Two major upstream projects proposed this month by Russian oil giants Rosneft and Gazprom Neft in the Arctic onshore reflect Moscow’s growing ambitions to develop the stra- tegic region. To be sure, the Arctic’s challenges haven’t gone anywhere - it is too costly and risky to compete globally, and the offshore remains compromised by Western sanctions. But the Kremlin is promising huge support since additional oil and gas transit would help support Russia’s development of the Northern Sea Route linking Europe and Asia by the 2030s (PIW Mar.29’19). “[Arctic upstream development] is directly linked to Russia’s positioning itself as a global logistics player,” Maxim Akimov, deputy prime minister in charge of transport, communica- tions and digital economy, told a recent Arctic forum in St. Petersburg. To get there, Moscow must ensure that enough cargo is transported via the corridor, with the long-term goal to attract cargoes traveling from Asia to Europe. That’s easier said than done, Moscow admits, as the route must be cost-competitive with long-established routes via the Suez Canal, and delays must be minimal despite the harsh environment.
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