On July 27, Russian Defense Minister Sergei Shoigu said standard shipping rates would be stipulated for Armed Forces logistics units in the Arctic and the Kuril Islands, RIA Novosti reports.

"The Defense Ministry has established a consortium involving Oboron-Logistika Ltd., Sovfrakht and the Far Eastern Shipping Company (FESCO Group) to supply military units in the Arctic and the Kuril Islands," Shoigu said.

"The consortium will develop and introduce a common shipping rate policy for transport services to the islands in our zone of responsibility," Shoigu added.

Timely logistic support is essential for the Arctic zone and the Kuril Islands, he added.

In June 2016, Oboron-Logistika signed cooperation agreements with Gazprom Flot and the Government of the Arkhangelsk Region, Shoigu recalled. "This allows us to pool the resources of 95 civilian vessels with a total freight capacity of over a million metric tons and six ports," he said.

The joint situation/logistics center will be in Moscow, and its divisions, the Northwestern and Far Eastern shipping control centers will be located in Arkhangelsk and Vladivostok.