RF Government increased utilization grant for Far North region
The document will facilitate modernization of transport and fishing fleet, load Russian shipyards with new orders and ensure uninterrupted delivery of cargo
The Government of the Russian Federation has increased the utilization grant for the Far North. Transport companies operating in the polar region will get a subsidy of up to 15% of new ships through a utilization grant. According to official website of RF Government, the order has been signed by Prime Minister Mikhail Mishustin.
To get subsidies, companies should have their old ships scrapped and sign new shipbuilding contracts with Russian shipyards. The newbuilds are to be used for delivering food and other essential products to the Far North. The document covers carriers, service and technical fleet.
Due to a short navigation period and seasonal deliveries, the new fleet involved in so called northern deliveries is slow to payback. Additional state support is needed for its modernization today. Moe than RUB 1.4 billion is to be allocated for those purposes between 2021 and 2023.
The newly signed document also specifies the terms for obtaining of utilization grants for construction of fishing ships. It introduces amendments into RF Government’s Order dated 27 April 2017 (No 502).
The document is available in Russian >>>>
