Once I had a great wish to make a report on my and my friends’ travel to Oymyakon, Russia, along Stalin’s Kolyma Highway.

First, I created the page called A Roadtrip to the Pole of Cold, Jan. 17-22, 2010. Yep, it was two years ago. Time is passing so fast.

After while, I published the post Activity tips: What to do in Oymyakon? Part I – Tomtor.

Then, people kept on asking me additional questions. Appeared many other related stories as well as the video: The World’s Coldest Road. The Kolyma Highway in Winter.

Oh, man. Now I think it would be much better to create one video with all images so to give the clue of what it is to travel to Russia’s Oymyakon, the world’s coldest inhabited place. Enjoy!

By the way, the song used in the above video is called “Sakham Sire” (My Yakutia) and performed by the Yakutsk-based rock band 103. Learn more about musicians on my other blog eYakutia.com.

PS. Good news is that I am planning to travel to the Oymyakon area again, but it will be more than a road trip. There will be reindeer sledding towards Muus Khaya Glaciers and spending nights in a tent at -50C.

This is just my way to announce that La Lupe Production’s TV Show “Climas Extremos” are now available on Spanish TV. Follow La Lupe Production Channel on Vimeo to learn schedules.

Yeah, it were them, Mario Picaso Soriano (left in the above pic) and Oriol (right), who created the Climate Extremes showing people’s live in extreme weather conditions. The first episode is dedicated to Oymyakon located in Yakutsk. Two years ago I helped them with the travel to Oymyakon. In this photo, they are in Yakutsk right after their arrival in Yakutsk.

Cool! So glad that they managed to complete all documentary episodes. Recommend to watch them all.

Con Mario Picazo viajaremos hasta Oymyakon, en la República de Saja, Siberia. Es el pueblo mas frío del mundo. Aquí el termómetro ha registrado la temperatura mas baja en un lugar poblado: 71, 2 grados bajo cero.

Durante los meses de invierno la temperatura mínima ronda los 50 grados bajo cero. Oymyakon es el pueblo más frío por varias razones. Su continentalidad, su elevada latitud, su altitud de unos 700 metros y su posición geográfica en el fondo de un valle entre montañas. Factores fundamentales para que al aire se enfríe más que en ninguna otra población del mundo.

Seremos los primeros españoles en visitar este pueblo. De la mano del simpático guía e intérprete Serguei y hospedado en casa de la entrañable Tamara, Mario estará varios días en el pueblo pescando, buscando hielo, bañándose en el río, experimentando una sauna rusa, bailando en la discoteca con las mozas, cabalgando a lomos de un buey de 700 kg llamado Miguel,…Mario sufrirá el frío más extremo que se pueda experimentar, pero lo compensará con muchos chupitos de vodka.

My favourite local band is “103.” It is a group of villages, who perform rock in the Sakha language. And I thought why not make a slideoshow with my winter pictures of the Kolyma Highway (Stalin’s Road of Bones) and their music. Take a look at what I came with.

By the way, when I and my friends started the travel (driving) on the Road of Bones on the route Oymyakon – Yakutsk in January, it was -57.3C. Pretty extremely cold. No wonder that the road is considered to be the world’s coldest road.

As far as you know, the Kolyma Highway connects Yakutsk and Magadan. The most of it was constructed by Stalin’s gulag prisoners. Yeah, it is in Siberia, Russia.

You might see my Oymyakon travel pictures on one of my pages.

Hope you like the music performed by 103. More about them you can learn on my other blog, eYakutia.com.

From March 28, 2012, oneWorld member S7 Airlines (Sibir) is launching 1 weekly Yakutsk – Beijing service, and increases to 2 weekly from May 24, 2012, with Airbus A320.

Yakutsk – Beijing Flight Schedule:

S7527 YKS0130 – 0410PEK 320 35
S7528 PEK0450 – 1105YKS 320 35

Service operates Day 3 only from March 28, 2012, to May 23, 2012. Operational flight number is S7525/526.

Thought I wrote much about driving from Yakutsk to Oymyakon, but still questions are coming into my mail box. Here is the last one with many repeated questions. It arrived from a journalist who wants to do a report for a German car magazine about driving in a real winter. He says he needs a car.

“Is there any rental car company that rent cars for self driving? Or what are the major car dealerships in the city (German brands very welcome like Mercedes, BMW, Volkswagen, Opel, Porsche, Audi; or Volvo, Fiat, Renault… – or do you only drive Japanese cars?). Also I like to know the problems using a car at minus 45 degrees. Can you stop the engine? How do you keep the petrol liquid? What about the tires? I am thinking to drive from Yakutsk to Oymyakon. Is that possible? Very dangerous? Crazy? How long does it take? Huuh, so many questions, but you probably know the answers…”

Find my answers to this man’s questions:

Is there any rental car company that rent cars for self driving?

No rental car company in Yakutsk at all. This type of business didn’t find any ground here. Here cars are very expensive and people’s average salaries are very low. For comparison, a Russian UAZ might cost as low as 600 000 rubles, but the ordinary salary is around 20 000 – 30 000 rubles. So you see no one will trust his/her car to anyone as it is real treasure. Another reason is that roads are so bad that cars get broken very quickly, if driving irresponsibly, and repair expenses might be too high as well.

