Yenisey Siberia – Combining yields for the Nation with Returns for Business

Abstract

The traditional approach to national resources development in Asian Russia, which relies on setting up large-scale combined production and transportation entities (industrial enclaves), is incompatible with the contemporary socio-economic development model. Public law-based regulation of relations between resources users and the government, plus earmarked tax breaks for individual investors fail to create efficient incentives for extractive companies to get involved in developing the host regions’ economies and social infrastructure. The authors suggest an alternative approach using predominantly civil law mechanisms, notably multilateral concessions, to forge robust long-term ties among the key stakeholders. Applying this approach will, in the authors’ view, facilitate harmonization of interests of the key beneficiaries in resource extraction projects and serve as a driver for sustainable development for the regions involved.