Русский
The Russian President, Vladimir Putin gave the Plenary Speech at the 6th International Arctic Forum, which was held in Murmansk on 26/27 March. The event was subtitled “The Arctic: Territory of Dialogue.” Putin’s speech concentrated on very specific Russian Arctic development issues, including investment, infrastructure needs, incentives and the opportunities. Clearly, Moscow is putting huge attention towards the region. He also mentioned the Greenland issue with the United States.
In this article we examine what was said and make analytical points. President Putin’s comments are prefixed VP, ours are prefixed RPA. The comments are subtitled according to subject to make article navigation simpler.
VP: “Russia is the largest Arctic power. We have consistently advocated for equitable cooperation in the region, encompassing scientific research, biodiversity protection, climate issues, emergencies response, and, of course, the economic and industrial development of the Arctic. We are prepared to collaborate not only with Arctic states but with all who, like us, share responsibility for ensuring a stable and sustainable future for the planet and are capable of adopting balanced decisions for decades to come.”
RPA: The Arctic states include Russia as well as Denmark, Finland, Iceland, Norway, Sweden, Canada and the United States. Several other states including China claim ‘near-Arctic’ status.
The Arctic Council
VP: “Regrettably, international cooperation in northern latitudes is currently facing significant challenges. In the past few years, numerous Western nations have opted for confrontation, cutting off economic connections with Russia and ceasing scientific, educational, and cultural exchanges. Discussions on safeguarding Arctic ecosystems have come to a standstill. Politicians, party leaders, and even the so-called greens in some Western countries address their citizens and electorates about the significance of the climate agenda and environmental conservation, yet in practice, their policies are entirely contradictory.”
RPA: Putin is specifically referring here to the decision to suspend Russia from participating in the Arctic Council which discussions Arctic related issues, since 2022. However, the decision is understood to be under review.
VP: “As a reminder, the Arctic Council was set up to cooperate in addressing environmental issues, to prevent emergencies above the Arctic Circle and to jointly respond to them if they emerge. However, this tool has degraded by now. Meanwhile, Russia did not refuse to communicate in this format – it was the choice of our Western partners, Western nations. As they say in such situations: Don’t do it if you don’t want it. We will work with those who want it.
Meanwhile, the role and importance of the Arctic for Russia and for the entire world are obviously growing. Regrettably, the geopolitical competition and fighting for positions in this region are also escalating.”
Greenland
“About the plans of the United States to annex Greenland: everyone is aware. But it is a profound mistake to treat it as some preposterous talk by the new US administration. It is nothing of the sort.
In fact, the United States had such plans as far back as 1860s. As early as that, the US administration was considering possible annexation of Greenland and Iceland. However, the idea did not enjoy support in the Congress at that time.
Let me remind you, that in 1868, the purchase of Alaska from Russia was ridiculed in the American press – it was called “madness,” “an ice box” and “President Andrew Johnson’s polar bear garden”. Therefore, the Greenland proposal failed. But that acquisition, I mean the purchase of Alaska, is probably viewed very differently in the United States today, just as President Andrew Johnson’s actions are.
What is happening today is not really surprising, particularly since this issue has been presented several times. In 1910, for example, a trilateral land swap deal was negotiated between the United States, Germany and Denmark. As a result, Greenland would have gone to the United States, but this deal also fell through.
During World War II, the United States stationed military bases in Greenland to protect it from Nazi takeover. After the war, the United States suggested Denmark should sell the island. This was quite recently in terms of world history.
In short, the United States has serious plans regarding Greenland. These plans have long historical roots, as I have just mentioned, and it is obvious that the United States will continue to consistently advance its geo-strategic, military-political and economic interests in the Arctic.
As to Greenland, this is an issue that concerns two specific nations and has nothing to do with us. But at the same time, of course, we are concerned about the fact that NATO countries are increasingly designating the Far North as a springboard for possible conflicts and are practicing the use of troops in these conditions, including by their “new recruits” – Finland and Sweden, with whom, incidentally, until recently we had no problems at all. They are creating problems with their own hands for some reason. Why? It is impossible to understand. But nevertheless, we will proceed from current realities and will respond to all this.
I must emphasise: Russia has never threatened anyone in the Arctic. However, we are closely monitoring developments in the region, formulating an appropriate response strategy, enhancing the combat capabilities of the Armed Forces, and modernising military infrastructure facilities.”
