Russia Continues Investment In Arctic Route Expansion

“The Russian government decided that a terminal for shipment of zinc and lead will be built in the archipelago of Novaya Zemlya and the Seaport of Arkhangelsk will have its capacity tripled.”


Despite fighting in Ukraine and Western sanctions, Russia continues to push the expansion of its Northern Sea route’s capacity. According to the excerpted article from the Norway-based The Barents Observer, the Russian state’s push followed a significant investment in Arctic infrastructure development by sanctioned Russian oligarch Andrei Patrushev.[i] According to the article, Patrushev will take an ownership stake in the Archangelsk Seaport. Much of the shipping currently goes east to the Russian Far East and China, but many non-European countries are expanding trade with Russia. In the past, President Putin set increased shipping goals for the North Sea Route which have been met. Still, this current goal to increase from 34 million metric tons to 83 million metric tons is quite ambitious. Who the intended customers are, where the demand exists, and what type of goods are still unknown. Much of this cargo will continue to be LNG, coal, oil, timber, grain, and processed metals. Indeed, Russia is investing in its north for the long term, and the Patrushev family seems convinced that it is a good place to invest. Their financing, in tandem with state investment, may provide insight into the relationship between the oligarchs that keep Russia’s economy functioning and the Russian political state.


Sources:

Atle Staalesen, “Following Andrei Patrushev’s infrastructure investment comes a major government development plan for seaports in Arkhangelsk and Novaya Zemlya,” The Barents Observer (independent Norwegian news site in Russian and English currently blocked in Russia), 2 October 2023. https://thebarentsobserver.com/en/industry-and-energy/2023/10/following-andrei-patrushevs-infrastructure-investment-comes-major

The Russian government decided that a terminal for shipment of zinc and lead will be built in the archipelago of Novaya Zemlya and the Seaport of Arkhangelsk will have its capacity tripled. “The Government continues to systematically develop the Northern Sea Route,” Prime Minister Mikhail Mishustin underlined this week as he presented a new infrastructure plan for the north Russian region of Arkhangelsk.

According to the document, the local seaport will have its capacity tripled by 2035.  While it handled 6,5 million tons of goods in 2022, it will be able to handle 25 million tons in 2040.  This should involve major dredging operations in the Northern Dvina river and improved railway connections to the seaport. The construction of the new terminal will be started no later than 2026 and it is to be completed in 2031.  The key commodities  for the new port in Arkhangelsk will be zinc and lead concentrates.  The plan also includes the construction of a terminal in Novaya Zemlya, which is to be ready for operations in 2026.  The construction of the new infrastructure will be covered by non-budgetary funds.

The terminal in the far northern and heavily-militarised archipelago has been under planning for several years. It is due to be built in the Bezimyannaya Bay, not far from the local nuclear weapon test sites.  It will handle ores and concentrate from the Pavlovskoye mine. State nuclear power company Rosatom and its subsidiary First Ore Mining Company are behind the project.

The Russian government’s approval of the infrastructure plan comes only few months after Andrei Patrushev acquired an ownership stake in the Seaport of Arkhangelsk. Andrei Patrushev is the son of Russian national security strongman Nikolai Patrushev.

In early 2023, Patrushev bought a 10 percent stake in the seaport. With the acquisition, Patrushev teamed up with port owners TD Bulat-SBS, Investment Industrial Partner and Vaiz Invest.  The latter reportedly controls 60 percent of the port.

Andrei Patrushev is the youngest son of Nikolai Patrushev, the Russian Security Council Secretary. The Patrushev family is closely associated with the FSB. Andrei Patrushev is a major owner of the Gazprom Shelf Project, a company that has management responsibility for several of Russia’s best Arctic drilling rigs and vessels.  He also controls a major share of Arctic exploration company Marine Arctic Geo Exploration Expedition (MAGE).

