According to Russian state-owned media house Interfax’s report on Wednesday, India and Russia are looking to establish a Northern Sea shipping route through the Arctic, including setting up processing facilities.
Overview
The report said that the Russian Minister for Development of the Far East and the Arctic, Alexei Chekunkov, is in India to discuss “reliable and safe” means of transportation through the Northern Sea between Indian and Russian ports. Quoting the minister, the news report highlighted that the “cost of delivering a container from Vladivostok to India is a third lower” as compared to that of doing so from Moscow.
The Northern Sea Route runs alongside Russia’s northern coast. It is the shortest route from East Asia to Europe. Russia has been investing heavily in developing this route in the past.
Currently, it is not operational as it is largely covered by ice. However, given that the Arctic is warming at an alarming rate, Russia plans to use the route through the year starting 2023.
#India and #Russia discuss the operationalizing of the Chennai-Vladivostok shipping corridor and movement of container traffic along the North Sea Route.
— Dhairya Maheshwari (@dhairyam14) March 29, 2023
Indian ports, shipping and waterways minister @sarbanandsonwal met Russian Minister for Development pic.twitter.com/QemKpQIVcD…
Developing the route will be a major win as it will provide a shorter alternative to the Suez Canal. However, it has yet to be explored due to the risk caused by the cold weather conditions. Moreover, transport through the route will also require icebreaker escorts, adding to the cost of an already expensive plan.
India’s Increasing Reliance on Russian Oil
India has become the second-largest purchaser of Russian oil in the past year. On Tuesday, Russia’s Deputy PM Alexander Novak also said that Russia needs to focus on enhancing energy exports with “friendly” countries, adding that energy exports to India had risen 22-fold times in the past year.
This is critical for Moscow, given that energy exports accounted for 42% of Russia’s budget in 2022.
Tensions in the Arctic
These developments are likely to add to existing tensions in the Arctic. Just last week, Norway announced it would increase patrolling to protect its undersea pipelines over concerns about a Russian threat in the region. In recent months, Norwegian authorities have reported drones over critical infrastructure such as gas facilities and airports.
As Russia extends its influence, China is also creeping up to seize control over key resources in the region. In its official Arctic police policy in 2018, China called itself a “Near-Artic State,” indicating its intention to expand its economic and foreign policy interests in the region.