Russian Prime Minister holds strategic session on NSR development
The development of the Northern Sea Route (NSR) is a key element in improving transport connectivity in the most hard-to-access territories of Russia. At the same time, implementing projects will generate additional budget revenue of more than 20 trillion rubles, Prime Minister Mikhail Mishustin said at the strategic session on the development of the Northern Sea Route.
“The dynamic and reliable shipping of construction materials and equipment are necessary for large projects like the Arctic LNG plant since these projects drive the development of related industries and the Arctic and Far Eastern regions in general,” he said.
The creation of infrastructure in the Polar North will make it possible for Russian businesses to freely redirect cargo to the east or to the west while remaining in Russian territorial waters and exclusive economic zone, which “substantially increases the marketability of Russian companies in global markets,” the prime minister noted. This will also provide a shipping alternative to Russian Railways’ Eastern Operating Domain, the BAM and the Trans-Siberian Railway, which will not be enough in the long run.
“Our job is to ensure that there is a cost-efficient shipping base with room to grow,” Mishustin said.
The key investors in these projects are Vostok Oil, Novatek, Gazprom Neft, Nornickel, Northern Star, and Baimskaya. Arctic companies expect to increase shipping volumes to over 190 million tons in the next few years.
“These projects will generate additional budget revenue of more than 20 trillion rubles, meaning that each invested ruble will return around 30 rubles to the budget,” the prime minister noted.
In May, Minister for the Development of the Far East and Arctic Alexei Chekunkov said at a meeting with President Vladimir Putin that in 2023 leading Arctic companies pledged to send at least 30 million tons of cargo through the NSR this year, and at least 71 million tons next year. About 190 million tons of cargo is expected in 2030. In order to form a shipping base, promising cargo shipments from new projects will be attracted, and cabotage and transiting will be developed, he said.
Chekunkov also noted growing interest in using the NSR from China, India, and states in Southeast Asia.