Russia’s Arctic Fleet Development Falls Short Due to Sanctions

The Russian government had plans to expand the usage of the Northern Sea Route (Russia’s primary Arctic shipping route, which runs through the seas of the Arctic Ocean, connecting Russian ports along the European and Asian coasts). However, realizing these plans is proving elusive. Of the 70 ice-class vessels needed by the end of the decade, Russia will manage to construct less than a quarter.

This was acknowledged by Yuri Trutnev, Deputy Prime Minister of Russia.

“With a shortage of at least 70 ice-class cargo vessels, Russia’s shipyards are capable of producing only 16 by 2030,” Trutnev stated.

Although Trutnev noted a growing interest from various countries in the Northern Sea Route and their desire for unrestricted transport along the route, the high cost of loans, the necessity to draw significant resources from Rosatom for the construction of new icebreakers, and the impact of international sanctions on access to Western technology are making icebreaker escort tariffs uncompetitive.

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