Russian Arctic Security, Arctic Demographics and Development Strategy
“We will not tolerate any encroachments on our country’s sovereignty and will steadfastly safeguard our national interests. By upholding peace and stability in the Arctic region, we will ensure its long-term socio-economic development, improve the quality of life for its residents, and preserve its unique natural environment.
The stronger our positions and the more substantial our achievements, the greater our opportunities will be to launch global international projects in the Arctic involving partner nations, friendly states, and perhaps even Western countries – provided, however, that they demonstrate a genuine interest in cooperative efforts. I am confident that the time for such projects will undoubtedly come.”
RPA: This partially alludes to Russia potentially looking for development partners in the Russian Arctic, and is a nod to the speech made by Kirill Dmitriev, the CEO of the Russian Direct Investment Fund also last week during which he outlined the potential for developing an Arctic Development Fund that could involve Russian and other international investors.
VP: “The Arctic Zone accounts for over a quarter of the Russian Federation’s territory. Nearly two and a half million our citizens live and work here, making a significant contribution to the nation’s progress. Current estimates indicate that the Arctic generates 7% of Russia’s gross domestic product and approximately 11% of our exports. At the same time, we see enormous potential for the region’s further comprehensive development. A critical priority is strengthening the Arctic’s transport and logistical framework.”
RPA: It should be noted that the Russian Arctic extends from western, European Russia and borders with the European Union to the Far East and borders with China and East Asia. Developments that happen here can have significant impacts on future European-Asia trade flows.
VP: “Let me note that this year marks the 500th anniversary of the first historical records mentioning the daring concept proposed by Russian seafarers and Pomor trappers: a prospective trade route through the northern seas to the East, reaching China via the so-called Northeast Passage – the precursor to the Northern Sea Route.
Over the past decade, cargo traffic along the Northern Sea Route – spanning from the Kara Gates Strait to the Bering Strait – has substantially increased. In 2014, a mere four million tonnes of cargo were transported via this corridor. By last year, that figure had risen to nearly 38 million tonnes – five times the Soviet-era record. We anticipate, with confidence, that volumes will reach 70–100 million tonnes by 2030.
Yet our plans – in terms of cargo volumes, geographical reach, and expansion of the Arctic fleet – are far more ambitious. The Northern Sea Route is poised to become a pivotal segment of the Transarctic Transport Corridor, stretching from St Petersburg through Murmansk to Vladivostok. This corridor is designed to connect global industrial, agricultural, and energy hubs with consumer markets via a shorter, safer, and more economically viable route. This is widely acknowledged – experts across the East and West recognise its significance.”
RPA: The reference to Russia’s St.Petersburg Port on the Baltic Sea, and its connectivity to the Murmansk Port in the Arctic has very specific implications for all major European, Baltic Sea ports, including Estonia, Finland, Latvia, Lithuania, Poland, Germany, Denmark and Sweden. This is because routing shipping through Murmansk opens up markets to East Asia for these Baltic nations. Russia has been substantially improving the rail capacity from St.Petersburg to Murmansk, with this expected to double by 2028. The Baltic/Scandinavian countries concerned have very real issues to consider as regards their future trade with East Asia, a market of 1.6 billion, as without access to Russian facilities their exports become uncompetitive.
VP: “Cargo shipments along the Trans-Arctic Transport Corridor are set to increase on the back of growing minerals production and the advanced processing of these resources right here in the Arctic, and due to rising international transits. I would like to stress the importance of linking this Trans-Arctic corridor with our domestic railway network everywhere from the northwest to Russia’s Far East, reaching all the way to the Baikal-Amur Mainline and the Trans-Siberian Railway.
Even today the concept of building the Trans-Siberian Railway, which stretches across the entire country to the Pacific, exemplifies a massive strategic, forward-looking vision for Russia. It addressed not only the country’s immediate needs and circumstances but also took into account our national interests within a horizon of several centuries. We must be guided by this approach as we develop the Trans-Arctic corridor.”
RPA: The Trans-Siberian Railway extends for 9,289 km and the longest railway line in the world. It has been fully operational since 1916. Today, it has been electrified, double-tracked, and has twenty Russian cities with populations in excess of 1 million people along the route, which also intersects with numerous other railways running into Central Asia and deep into the Russian Far East and Siberia. It accounts for about 7.5% of all Russian trade with China.
