A meeting between the President and the Head of the Murmansk Region has yielded positive outcomes. The results of the talk will solidify the course of development and Murmansk’s vision of the North.
Recently, the Head of the Murmansk Region Andrey Chibis travelled to Moscow for a tête-à-tête with Vladimir Putin. This was their third meeting this year, which surely indicates new developments for the Arctic.
First and foremost, this signifies the President's trust and the potential for future benefits regarding the current course of development in the North. Secondly, it provided an excellent opportunity for the Head of the Region to share pressing issues and discuss key ideas for Murmansk’s and Russia's strategy in the Arctic.
What decisions and changes can we expect following this meeting?
Let us first consider the aspects of the demographic strategy. Recently, we published an opinion piece concerning measures to attract and retain specialists in the Murmansk Region and the Russian Arctic in general. For now, we can be confident that the following initiatives will continue, as their realisation now has the President's seal of approval:
- The Arctic Mortgage programme, offering a 2-3% interest rate (the usual rate at the Central Bank currently stands at 18%). The Head of the Murmansk region reports that 600,000 square metres of housing have already been purchased using this programme.
- The housing modernisation programme in the Murmansk region, which aims to renovate old panelled apartment blocks to extend their lifespan.
One successful programme that has recently concluded is Your Own House in the Arctic, which provided financial support for purchasing or building homes. It is worth noting that such attention to private property is driven by one of the economically beneficial specialisations of the Russian North—tourism.
The Head of the Region also proposed creating a new medical care standard for the Arctic Zone of Russia, providing more support from the state, as the harsher climate conditions necessitate that northerners monitor their health more closely. As of now, the medical care in the North is more expensive.
The most significant decision, however, is in the economic sphere. The master plans for the Murmansk Region's support cities received approval as well, meaning that these settlements will get prioritised support from the state:
- The Kirovsk-Apatity agglomeration, a centre for phosphate mining and tourism;
- The Monchegorsk agglomeration, key to lithium mining in the region;
- The Murmansk agglomeration itself.
Support cities of the Arctic is a term also proposed by the Head of the Murmansk region in 2023. There are currently 16 settlements with this status, and all must provide an economic plan of development until 2035. These will receive state support as part of a national project.
Most of these settlements are located along the Northern Sea Route.
From the state's perspective, this means increased attention and financial support for these cities and towns. In return, improved infrastructure will enhance operations on the NSR. From the perspective of the settlements, this translates to increased domestic development, better living conditions, and a slower rate of migration.
As the Head of the Murmansk Region highlights, in current projects, for every state ruble, there are six from private investment. This proportion is quite encouraging, as the region will continue to develop, even if the state does not prioritise it. This suggests that the Arctic is slowly regaining its significance, attracting more and more attention from businesses.
As a final observation, it appears that the Murmansk Region is setting the tone for the entire Russian Arctic. The region's experience and ideas will likely serve as the foundation for future development, as its vision expands on federal programmes.
The Editorial Board of the Arctic Century
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