Impacts of Localization of Oil and Gaz Resources Development in Russian Arctic

Nowadays Arctic is a unique region which has a strategic importance both at micro- and macroeconomic levels. There are a lot of risks, so it is necessary to take into careful consideration the whole complex of different aspects while deciding how to develop its resources in short-term, midterm and long-term prospects. Russia doesn’t have the universal system for interaction of government and business yet, which is vitally important for making projects in Arctic. So localization of oil and gaz resources development in Russian Arctic should be considered as the first step toward creating redistribution system of national income based on the social significance of the hydrocarbon resources for the country and its society. One of the most important challenges for localization of oil and gaz resources development in Russian Arctic is attracting investments. The reluctance of states to allow foreign companies participate in the shelf projects makes it much more complicated. Moreover the weak Russian institutional system and absence of formalized mechanisms and key indicators prevent prompt cooperation of main actors in order to develop technical and technological base. To overcome these limitations it is necessary to move to Arctic access liberalization for foreign companies and result-oriented tax system, as other Arctic countries do. At the same time state control should be primarily aimed at maximizing the well-being of people in the region and the country using new system of financial management. The adoption of the specific decisions should be based on quantitative estimates of synergies from the implementation of specific projects for which it is necessary to form a common methodology and a comprehensive database.