Federation Council approves the Law on Northern Supply Haul
© RIA Novosti. Vladimir Fedorenko

Federation Council approves the Law on Northern Supply Haul

The Federation Council reviewed and approved the Law on the Northern Supply Haul drafted by the Ministry for the Development of the Russian Far East and Arctic on the President’s instructions. The document has fixed the notions of “Northern delivery territory” and “territories with limited delivery time frame.” It prioritizes shipping services and divides it into categories. The ministry will act as the single federal coordinator of the Northern Supply Haul.

The draft law provides for a clear distribution of authority between federal, regional and municipal bodies. It has introduced the notion of a “single sea operator for the Northern Supply Haul” to be represented by a Government-chosen legal entity that can ensure regular cargo shipment between seaports in the North. Its authority has a term of 15 years. The Government of the Russian Federation will determine the start of this operation, but no later than January 1, 2026.

“The Federal Law on the Northern Supply Haul was unanimously adopted by the State Duma and supported by the Federation Council. Now it has been submitted to the President for signature. One of the main responsibilities is the coordination of cargo traffic on the route. We simply need to ensure that everything sent to the Northern territories arrives on time. There are to be no delays due to ice or other carrier issues. This approach to cargo coordination will help reduce the costs of sending supplies to the Northern areas. We will pay less for delivering building materials, equipment and food. Shipping costs for the local people will decrease and, then, hopefully, their living standards will go up,” said Deputy Prime Minister and Plenipotentiary Presidential Representative in the Far Eastern Federal District Yury Trutnev.

The adoption of the draft law will make it possible to reduce the price of life support items, initially by 15 percent, and will simultaneously enhance the reliability and transparency of shipping.

“People in the North are waiting for this new law. This law is aimed at reducing costs for shipping in the North and will centralize the system of essential items – from purchase to delivery to storage. For us, Northern shipping is not just a solution to transport and logistics issues. The quality of life of our people and the wellbeing of their families depend on each kilogram of delivered goods. The main goal of the law is to ensure that Northern shipping is reliable, fast and, most importantly, less expensive,” said Gadzhimagomed Guseinov, First Deputy Minister for the Development of the Russian Far East and Arctic.

The law regulating cargo shipping to the Far North will make this process quick and failsafe. Now over 3 million people receive life support items via Northern delivery in 25 regions of the country. The draft of the law was adopted by the State Duma in three readings and approved by the respective committees in the Federation Council.