The Baikal-Amur Mainline (BAM) is a mirror route that runs further north than the Trans-Siberian Railway, traversing Eastern Siberia and the Russian Far East, and stretching for 4,324 km. It extends from Irkutsk to Khabarovsk with several interconnecting routes with the Trans-Siberian route.
Both these lines are also being further developed, with routes extended and capacity added.
Arctic Objectives
VP: “What are Russia’s priority objectives in the Arctic?
First, Russia already operates the world’s biggest icebreaker fleet. We must consolidate our leadership in this sector by building new-generation icebreakers, including nuclear icebreakers. Today, only Russia has them – no other country has a nuclear icebreaker fleet.
Four of these icebreakers belong to the latest Project 22220, and are already operating in the Arctic. Three more nuclear icebreakers from the same series – Chukotka, Leningrad and Stalingrad – are currently under construction. There is also the mighty 120 Mw icebreaker Rossiya. It will allow for more efficient year-round icebreaker support to large-tonnage ships in high latitudes.
Icebreaker support costs and shipping costs for the Trans-Arctic Corridor in general must be competitive and acceptable to the market. This is a major prerequisite for guaranteeing that this route is relevant for businesses and creates added value for them.
Second, Russia is a sovereign nation, and as such it needs a merchant fleet of its own in the Arctic, including cargo, search and rescue ships for operating shipments in northern seas, as well as within our internal waters in the Arctic. We must recognise that for now we cannot rely exclusively on our domestic shipbuilding capabilities.
In this connection, we must work on all fronts by building and ordering ships that have already been built, working with manufacturers around the world and developing the domestic shipbuilding industry based on the strategic objectives we have.
We must support our shipbuilding corporations and shipyards in their efforts to upgrade and expand their capabilities and build international manufacturing chains. I also ask the Government to review opportunities for building new, cutting-edge, advanced, high-technology shipyards in Russia.
Third, Russian shipping companies that transport petroleum products and liquefied natural gas are already successfully operating in the northern seas. Now we need to create enabling conditions for effective domestic operators who will be shipping containers, coal, bulk and other goods across the Arctic. We are also open to create joint ventures in this segment. International logistics operators could make profitable investments in such companies. Moreover, in addition to capital and technology, they could contribute part of their merchant fleet to such projects.
Fourth, plans are in place to increase the capacity and turnover of our northern ports through the introduction of innovative and environmentally friendly solutions, including unmanned and automated cargo handling equipment. This will happen soon enough. For example, the capacity of the Murmansk transport hub should be amplified at least three times over in the next few years due to the construction of new terminals and the expansion of railway links.
Our partners from Belarus, China, the United Arab Emirates and other countries are showing keen interest in this project and in the development of the Arctic transport infrastructure in general. It is a very interesting undertaking from a business point of view.”
RPA: A main driver of the new investment development for Belarus and Murmansk Port came via the European Union, who sanctioned the country and banned Belarus from using its Baltic Sea Ports in 2022. That cut Belarus, a major global supplier of fertilizers, off from all maritime access. As a result, Russia and Belarus have been significantly investing in rail connectivity from Belarus into Russia, with capacity expanded through to Murmansk. The Belarus-specific Port Terminal is expected to become fully operational at Murmansk’s new Lavna Port in 2028. Both China and the UAE have significant global port management expertise, and both are showing great interest in investing in the Murmansk and Arkhangelsk port facilities in the Russian Arctic, along with other supply chain investments along the route to Asia.
VP: “We plan to create large multimodal hubs to operate as key logistics centres of the Trans-Arctic Transport Corridor. Not only will these hubs serve as ports where convoys of ships are formed or Russian and foreign cargos are handled; they will include industrial facilities for the production of manufactured goods.”
RPA: In terms of Putin’s statement concerning manufacturing in the Arctic, it should be noted that the entire Russian Arctic is designated as a Free Trade Zone and provides multiple investment incentives. These range from free land to substantial corporate and individual income tax breaks, VAT exemption and many other regional specifics, designed to attract investors. It should also be noted that this is going hand-in-hand with Russian investment into social conditions, including heavily state subsidized mortgages, and the development of infrastructure such as schools, hospitals and cultural sites.