Arkhangelsk is one of Russia’s biggest Arctic seaports.  It is extensively used for shipments of goods and construction materials to far northern industrial projects like the Syradasayskoye coal field and Rosneft’s Vostok Oil.As the new federal plan was approved in Moscow, a Chinese cargo ship loaded forestry products from the terminal.  According to regional Governor Aleksandr Tsybulsky, Chinese furniture manufacturers are ready to start shipping up to one million cubic meters of wood products on the Northern Sea Route. The first shipload includes 300 containers sent on the Chinese ship Xin Xin Hai 1


Notes:

[i] See: “The West has imposed a barrage of sanctions on top Russian figures. See how they’re connected to Putin,” The Washington Post, 15 March 2022. https://www.washingtonpost.com/national-security/2022/03/15/putin-inner-circle-russia/ and the official U.S. government notice; U.S. Treasury Announces Unprecedented & Expansive Sanctions Against Russia, Imposing Swift and Severe Economic Costs, U.S. Department of the Treasury, Press Release, 24 February 2022. https://home.treasury.gov/news/press-releases/jy0608


Chinese Icebreaker Sails To the Arctic

Gakkel Ridge highlighted on map of main bathymetric features of the Arctic Ocean, taken mainly from Weber 1983 ‘Maps of the Arctic Basin Sea Floor: A History of Bathymetry and its Interpretation’ on a base of a screenshot taken from the NASA WorldWind software.


“China is determined to participate in Arctic governance and that it has legitimate interests and rights in the region.”


In recent years, China has defined itself as “a near Arctic state.” Official Chinese statements have stressed that the Arctic belongs to the world and that China, as the world’s most populous state, is not content to let the nations of the Arctic Council, of which China is an observer, control the Arctic. As the excerpted article from the Norway-based The Barents Observer notes, China has dispatched the Xuelong-2 [R1] icebreaker ship to the Arctic. China is promoting the expedition as a scientific venture focusing on the Gakkel Ridge. However, recent Arctic initiatives with Russia[i] provide evidence that China is committed to a presence in the Arctic while strengthening China’s claims to Arctic resources.


Sources:

Atle Staalesen, “China’s icebreaker Xuelong-2 is sailing to the North Pole,” The Barents Observer (independent Norwegian news site in Russian and English currently blocked in Russia), 17 August 2023. https://thebarentsobserver.com/en/arctic/2023/08/chinas-icebreaker-xuelong-2-sailing-north-pole

China’s icebreaker Xuelong-2 is sailing to the North Pole

In cooperation with researchers from Russia and Thailand, Arctic experts from the Chinese Polar Institute are sailing 15,500 nautical miles on an expedition to the top of the world. It is the country’s 13th Arctic Ocean scientific expedition and the fourth voyage to the region by Xuelong-2, the new and fully Chinese-built icebreaker. On the 12th of July, the vessel set out from Shanghai. On the 17th of August it was breaking through the sea-ice at 84 °N.

One of the purposes of the expedition, organized by the Chinese Ministry of Natural Resources together with the Polar Institute, is to study geology and geophysics of the Gakkel Ridge. The researchers will also conduct investigations of atmospheric, sea ice, marine, and subsurface environmental surveys, as well as surveys of biomes and pollutants. According to Wang Jinhui, head of the expedition team, a key objective is to collect genetic specimens from the region. “We have isolated 130 strains of bacteria from the seawater and sediments and collected 68 genetic specimens of marine life to further enrich the polar gene bank and specimens of marine life. This also enhanced China’s capability in environmental protection and assessment of marine pollution in the Arctic Ocean,”

The vessel is a new ship with modern facilities for the researchers. The expedition team works in two shifts for 24 hours a day for about 40 days. A library and gym are on board the 122-meter icebreaker. A team of doctors provide medical services, and four chefs provide “a balanced diet for over 100 expedition members.” The expedition is conducted in cooperation with partners from Russia and Thailand. The icebreaker is due to return to Shanghai in late September.

Until 2020, the original Xuelong, an older Russian-built vessel, housed the Chinese Arctic expeditions, some of which proceeded along Russia’s Northern Sea Route, across the central Arctic Ocean, as well as through Canada’s Northwest Passage.During the Arctic Circle China conference in 2019, Chief of China’s State Oceanic Administration underlined that “protecting the Arctic environment is a common responsibility and China will make its contribution to this.” He also stressed that China sees itself as “a near-Arctic state” and it will “actively participate with wisdom and strength to future protection and development.” In early 2018, the country adopted an Arctic policy that highlights joint efforts and cooperative approaches, and at the same time underlines that China is determined to participate in Arctic governance and that it has legitimate interests and rights in the region.


