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Comprehensive development of the polar region: what challenges are on the agenda today?

Outcomes of the Arctic 2023 international conference

10 march 2023

Cooperation between business and government agencies in the Arctic is one of the cornerstones of development in the polar regions. Responsible partnerships enable the implementation of large-scale projects, the modernisation of infrastructure and the improvement of people's quality of life. The 8th International Conference 'Arctic-2023,' hosted by the Russian Chamber of Commerce and Industry, was dedicated to discussing topical issues of sustainable socio-economic development and the development of land beyond the Arctic Circle, increasing investment and stimulating scientific and technological progress.

One of the most discussed issues at the forum was the future of Arctic logistics, particularly the so-called northern supply. This is the name of a set of measures aimed at delivering goods to remote regions in the polar region. It has existed since Soviet times, but it was not until 2023 that the term 'northern supply' itself appeared in the state's legal practice. Today, a fundamentally new system for managing the transportation of vital cargoes in the Arctic is being formed: a single operator will be established under the forthcoming federal law 'On Northern Supply' to manage delivery at all levels, from order formation to vessel maintenance. In March 2023, discussions on the draft law continue in the State Duma—the forum participants noted in their recommendations to federal and regional authorities the need for a unified and universal character of the new northern supply system. 

Creating new modes of transport for the Arctic regions was also an important point of discussion. Existing technical solutions have limited effectiveness in low temperatures, permafrost and tundra, while the need for mass transport, especially for remote regions, remains. The event offered a number of solutions, including an Arctic bus developed by specialists from the Ural Automobile Plant in cooperation with the Bauman Moscow State Technical University, the Ural Federal University and the Russian Ministry of Education and Science. It is built from cold-resistant materials and can be fitted with not only a petrol engine but also an electric motor and a gas engine. The use of different energy sources can significantly reduce the burden on the environment, as well as adjust the fleet to the current capabilities of each individual region.

Also discussed was the development of a satellite constellation that, in the future, could work not only as an 'ice navigator' for vessels on the North Sea Route but also to assist pilots of small aircraft. For the latter, a number of fundamentally new mechanisms have been proposed to ensure the growth of the industry. These include the introduction of a self-regulatory mechanism as well as increased budgetary funding. The forum participants advocated the creation of a state programme to renew the regional small aircraft fleet, renovate airfields and runways, as well as to enshrine the concept of 'small aircraft' in legislation. Ideas were voiced for the development of the rail network in the polar region.

In addition to logistics, the forum discussed the mode of operation of preferences for AZRF residents and the possibility of fine-tuning them to reflect current economic changes and geopolitical developments. As a result of the sessions, business and government representatives came up with the idea of extending the system of benefits while increasing the responsibility of economic operators. Indigenous peoples were not forgotten when discussing the Arctic economy—one of the innovative proposals was to grant 'agriculturist' status to indigenous communities, which would greatly facilitate traditional farming and interaction with other businesses, such as meat processing plants. 

In general, the collective resolution of the participants in the Arctic 2023 Conference reflects the state of affairs in the polar region—the development of the economy of the AZRF is progressing by leaps and bounds, revealing more and more needs of the Arctic regions. Only a comprehensive approach and responsible partnership between government and business will make it possible to realise the ambitious goals of Arctic development, which requires a broad-based dialogue.

Read more Investment and development in a harsh climate The Krasnoyarsk Economic Forum discussed the needs of AZRF residents

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