Arctic Yearbook 2015 - Page 32

32 State Support of Delivery of Fuel & Energy Resources to the Subarctic Zone of the Russian North-East: A View & Recommendations Irina Barakaeva, Natalia Batugina & Vladimir Gavrilov Existing approaches of state support of fuel and power delivery to the Chukotka Autonomous Okrug and Polar regions of the Sakha Republic (Yakutia) are discussed in the article. Considerable attention is focused on remotely located regions of Yakutia which are in more difficult conditions and have special features of goods delivery. Complicated transportation-logistic schemes of fuels delivery, difference in the launch and completion of river and marine navigation, ice roads, thousand kilometer length of the routes lead to a significant increase of time and costs of goods delivery and thus to deterioration of its quality. Since 2003, subventions from the Fund of Financial Support for the Russia’s Federal Subjects have not any longer been targeted. A general transfer is allocated by the federal budget subsidize Russian regions. Fiscal support of delivery of freights is carried out by means of transfer of subsidies from to the budget of the Sakha Republic and Chukotka as subsidy by an authorized operator of the governments, annually selected in bidding and performing goods delivery to the north. The advantages and disadvantages of the current system of fuel and power delivery to the Arctic regions of Yakutia and Chukotka are evaluated in the article. An effective way of strengthening energy safety in Yakutia and Chukotka and decreasing expenses is an arrangement of fuel mining locally to replace fuels transported from other regions. Introduction The Sub-Arctic zone of the Russian North-East encompasses the Chukotka Autonomous Okrug and Arctic regions of the Sakha Republic (Yakutia), and is characterized by extremely harsh climate, a low population density, substandard living conditions, underdeveloped economic and social sectors, and the total dependence of community sustainability on delivery of goods in summer (Figure 1). These territories cover the least studied and underdeveloped eastern Arctic and Polar zones of Russia. The Sub-Arctic areas of Yakutia encompass 13 municipal districts, 5 of which are located within the Irina Barakaeva is a PhD Candidate (Engineering) and Research Scientist, Natalia S. Batugina is a PhD Candidate (Economy) and Senior Researcher, and Vladimir L. Gavrilov is a Cand. Sc. (Eng.) and Senior Researcher at the Chersky Institute of Mining of the North Siberian Branch Russia Academy of Science.