Notes:

[i] For more information on China-Russia initiatives in the Arctic, see: Les Grau, “Russia and China Expanding Coast Guard Cooperation in Arctic,” OE Watch, 07-2023. https://fmso.tradoc.army.mil/2023/russia-and-china-expanding-coast-guard-cooperation-in-arctic/


Image Information:

Image: Gakkel Ridge highlighted on map of main bathymetric features of the Arctic Ocean, taken mainly from Weber 1983 ‘Maps of the Arctic Basin Sea Floor: A History of Bathymetry and its Interpretation’ on a base of a screenshot taken from the NASA WorldWind software.
Source: Mikenorton, https://en.wikipedia.org/wiki/Gakkel_Ridge – /media/File:Arctic_Ocean_bathymetric_features.png (modified by Combat Films and Research to feature Gakkel Ridge as permission granted by CC By-SA 3.0
Attribution: CC By-SA 3.0


Russia Announces New Combined Arms Army in Arctic To Offset NATO Expansion

Map of Russian Federation with the Kola Peninsula highlighted, a strategically important space for Russian defense in the Arctic.


“While Sweden and Finland were conditionally neutral countries, there was no need to keep any large forces in the region.  However, now that Finland has joined NATO, and Sweden is on this path, it is necessary to strengthen the northwestern direction.”


Russia will form a new Combined Arms Army (CAA) in the Arctic North as a response to Finland and Sweden joining NATO, according to a recently published article from the pro-government daily Izvestia. The Russian military expert featured in the article claims the Northern Fleet’s 14th Army Corps will likely be the nucleus of this new CAA, while the Arctic 200th and/or 80th brigades will likely be upsized to divisions. The new divisions will likely see the incorporation of a new Iskander missile brigade and air defense brigade to somewhat standardize the structure with other CAAs. Russian ground forces in the Baltic region facing Sweden and Finland, recently renamed the Leningrad Military District, will probably also expand to meet the new threat. The Northern Fleet Strategic Command covers the bulk of the Northern Sea route, but the Eastern Strategic Command controls the Chukotka Peninsula. There is currently a motorized rifle regiment stationed there, and plans exist to expand this to a division. Due to the distance involved, it is unlikely that the new CAA will expand to incorporate this other Russian Arctic ground force. The focus of the new CAA will be the defense of the Kola Peninsula.


Source:

Roman Kretcul and Aleksei Ramm, “Полярный округ: в составе Северного флота создадут общевойсковую армию (Arctic circle:  A new combined arms army will form as part of the Northern Fleet),” Izvestia (large pro-government Russian daily), 1 July 2023. https://iz.ru/1538203/roman-kretcul-aleksei-ramm/poliarnyi-okrug-v-sostave-severnogo-flota-sozdadut-obshchevoiskovuiu-armiiu.

A new combined-arms army will be formed as part of the Northern Fleet.

This decision was made by the Russian Defense Ministry.  It will cover the Russian border in the north, including the border with Finland and Norway. The defense of the Kola Peninsula is a vital task for Russia since strategic missile submarines are based there.  The creation of a new army is especially important due to the entry of Finland and Sweden into NATO. The new formation will be based on the current army corps. The army will include motorized rifle brigades, regiments and divisions. Their personnel will be trained in Arctic combat.

“While Sweden and Finland were conditionally neutral countries, there was no need to keep any large forces in the region,” military historian Dmitry Boltenkov explained to Izvestia. “However, now that Finland has joined NATO, and Sweden is on this path, it is necessary to strengthen the northwestern direction.” The expert noted that the 200th Separate Guards Motorized Rifle Brigade, the 80th Arctic Brigade, and the 61st Separate Marine Brigade are now stationed there. He did not rule out that the 200th and 80th brigades would be reorganized into divisions, and the 14th Army Corps, of which they are now a member, into an army. The most important thing is that with the creation of this army, powerful separate formations will also appear – a missile brigade, an air defense brigade and others. This will significantly increase the group’s capabilities in the region. According to Dmitry Boltenkov, the protection of the Kola Peninsula is vital, if only because strategic missile submarines are based there.

In recent years, Allies have shown an increased interest in the Arctic region. Norway hosts large-scale exercises of the Cold Response Alliance every two years. In the spring of 2022, over 30 thousand military personnel, more than 200 aircraft and 50 ships took part in them. The Russian Armed Forces regularly conduct exercises in polar latitudes. In particular, the annual maneuvers “Umka”, during which both personnel training and polar research are performed. On July 1, the press service of the Northern Fleet reported that the Arctic grouping, which includes warships of the Kola flotilla, will conduct a traditional Arctic campaign with a set of tactical exercises on the continental coast, islands and in the waters of the seas of the Arctic Ocean.


