PRESS: Norilsk wants budget support for housing, ice class ships

MOSCOW, Feb 27 (PRIME) -- Russian metals giant Norilsk Nickel has suggested the government use cover 50% of spending on 85 billion ruble renovation of housing in the city of Norilsk, and subsidize construction of ice-class ships and upgrade of port infrastructure, Kommersant business daily reported on Thursday quoting sources.

The sources told Kommersant that the Industry and Trade Ministry has preliminarily approved the company’s request for state support, the majority of which should cover the housing renovation program in Norilsk, where half of the people work for the company. The Construction, Housing and Utilities Ministry is ready to consider the company’s renovation program if Norilsk Nickel provides a list of housing to be renovated and the grounds for financing.

The sources also told Kommersant that the Far East Development Ministry was ready to include Norilsk’s renovation into a new edition of a state program for social and economic development of the Arctic zone. The Finance Ministry’s position on renovation is unknown, the business daily said.

Norilsk Nickel also wants cheap financing for upgrades of port infrastructure and construction of ice-class ships. The company estimates investment in transport assets at 84 billion rubles until 2030. In order to approve co-financing, the Transport Ministry wants the company to issue a declaration of intent to invest in construction of sea terminals, the sources told the business daily.

In January, Kommersant reported that Norilsk Nickel CEO Vladimir Potanin asked President Vladimir Putin for state support as the company launched a new investment program until 2030 that exceeds 2.5 trillion rubles. Putin ordered then-presidential aide Andrei Belousov and Finance Minister Anton Siluanov to consider and support the request.

(65.5177 rubles – U.S. $1)

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