Russian Arctic at SPIEF-2024: projects and achievements
What does the North discuss? Plans, hopes and agreements.
10 june 2024The St. Petersburg Economic Forum in 2024 served as a venue where Polar regions showcased their achievements. During Arctic Day and various sessions at SPIEF-2024, delegates from Russian Arctic regions actively discussed their current and future development plans, successful initiatives and the needs of the rapidly evolving North.
Murmansk Region
Murmansk aims to become the primary container hub for the North Sea Route. Governor Andrey Chibis discussed this during the 'North Sea Route: Expanding Arctic Horizons' session. With a new railway branch at the port, it will be possible to load an additional 45 thousand tons of cargo onto ships by year-end, eventually doubling to 110 thousand tons. Construction of the Lavna port on the western shore of Kola Bay is nearing completion, with a new railroad leading to it. Its capacity is estimated at 18 mn tons, and it is expected to commence operations this year. The region's rapidly evolving transportation sector is a cornerstone of its current success, particularly in leading the number of AZRF residents, as noted by the regional head.
Andrey Chibis also discussed the completion of the gasification project in Murmansk Region. It aims to reduce utility costs for residents and significantly boost the emergence and growth of new industries. Over the next seven years, the region is set to gain
450,000 sq m of new housing, with master plans for three agglomerations—Murmansk, Kirovsk-Apatity and Monchegorsk—progressing
rapidly. These plans encompass construction, economic transformation and governmental commitments to the populace.
Karelia
Artur Parfenchikov, Head of the Republic of Karelia, outlined
the development plans for the Kemsk-Belozersk agglomeration. This area is listed among the Arctic's key settlements, with a master plan for its development currently underway. Regional leaders assert that executing all social and investment projects should boost the gross urban product from RUB 20.8 bn to RUB 42.3 bn and create 3,700 jobs. Mining will become the economy's priority sector, expected to increase nineteenfold. By 2035, manufacturing and tourism are projected to roughly triple.
At SPIEF, Karelia was actively involved in signing agreements. In just the first two days of the forum, the region signed
14 agreements worth a total of RUB 30 bn, leading to the establishment of six granite product factories, production of offset crushed stone and development of the country's sole raspberry quartzite deposit. Additionally, Segezhsky municipality will start producing
domestic drones.
Arkhangelsk Region
Arkhangelsk Region is focusing on shipbuilding and ship repair industries. Alexander Tsybulsky, the regional head, emphasised
that the current economic climate offers substantial opportunities for modernising existing facilities and constructing new ones. He mentioned that within the next 2–3 years, Arkhangelsk Region could capture up to 40% of the Arctic's market for small and medium-tonnage ship repairs, and eventually enter the large-tonnage ship repair niche. A key priority is boosting the civil shipbuilding sector to comprise 30% of all ship production.
The timber industry complex is identified as a second key development area. Its output is expected to increase twentyfold. Investments will significantly expand wooden housing construction, wood, cardboard and pulp production. Projected investments over the next 5–7 years are estimated at around RUB 30 bn. The regional leadership is also prioritising the development of the Arkhangelsk transport hub, aiming to double its cargo turnover and enhance tourism prospects. In 2023 alone, visitor numbers surged by 60% compared to the previous year, according to Alexander Tsybulsky.
Yamal-Nenets Autonomous Area
The Yamal-Nenets Autonomous Area showcased its experience with public-private partnerships in executing major projects. One highlight was the modernisation of Novy Urengoy's airport, as described by region's Governor Dmitry Artyukhov. The new facility can now serve 840 passengers per hour, up from 300, featuring amenities like cafes, shops, a children's playroom, escalators and elevators. Passengers now board buses in a heated bus-gate, crucial given Yamal's harsh climate conditions. 'Last year's passenger traffic exceeded one million people. The city's airport, serving a population of one hundred thousand, handles more passengers than some million-population cities' airports,' highlighted the regional head.
Regional leaders also discussed advanced strategies for public health protection. Every second mother in Yamal undergoes free prenatal fetal testing, significantly reducing late-pregnancy invasive surgeries. This practice has proven especially effective in the tundra, where surgical procedures have decreased by 40%.