Image Information:

Image: Map of Russian Federation with the Kola Peninsula highlighted, a strategically important space for Russian defense in the Arctic.
Source: https://en.wikipedia.org/wiki/File:Murmansk_in_Russia.svg
Attribution: CCA-Share Alike 3.0


Russia Seeks To Expand Military Force Creation to Its Republics


“New legislation opens up the establishment of regional military companies that will be in charge of “guarding the state border in times of war.”  The amendments that were announced by Member of the State Duma Andrei Kartapolov on the 25th of July will allow Russian governors to build their own private military companies.”


Russia is looking for additional military forces and private military groups for use in the event of a national emergency. Draft Russian legislation may allow the formation of republic/regional armed forces that could be used to defend Russia in a time of crisis. According to the Norway-based The Barents Sea Independent Observer, the new Russian units would have the mission to “protect the state border, fight illegal armed groups, and combat foreign sabotage and intelligence formations.” Details are sparse on important details, including whether these regional armies would belong to the republics or to the seven federal regions, and how they would interact with the traditional instruments of state power, including the Armed Forces, the Federal Security Service, and the National Guard (Rosgvardia).


Source:

Atle Staalesen, “Russian governors could soon start building Regional Armies,” The Barents Sea Independent Observer (online in English and Russian), 27 July 2023. https://thebarentsobserver.com/en/2023/07/russian-governors-could-soon-start-building-regional-armies

New legislation opens up the establishment of regional military companies that will be in charge of “guarding the state border in times of war.” The amendments that were announced by Member of the State Duma Andrei Kartapolov on the 25th of July will allow Russian governors to build their own private military companies.

According to Karapolov, the military formations will be “specialised state unitary companies that on the decision of the Russian President can be established to protect public order.” They will also be used to “protect state borders in times of mobilisation, as well as in times of martial law and war,” Kartapolov explained. Andrei Kartapolov chairs the State Duma Committee on Defense. He is also General in the Russian Armed Forces and was in charge of  the Army’s so-called Military-Political Department ahead of his election to parliament in 2021.

The new legislation comes as part of controversial amendments in the Russian Law on Draft Age. It is not clear how the new military formations will interact with Russia’s existing forces, among them the Armed Forces, the FSB and the National Guard (Rosgvardia). But the new regional units will be armed and allowed to use force. And they will “interact with the Interior Ministry, the FSB and Ministry of Defense to protect the state border, fight illegal armed groups and combat foreign sabotage and intelligence formations,” the Russian version of the Barents Observer reported.

In addition, they will reportedly be commissioned to take action in issues of public law and order, which could mean that they can be applied to repress protest actions. They will also engage in fighting drones, in the air, under water, as well as unmanned surface vehicles.

The formations will have extensive authorities and face little consequences for their actions. Reportedly, members of the new forces will bear no responsibility for inflicted damage of moral, physical and material character, and citizens will have no right to oppose their demands.According to Kartapolov, the law is “made for a big war, and the smell of such a big war can already be scented.”  The new legislation comes into force on the 1st of January 2024.


Russia and China Expanding Coast Guard Cooperation in Arctic


“Cooperation on Coast Guard tasks is both a concrete action and often seen as more harmless than military cooperation. The Coast Guard’s work is about protecting sovereign rights at sea, like fishing resources and access to oil and gas. Letting China in when it comes to fisheries inspections would be a big step in practical cooperation that has a security element to it.”


A new agreement with Russia’s Coast Guard will give China greater access to the Arctic, according to the following excerpted article in Norway-based The Barents Observer.This is something China has sought as a “near Arctic” nation. China has long claimed a special status in Arctic relations since its proclamation that the “Arctic belongs to the world and China has the largest portion of the earth’s population.” Cooperation between the Russian and Chinese Coast Guards can be an important step in China’s ability to gain more access to Arctic waters. The agreement on joint coastal operations could also give China a stronger voice in dictating Arctic policy. An analyst quoted in the article sees this as a significant policy shift for Russia, concluding that “Russia is generally skeptical about letting China get too close in the Arctic, but the Ukraine war might have changed those calculations.” The article suggests the presence of Chinese Coast Guard vessels patrolling Arctic waters, should it come to that, will make Norway’s cooperation with Russia’s Coast Guard even more difficult.


