Rosatom proposes federal project to develop Big Northern Sea Route

MOSCOW. Dec 22 (Interfax) – Rosatom is proposing a federal project to develop the Big Northern Sea Route (BNSR), the Russian state nuclear corporation’s special representative for Arctic development and deputy chairman of the State Commission for the Arctic, Vladimir Panov said in an interview with Interfax.

“For more efficient management and interagency coordination, it is proposed to combine all measures directly affecting the BNSR into one federal project. The government is now considering these proposals and additional measures with the goal of increasing cargo traffic and ensuring the safety of shipping,” Panov said.

“Together with the Eastern State Planning Center (Vostokgosplan), the Far East Development Ministry and the Economic Development Ministry, we have developed a macroeconomic model for budget investment in the development of the BNSR,” he said.

The overall macroeconomic effect from the implementation of all new projects related to the Northern Sea Route (NSR) could total 33 trillion rubles in the period to 2035. Tax revenues for budgets at all levels of government to 2035 will total an estimated 14.8 trillion rubles as a result, Panov said.

He said the boundaries of the NSR are defined by the Merchant Shipping Code as being from the Novaya Zemlya archipelago in the west to Cape Dezhnev in Chukotka. These waters are covered in ice for more than half the year and shipping here is subject to special requirements under the international convention on the law of the sea.

“Cargo traffic from Arctic projects, cabotage and international transit shipments always go beyond the legal boundaries of the NSR. The Big Northern Sea Route does not have the boundaries of the NSR, does not affect the legal status of the NSR, does not affect the targets for cargo traffic in 2024. Introducing the concept of the Big Northern Sea Route, as a transport corridor from Murmansk Region to Primorye, is necessary to define a unified logistics and infrastructure space,” Panov said.

Work on the BNSR is a continuation of work on the development of the NSR, which has not stopped, he said.

“Federal budget spending on building BNSR infrastructure could total 1.8 trillion rubles, including 570 billion rubles for already approved measures in various federal projects and state programs. Private investments will total more than 21.7 trillion rubles to 2035. Thus, by investing 1 ruble of state funds in the development of the NSR, we’re attracting more than 12 rubles from extra-budgetary sources,” Panov said.

This announcement was originally published on the Interfax