The Arctic Debrief

The Arctic Debrief: Russia and China plans to operate Arctic shipping route year-round

In this edition of The Arctic Debrief: Norway to grant US army unimpeded access to military sites; Canada commissions fifth Arctic patrol vessel; Norway to increase its control over Arctic Svalbard islands.

The Arctic Debrief: Russia and China plans to operate Arctic shipping route year-round

In this edition:

  • Russia and China plans to operate Arctic shipping route year-round;
  • NATO researchers begin science mission in Arctic Sea;
  • Russian oil giant Novatek in desperate need of Arctic LNG tankers; and
  • A new section featuring important, but quick news.
Latest Developments

Russia and China plans to operate Arctic shipping route year-round

The 27th St.Petersburg International Economic Forum, held between June 5-8, is Russia's premier business event visited by government and corporate officials from numerous countries, most notably the Middle East and Asia, such as Qatar and China. Rosatom and NewNew signed their deal at the forum and Putin delivered his speech during the convention.

Russian state nuclear agency Rosatom and Chinese shipping company Hainan Yangpu NewNew Shipping signed an agreement to increase cooperation in developing the Northern Sea Route (NSR).

The same day, Russian President Vladimir Putin said that Russia is aiming to increase the volume of shipped goods along the NSR from 36 million tons to 150 million tons in the near future.

Rosatom and NewNew declared plans to maintain the Arctic trade route operational year-round, including the development and construction of container ships capable of traversing ice. A similar deal was signed between Rosatom and Dubai-based DP World, which has also expressed interest in Arctic shipping.

Putin said Russia will allocate additional funds towards developing its northern harbors to accommodate increased traffic and cargo. This includes constructing new roads and railways to assist with trade.

China and Russia are attempting to incentivize more countries to utilize the NSR as a trade path between Asia and Europe. As more global shipping diverts away from the Suez Canal more economic and political power will shift towards Russia and China.

The NSR is becoming more attractive as the Suez Canal has been increasingly volatile due to several factors including Houthi rebel groups attacking shipping vessels. Additionally, the route cuts travel distance between Asia and Europe in half. For example, a trip between Japan and Russia that is typically 23,500 km would be cut down to about 10,500 km.

As global temperatures continue to rise the NSR becomes accessible for longer periods of time. Also, Russia and China have the largest fleets of nuclear icebreakers and are currently manufacturing additional ships.

NATO researchers begin science mission in Arctic Sea

NATO's NRV Alliance is used by the Science and Technology branch to conduct maritime research.

Scientists and engineers from the NATO Science and Technology Organisation’s Centre for Maritime Research and Experimentation (CMRE) took off on a research mission to study the effects of climate change on the Arctic Sea.

The main purpose of the mission is to determine how sonar technology could be affected by the changing environment. This would allow NATO countries to adapt the necessary technology for submarines, underwater drones, and other capabilities.

A number of NATO member states are increasing and re-focusing defence spending on acquiring Arctic capable technology and equipment. For example, Canada has purchased 16 P-8 Poseidon multi-purpose aircraft, specifically for its ability to patrol and surveil the Canadian North.

Russian oil giant Novatek in desperate need of Arctic LNG tankers

The Zvezda Shipbuilding Complex is Russia's largest shipyard located in Bolshoy Kamen, Primorsky Krai region.

As western sanctions continue to cripple Russian liquefied natural gas (LNG) giant Novatek's Arctic LNG 2 project, the company has sent over 200 engineers to the Zvezda shipyard in a desperate attempt to help accelerate production of LNG-capable transport ships.

Novatek has been significantly sanctioned by the west, specifically prohibiting foreign LNG tankers from shipping the company's gas. LNG requires specialized expansive commercial tankers to deliver the gas.

As a result, despite completing construction of its Arctic LNG 2 project in early 2024, the company is unable to make any deliveries. This has forced Novatek to shutdown most of the plant's operations, resulting in massive revenue loss.

In other news:

  • On June 1, Halla Tómasdóttir was elected as Iceland's new president. The country does not have a military, only branch focused on Iceland's defence is the Coast Guard. However, the country hosts an American Navy air station and is critical to NATO operations due to its geographic location.
  • The Canadian government has met with representatives of French, South Korean and Spanish defence contractors as the country searches for new submarines to replace the aging Victoria-class fleet. Despite previous claims, the Trudeau government will not be considering nuclear powered vessels.
  • Finnish Prime Minister Petteri Orpo said that his government will focus on strengthening security measures in regions along the Russo-Finnish border. The government will begin putting together initiatives that will help strengthen the security of the border regions, with hopes of beginning those projects by the end of 2024.
  • Canadian vessel designer and manufacturer Seaspan Shipyards is finalizing heavy icebreaker designs which will be used by the Canadian Coast Guard. The ships are being designed to withstand the Arctic environment year-round.
  • Canadian company Gateway Arctic Group has invested $150 million to upgrade a railway connecting the northern port of Churchill, Manitoba, to the rest of the country. The port is the largest northern port

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