Sources:

Thomas Nilsen, “Russia’s Coast Guard cooperation with China is a big step, Arctic security expert says”, The Barents Observer (independent Norwegian news site in Russian and English currently blocked in Russia), 28 April 2023. https://thebarentsobserver.com/en/security/2023/04/russias-arctic-coast-guard-cooperation-china-big-step-expert

On 24 April, a groundbreaking memorandum on extensive cooperation in Artic waters was signed with FSB Coast Guard. The Chinese Coast Guard was then invited to observe the long-planned “Arctic Patrol 2023” maritime security exercise. On 27 April, Governor Andrei Chibis met Chinese diplomats and discussed a roadmap for increased business, shipbuilding and Northern Sea Route developments. Amid the Ukraine war and halt in cooperation with the other seven Arctic nations, Russia turns east for new partners. Opening the door for China is a significant geopolitical change.

“Cooperation on Coast Guard tasks is both a concrete action and often seen as more harmless than military cooperation,” explained Andreas Østhagen, an expert on Arctic security with the Firdtjof Nansen Institute. “The Coast Guard’s work is about protecting sovereign rights at sea, like fishing resources and access to oil and gas. Letting China in when it comes to fisheries inspections would be a big step in practical cooperation that has a security element to it,” Osthagen stated. Government officials in Beijing have for years said China is a “near-Arctic state,” but so far, its presence up North has been limited to participating in conferences, annual research voyages, some few investments in Russia’s natural resource developments, and a few Asia-Europe shipments along the Northern Sea Route.

“China’s Polar Silk Road project seems to be more wait-and-see,” write researchers Frédéric Lasserre and Hervé Baudu in a report  published in April about the consequences of the war in Ukraine in the Arctic. The report, however, underlines that China is readily credited with great Arctic ambitions, but for now, mainly focused on securing hydrocarbon supplies from Siberia.  China has its own projects under construction. Barges for two additional floating nuclear power plants for the north coast of Siberia and a nuclear-powered icebreaker are currently under construction at a yard in China.

The Russia-China memorandum signed in Murmansk opens the opportunity for joint efforts to combat terrorism, illegal migration, fighting smuggling of drugs and weapons, as well as stopping illegal fishing. The deal was signed by top leaders with FSB Border Guards and the Chinese Coast Guard.

“This testifies that Russia actively wants to invite China into the kind of tasks we have thought Russia would safeguard,” Andreas Østhagen states, finding this a significant shift in policy. “We have thought that Russia is generally skeptical about letting China get too close in the Arctic, but the Ukraine war might have changed those calculations,” He notes that the future of China-Russian Arctic cooperation is difficult to predict, but he makes one comparison: “This reminds me a bit of when my mother-in-law wants to stay with us for a couple of weeks “until she finds something else.”

For Russia, the exercise showcasing FSB Border Guards’ maritime capabilities for the Chinese visitors wasn’t aimed at fishery inspections in the Barents Sea. This was hard-core security, as previously instilled by strongman Ramzan Kadyrov’s special Rosgvardia forces in the Arctic, including at the nuclear icebreaker base in Murmansk.

The exercise scenario was FSB fighting terrorists that had attacked Rosatomflot’s nuclear transport ship “Rosita” in Kola Bay. “All the inputs worked out during the practical maritime exercise confirmed the readiness of interdepartmental structures to solve problems in the waters of the Northern Sea Route,” said acting director of Atomflot Leonid Irlitsa.

Rosatomflot oversees Russia’s Northern Sea Route Directorate. The state-owned company is currently boosting the number of nuclear icebreakers and support infrastructure, key to President Putin’s great Arctic ambitions.  For neighboring Norway, FSB Coast Guards’ new cooperation with China could pose a challenge.“Although I think we are far away from seeing Chinese Coast Guard or naval vessels performing tasks in the Barents Sea, for Norway that would entail a new security challenge and make cooperation with the Russian Coast Guard (FSB) even more difficult,” says Andreas Østhagen. Norwegian-Russian Coast Guard cooperation in the Barents Sea is one of very few areas of contact that has not been officially called off by Oslo after Russia’s full-scale invasion of Ukraine last year.


Russian Defense Ministry Approves Five-Year Plan To Expand and Modernize Arctic Air Bases

In Kamchatka, MiG-31 [RG1] fighters of the Pacific Fleet worked out the interception of a mock enemy cruise missile (Author’s note: In spite of the Russian description, the MiG-31 looks to be air-to-air refueling).

