Legislative support of formation and development of the offshore oil and gas sector in the Murmansk region.

Е. V. Nikora, Speaker of the Murmansk Regional Duma

Today we have good reasons to say, that the process of developing Shtockman field acquires more active, progressive and irreversible character and visible shape. The Murmansk region discovers second breath, having become the capital of  Arctic Shelf Development, the centre of oil and gas industry and international interaction of oil and gas companies, investors and suppliers.

Via development of Shtockman gas condensate field, as well as Prirazlomnoe and Dolginskoe oil deposits, via continuation of works in the Gulf of Ob, it happens so that appear conditions for further development of the productive forces of the Murmansk region in a long-term perspective. It will allow gasification of the towns and settlements on the Kola Peninsula and Karelia, to provide more than 3 000 working places on the phase of construction of LNG transport and technological complex and land pipeline, and about 1 000 working places during the exploitation process.

In the process of constructing LNG plant, pipelines, compressor stations and ground infrastructure on the territory of the region, will be applied about 17 bln US dollars, and during its exploitation Federal and Regional budgets will get about 20 bln US dollars of taken taxes. By 2014, due to implementation of this project, the volume of Gross Regional Product will increase twice, and the revenues of the Murmansk regional budget will increase for 40% .

New impulse to development of the World trade can be given by creation of modern port capacities in Murmansk - allowing to receive and handle container cargos. Basically it opens new transport corridor for operating with the Central part of Russia, the Volga and Ural regions, Eastern Siberia and Northern Kazakhstan.

The members of Murmansk Regional Duma started formation of the Regional Normative legal base, necessary for successful implementation of projects and creation of favorable conditions for project participants.

We take up independent position in many issues, but in the issues connected with economic development, our position coincides with the position of executive power.

We see our role in providing legislative support and efficient interaction of the public authorities on the local, regional and federal levels. We have all necessary instruments.

To develop necessary projects we can and we shall organize deputative hearings, attracting the representatives of public authorities, local self-government authorities, entrepreneurs, experts, non-governmental organizations.

On the issues, falling outside the limits, we have the opportunity to interact with the specialized Committees of the Federal Assembly of the Russian Federation, as the legal subjects of legislative initiative to introduce draft federal laws. If needed we propose to organize in the region visiting sessions or "round tables" of the State Duma Committees on Industry, Energy, Nature Management, on the Issues of the North and the Far East. Where applicable we shall "push" the federal authorities, reminding about the importance of visa relaxation and enhancement of customs procedures.

With the aim to implement planned projects, Murmansk Regional Duma passed the Law "On State Regulation of the investment activity in the Murmansk region". It stipulates formation of favorable conditions for location of investments on the territory of the region. These are - leasing introduction, rendering of budget subsidies to the investors partly to cover the expenses, connected with the interests payment for the use of bank credits, leasing payments, rendering taxation benefits in accordance with the applicable laws on income taxes, property tax; transport tax, as well as benefits to the municipal units concerning land-value tax.

The legislative basis for the activities of Murmansk regional public authorities in the sphere of providing innovation development of the regional economy is made up of the following Laws, adopted by the Murmansk region "On Foundation of Arranging the Scientific, Research and Innovative activity in the Murmansk region" and "on Innovations and Innovation Activity in the Murmansk region".

The Murmansk region became one of few subjects of the Russian Federation, where function such Laws, which possess the Strategy of Development of scientific, scientific and technical and innovation activity for a long-term perspective; where specified the tasks of the scientific establishments on diversification of the regional raw-material economy. Beginning with 2006, in the region is annually organized the competition of monographs and scientific works, targeted at social - economic and innovation development of the Murmansk region.

In general the region is marked by considerably high level of scientific and innovation levels of development, the basis of which are specialists and scientists of the Kola Scientific Centre, the Russian Academy of Sciences. Its scientific and research institutions keep on developments in the sphere of the main activities of rational and complex use of mineral and resource as well as production potential of the region.

On the basis of the State Contract with the Government of the Murmansk region was developed "Strategy of the Murmansk Region social - economic development until 2025", elaborated by Kola Scientific Centre of the Russian Academy of Sciences. The proposed normative legal act, defining the key challenges of social and economic regional development, is based on the forecast and assessment of complementary risks of the resource potential of the region. This document defines the system of measures of state administration, based on the scientifically grounded long-term priorities, as well as aims and tasks of the state authority of the region. The measurement system, in its turn, is directed at maintenance of sustainable social and economic development of the region.

