signed investment agreement, the Agency's staff assisted us in selecting a land plot for our project and helped us with the paperwork to obtain the AZRF resident status. At this stage, together with the Agency, we are putting together a package of documents to obtain a concessional loan from the Federal Development Institute and are developing a design project,' said Maria Makarova.

A new venue for leisure activities for the city's residents and the opening of a multifunctional entertainment centre for children will create 11 jobs.

'The AZRF regime provides a wide range of opportunities for businesses to pursue their desired project. Thanks to the allowances and preferences, resident entrepreneurs can significantly improve the economics of their projects, which in turn gives a visible boost to business activity in the Arctic Zone of the Russian Federation. New manufacturing enterprises and companies providing services and facilities for locals and tourists are being launched in the northern regions. To date, AZRF residents have already put 77 projects into operation. As a result, people's quality of life is growing and new jobs are being created,' said Vladimir Gudkov, Deputy Director of the Department of Residential Policy at FEDC.