In Kamchatka, MiG-31 [RG1] fighters of the Pacific Fleet worked out the interception of a mock enemy cruise missile (Author’s note: In spite of the Russian description, the MiG-31 looks to be air-to-air refueling).


“Rogachevo air base is located some 10 kilometers northeast of Belushaya Guba, the main military settlement on Novaya Zemlya.  The airport serves other facilities on the archipelago with helicopters, such as the main testing area of nuclear weapons near the Matochkin Strait.  After modernization, the airfield will be able to base all types of aircraft, including long-range bombers.”


Russia is expanding its ability to maintain and launch military aircraft within its Arctic territories, possibly due to increased NATO naval exercises in the North Sea over the past three years. According to the Norway-based The Barents Observer, the Russian military is modernizing both Rogachevo air base on Novaya Zemla and Nagurskoye air base on Franz Josef Land. As the ongoing war in Ukraine demonstrates, Russia’s long-range bombers are a dual threat as they also serve as cruise missile launchers. Russian cruise missiles have significant range, and recent attacks on Ukrainian targets launched from military aircraft in the Caspian Sea are a poignant indication of the strategic value Russia stands to gain from these expanded and modernized Arctic bases.


Source:

Thomas Nilsen, “Further expansion for Novaya Zemlya air base aims to serve long-range bombers,” The Barents Observer (independent Norwegian news site in Russian and English currently blocked in Russia), 17 April 2023. https://thebarentsobserver.com/en/security/2023/04/further-expansion-novaya-zemlya-airport-aims-serve-long-range-bombers

Rogachevo airfield is already upgraded to serve MiG-31 and Su-33 fighter jets.  Such aircraft have since 2020 served the Arctic airport on a rotational basis from their airports on the Kola Peninsula. The new plans include special buildings for basing aircraft equipment and new houses for the military servicemen and their families.

Rogachevo air base is located some 10 kilometers northeast of Belushaya Guba, the main military settlement on Novaya Zemlya. The airport serves other facilities on the archipelago with helicopters, such as the main testing area of nuclear weapons near the Matochkin Strait.  After modernization, the airfield will be able to base all types of aircraft, including long-range bombers, according to the plans reported by Izvestia. Today’s runway is 2,400 meters, likely too short for Russia’s long-range bombers like the Tu-95 [RG1] and Tu-160 [RG2] .At the Nagurskoye base on Franz Josef Land, work is underway to extend the runway to nearly 3,600 meters. The Russian Air Force has over the last years significantly stepped up its presence in the Arctic.


Image Information:

Image: In Kamchatka, MiG-31 [RG1] fighters of the Pacific Fleet worked out the interception of a mock enemy cruise missile (Author’s note: In spite of the Russian description, the MiG-31 looks to be air-to-air refueling).
Source: Ministry of Defense of the Russian Federation, https://commons.wikimedia.org/wiki/File:InterceptionOfMissile2018-11.jpg
Attribution: CCA x 4.0 International

Facing European Sanctions, Russian Redirects Grain and Coal to Asian Customers

“As Europe no longer buys Russian coal and new markets in Asia take over, the export hub in Murmansk manifest itself as the world’s longest detour.”


In the face of sanctions and economic isolation from Europe, Russia’s longtime export hub in Murmansk has become, at least for now, an unnecessary and out-of-the-way detour for Russian commodities being shipped abroad, especially to Asia. According to the excerpted article in the Norway-based The Barents Observer, Russia is increasing its exports to Asia on the northbound Siberian rivers to the Northern Sea Route. Grain barges have successfully shipped north on the Lena River to the Northern Sea Route to China at substantial savings over rail. Coal will now move by rail from the Siberian coal fields to the river port of Krasnoyarsk and by barge on the north flowing Yenesei River to the Arctic Circle port region and then be loaded onto bulk carriers for China and India. Exploiting these additional routes will be more cost effective, quicker, and sanction-free, while providing Russia access to friendly markets and much needed export revenue.


Source:

Thomas Nilsen, “Asia-bound coal finds Siberian shortcut route, avoiding Murmansk,”

The Barents Observer (independent Norwegian news site in Russian and English currently blocked in Russia), 3 April 2023. https://thebarentsobserver.com/en/industry-and-energy/2023/04/asia-bound-coal-finds-siberia-shortcut-route-avoiding-murmansk

As Europe no longer buys Russian coal and new markets in Asia take over, the export hub in Murmansk manifest itself as the world’s longest detour. The first test batch with 30,000 tons of coal from Kuzbass will be shipped via the Yenisei River and Northern Sea Route when ice is gone and the waterways open for navigation later this year.

