According to the Decree of the President of the Russian Federation No.  296 from May 2, 2014, the territory of the Vorkuta Municipality falls into the category of land territory of the Arctic Zone of the Russian Federation.

General description

Municipality status

urban district

Number of urban settlements within the municipality

16

Distance to the administrative centre of the Russian Federation constituent, km

1,030

Resident population, thousand people

80.1

Township-forming company

JSC Vorkutaugol

Company foundation date

1931 (2003)

Core business

05.10.14 underground anthracite mining

Main products

coal, coal concentrate

Number of the company employees, share in municipal organizations’ staff payroll, %

21.1

 

Vorkuta basic zone creation

According to the State Commission Minutes No. 1 from March 9, 2016 “On the issues of the Arctic development” an approach of creating development basic zones in the Arctic Zone of the Russian Federation was supported within the elaboration of a revised version of the state program of the Russian Federation “Social and economic development of the Arctic Zone of the Russian Federation till 2020“ (hereinafter as the State Program).

Therefore, the No. 1 subprogram “Elaboration of development basic zones, their operation, and balanced social and economic development of the Arctic Zone” within the State Program was worked out. With the Russian Federation constituents’ support, the subprogram implementation will serve:

  • to attract investment in the regional economies on account of the Arctic development basic zones’ creation and operation, and investment activity promotion
  • to support commercially sound projects in industry, tourism and other fields
  • to expand transport, energy and other infrastructures maintaining new projects of the Arctic Zone economic development
  • to create new jobs, to secure population employment on account of social and economic growth in the created and operated Arctic development basic zones of the Russian Federation constituents

The Republic of Komi is actively participating in this work. It is also involved in the Vorkuta basic zone concept joint elaboration.

The concept regards the area development as an integral project and implies connection of all branch operations at the stages of planning, objectives definition, funding and implementation, thus resulting in costs reduction.

Herewith, along with regional authorities, business will become a legitimate partner in the basic zone foundation (about 2/3 of activities within the basic zones creation and development will be funded extra-budgetary).

The Government of the Republic of Komi supports the idea of the Ministry of Economic Development of Russia in assigning the basic zones projects including the Vorkuta basic zone project the status of federal significance. They will serve:

  1. to develop not only RF constituent’s area, but the macro-region on the whole
  2. to implement interregional projects
  • influencing the development of the territories having infrastructural ties with the Arctic and suitable for the Arctic resources processing;
  • building the processing chains and making public technology, equipment and staff contracts demanded in the Arctic.

In spite of the lack of the direct access to the Northern Sea Route, the Vorkuta basic zone is one of the strategically advanced transport, logistic and industrial hubs regarding social and economic development of the Arctic.

Vorkuta has a considerable potential to develop new deposits in Pechora Coal Basin and Timan-Pechora Oil and Gas Province, a great number of metal and non-metallic mineral deposits including primary and placer gold, silver, copper, barites, lead, zinc, as well as quartz kaolinic raw materials.

The Vorkuta basic zone social and economic development project stipulates:

  • a systematic application of existing instruments of area and industry development and supports the industrial, infrastructural and social projects
  • evaluation of new mechanisms of operating in the Arctic aimed at the real economy and social sector development.

In Vorkuta the creation of Priority social and economic development area (TOSER) will become one of the mechanisms to accelerate Vorkuta basic zone development. Creation of the Vorkuta TOSER will serve as the instrument for the Arctic single-industry city’s economy development and diversification. Using this instrument, the TOSER residents will obtain tax benefits, allowances on state extra-budgetary funds’ insurance contributions and a simplified order of state and municipal control.

The efficient development of resources in the Vorkuta basic zone, which can supply Russia with strategically significant raw materials, stipulates foundation of the deposits’ reserve fund which will contribute to:

  • the state energy safety and a sustainable fuel and energy complex development in the long-term course to substitute mining decay in currently developing fields after 2020
  • the efficient deposits development within major investment projects aimed to satisfy the middle-term and the long-term domestic and foreign demand of Russia in non-ferrous, noble and precious metals and scarce mineral raw materials
  • implementation of major infrastructural projects, integrating the Arctic constituents of the Russian Federation with the developed areas of Russia 

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