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CLIENT
Administration of Chukotka Autonomous Region.
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BACKGROUND
Last years development of the region has been realized in line with the Strategy of its development till 2020 that was created in 2006 and determined extraction of precious metals as a base of region’s growth. Substantial economical results were achieved throughout the realization period but further development of the region required industrial diversification and removing infrastructural problems. SBS Consulting was given the task of working out the Strategy of social and economic development of Chukotka Autonomous Region till 2030 that should determine the model of further growth of the region.
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SOLUTION
SBS Consulting conducted thorough analysis of the current model, prospects for further development and restrictions hampering region’s development. The new model of development based on diversified industry (non-ferrous metal and coal-mining industries) and removing infrastructural restrictions (high-cost electricity and excessive transportation costs) was suggested. SBS Consulting developed the financial economic model forecasting KPIs of region’s development: revenues, federal and regional taxes, investments, employment by sectors, personal income per capita, GRP. Based on analysis of international experience the list of measures of government support of industry was formed.
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RESULTS
The Strategy of social and economic development of Chukotka Autonomous Region till 2030 was approved by involved federal executive authorities and accepted by Administration of the region. For completing tasks of the Strategy, the application for including energy infrastructure assets in the Federal special purpose program was submitted to the Ministry for Russia’s Far East Development. The report on the prospects of region’s development was presented to the President.