“It is planned to organize an experimental shipping in 2023 […] from Kuzbass with transshipment in Krasnoyarsk and Lesosibirsk. In Ust-Port region, the coal will be reloaded to ships and sent to China,” stated head of the Yenisey inland waterways, Leonid Fedorov.

The coal will be sent by rail to Lososibirsk and Krasnoyarsk where it will be loaded on barges and shipped north the Yenisey River to Ust-Port inside the Arctic Circle. A larger bulk carrier will take over the cargo and sail to the outlet of the river and further east along the Northern Sea Route towards Asia. About half of all Russian coal comes from the Kuzbass region southeast of Krasnoyarsk.Over the last decade, export via Murmansk has increased from about 9,5 million tons in 2010 to 16,2 million tons in 2019. After Putin’s full-scale military attack on Ukraine last year, the European Union decided to ban Russian coal, and export from the ice-free port on the coast to the Barents Sea is now shipped via the Suez channel to Asia, for the most part to India and China. If increasing to large volume, export via the Yenisey River and the Northern Sea Route will be substantially shorter than the route via Murmansk.

Russia Effectively Leaves Arctic Council

“On 21 February, the Kremlin announced that Russia revised its Arctic policy by removing mentions of the Arctic Council, stressing the need to prioritize Russian Arctic interests, and striving for greater self-reliance for its Arctic industrial projects.”


The Arctic Council, founded in 1996, lists its members as Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden, and the United States. The position of Arctic Council president rotates between member states, and though the Council currently has a Russian president, other members of the Council have refused to meet in his presence in response to the war in Ukraine. Underscoring the schism, the Council also recently met without its current president presiding and accepted a Canadian counterclaim to Arctic territory that is also claimed by Russia.[i] As the excerpted article from independent Norwegian news source High North News indicates, Russia has effectively pulled out of the Arctic Council as a result of the Council’s actions and will now pursue its interests in the Arctic through bilateral relations and self-reliance. Russia’s decision increases the chance of further political conflict in the Arctic that could lead to a physical confrontation between Russia and Arctic Council member states.


Source:

Malte Humpert, “Russia Amends Arctic Policy Prioritizing ‘National Interest’ and Removing Cooperation Within Arctic Council,” High North News (independent newspaper published by the High North Center at Nord University, Bodo, Norway). 23 February 2023. https://www.highnorthnews.com/en/russia-amends-arctic-policy-prioritizing-national-interest-and-removing-cooperation-within-arctic

On 21 February, the Kremlin announced that Russia revised its Arctic policy by removing mentions of the Arctic Council, stressing the need to prioritize Russian Arctic interests, and striving for greater self-reliance for its Arctic industrial projects. The hopes for cooperation with Russia in the Arctic continue to cool. Days after a U.S. diplomat stated that cooperation with Russia in the Arctic was now virtually impossible, the Kremlin published amendments to its Arctic policy. President Putin signed the decree on 21 February. The updated document places greater emphasis on Russian national interests in the region and removes specific mentions for cooperation within the Arctic Council.

While the original policy, published in March 2020, called for the “strengthening of good neighborly relations with the Arctic states” in the fields of economic, scientific, cultural and cross-border cooperation the amended version removes the above section and instead calls for the “development of relations with foreign states on a bilateral basis, “taking into account the national interests of the Russian Federation in the Arctic.”

The amended text also removes mentions of “the framework of multilateral regional cooperation formats, including the Arctic Council, the coastal Arctic “five” and the Council of the Barents Euro-Arctic Region.” 

In the original policy the section on international cooperation, placed significant emphasis on work within “multilateral regional cooperation formats” for the purpose of building up economic, scientific and technological, as well as cultural cooperation. It did not make any mention of prioritizing Russian national interests. In contrast, the wording of the revised document now places the country’s national interests in the Arctic ahead of work towards economic, scientific and technological, and cultural cooperation. Just last week, U.S. military leaders emphasized that the Arctic was now Russia’s number one priorityThe updated version also places a greater emphasis on Russian self-reliance in the region. It calls for ensuring “import independence of the shipbuilding complex,” clearly a response to western sanctions which have affected Russia’s ability to order and purchase ice-capable gas and oil tankers at foreign shipyards.The amended version of the policy calls for the” development and modernization of shipbuilding and ship repair facilities for the construction and maintenance of ships navigating in the waters of the Northern Sea Route. “In terms of energy supply for population centers and industrial facilities along the NSR the policy now calls for the use of domestically built “low-power nuclear power plants.” The first such facility, the floating nuclear power plant Akademik Lomonosov was towed through the Baltics and up the Norwegian coastline in 2018 to the Arctic town of Pevek to supply electrical power and residential heat.


