The Government of the Russian Federation in its Decree No. 463 dated May 25, 2016 approved the rules for the granting of subsidies for residents of tourism and recreation special economic zones composed of the tourism cluster in the North-Caucasian Federal District, Krasnodar Territory and Republic of Adygea. The federal budget funds shall be allocated for reimbursement of some part of the interest on loans, attracted by SEZ residents for construction, reconstruction and revamping of capital facilities and equipment purchase.

The subsidy amount is calculated on the basis of 100% key rate of the Central Bank of the Russian Federation in force at the conclusion of the subsidy contract. The subsidies cover the reimbursement of some part of the actually incurred and documented costs incurred by resident on the payment of the interest on loans obtained not earlier than January 1, 2014. The amount of credits attracted by the residents shall not exceed 70% of the cost of capital facilities construction/reconstruction/revamping or equipment acquisition cost. The total cost of capital facilities construction/reconstruction/revamping must not be less than 10 million roubles, the aggregate value of the equipment to be purchased - not less than 5 million roubles.

The concerned authority in charge for selecting residents for subsidising shall be the Ministry of the North Caucasus Affaires of the Russian Federation. When considering residents’ projects, the financial and budgetary efficiency thereof, the number of jobs created and average wages of the resident’s employees, and a number of other parameters shall be taken into account.

According to Lev Kuznetsov, the Minister of the North Caucasus Affaires of the Russian Federation, the measure approved by the Government shall contribute to the creation of the environment in the North Caucasus Federal District to attract investments in the tourism sector and improvement of the measures to support small and medium-sized businesses. ‘The state politics in the district, aimed at creating favourable investment environment, particularly in the tourism sector, which is the driver of the whole NCFD economy, has already proved to be successful. We see how the investment picture in the North Caucasus is changing, i.e. the Special Economic Zone Arkhyz, where a namesake resort is being developed, has already become the most successful in the country among the tourism and recreation SEZ. I am convinced that the introduction of a new residents support mechanism shall facilitate the inflow of not only Russian, but also foreign investment’, the Minister concluded.

Oleg Gorchev, the Director General of Northern Caucasus Resorts JSC, reminded that at the launch pad of a tourism cluster project (Arkhyz ATRC), where the public-private partnership scheme is being elaborated, already 18 investors had obtained the resident status, another 6 applications were approved by the Expert Council at the Russian Ministry of Economic Development in the first quarter this year. ‘We are committed to forming the most comfortable working conditions for our investors throughout the cooperation — from advisory and institutional support at the stage of obtaining resident status to support of activities to implement their business plans at the resort and to promptly settle the issues related to the functioning of Arkhyz ATRC within the Council of Residents. Subsidising the interest on loans is another guarantee of the seriousness of the Russian State intentions to develop the priority tourism project in the North Caucasus’, the head of the company said.