Or what are the major car dealerships in the city (German brands very welcome like Mercedes, BMW, Volkswagen, Opel, Porsche, Audi; or Volvo, Fiat, Renault… – or do you only drive Japanese cars?).

In country side people drive Russian UAZ only, as they are cheaper and it’s cheaper to repair. In cities like Yakutsk, Mirny and Nerungri people prefer Japanese cars, as they are reliable and cost less than Europe-produced cars.

There is one store through which it’s possible to order car, but produced in Russia only. They might be UAZ again and cars made in Russia like Ford and Toyota.

Also I like to know the problems using a car at minus 45 degrees. Can you stop the engine?

No. Otherwise you won’t start engine again. When outdoor, it’s highly recommended to keep the engine running.

How do you keep the petrol liquid?

As far as I know, local drivers use so-called winter petrol. With some antifreezing addition.

What about the tires?

Winter tires. With sparks.

I am thinking to drive from Yakutsk to Oymyakon. Is that possible?

Oymyakon drivers can make that way three times a week. This is a regular route for locals, but experienced ones.

Very dangerous? Crazy?

For locals, not. For unexperienced westerners, maybe, yes. Actually, no, if not driving crazy and not fast. All incedents on the road happen when drivers are drunk or very tired.

How long does it take?

In winter about 20 hours. If to make stop in Khandyga for night, so it would two-day driving. It is recommended to spend a night in Khandyga, as the hardest mountain part comes after that settlement.

Received a very nice request from a 12-year-old lady from Stochholm, Sweden.

She wrote:

Hi!.. I am 12 years old. I am working on a school project about Yakutsk and Yakutia. There are some things I want to ask about. – What type of clothes do you use during wintertime? -What abot the wildlife in Yakutia, what type of animals live there? – Children who don’t live close to their school, how do they get to school during the coldest periods?

This is so cool! I was extremely glad to hear kids’ interest in Yakutia.

Here are my answers:

- What type of clothes do you use during wintertime?

A year ago I wrote a big post about what to wear in the wintertime. Please, check it here http://askyakutia.com/2010/01/clothes-yakutiasiberia-winter/

-What abot the wildlife in Yakutia, what type of animals live there?

Apart from Siberian tigers, we have all other animals living in Siberia.

They are reindeer, long-horned goats, ibex, musk deer, polar bears, seal, walrus, many fish species, wolves, ermine, several large birds of prey, gyrfalcons, red-breasted geese, ducks, mice, rabbits, lemmings, several other burrowing small rodents, lynx, and arctic foxes

- Children who don’t live close to their school, how do they get to school during the coldest periods?

In the city of Yakutsk we try to use a taxi or cars to give kids rides to school.

In villages, some children, whose families (mostly) don’t have vehicles, are forced to walk to school themselves, even if schools are located in a near village a few km away.

In the photo: Kids in Oymyakon village school. They were waiting for their parents to come on vehicles.

Here is the famous hillarious Japanese TV Show about Oymyakon (Ojmjakon), one of the coldest inhabited places in East Yakutia, Siberia / Russia.

The video doesn’t need any translation, as all can be seen in action! Yeah, that’s the fun travellers might have in the extreme cold winter weather.

Ok. Here is my answer to the most frequently asked question last days, “How much does it cost to travel from Yakutsk to Oymyakon?”

Hope you remember that Oymyakon is the village located almost 1000 km west off Yakutsk and considered to be the world’s coldest inhabited place.

As of 2011, the situation is as follows:

Stay in Yakutsk: if in a hotel, from 2500 rubles. if at a couchsurfer’s place, for free.

Stay in Khandyga: 1000 rubles in a guesthouse.

Stay in Tomtor or Oymyakon: 1500 rubles in a guesthouse w/ 3-times meals.

A UAZ car:

- if to rent the whole vehicle, 70,000 rubles for 7 days;
- if go by a long distance taxi (marshrutka), 6,000 rubles per passenger.

Learn more about Oymyakon in post marked under the tag Oymyakon.

See photographs of my travel to Oymyakon with friends.

Here is Polar Airlines’ winter schedule for domestic flights within the Republic of Sakha (Yakutia). Click on the photo to see it in large size.

Polar Airlines Website: www.polarair.ru (in Russian)

Online ticket purchase might be possible to do at http://travelshop.yakutia.ru/ (in Russian). International credit/debit cards accepted. Here you can see flights from other air couriers.

Keep in mind that a few air companies, including Polar Airlines and Yakutia Airlines, conduct domestic flights within Yakutia.

One of latest requests:

What are the people of Yakutsk called in English? Yakuts? I’m an editor working on a novel with a Russian character who mentions Yakutsk.

Even in Russian, no special name exists for the people living in Russia’s Siberian city of Yakutsk.

Usually, when we are away and want to identify ourselves, we prefer to say that we are Yakutians. This is the name for all people living in the Republic of Sakha (Yakutia).

