Moving Northward: Handy's Journey Northward
Yakutia, also known as the Republic of Sakha, is currently experiencing a dynamic period of economic and logistical development, with a focus on improving coordination between entrepreneurs and government authorities in the northern regions.
## Current Initiatives
The creative and digital economy is a significant area of investment in Yakutia, as demonstrated by projects like the Labour Quarter cluster, which supports both traditional crafts and IT startups. The region also offers regional and federal support to entrepreneurs, including tax incentives and business privileges available through priority development territories, with nearly 200 companies currently benefiting from these advantages.
Logistics, particularly for northern regions, heavily rely on water transport. Over 90% of goods are delivered via vessels, with ongoing modernization efforts for the fleet to enhance supply chain reliability and reduce freight costs. Regional leaders regularly report to the federal government on the progress of delivery systems and collaborate with ministries to ensure timely funding and coordination.
Geological exploration for rare earth metals (REM) is expanding, supported by state incentives such as tax benefits for new projects and R&D subsidies. However, these measures primarily target new rather than existing enterprises.
## Future Plans
The federal and regional governments are developing comprehensive support systems for entrepreneurs, with a focus on increasing interaction between business, regional, and federal authorities. This approach aims to provide broader opportunities for local entrepreneurs to realize innovative projects and expand exports, while also preserving regional traditions and cultural heritage.
Continued investment in modernizing delivery fleets and logistical infrastructure is planned to address the unique challenges of northern and remote territories like Yakutia. The government aims to maintain tight coordination and prompt funding to ensure uninterrupted supply chains.
Expansion of sectors such as IT, design, gastronomy, and the arts is targeted to increase the creative industries’ contribution to regional GDP, with a national goal of reaching 6% by 2030. New clusters and priority development territories are expected to grow, with plans for 25 such institutions by the end of the year.
## Proposed Initiatives
Recently, during the "Direct Line" forum, Aisen Nikolaev proposed the formation of cooperatives to address supply issues in northern regions. Minister of Entrepreneurship Timur Khandy, in response to the proposal, expressed his belief that cooperatives could be an effective tool for improving logistical issues and coordination between entrepreneurs and authorities in northern regions. Minister Khandy has also shown enthusiasm for the proposal, suggesting a potential initiative to improve northern supply efficiency in Yakutia.
The proposal to form cooperatives is currently being considered, and Minister Khandy has contacted the entrepreneur who initially suggested the idea to express his support. Previously, Minister Andrey Tarasenko handled northern supply optimization, merging "Yakutoptorg" and OJSC "Tuimada-Agrosnab" to establish wholesale bases and food and vegetable delivery.
In response to the proposal to reduce UST tax rates to 4% for 5 years, Minister Timur Khandy stated he will prepare and submit a tax application to the tax commission under the Government of Yakutia. Minister Andrey Tarasenko also launched the republican maritime fleet and airlifted potatoes by helicopter for northern supply optimization.
Yakutia is making strides in logistical improvement and entrepreneurial coordination, with both current initiatives and ambitious future plans aimed at fostering economic growth and regional resilience. The proposed formation of cooperatives adds another promising avenue to the ongoing efforts to address the unique challenges of northern regions.
[1] Labour Quarter cluster: https://labour-quarter.ru/ [2] Modernization of delivery fleets: https://www.government.ru/news/33623/ [3] REM exploration incentives: https://www.government.ru/news/32927/
- The formation of cooperatives, as proposed by Aisen Nikolaev, could be an effective strategy for improving logistical issues and enhancing coordination between entrepreneurs and authorities in Yakutia's northern regions.
- To bolster the finance sector, Minister Timur Khandy plans to prepare and submit an application to lower the UST tax rates for five years, aiming to stimulate business growth in Yakutia.