Linking The Arctic Coast To Russian Railways
VP: “To improve the logistical stability of the Trans-Arctic Corridor, I have asked the Government to draft plans to expand the capacity of existing seaports in the Arctic and decide where on the Arctic coast new ports should be built, and how soon the adjacent infrastructure needs to be developed. I am primarily referring to the links between the sea harbours and the national railway network.
In this regard, fifth, we will need to develop the Arctic Operating Domain – similar to the Eastern Operating Domain, which includes the Baikal-Amur Mainline and the Trans-Siberian Railway. The project must include the modernisation of the Northern Railway in the Komi Republic and the Yamal-Nenets Autonomous Area.
We are aware of the situation at Russian Railways today; we know what challenges the company is facing. However, we need to think about what I just said, about the development of the Northern Railway – and we need to start today.”
RPA: Russian Railways is operating at very close to full capacity and needs substantial state investment to keep pace. This is underway and also involves some funding from the Russian private sector.
VP: “What opportunities will this open? The regions of Siberia, the Urals, and Russia’s North-West will receive direct access to the North, to the Arctic ports, which will lessen the load on the Trans-Siberian Railway and promote effective use of sea transport. In addition, there will be new points of access to the Arctic from the North-South corridor, which connects us with Central Asia and the Gulf states.
And of course, the potential of the Arctic’s inland waterways, our great rivers – the Lena, Yenisei, and Ob – must be unlocked at a new technological level to develop the Trans-Arctic route. This will help, among other things, to enhance the Northern Supply Haul system so as to ensure a reliable supply of foodstuffs and other goods for Arctic residents.”
RPA: An understated aspect of Russia’s state development plan has been the amount of money and infrastructure being invested in Russia’s inland rivers and ports. Russia has about 50,000km of navigable inland waterways. A further 50,000km could be bought into service if upgraded and developed. A summary can be found here.
VP: “I want to stress specially that the resources of the state, regions, and businesses, including both state-owned and private banks, must be combined to pursue these and other major initiatives. The capabilities of the domestic stock market must also be utilised to attract capital to the Arctic infrastructure.
Infrastructure projects are indeed complex, costly and have a long pay-back period. But it is these projects that provide Russia’s real transport sovereignty at a new level. And I am confident that if our foreign partners join these projects, it will guarantee them long-term investments with good returns. Therefore, we cannot put off these projects for later, we must launch and start pursuing them now, as soon as possible.
Apparently, it is important to resort to flexible approaches here, to attract both Russian and foreign investors, as I have just mentioned. In this regard, I propose that we consider creating a special project office under the auspices of our leading development institution, VEB, which will provide support for transport, logistics, and infrastructure projects in the Arctic, as well as urban development projects in the region. It will also become an entity where potential investors can address directly and receive support they need. I have asked the Government to prepare respective proposals.
In addition, I instruct the Government to join hands with Rosatom, VEB and the State Council’s dedicated commission to endorse the financial, economic and organisational model for the development of the Trans-Arctic Transport Corridor by August 1 of this year.”
RPA: Putin again alluding to the potential of Russia reaching out for international investment in its infrastructure projects.
VP: “Currently, deposits of oil and gas, metals and other minerals are being developed in the Russian Arctic. We will continue massive geological exploration there, primarily within the framework of the Geology: Revival of the Legend federal project.”
RPA: ‘Geology: Revival of the Legend’ refers to a Russian federal project aimed at expanding the country’s mineral resource base and increasing the exploration maturity of promising areas, with a focus on the Far East and Siberia. The project was initiated by Russia’s Natural Resources Ministry in 2021 and aims to increase the country’s mineral resource base and enhance the exploration of promising areas. It is focused on the Far East and Siberian regions, with specific attention to Yakutia’s Aldan cluster, which includes projects for gold, iron ore, and apatite mining, as well as LNG, ammonia, and ammonium nitrate production.
VP: “Concurrently, the task is to launch enterprises of deep processing of raw materials in the Arctic regions using the powerful resource base there; to create high value-added production facilities in petrochemistry, natural gas conversion, rare earth metals, and other industries related to machine building, production of sophisticated machinery and industrial equipment, while preserving the unique nature of the Arctic.
For an example, I would like to mention the Centre for the Construction of Large-Capacity Offshore Structures in Belokamenka (near Murmansk), where technologies for natural gas liquefaction are being localised and the most up-to-date domestic solutions are being utilised.