One of the main tasks today is to develop the basic principle for the rational use of natural resources, i.e. studying, evaluating and clever resources development, taking into consideration their protection and renewal, - and all this with the aim to form long-term favorable social and economic conditions for the development of the region and state.

Development of the assessment on how Shtockman field influences the environment - was the first experience of environmental support within the frameworks of considerable shelf project on the Arctic Seas of Russia.

In connection with formation of the Murmansk Transport Hub, oriented at oil transfer and oil transportation, coming to Murmansk from different parts of Russia, was implemented the series of assessments of the influence of floating oil reloading complexes on the environment, these complexes are located in the Kola Bay (for example, "Belokamenka" tanker). Also were initiated engineering and ecological survey for construction of fixed-site oil terminal in the Lavna area.

Conducted studies show that exploration of oil and gas resources of the Barents Sea is ecologically acceptable and compatible with fishing.

To provide development of new for the Murmansk region branches of industry and transport it is necessary to create favorable legal conditions. Among them is elaboration and adoption of relevant laws and other regional legal acts to provide implementation of "megaprojects" on development of Shtockman Gas Condensate Field, on development of Murmansk Transport Hub and providing of national interests in the Arctic; formation of legal conditions for creation of special economic zones.

To implement the above mentioned projects successfully, taking into consideration political, economic and ecological challenges, connected with the realization of the projects, it is necessary to work hard at formation of regional legal and regulatory framework in the sphere of taxation legislation, legislation, providing environmental security, legal acts, directed at stimulation of industry, investments, introduction of innovation technologies, at attraction and preparation of high-qualified personnel.

We believe the first step in this direction could be development of the Regional Target Program "Formation and Development of the Oil and Gas sector in the Murmansk region".

The aim of the program is to render support to geopolitical and economic interests of the Murmansk region; to provide the growth of industrial volumes of crude oil extraction and extraction of natural gas under the conditions of efficient, rational and ecologically secured subsurface management.

It is obvious, that adoption of this program demands the public authorities of our region to solve such important tasks as:

- resources forecast evaluation of the new oil and gas bearing districts; 
- creation of the conditions for sustainable development of hydrocarbon fields;
- establishment of the regional infrastructure for hydrocarbons transportation;
- creation of the conditions for proper transport system operation under conditions of broad use of resource potential;
- improvement of the Murmansk Region energy independence;
- providing oil and gas industry enterprises with highly qualified personnel;
- formation of new energy balance, primarily on the basis of nuclear energy, hydro power stations, taking into consideration new opportunities.

Successful development of offshore oil and gas industry also stipulates implementation of efficient ecological policy in the European Arctic - maintaining environmental security and rational resource management.

Development of Murmansk transport hub is complex investment project, meant by the federal target program "Development of transport system in Russia (2010-2015)". Financing of works within the frameworks of the project realization will be covered by the means of federal budget, anticipated by the federal target programs, by the budget of the Murmansk region and private investors.

To provide normal level of investment activity it is necessary to have the support of investment processes on all management levels. This support can either be rendered in the form of giving and providing guarantees and rights of investors, as well as creation of preferential conditions for investment activities, including taxation sphere.

Rendering property tax privileges to the organizations, participating in the implementation of complex investment project "Development of Murmansk transport hub", can be realized via introduction of alterations to the Law of the Murmansk region "On Corporate Property Tax". This issue was raised in July 2009 at the Meeting of the Minister of Transport of the Russian Federation I.E.Levitin and the Government of the Murmansk region, devoted to the questions concerning realization of the project "Complex Development of Murmansk transport hub" and the problems of development of Murmansk regional transport complex. The correspondent mission was given to the Murmansk Regional Duma. Nowadays we are preparing to start development of this draft law.

The members of Murmansk Regional Duma clearly understand that budget and tax politics as components of the economic policy of the subject of Russian Federation have significant influence on the economic growth and investment activity in the region. That is why it is of great importance efficiently to use financial instruments, promoting realization of long-term tasks of Murmansk Regional Economic Policy.

Unpublished articles