Very often foreigners mix up… When they mean Yakutia as a region, they call it as Yakutsk. Let’s clearify the situation and keep in mind a few facts:

1. The Republic of Sakha (Yakutia) is a region of the Russian Federation located in East-Northern Siberia and the Far East. Yep, it’s the biggest Russian region. Yakutia is a short name of the republic. So, people living in Yakutia are called Yakutians.

2. Yakutsk is a city and the official capital of the Republic of Sakha (Yakutia). People living in Yakutsk City are Yakutsk residents (yes, just residents.)

3. Yakuts is nationality. Yakuts or Sakha are native people that have been living in Yakutia for many, many, many centuries ago. It’s commonly believed that Yakuts belong to the Turkic group of nations, originated in the Altai area.

In my case, I can call myself in three ways. I am a Yakut (Sakha), cause it’s my nationality. I am a Yakutian as I live in Yakutia. Definitely, I am currently a Yakutsk resident, that’s my city! :))

Often I was asked, if I have the updated information on business and investment opportunities. Yes, I have one, but in the form of the official Republic of Sakha-Yakutia investment guidebook.

Follow the link “Read more” to find the updated region economy information with infographs and photographs taken by Yakutia-Sakha News Agency and, certainly, download the English version of the investment guidebook with the full list of available regional investment projects.

YAKUTIA GENERAL INFO

Yakutia lies in the north-eastern part of Asia stretching 2,000 km north-south and 2,500 km eastwest.

The area of 3,102 thousand square kilometers covers one fifth of the total area of Russia and is equal to 2/3 of Western Europe’s territory.

Over 40% of Yakutia lies beyond the Arctic Circle.

It spans three time zones (UTC +9, +10, +11).

Yakutsk, the capital of the republic, is 8,468 km away from Moscow.

Yakutia has borders with seven entities of the Russian Federation: on the west — Krasnoyarsk Krai, on the south-west and south — Irkutsk Oblast and Amur Oblast, Zabaikalsky Krai, on the south-east — Khabarovsk Krai, on the east — Magadan Oblast and Chukotka Autonomous District.

The state authority is executed by President, the State Assembly (Il Tyumen), the Constitution and Supreme Courts.

The supreme legislative body is the State Assembly (Il Tyumen).

The supreme executive body is Government of the Sakha Republic (Yakutia).

The highest executive official and head of the Sakha Republic (Yakutia) is President of the Sakha Republic (Yakutia).

As of January 1, 2011, there are 445 municipal units, including 34 municipal regions, 2 urban districts and 409 urban and rural settlements.

According to the interim data of the All-Russian 2010 Census, the population of the republic makes 958,3 thousand people, including urban population making 64.1% and rural population – 35.8%. The republic is home to 126 nationalities, including the Yakuts – 45.5%; Russians – 41.2%; Ukrainians – 3.6%; Evenks – 1.9%; and Evens- 1.2%. The population density in the republic makes 0.3 people per sq.km.

Yakutia enjoys the variety of natural conditions: its continental climate shows up in the air temperature fluctuation range reaching 100 degrees Centigrade.

The republic is home to the pole of Cold of the northern hemisphere, with the lowest temperature registered at 71.2 degrees C.

Social and Economic Situation

Natural resources

Almost the entire territory of Yakutia is situated in the permafrost area. 72% of the republic’s territory is covered by taiga, the rest – by forest-tundra, tundra, and the Arctic desert. Forests cover 47% of the territory, making up 11% of all-Russia reserves. Yakutia has preserved many places of pristine nature. This unparalleled environment is home for rare animal and bird species.

There are over 700 thousand rivers, which exceed 10 km, flowing in the republic, with 314 of them being over 100 km long. The Kolyma, Indigirka and the Lena River’s major tributaries – Olyokma, Aldan and Vilyui – surpass almost all the European rivers, including the Rhine and Elba, by their length and water volume.

The Lena River, the republic’s major waterway, is among the ten greatest rivers of the world. There are over 800 thousand lakes with water surface exceeding 1 ha each. The waters are abundant in rich fish resources – over 90 species.

The Sakha Republic (Yakutia) ranks first in the Russian Federation by total reserves of natural resources. Its raw material potential is estimated at RUR 78.4 trillion.

Economy structure

The economy is based on export-oriented industry connected with development of abundant natural resources. GRP is also influenced by construction, commerce, transport and communications, agriculture, and social services.

Industrial production mostly depends on nonferrous metallurgy (mining of diamonds and gold), as well as fuel and energy complex (coal mining, oil and gas extraction). They account for over 70% in the total volume of Yakutia’s own production.

Major economic parameters trend

Over the period from 2005 to 2010, the socioeconomic situation in the republic was marked by the real growth of major macroeconomic parameters: gross regional product (116.2% in 2010 against 2005 level), transport cargo turnover (102.9%), commodity circulation (132.5%), fee-based services rendered to the population (129.3%).

The following agricultural industries remain traditional for people in the Sakha Republic (Yakutia): beef and milk cattle breeding, droving horse-breeding for meat, reindeer herding, and farming. The republic has the largest cattle stock in the Far East. In the northern areas people practice hunting, trapping, fishery, and fur farming. Due to the large share of rural population in the republic (35.8%), the government takes numerous measures to support agriculture.

