Russian Federation Government Decree No. 1190 dated September 29, 2017 authorized the Ministry of the North Caucasus Affairs of the Russian Federation to exercise the rights of the shareholder of Joint-Stock Company Northern Caucasus Resorts on behalf of the Russian Federation as regards to the federally-owned shares. Thus, the full range of necessary powers of the Ministry of the North Caucasus Affairs of the Russian Federation was formed to enable the agency to manage special economic zones of tourist-and-recreational type, merged into the North Caucasian Tourism Cluster.

Currently, the implementation of activities aimed at the transfer of JSC NCR shares that make up more than 98% of the authorized capital of the company from JSC SEZ to the Russian Federation is at its final stage.

‘The signed Russian Federation Government Decree is one of the final stages of the process of transfer of management of the key development institution of the North Caucasus to the Ministry of the North Caucasus Affairs of the Russian Federation. Thus, the state formed the one stop shop system – through the Ministry of the North Caucasus Affairs of the Russian Federation — in budget allocation both for infrastructure of the North Caucasian Tourism Cluster and for implementation of other projects in the region,’ Odes Baysultanov, the First Deputy Minister of the Russian Federation for the North Caucasus, said. ‘Now, the Ministry of the North Caucasus Affairs of the Russian Federation will be able to holistically integrate project managed by JSC NCR in the district social-and-economic development process, managed by us, which goals are defined in the State NCFD Development Program until 2025. This will boost the development of tourist cluster facilities, as the relationship between the construction of new ski lifts in the Caucasus and creating new jobs in tourism-related areas of the regional economy, with improving the life standards of the local population will be clear,’ he said.

Let us recall that Russian Federation Government Decree No. 238 dated February 28, 2017 transferred the authority for management of special economic zones in the North Caucasus Federal District, previously reserved to the Ministry of Economic Development of the Russian Federation, to the Ministry of the North Caucasus Affairs of the Russian Federation. The Ministry of the North Caucasus Affairs of the Russian Federation will be authorized to form an Expert Council to consider applications from potential investors and take decisions about awarding the status of SEZ residents, to register residents and to maintain a respective register of SEZ residents, to conclude tripartite agreements with JSC NCR and residents on tourist-and-recreational activities and to perform other functions defined by Federal Law No. 116-ФЗ dated July 22, 2005 On Special Economic Zones in the Russian Federation.