In the Murmansk region, an Indian investor will build a high-tech pharmaceutical complex within the framework of a PPP

In the Murmansk region, an Indian investor will build a high-tech pharmaceutical complex within the framework of a PPP

Within the framework of the St. Petersburg International Economic Forum, the Government of the Murmansk Region, the Corporation for the Development of the Far East and the Arctic (KRDV) and the SAFFARM Company, in the presence of the Minister of the Russian Federation for the Development of the Far East and the Arctic Alexey Chekunkov, signed a cooperation agreement that provides for the construction of a pharmaceutical complex and a plant of active pharmaceutical ingredients. 

The document was signed by the Governor of the Murmansk region Andrey Chibis, the General director of KRDV Nikolay Zapryagaev and the general director of SAFFARM LLC Kumar Divesh. Within the framework of the concluded agreement, the parties will cooperate on the terms of public-private partnership to ensure import substitution of medicines for residents of the Murmansk Region and the North-Western Federal District. 


"India is an important strategic partner for the country as a whole, as well as for the Far East and the Arctic in particular. We have great potential for the development of investment cooperation, and the signing of the memorandum is an indicative result of the dialogue with the Indian side, the main purpose of which is to launch specific projects. The company plans to invest in the replacement of imported medicines with the help of the state support mechanism operating in the Russian Arctic," said Alexey Chekunkov, Head of the Ministry of Regional Development of Russia.

The creation of a modern high-tech pharmaceutical production will satisfy the domestic demand for antibiotics, vaccines, vitamins, minerals, amino acids, including hormonal and oncological preparations. Import-substituting products will be supplied to state hospitals and pharmacies. A phased implementation of the project with a capacity of over 1.3 billion units of medicines and 1.8 thousand tons per year of active pharmaceutical ingredients with the possibility of further expansion to 6 thousand tons per year is envisaged within three years. The launch of the enterprise will allow 280 Northerners to be employed. 

"The Murmansk Region may become the first Arctic territory where a pharmaceutical plant with an investment volume of over 10 billion rubles will be built. An Indian company within the framework of a public-private partnership is interested in developing this high-tech production. We will offer our partners preferential treatment opportunities and other benefits to ensure import substitution of medicines for residents of our region," said Andrey Chibis, Governor of the Murmansk Region.

"There are already companies in the Far East that have taken advantage of state support measures and implemented projects with Indian capital, and we support investors who are ready to invest in the Arctic territories of our country.  We will offer the investor administrative and tax benefits, registration of a land plot for rent without bidding, reduce the burden on insurance premiums. All this will make it possible to launch the production of socially significant drugs for the treatment of complex diseases faster and get significant benefits during the implementation of the project," said Nikolai Zapryagaev, General Director of the KRDV.


According to the CEO of SAFFARM LLC, the company places more hope on cooperation and assistance in choosing the most acceptable format of participation in the phased implementation of the project. 


"We are glad that we will be able to scale our business in the East of Russia and in the Arctic zone of the Russian Federation. Tax benefits and administrative support will allow us to launch investment activities in the shortest possible time," Kumar Divesh summed up.


/ Ministry of Information Policy of the Murmansk Region /