Investments into fixed capital

The period 2005-2010 witnessed implementation of several large-scale investment projects of great significance for Yakutia and the entire Russia, as well.

Major indicators of the Sakha Republic‘s socioeconomic development by 2030 (according to the innovative scenario):

• GRP growth per capita at parity of the purchasing power up to USD 48 thousand (90% to the level of OECD countries);

• real GRP growth in 2011-2030 by 3 times, including in 2011-2020 – 1,9, in 2021-2030 – 1,6;

• increase of the average expected life expectancy to 73,3 years;

• growth of actual disposable income of population by 4 times compared with 2010;

• reduction of the population poverty to 6,3%.

• reduction of general unemployment level to 3,5% to EAP, level of registered unemployment to 3% to EAP;

• growth of provision of 1 citizen of the republic with total usable housing to 34,05 sq.m.;

• reduction of hazardous dwelling share to 2,03%;

• gas supply coverage of 76% of the republic’s population;

• increase of the share of population having acess to centralized water supply and disposal to 69%;

• elimination of hazardous schools by 2030;

• fully meeting the demand for preschool institutions for the children aged 3-6 by 2030;

• double reduction of the share of hazardous healthcare buildings;

• bringing year-round transport accessibility to 73% of the area. Growth of transport mobility of the population by 3 times;

• completion by 2014 of transfer to rendering public services electronically;

• increase of Internet use density to 85 people per 100 people.

INVESTMENT CLIMATE

Click the image to see the infograph in large size.

By the Russian President commission, the Sakha Republic (Yakutia) has developed the Scheme of integrated development of labor forces, transport and power industry in the Sakha Republic (Yakutia) till the year 2020. The scheme outlines strategic priorities
and directions aimed at effective use of unique raw material potential of the republic.

All the major investment projects are included into the Strategy of social and economic development of the Russian Far East and Baikal area till the year 2025.

In the long-term (within the innovative scenario in 2011 – 2030) RUR 5,5 trillion of investment will be attracted to the fixed capital in the prices of the respected
years.

Creation of favorable and sustainable investment climate in the region is one of the main tasks of the Sakha Government. The Program of forming a favorable investement climate in the Sakha Republic (Yakutia) is implemented; it is aimed at improving the regulatory legal base in the field of investment activity, creating and development of investment infrastructure, reduction of administrative barriers, formation of new mechanisms to attract investments, formation of favorable conditions to diversify production and promotion of innovative technologies to the market.

Due to the sustainable socioeconomic development, international rating agencies increase the credit rating of the republic regularly.

In October 2010 Fitch Ratings confirmed long-term ratings of the Sakha Republic (Yakutia) in foreign and national currency at “BB” level, with the short-term rating of the region on foreign currency at “B”. Also, the agency confirmed the republic’s long-term national rating “AA-(rus)” level.

The forecast for all long-term ratings is amended to “Positive”.

In May 2011 Standard and Poor’s International Rating Agency confirmed the republic’s credit rating at “BB-/Positive/ruAA-”.

The Sakha Republic (Yakutia) is one of the leaders of the Russian Federation by both the number of investment projects to be implemented on its territory and the volume of investments.

Priorities include enhancement of transport and power infrastructure of the republic, hydro and heat generation of power for exploitation of natural resources in the economy.

In accordance with the Scheme of intergarted development of labor forces, transport and power industry in the Sakha Republic (Yakutia) till the year 2020, the republic is constructing a railway to the city of Yakutsk with a bridge across the Lena River; in future it is expected to reach the border with Magadan Oblast.

The republic is creating all-year-round network of federal and republic’s motorways with the major logistic hub in the city of Yakutsk; it is also modernizing the airplane and river fleet. There is a plan to connect central, western and southern parts of the republic by power transmission lines, to construct economical power stations.

As a result of these changes in infrastructure, by the year 2020 weight-average cost of bringing one ton of cargo to the regions of the republic would halve and the power tariffs would equal with the average all-Russian level.

In accordance with order of the Russian Government of 10 March 2009 No. 302-r, there started implementation of the first stage on designing documentation for “Integrated Development of Southern Yakutia” investment project. Since the launch of the project, it has received for preparatory and pre-project works RUR 24,2 billion, including RUR 16.5 billion of private investments, RUR 7.25 billion – from the Investment Fund of the Russian Federation. The project includes the following sites: Kankun hydropower station (OAO “RusHydro”, OAO “Yuzhno-Yakutsky GEK”), Yakutsk Center for gas production (OAO “Gazprom”), Elkonsky mining and smelting plant (OAO “Atomredmetzoloto”, ZAO “Elkonsky GMK”), Inaglinsky coal complex (OOO “Kolmar”, ZAO “Yakutskie ugli – new technologies”), Tarynakh and Tayozhny GOKs (mining and processing plants) (OAO “GMK “Timir”), Seligdar mining and chemical plants (OAO “ALROSA Investment Group”), 270 km of railways, 150 km of motorways, 1,200 km of power transmission lines and 7 substations.

