The Arctic: A Closer Connection for Russia

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Maxim Kazanin, Associate Professor at the Department of International Business, Financial University under the Government of the Russian Federation and Candidate of Political Sciences, highlights that the Trans-Arctic Transport Corridor is set to significantly connect Russia`s regions.

Just a decade ago, the notion of producing local Parmesan or Camembert in Russia was met with skepticism, often sparking jokes. Today, these cheeses are manufactured almost ubiquitously across Central Russia. For producers in cities like Voronezh or Suzdal, the primary challenge is no longer merely product creation, but rather ensuring efficient logistics to deliver their goods to consumers nationwide, particularly in the remote regions of the Far East and the North. Key obstacles remain limited shelf life and high transportation costs.

A ship navigating icy waters, symbolizing the Arctic transport route
Illustration: A ship navigating icy waters, symbolizing the Arctic transport route.

Nevertheless, the coming years promise significant transformations that will benefit Voronezh farmers, Salekhard residents, and the entire nation. This year, the President initiated an ambitious new project: the establishment of the Trans-Arctic Transport Corridor. This endeavor entails creating a cohesive logistics network, allowing goods from central Russia to be transported by rail to Arctic ports, then by sea, and subsequently by river deep into Siberia.

The state is already actively working to guarantee that inhabitants of the North have access to all essential commodities. Fuel, foodstuffs, medicines, and construction materials are delivered annually to distant areas through the government-backed «Northern Delivery» program. The Trans-Arctic Corridor is projected to facilitate year-round deliveries, thereby ensuring that the basic needs of the populace are met irrespective of the season. This initiative will also broaden the availability of affordable products. Moreover, Yamal fishermen will gain the ability to effortlessly supply fresh-frozen catches to markets in cities like Chelyabinsk and Omsk.

This novel transport route does not necessitate construction entirely from scratch. In essence, it already partially exists, building upon the foundations of the Northern Sea Route, but it will be substantially extended, spanning from St. Petersburg to Vladivostok. A monumental effort is required to ensure its continuous functionality: this includes modernizing existing ports and constructing new ones, developing an extensive network of logistics centers, laying additional railway lines and roads, and deploying all requisite infrastructure.

For Russia, this project stands as unprecedented in terms of its scale, inherent challenges, and potential benefits. Private investments are slated to play a pivotal role in its execution. The responsibility for crafting intricate financing schemes, blending state and attracted capital, rests with development organizations. Following the President’s directive, the state corporation VEB.RF has already established a dedicated project office. Its mandate is to serve as a central point of contact for both Russian and international investors, as well as a source of expert analysis and support. VEB.RF itself is actively supporting the construction of facilities forming the bedrock of the Trans-Arctic Corridor, including the Lavna port in Murmansk and Sukhodol in Primorye. The accumulated experience of this state corporation will provide invaluable practical guidance for investors and businesses participating in this monumental undertaking.

The Trans-Arctic Corridor is designed not merely to establish a permanent logistical artery connecting the nation`s most remote territories. This project is also poised to act as a potent catalyst for development across a diverse array of life sectors. Along its route, cutting-edge technologies, including unmanned systems, will undergo rigorous testing and implementation. The operation of such advanced systems will necessitate highly qualified specialists, which, in turn, will expand employment opportunities and professional growth prospects for residents of the Northern regions.

Furthermore, this new route is set to become a critical transit corridor for goods moving from Asian countries to Western markets. It will present a safer and more expeditious alternative to the Suez Canal. This will not only generate substantial additional revenue for Russia but also cement its status as a leading transit hub in the Northern Hemisphere.