Nenets Autonomous Area
At SPIEF-2024, the Nenets Autonomous Area focused on oil and gas discussions. Yury Bezdudny informed
journalists that Ruschem's new gas-chemical complex project would greatly influence regional infrastructure development, particularly through Pechora River dredging and approach channel construction. This initiative will enhance river transport, often essential in remote Arctic areas. The project's total investment is pegged at RUB 210 bn.
Another project signed at SPIEF involves establishing Komi's first oil refinery. Zarubezhneft has proposed not only local fuel production but also a network of gas stations to enhance fuel accessibility in the region.
Krasnoyarsk Territory
A major highlight for Krasnoyarsk Territory at SPIEF-2024 was Norilsk's renovation. Andrey Grachev, Vice President for Federal and Regional Programmes at MMC Norilsk Nickel, reported that alongside old Norilsk, a new city is emerging
through a public-private partnership, with a total project budget of RUB 120 bn, 81.3 bn of which are funded by Nornickel. New residences are under construction and infrastructure upgrades are ongoing.
Environmental concerns were addressed too; Nornickel's Sulfur Programme launched in 2023 is set to reach full capacity by 2024. The company has constructed a facility that processes sulfur dioxide from air into gypsum slurry. Eventually, 90% of sulfur dioxide in the city will be captured and transformed into inert substances. Nornickel plans to invest approximately RUB 40 bn in its Clean Norilsk initiative over the next decade.
Komi Republic
Addressing logistical challenges in the North remains a high priority. At the forum, Komi Republic delegates extensively discussed building the Sosnogorsk-Indiga railway to revolutionise logistics in this northern sector. Vladimir Uyba emphasised that this route would efficiently transport goods to the North Sea Route. Project planning for the Syktyvkar – Ukhta – Pechora – Usinsk – Naryan-Mar highway is actively underway to ensure year-round access to Arctic zone settlements.
Stable transportation routes are expected to revitalively impact the regional economy, which holds significant untapped potential. Vladimir Uyba pointed out that around two thousand mothballed oil wells in the region could attract small extraction companies. Notably, Komi has registered 19 AZRF residents who will invest RUB 1.7 bn into the regional economy and create 605 jobs.
Yakutia
Ports along the North Sea Route are evolving, with Tiksi potentially becoming a focal point for northern development, stated
Aysen Nikolayev, the head of the Sakha Republic. He noted that implementing the master plan for Naiba Port and its surrounding agglomeration would enrich the area with new purposes, boosting industrial and scientific growth while preserving indigenous traditions. Developing a deep-water port will facilitate new housing projects and demolish unsafe buildings among other benefits; it will also enhance cargo turnover for Kyuchus industrial cluster attracting funds and business interest.
He also mentioned the Arctic Centre of Epic Literature and Arts, currently nearing
completion by regional authorities in collaboration with local businesses. This centre will serve as a comprehensive multifunctional venue for artistic groups throughout the republic. 'In terms of size, quality and architectural design, it is only comparable to the four cultural and educational complexes being established in Vladivostok, Kemerovo, Sevastopol and Kaliningrad on the directive of Russian President Vladimir Vladimirovich Putin,' emphasised Vladimir Uyba.
Chukotka
At the SPIEF-2024, the Chukotka Autonomous Area entered
into a historic agreement with the Ministry for the Development of the Russian Far East and Arctic and the State Atomic Energy Corporation Rosatom to establish the Unified Maritime Operator of the Northern Supply. Chukotka will serve as a pilot district for testing the system, slated to be operational by 2025. Vladislav Kuznetsov, Governor of the Chukotka Autonomous Area, stated that even the implementation of a pilot project would stabilise prices and delivery times in the district, where a vast majority of remote settlements rely heavily on cargo shipments from the mainland. Around 80% of the region's supplies are transported via the North Sea Route.
Chukotka signed a total of seven agreements at the forum, including one with Russia's largest gold producer, Polyus, to commence geological exploration. Regional leaders also unveiled master plans for developing Egvekinot, Bilibino and Pevek, key locations along the North Sea Route.
Image attribution: Shutterstock
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