President Putin’s lofty goals of reaching 80 million tons of cargo along the route by 2024 did not materialize, with the total tonnage only coming in at slightly less than half of that figure last year.
“The government’s central task is to ensure such conditions for the life and work of people in the Arctic that all plans for the development of the macro-region come true,” Chekunkov concluded.
Shipping generates revenue
The development of infrastructure along the Northern Sea Route, including ports and nuclear-powered icebreakers ensuring year-round access, will be key to implementing the economic plan.
Russia recently commissioned its eighth nuclear icebreaker, the largest fleet it has ever operated, exceeding previous records set during the height of the Cold War. By 2030 the fleet is set to encompass ten vessels.
Shipping traffic associated with oil and liquefied natural gas projects along the Northern Sea Route also generates substantial revenue for Rosatomflot, operator of the country’s nuclear icebreaker fleet.
High fees
Fees for large oil tankers and LNG carriers can reach between $300,000 – $700,000 for a single escort, depending on the size of the vessel, the distance traveled and the time of year. In 2024 Atomflot provided escorts to 976 vessels.
A standard delivery of supercooled gas from the existing Yamal LNG plant racks up icebreaker fees of around $400,000.
Out of a total of 287 shipments in 2024, at least 120 required icebreaker escorts between the months of December and May, likely generating in excess of $50m for Atomflot.
How exactly Western shipping owners and operators of the LNG carriers provide payment to Atomflot is unknown; the Russian state-owned entity has been under sanctions since May 2023.