The Northern sea route: the perspectives of development - Politics | PoFo

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Today the Northern sea route is not only a connecting link between Russian Far East and western of the country, uniting major river arteries of Siberia, land, air and pipeline types of transportin a common transport network, but is a good investment for foreign countries.
The NSRhas attracted increasing attention in Western and Asian countries.And this interest is well founded.Foreign investors are attracted not only resource potential and new transit opportunities in the Arctic.This is the Asian countries that are forced to use uncontested trade route through the Malacca and Singapore Straits, the Indian Ocean and the Suez Canal. So, China is one of the countries that have already made the decision about the necessity to increase the use of the NSRand plans to 2025 to be transported along this way up to 20 percent of its foreign goods.In turn, the Russian side advocated the preservation of this region as a space for dialogue.According to the statement of Russian President Vladimir Putin, all countries have the right to work in the Arctic. Russia not only intends to actively develop the Arctic, but also to cooperate in this matter with other countries.
If until 2000, Russia paid little attention to the infrastructure of the Arctic, in recent years, the Russian government takes active steps to development of the Arctic region.Russia confidently regains its leading position in the development of the Arctic.This is eloquently results of the IV International Arctic forum "The Arctic is territory of dialogue" which was held from 29 to 30 March 2017 in Arkhangelsk.This forum is held since 2010 and aims to unite the efforts of the international community for the effective development of the Arctic.Speaking at the forum, Vladimir Putin instructed the government to create a separate structure that will develop theNSR. This structure should be responsible for the creation of infrastructure, hydrography, security, management and other services, which will undoubtedly create favorable conditions for transport companies and attract foreign investment.
The volume of the Russian domestic and export shipments via the Northern sea route is increasing every year.So, 2016 the total freight traffic along the NSR reached 6.9 million tons (including transit in the amount of 215 thousand tons).It is based on the projects for the extraction of minerals.The products of Russian energy projectswill be basis of the future traffic, the main of which is the project "Yamal LNG" that will start to delivery already this year.Total plant capacity is 16.5 million tons per year.7 million tons will delivery to Europe, 3 million tons in China and India, as well as 2.9 million tons in Singapore.Given the potential for other projects – oil terminal "Varandey" (up to 6 million tons JSC "LUKOIL"), the Novoportovskoye field (6-8 million tonnes) and the Prirazlomnoye field (up to 6 million tons, JSC "Gazpromneft"), as well as projects for the extraction of ores and nonferrous metals (up to 3.5 million tons), the total cargo traffic may reach 30 million tonnes by 2030. The freight turnover of the NSR in the coming years will increase significantly due to the company "NOVATEK" which in 2017 will start theYamal gas production.It is expected that it will produce 16.5 million tons of liquefied natural gas per year, which will be delivered in Asia and Europe along the NSR.
Moreover, in April 2017, the company "Rosneft" has begun drilling of the Khatanga, the resource potential of which, according to experts, is 9.5 billion tons of oil equivalents. According to experts, the Arctic shelf will provide 20% to 30% of all Russian oil productionby 2050.
Thus, the value of the Northern sea route for Russia is difficult to overestimate. It affects not only the economic development of several regions of Russia such as Arkhangelsk oblast, Siberia, Republic of Sakha (Yakutia) and Chukotka, reconstruction and development of infrastructure of the NSR will contribute to the development of the Russian economy as a whole. To date, 10% of Russia's GDP is the sum of the results of companies operating in the region.

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