The project creates conditions for attracting investments into Southern and Western Yakutia, for realization of projects in related industries. Besides, in Southern Yakutia OAO “Mechel” will develop Elga cola deposit with balance reserves at 2.1 billion tons. A similar cluster approach is applied to a number of other megaprojects: “Integrated development of Tomponsky mining industrial region”. With the use of private investments,
this project includes development of Nezhdaninskoe gold deposit, Verkhne-Menkechenskoe silver and polymetals deposit, as well as construction of Dzhebariki-Khaya heat power station, 3 power lines and 2 substations.

“Integrated development of Western Yakutia”.

This comprehensive investment project includes development of oil and gas fields; construction of pipelines; construction of underground diamond mines; building Vilyui motorway; building motorways and power transmission lines connecting Yakutia with
Irkutsk Oblast.

The Eastern Gas Program of the Russian Federation Government includes development of Chayanda-Khabarovsk-Vladivostok and launching the development of Yakutia gas center with the development of Chayanda-Botuobinskaya group of gas fields.

Legislation regulating investment activity in the Sakha Republic (Yakutia)

Federal normative acts:

1. Federal Law of 25 February, 1999 No. 39 “On investment activity in the Russian Federation, performed in the form of capital investments”;

2. Federal Law of 21 July, 2005 No. 115 “On concession agreements”;

3. Federal Law of 22 July, 2005 No. 116 “On special economic zones in the Russian Federation”;

4. Federal Law of 9 July, 1999 No. 160-ФЗ “On foreign investments in the Russian Federation”;

5. Federal Law of 29 April, 2008 No. 57 “On procedure of foreign investments into economic entities of strategic importance for defense and national
security”;

6. Federal Law of 29 October, 1998 No. 164 “On financial rent (leasing)”;

7. Federal Law of 30 December, 1995 No. 225 “On agreements about production division”;

8. Federal Law of 30 December, 2004 No. 210 “On tariff regulation in communal service institutions”;

9. Federal Law of 14 April 1995, No. 41-ФЗ “On state regulation of tariffs for electric and heat power in the Russian Federation”;

The Republic’s normative acts:

1. The Sakha Republic (Yakutia) Law of 30 May, 2006 347-З No. 709-III “On investment activity in the Sakha Republic (Yakutia); amendments to the Law are to be approved before the end of 2011.

2. The Sakha Republic (Yakutia) Law of 22 December, 1992 No. 1270-XII “On foreign investments in the Sakha Republic (Yakutia); amendments to the Law are to be approved before the end of 2011.

3. The Sakha Republic (Yakutia) Law of 10 July, 2003 No. 48-З No. 97-III “On taxation policy in the Sakha Republic (Yakutia);

4. Draft Law of the Sakha Republic (Yakutia) “On Public-Private Partnership in the Sakha Republic (Yakutia) is to be approved before the end of 2011”;

5. Program on creating a favorable investment climate in the Sakha Republic (Yakutia) approved by the Resolution of the Sakha Republic Government of July 1, 2011 No. 286.

6. Resolution of the Sakha Republic Government of 26 April, 2007 No. 171 “On adopting a procedure of approving investment programs of regulated organizations”;

7. Resolution of the Sakha Republic Government of 30 June, 2005 No. 404 «”On procedure and terms of forming the united registrar of capital investment objects in the Sakha Republic (Yakutia)”;

8. Resolution of the Sakha Republic Government of 30 June, 2005 No. 403 “On establishing criteria for long-term termination of financing investment projects from the state budget of the Sakha Republic (Yakutia)”.

Tax incentives

One of the forms of investment activity state regulation is to establish favorable conditions by providing tax incentives.

In compliance with the Law of the Sakha Republic (Yakutia) “On investment activity in the Sakha Republic (Yakutia)”, the subjects of investment activity may seek the following tax incentives:

• on the income tax of the organizations in the form of reduction by four percentage points of the rate of income tax to be paid to the state budget of the Sakha Republic (Yakutia);

• on the property tax of the organizations in terms of the property newly created, purchased or reconstructed (upgraded) to implement an investment project, and (or) in terms of the property provided for temporary ownership or use in compliance with the financial leasing agreement, and (or) in terms of the property purchased in compliance with the financial leasing agreement;

• on transport tax in relation to vehicles used to implement an investment project.

The incentives can be provided for five years from the start of an investemt project implementation.

In order to stimulate and modernize water supply and draining, the tax benefit has been established for enterprises dealing with withdrawal, treatment and distribution of water and investing capital for these goals.

In order to stimulate investment activity of oil producing enterprises, the republic has lowered the income tax going to the regional budget from 18% to 13.5%, on condition that the capital is invested for development of natural resources.

In order to ensure timely supply of the Far North and other territories with limited access with necessary resources during the navigation period, and to improve financial situation at water transport enterprises,operating sea-river type vessels, the abovementioned enterprises pay lower income tax at the rate of 13.5% and are exempted from corporate property tax.

Due to seasonal nature of their activity, water transport enterprises are exempted from paying the property tax on their property which is conserved or idle; forestry and timber industry enterprises – on their property which is conserved.

