Modern World Challenges: Regional Development of the Northern Sea Route

Last year saw remarkable growth along one of Russia’s key transport arteries — the Northern Sea Route (NSR). Russia’s unique geography, with 65% of its territory covered in permafrost and nearly 40,000 kilometres of coastline bordering the Arctic Ocean, underscores the strategic importance of this route. The NSR is con- sidered a national treasure and is being developed solely through Russian efforts. The upcoming 500th anniversary of the northern corridor’s exploration presents an opportunity to highlight its potential for peaceful international collaboration. Countries can jointly undertake economic and research projects while leveraging the transport capabilities of the Arctic seas.
The Great Northern Sea Route (GNSR) stands out as the innovation of the year — not as a geographical concept, but as an economic one. To recall, the NSR, spanning over 3,000 nautical miles (5,600 kilometres), serves as a vital shipping corridor along Russia’s Arctic coastline, stretching from the straits of the Novaya Zemlya archipelago to the Bering Strait [1].
The supplementary programme for expanding the NSR includes plans to integrate new ports outside the current route, such as terminals in St. Petersburg and Kaliningrad. This expansion will extend the route’s total length to 8,000 nau- tical miles. Consequently, the federal project aims to systematically enhance port capacities and develop infrastructure along the entire route.

The integration of Northwestern and Far Eastern ports in the GNSR will address three key objectives:
First, national connectivity and cabotage. This involves enhancing the coun- try’s internal connectivity by resolving issues related to cabotage — the transporta- tion of goods or passengers between domestic seaports [5]. It ensures the supply of goods to remote territories and facilitates freight transport between eastern and western regions of Russia.
Second, support for exporters. The integration will aid exporters involved in Arctic subsoil projects, enabling the export of hydrocarbons, metals, and coal to Asian and East Asian markets.
Third, international transit. The initiative promotes international container shipping, involving countries such as Southeast Asian nations (mainly, China), the United Arab Emirates, and Russian operators. This reflects active participation in boosting global traffic flows.
Approximately RUB 1.8 trillion is slated for the construction and development of the most significant component of the national project: the “efficient transport system,” which represents the largest expenditure item.
The primary goals of this initiative are to ensure the reliable and safe trans- portation of goods to the Far North and to create favourable conditions for imple- menting investment projects in the country’s Arctic zone. The plan encompasses around 150 measures.
Meanwhile, cargo traffic along the NSR continues to increase, influenced by the redirection of cargo flows and internal shipping. For instance, port capacity has reached 40 million tonnes, and cabotage shipping volumes have grown to 5.6 mil- lion tonnes [1].
The Arctic Silk Road Belt, or GNSR, serves as an alternative transportation corridor linking the Russian Far East with Europe and Asia. Spanning across six seas, the Arctic Ocean, and parts of the Pacific Ocean, this national project aims to develop Arctic territories and enhance the quality of life for local residents. Its significance and relevance have particularly surged following the COVID-19 pan- demic, which disrupted global maritime logistics chains, led to rising freight rates, and caused congestion in ports [4].
Russia’s geographical and geopolitical dominance over the majority of the Arctic Ocean, coupled with the fact that the entire NSR lies within its territorial waters, positions Russia as an essential partner for China in Arctic exploration. Russia generally supports China’s initiatives focused on collaboration on com- mercial navigation along the NSR and investing in resource development projects within the Arctic zone [2, 3].
The Arctic region holds immense strategic value for China, offering opportu- nities for oil and gas exploration (accounting for approximately a quarter of global oil reserves), rare-earth metal extraction, and the establishment of alternative sup- ply chains. These developments could significantly influence China’s trade, eco- nomic standing, and military-strategic position. However, China’s integration into the NSR remains contingent on cooperation with Russia.
China is a key player in the Arctic for strategic reasons: utilising northern sea routes can significantly shorten maritime transport times, saving days or even weeks compared to traditional routes such as the Suez and Panama Canals. Addi- tionally, ships travelling along the Arctic corridor face no transit fees and are free from restrictions on size, tonnage, or drah.
However, experts suggest that the development of container shipping in the Arctic remains a future prospect due to current challenges such as harsh weather conditions (including difficult ice conditions) and underdeveloped Russian port infrastructure. These factors heighten Arctic risks and, consequently, increase freight rates for the region. Chinese analysts emphasise the need for Russia and China to reach promptly definitive agreements on cooperation within the frame-

work of China’s Belt and Road initiative. Additionally, attracting private capital investments alongside budgetary funds, as well as leveraging Chinese technologies and investments, could enable Russia to upgrade its Arctic infrastructure to meet international transit corridor standards within the next decade.
Conclusions

Starting in 2025, the new federal project, “Development of the Great North- ern Sea Route,” will begin creating an integrated economic, transport, and logistics space. This initiative aims to enhance connectivity between Northwestern Russia and the Far East while strengthening transport security across the country. A key priority for the project is to boost the Northern Sea Route’s competitiveness not only within domestic and regional markets but also on a global scale.
The economic rationale behind this initiative lies in the need to expand shipping routes and enhance the appeal of the NSR as an alternative corridor for maritime operators, while also responding to growing interest from international partners.
Russia and China are actively collaborating in the Arctic, driven by mutual interests in developing shipping along the NSR and hydrocarbon extraction in the region. For Russia, attracting Chinese investments and technology is crucial, while it offers China access to natural resources and the strategic northern transport artery in return.