The Northern Sea Route: A state priority in Russia’s strategy of delivering Arctic hydrocarbons to global markets
On November 24, the Oxford Institute for Energy Studies published a new research paper by CCEIS' expert Vitaly Yermakov and Anastasia Yermakova -The Northern Sea Route: A state priority in Russia's strategy of delivering Arctic hydrocarbons to global markets.
The main points of the paper are as follows:
- The Northern Sea Route (NSR) - an Arctic seas shortcut between Europe and Asia – has emerged as a new strategic opportunity for unlocking and monetizing Russia’s vast oil and gas reserves in the Arctic. From a geo-political standpoint, the NSR provides a new avenue for developing international relations with new and existing customers for Russian hydrocarbons, while also allowing Russia to compete with key rivals in a rapidly globalizing market.
- Russia’s latest strategic documents on the Arctic developments assign the Northern Sea Route a series of important goals, including an expansion of the transportation turnover and ensuring year-round navigation via this short-cut route connecting Europe and Asia.
- Exports of Russian LNG, oil, and condensate from the Arctic projects by Gazpromneft, Novatek and Rosneft have emerged as key drivers for increasing the NSR traffic.
- Russia has been actively investing in expanding domestic capabilities in shipbuilding of Arctic-class tankers and a new generation of nuclear icebreakers that involve economic multipliers and are seen as important engines of economic growth and job creation in Russia
The full text is available via the link