Also, enterprises generating electric power with diesel stations in the north are exempted from the property tax if this activity earns over 70% of the total revenues from production (works, services) sale.

In order to support local manufacturing in terms of basic production assets, food industry enterprises pay the benefit property tax at 1.1% rate.

Airports with property worth more than RUR 300 million are also exempted from the property tax. This benefit is aimed at modernizing and reconstructing airport facilities, better working conditions and labor safety.

To support airworthiness of aircarfts, air transport enterprises which perform 50% and more of socially important passenger traffic and are enlisted as such by the Sakha Government, are exempted from paying the property tax.

To prevent higher tariffs for heat energy, there is a tax benefit on property of utilities and communal services organizations receiving subsidies from the budget to compensate losses; besides, enterprises in this sphere enjoy a benefit on the transport tax in relation to their special vehicles.

Like it is granted by the federal legislation, there is a benefit for motorways of public use, both republic’s and municipal.

Given high costs of agriculture, enterprises producing and processing agricultural products are granted some benefits on regional taxes.

To support small businesses using the simplified taxation system with taxation target being “revenues and expenses”, the tax rate has been lowered from 15% to 10%, the simplified patent-based taxation system has been introduced for private entrepereneurs.

Financial infrastructure The banking system of the republic is represented by 22 credit institutions, including 4 independent banks, 18 branches of banks of other regions.

Assets of credit institutions of the republic in 2010 totaled RUR 109.3 billion and increased the level of 2009 by 8.6%.

In the insurance market there are 2 republican insurance companies: OAO RIC “Sterkh”, and OAO GSMK “Sakhamedstrakh”, 11 branches of insurance companies of other regions of Russia.

The branch network of the RIC “Sterkh” and OAO GSMK “Sakhamedstrakh” covers all regions of the republic. Additionally, the regional insurance company came to the inter-regional level, opening branches of the RIC “Sterkh” in Khabarovsk and GSMK “Sakhamedstrakh” in Magadan.

There are 7 organizations with 20 licenses for professional activity in the securities market.

OAO “Republican Specialized Registrar “Yakutsk Fund Center “(YFC) is one of the oldest independent Russian registrars at the federal level in the Far East, carrying out activities in keeping the register of holders of securities since 1993. Its license was issued by the Federal Financial Markets Service of Russia for an indefinite term. YFC is a member of a self-regulatory organization of securities market participants – the Professional Association of Registrars, Transfer Agents, Depositories (PARTAD) since 1995.

OAO “Yakut Depository Center” (YDC) was established on January 26, 1996. Activities: brokerage, management of securities depository activities. YDC is a member of a self-regulatory organization “National Securities Market Association” (NSMA).

Entrepreneurship

There are 47 thousand small and medium-sized business entities, including 5.1 thousand small and medium-sized enterprises and 41.8 thousand registered individual entrepreneurs.

According to expert estimation (including salaried employees of individual entrepreneurs), the share of employment in small and medium enterprises in the total employment in the economy is 40%.

The turnover of small businesses in 2010 increased by a quarter and is RUR 80.7 billion and the turnover of medium-sized enterprises almost doubled and exceeded RUR 19.2 billion million.

Financial support for entrepreneurs is facilitated through the relevant federal, republican and municipal programs of the funds of entrepreneurship support and development.

Businesses can partly recover expenses incurred during the entire production cycle, including cadastral work and promotion of manufactured products to domestic and foreign markets. Particular attention is given to innovative small companies and companies involved in the modernization of production and its export.

State support areas in high demand are the following: grants, microfinancing, suretyship, property support, educational programs.

Infrastructure of property support of businesses includes business incubators in the cities of Yakutsk and Neryungri. A business incubator in Nyurba and a technopark in Neryungri are being set up currently.

External economic activity

Click the image to see the infograph in large size.

The Sakha Republic (Yakutia) has external commercial relations with 45 countries. Ties have traditionally been strong with European countries; external economic cooperation of the republic with India, Israel, USA, China is developing dynamically. 94% of the entire foreign turnover of the republic falls on these countries.

By the results of 2010 the growth of basic indices of the republic’s economic development has been witnessed, including the external economic activity indices.

In 2010 the exports volume made USD 3232,9 million. The imports volume made USD 90,7 million.

In 2010 the foreign turnover more than doubled compared to the 2009 level up to USD 3323 million. Export surplus went positive and made USD 3142,2 million, which is USD 1761,0 million more than in 2009.

Among the regions of the Far Eastern Federal District the Sakha Republic (Yakutia) has preserved its positions, holding the third place the foreign turnover index, being inferior to Sakhalin Oblast and Primorsky Krai.

Exports volume grew by the results of 2010 due to the sales of precious stones, precious metals and products from them to Belgium, Israel and India (81,7% of the total exports volume).

Goods were mostly delivered to the republic from the USA (35,3% of the total imports volume), China (13,5%), Japan (12,9%), Germany (8,7%), Ukraine (6,9%), Korea (6,2%).