Notes:

[i] For more additional information about the Canadian claim on the Lomonosov Ridge see: Les Grau, “Canada Makes Additional Claims to Arctic Territory Claimed by Russia,” OE Watch, 02-2023.

Russia Cutting Back on Nuclear Icebreaker Production

“An updated version of Russia’s Arctic Strategy states that Russia will only build one “Lider,” not three as originally planned. The amended document signed by President Putin on the 27th of February reads that only the lead ship of the new class will be built before 2035.”


As reported in the excerpted article from the Norway-based The Barents Observer, Russia will only build one of the three nuclear icebreakers it had previously planned but will compensate by increasing conventional icebreaker production. Although the cutback in production could be a response to the latest rounds of EU sanctions against Russia, the decision may have already been in process. In the past, Russia has cut back on expensive projects only to introduce improved projects later. The change in direction may indicate Russia believes it already has enough atomic-powered icebreakers in an era of thinning polar icecaps.


Source:

Atle Staalesen, “Moscow lowers ambitions in nuclear icebreaker program, will not build fleet of new super-powerful vessels after all,” The Barents Observer (independent Norwegian news site in Russian and English currently blocked in Russia), 1 March 2023.  https://thebarentsobserver.com/en/2023/03/moscow-lowers-ambitions-nuclear-icebreaker-program-will-not-build-fleet-new-super-powerful

Only two days after the EU imposed sanctions against Russia’s state nuclear icebreaker operator, the country announces that it will not build a fleet of Lider-class vessels. An updated version of Russia’s Arctic Strategy states that Russia will only build one “Lider,” not three as originally planned. The amended document signed by President Putin on the 27th of February reads that only the lead ship of the new class will be built before 2035.

The lead ship carries the name “Rossiya” and is currently under construction at the Zvezda yard in the Russian Far East. It is due to be ready for sailing in 2027. The Lider (project 20510) will be equipped with two RITM-400 type nuclear reactors and have a total capacity of 120 MW, twice the power of the currently most powerful icebreakers. It will be able to crush through ice thicker than four meters.

The vessel is very complicated to build, and it comes at an extraordinarily high price. The Russian government in January 2020 allocated 127 billion rubles (€1,85 billion) for the construction of the lead ship. The reduction of the number of Liders is compensated by the construction of more LK-60 icebreakers[GRLCUT(1] . While the original strategy document from 2020 includes the construction of “no less than five” icebreakers of the 22220 class, the updated documents reads “no less than seven” vessels of the kind.

Russia already has three ships of the class in operation: the Arktika, Sibir and Ural. By year 2035, also the Yakutia, Chukotka, Kamchatka and Primorie will be completed. The Arctic Strategy also outlines the construction of 30 rescue and support ships, as well as three hydrographic survey ships and two piloting ships by 2030.

The updated document comes only two days after the European Commission adopted its 10th package of sanctions against Russia, a part of which is aimed at nuclear icebreaker operator Atomflot. According to the Commission, the sanctions against Atomflot will reduce Russia’s ability to take use of the Northern Sea Route to exploit its vast Arctic oil and gas reserves.

“With oil and gas exports shifting from Europe to Asia as a result of Russia’s war of aggression against Ukraine and subsequent Westerns sanctions, Russia’s icebreaker fleet is key to the country’s Arctic hydrocarbon strategy. In order to escort oil and gas tankers on the much longer and more challenging voyage from the Yamal and Gydan peninsulas to Asia, rather than the much shorter and less ice infested route to Europe, Russia relies on Atomflot’s fleet of nuclear icebreakers,” an explanation from the Commission reads.Vladimir Putin has since 2018 had the development of the Northern Sea Route as one of his key priorities and federal agencies have been commissioned to reach 80 million tons of goods per year on the route by 2024. The lion’s share of the projected goods traffic is oil, liquified natural gas and coal.