Six agreements signed with key investors to ensure cost-effective cargo base for NSR
Arctic companies to increase cargo transportation to over 190 million tonnes
Six agreements have been signed with the key investors to ensure cost-effective cargo base for the Northern Sea Route (NSR). Those are Vostok Oil, NOVATEK, Gazprom Neft, Norilsk Nickel, Severanay Zvezda and Baimskaya. The leading Arctic companies are set to increase cargo transportation to over 190 million tonnes in the coming years. Their projects will ensure additional revenues to the budget estimated at over RUB 20 trillion, Prime Minister Mikhail Mishustin said at the strategic session for the development of the Northern Sea Route, according to the Telegram channel of RF Government.
"A critical factor for the business is an ability of free cargo redirection along any route - east or west, while remaining within the Russian territorial sea and the exclusive economic zone, which significantly contributes to the competitiveness of domestic enterprises in the global market," said the Prime Minister.
He also reminded about the Northern Sea Route Development Plan until 2035 which “actually forms new economy in the Arctic”. Its implementation foresees the creation of a unified infrastructure complex including the construction of over 50 icebreakers and ice-class ships, ports, terminals, rescue centers, as well as creation of an orbital group of satellites.
Investments into the plan implementation in the coming 13 years are estimated at about RUB 2 trillion including about RUB 600 billion foreseen by the federal budget.
Mikhail Mishustin told about the projects already implemented for the development of the NSR. In particular, a management system has been created that has increased the efficiency of navigation and its safety. An ice radar satellite has been launched from Vostochny cosmodrome as part of this system. Three nuclear-powered icebreakers have been built, including the most powerful in the world, the Arktika. The construction of the Utrenny terminal has been completed in the Gulf of Ob. A floating LNG plant is to be delivered in August 2023. ️Regular coastal voyages between Russia’s North-West and Far East have been launched involving nuclear-powered container carrier Sevmorput. In 2023, five satellites will be launched to perform near real-time ice monitoring of the Arctic routes.
The Prime Minister emphasized the significance of the Northern Sea Route as the shortest one for cargo transit between the European ports and the countries of South-East Asia and China. Indian companies also express their interest to the project.
According to Mikhail Mishustin, there are “favorable conditions for the development of tourism in the Arctic zone. The Far North annually welcomes more than 1.5 million tourists”.
Mikhail Mishustin declared the need to prepare further steps towards the development of the Northern Sea Route including measures to redirect the cargo base from east to west, construction of ice-class and non-ice-class ships, development of seaports beyond the Northern Sea Route .
The Prime Minister also reminded about the draft law on northern delivery approved in the first reading by the State Duma.
The Northern Sea Route is a single transport system in the Russian Arctic sector. It stretches along the northern coasts of Russia across the seas of the Arctic Ocean (Kara, Laptev, East Siberian, Chukchi seas). The route links the European ports of Russia with the mouths of navigable rivers in Siberia and the Far East. In August 2022, a plan for the development of the Northern Sea Route (NSR) until 2035 was approved. The plan includes over 150 activities with total financing nearing RUB 1.8 trillion.
According to the plan, the annual cargo traffic on the Northern Sea Route is to reach 80 million by 2024, 150 million tonnes by 2030, 220 million tonnes – by 2035.