In 2010 the enterprises and organizations of Yakutia received USD 8,1 million from rendering international services. They basically include transportation services (94,6%), services of travel agencies, tourist agents and excursion agencies.

In 2010 the number of participants of the external economic relations in the Sakha Republic (Yakutia) grew by 6,6% and made 129 units.

As of January 1, 2011, the accumulated foreign capital in the republic’s economy made USD 2122 million, which is 43% more than a year before.

USD 1337 million of investments came to the republic’s economy from abroad in 2010, which is 20% more than in the similar period of 2009. 99% of the total receipts volume was invested in natural resources extraction.

In the structure of accumulated foreign investments at January 1 2011 the share of direct investments made 11,9 %, portfolio investments 0,2%, the share of other investments on the revolving basis (credits) – 87,8%.

Luxemburg (80,9%) and Cyprus (13,1%) were leading among the investing countries by the volume of the capital accumulated in the republic.

By the volume of investment income from abroad to the regions of the Far Eastern Federal District in 2010 the Sakha Republic (Yakutia) takes the 2nd place after Sakhalin Oblast.

Download the 2011 investment guidebook of the Republic of Sakha (Yakutia) (PDF, ~110 Mb)

Meanwhile, enjoy Yakutia in pictures used in the guidebook…

YAKUTIA PHOTOGRAPHS BY YSIA

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Dimitri Kieffer (http://nexusexpeditions.blogspot.com/) is the Franco-American adventurer, who is listed in NYC-based Explorers Club. He is doing an NEXUS expedition around the world using human powers only. Some call such a journey human powered circumnavigation.

It was him, who walked with Karl Bushby from Alaska (US) to Chukotka (Russia). By foot. On the sea ice. Through Bering Strait. It was him, who gave me a great info on the route from Chukotka to Magadan Oblast, as he walked that way with a sledge in last winters. Check the post Dimitri Kieffer’s ultimate description of Russia’s Chukotka – Kamchatka – Magadan route. From Uelen to Anadyr, Omsukchan and Magadan.

And here is what he says about cycling together with his lady, Gulnara Miftahova, from Omsukchan to Yakutsk in August-October 2011.

A great fellow! A great explorer to follow!

I was pretty happy to follow, help a little and meet him and make the above video. Further, please, find his current expedition facts and, certainly, 40 travel photographs!

Why is Dimitri’s expedition called “Nexus”?

It is a Latin word and means “connecting cultures.” That’s exactly what he is doing now.

He’s navigating through nations’ cultures and doesn’t do what others do. He doesn’t pass through lands at fast speed and he can really recall all names of settlements, where he had stops, and people he met on the way. A few stories for each place.

Amazing! If you would meet him, he would tell you many, many and many exciting stories about nations and cultures he saw. I have met him personally two times only and think those meetings are not enough. He is a kind of person, whom you want to listen to more and more.

Magadan Oblast – Yakutsk (Yakutia) Cycling Pictures

Nexus Expeditions Facts

Dimitri Kiefer started the human powered circumnavigation around the world in February of 2005 at the place called Knik Lake (near Anchorage, Alaska). That was the first section, that ended in Nome (Alaska) in 37 days. He completed 1770 kilometers by foot (trekking & snowshoeing).

After he had seven sections listed by ExplorersWeb:

Second Section: Nome (Alaska) – Wales (Alaska)
Feb 2006, 9 days, 115 miles 185 kilometers
Completed by foot (Trekking & Back Country Skiing)
(with Goliath Expedition – Karl Bushby)

Third Section: Nome (Alaska) – Uelen (Russia) Bering Strait Crossing
March 17-31 2006, 14 days, 5 days where swimming was required
200 miles 322 kilometers
Completed by foot (trekking & back country skiing) & swimming
(with Goliath Expedition – Karl Bushby)

Fourth section: Uelen to Egvekinot (Chukotka, Russia)
April 12- May 16 2007, 34 days, 425 miles 684 kilometers
Completed by foot (Back Country Skiing and only trekking after Vastoshisno)
Uelen – Anguema (with Goliath Expedition – Karl Bushby)
Anguema – Uelen (solo)

Fifth section:
Egvekinot to Vayegi (Chukotka, Russia)
April 15 – June 7, 2008
exact amount of trekking days still being tabulated
Approximately 600 miles / 965 km
exact number of miles still being tabulated.

Completed on foot (back country skiing, trekking with a backpack and pulling the sled simultaneously, swimming and using the sled as kayak while going down rivers).

Sixth section:
Vayegi (Chukotka, Russia) – Paren (Kamchatka, Russia)
March 11 – May 13 2010
707 km completed, 63 days.

Location May 17, 2010:
N 62° 25.040′; E 163° 05.160′
Paren, Northwestern Kamchatka
Total kilometers covered Spring 2010: 707.2 km
Manily to Paren 199.4 km

Seventh section:
Paren (Kamchatka, Russia) – Omsukchan in Magadanskaya Oblast.
Dimitri is returning in Kamchatka in February 2011 to continue trekking and skiing 423 miles (680 km) from Paren in Kamchtaka Koryak Okrug to Omsukchan in Magadanskaya Oblast. He covered this section on skis and snowshoes, while pulling a sled on tundra, considering the absence of roads in this remote part of the world. His route should take him from Paren to Omsukchan via Verniy Paren, Chaibura, Ghiziga, Evensk, Tavatum and Merenga.

