Promising Directions of Technological Transformation of Northern Reindeer Husbandry in Russia

<jats:p>The prolonged decline in northern reindeer husbandry is reflected in a reduction of the number of reindeer and the low economic efficiency of the sector. State support for reindeer farms, provided in the form of compensation for up to 95% of operational costs, ensures only the maintenance of current activities, without creating conditions for the development and modernization of production. This practice dates back to Soviet times and has been going on for many decades. In this regard, it is necessary to apply radically new approaches to the organization of production activities. The article presents an analysis of promising areas of technological transformation of the sector, including transition to fenced pasturing, introduction of deep processing of products, and creation of high value-added products. Technological transformation requires significant investments. Will it be possible to cover these costs in the foreseeable future? To answer this question, the article presents the results of a study using the example of a pilot investment project that is planned to be implemented in the Chukotka Autonomous Okrug. The analysis of the project aims to identify the conditions that could ensure its financial viability and economic efficiency. This has resulted in the formation and testing of a methodological approach to evaluating the prospects of such projects, based on previously conducted research. The developed recommendations on the industry’s self-financing and increasing its competitiveness can be widely used to create favorable conditions for the sector to overcome the crisis and for sustainable development of the Arctic regions.</jats:p>