Free land for Russians in Arctic lure

Russians will be able to obtain plots of land for free in Russia's Arctic to build homes and set up businesses under a plan drawn up by the government as the Kremlin pushes to develop its resource-rich far north.

Under the scheme announced by the Ministry for Development of the Russian Far East and Arctic, people will be able to apply to use up to one hectare of land free of charge for five years.

Initially, only residents in the Arctic regions where plots are available will be able to apply. But after six months the program will be extended to all Russian citizens, Russian state news agency RIA Novosti reported.

After using the free land for five years, people can either buy the plot or take out a 49-year lease. The plot can be used as land to build a house on, for farming or for running a business.

The new program will encompass Murmansk Region, which borders Norway, as well as two regions stretching along Russia's long Arctic coastline: the Nenets Autonomous Area in European Russia and the Yamalo-Nenets Autonomous Area in Siberia.

"It will definitely serve as a factor to attract new residents to the Arctic, including to set up small businesses," said Andrei Chibis, the governor of the Murmansk Region.

The swathe of the Arctic is important for Russia, both strategically and economically, with its rich mineral resources and shipping lanes.

A priority

Arctic utilization was expanded during the Soviet Union era, but investment and population have dropped off since the Cold War ended late last century.

In recent years, the Arctic territories have become a priority for Russia, amid hopes that climate change could free up the Northern Sea Route that links the Pacific and Atlantic oceans.

Although Russia has invested millions in plans for nuclear-powered icebreakers and to develop port infrastructure in the region, the population of the Arctic cities and villages, now standing at 2.5 million, is shrinking and has left infrastructure idle, the ministry said.

The land-for-free program is similar to existing plans for the Far East, one of a number of moves pushed by President Vladimir Putin aimed at boosting the population and development in the vast remote region, Russian newspaper Kommersant said.

Unlike with the Far East program, local authorities, rather than the Russian federal government, will decide on what land to distribute, and will be allowed to allocate plots close to urban centers.

"It's important to give people the opportunity to choose the land they actually need and which is easy to bring under cultivation," said Sergei Khovrat, the head of a recruitment agency specializing in attracting qualified staff to the Far East and the Arctic.