This section completes the “missing link”. Dimitri: “One can drive year around from South America to South Africa on permanent roads except through the Darien gap and between Anchorage and Omsukchan – the missing link.”

Position: April 25, 2011:
N62° 30.987, E155° 46.342 Omsukchan
595 km completed.

Eighth section:
Omsukchan, Magadanskaya Oblast to Yakutsk in the Republic of Sakha.
August-September 2011 with Gulnara Miftakhova
Approx. 1760 km

Dimitri: “After Yakutsk, our goal is to travel on our bicycles southwest towards Mongolia and continue further through Kazakhstan, and through some of the Central Asian states (Kyrgystan, Tajikistan, Uzbekistan, Turkmenistan), some of the Middle Eastern countries (Iran, Turkey, Syria, Jordan, Israel), and some of the Northern African countries (Egypt, Libya, Algeria, Mauritania, Senegal) where it will be time to row!”

“Of course, the exact route will be determined as we progress, partly depending on geopolitical conditions.”

Dimitri plans to complete the entire expedition by 2016, upon reaching Knik Lake, after having circumnavigated the globe via human power.

Meanwhile, Dimitri is in Yakutsk, the capital of the Republic of Sakha-Yakutia, Russia. This Sunday, Oct. 08, 2011, he will continue his expedition to Nerungri. This time he will be cycling alone, without Gulnara. Wish him luck and a safe journey!

As you know, Yakutsk, the capital of the Republic of Sakha-Yakutia in Russia’s Siberia, is based on the frozen ground known mostly as the permafrost. What’s that? It means the ground the city stands on is penetrated by ice. Actually, it is the mixture of dust, soil and ice.

See the above video made inside the undeground tunnel used by Yakutsk Permafrost Institute (the only one alike in the wold) and get an idea of what I am trying to tell. In this vid I like most of all those huge frozen snowflakes. If you had be lucky enough to go down inside, please, do not crush snowflakes, as it took decades for them to became so awesome :)

Previously, I wrote much about Yakutsk Permafrost Institute. The last post was called Yakutsk Permafrost Institute: Why did climate changes not affect permafrost in Yakutia?

Check also other posts mentioned in the list Similar Posts in the bottom of the current post.

Have a great day and give me your Like and RT, if you like the video :)

Yesterday I said bye to the Scottish travellers, who are making the MAD Expedition from Magadan (Pacific Ocean) to Scotland (Atlantic Ocean) on their own Landrover Defenders. They drove the Kolyma Highway through Ust Nera on September 13-18, 2011.

They are a group of friends from the Scottish city of Glasgow. Stuart, Richard, Gaven, Graham. They do long-distance driving travels regularly. Last time they made it from London to Kazahstan. This time they are here in Siberia on the way home.

Their mission is not just to have fun on the road, but also fundraising for charity. Check the list of charity funds they are supporting. Good friends with good intentions!

Ilya Kovyakin, the host of AskMagadan.com, helped them with cutsom clearance at the sea port in Magadan, Russia. Check out his website later to learn more about the specifics of custom paperworks.

The Scottmen’s travel delayed for more than a month. Initially they planned to start their road trip in the late July 2011, but their shipping company made a mistake in papers, so the cargo with the off-road vehicles stuck in Seoul on the way to Vladivostok and Magadan. It wasn’t the Russian custom service, that postponed their trip.

These four Scottish travellers prepared themselve to ride in the conditions of hot summer weather. In July they asked me, what the current weather was. I said, “+36C and +42C.” They were shocked to hear such news.

After a month, in the early September, the situation was totally different. The temp in Magadan and Yaktusk was already +10C, all trees turned in yellow colors. Moreover, it’s more colder on the road, especially in mountain area. When arrived in Yakutsk, guys said they were camping at -25C… at night.

Ok, no more words about the road conditions and weather reports. Let’s watch travel pictures taken by Scotsmen on the way from Magadan to Yakutsk.

In Yakutsk I share time with them. In the below pictures you can see them at the TV Studio of the Sakha National Broadcasting company. That was the recording of the morning talk show called “A New Day”

Back to a hotel for changing Scottish kilts for regular jeans.

This photo might be called, “Praise god, we made it the Internet.” Here they are at Chicago Cafe with free Wi-Fi.

The whole set of Yakutsk photographs with Scotsmen’s walking around the city in kilts might be seen on the fb page Yakutsk City.

What does biking on the Road of Bones in the late September look like? The answer is in the following video and pictures.

Enjoy adventure!

Last year it was pleased to see Mick MacDonald and his fellows. They arrived in the middle of September and it was already snowing on the road.

For more info check out CompassExpedition.com and LondonToMagadan.com.

By the way, the Compass Expeditions tour was included in the National Geographic’s “Top 50 tours of a lifetime” list, making Compass the “only” motorcycle tour company on earth to be included in this list.