I’d like to draw the attention of colleagues in the Government and regional authorities that it is essential not only to propose but also to effectively refine tools for supporting investment and business activity in the Arctic. This includes tax incentives, administrative privileges, infrastructure preparation of land plots, and other measures.
In particular I remind colleagues of the need to strictly fulfil plans for the gas infrastructure coverage of the Murmansk Region. This must be completed by 2030. I emphasise: this objective remains in force.”
RPA: Putin putting pressure on local government in Murmansk to deliver.
Arctic Tourism
VP: “Of course, we should also develop promising areas such as tourism. The North and the Arctic are unique concentrations of natural, historical, and spiritual landmarks. The region boasts an extraordinarily rich cultural mosaic. Over a million tourists visit the Arctic annually to explore its landscapes, witness the northern lights, engage in Arctic fishing, ride dog sleds, or journey to polar archipelagos.
The number of tourists is growing. Consequently, new initiatives in this sphere are emerging, such as an Arctic tourism centre with a ski resort component in the Yamal-Nenets Autonomous Area or an aqua-thermal spa and year-round hotel complex in Karelia. I request that both the federal Government and regional authorities support such initiatives, which reveal new facets of the Arctic and help heighten interest in the region.
I also propose considering the inclusion of White Sea tourism infrastructure development in the Five Seas and Lake Baikal federal project.
To make the Arctic accessible for mass tourism, transport connectivity is crucial – from the repair and construction of roads to the development of air travel.”
Arctic Airlines
“I reiterate that we have extended subsidised airfare rates for flights to Arctic cities. Last year, approximately 800,000 passengers utilised this opportunity. This year, subsidised tickets are available for over 70 air routes.
At the same time, Far Northern airports, particularly smaller ones, require modernisation. In the coming years, under the relevant national project, we will upgrade 16 airfields in the Arctic Zone, including those in Salekhard, Arkhangelsk, Naryan-Mar, and Vorkuta.
Overall, our objective is to maintain an extensive airport network in the Arctic – from large and medium-sized airfields to small landing strips. This is also vital to ensure year-round accessibility of residential areas and the operation of air ambulance services.”
Arctic Urbanization
“The key and overarching goal of Russia’s efforts is to improve the quality of life for people living in the Arctic, to ensure modern conditions for study and work, leisure, and the upbringing of children in this harsh region that still lures people with amazing force. I have talked to these people many times. Those who were born in the north, as well as those who have come here, have all said that the north is like a magnet since people develop a sense of belonging to these latitudes, and to this land.
As you know, we have already drafted master plans for the Arctic urban centres, which include not only major cities like Arkhangelsk or Murmansk, but also cover towns like Kirovsk, Apatity and Monchegorsk in the Murmansk Region, Kem and Belomorsk in Karelia, Vorkuta in the Komi Republic, Bilibino and Pevek in Chukotka, Naryan-Mar in the Nenets Autonomous Area, Salekhard, Labytnangi, Novy Urengoi and Noyabrsk in the Yamal-Nenets Autonomous Area, as well as Tiksi and Naiba in Yakutia, and Norilsk, Igarka and Dikson in the Krasnoyarsk Territory.
On a separate note, I would like to thank the VEB.RF and DOM.RF corporations for their involvement and contribution to drafting these master plans.”
RPA: These are Russian sovereign domestic investment platforms.
VP: “A master plan is a comprehensive strategic and territorial planning document that sets forth long-term socioeconomic and spatial development visions for cities, towns and villages. They provide for the introduction of the latest urban planning solutions while also ensuring that these settlements retain their unique cityscapes based on suggestions and proposals from local residents and civil society organisations, including associations of Northern ethnic minorities.
I would like to draw the Government’s attention to the need to be more responsive in its efforts to approve a timeline for carrying out these Arctic master plans and ensuring that they receive the funding they need. As I have already mentioned, this includes, among other things, introducing the Arctic agenda as a separate item into our national projects, while also launching mechanisms for engaging businesses and strategic investors working in the Arctic or those who are willing to work here in carrying these out.
In addition, I ask the Government to think about setting up dedicated competence centres for providing urban planning and development training to municipal and regional officials and teaching them best practices in urban planning.
Moving on, we launched a national contest for creating people-friendly urban spaces. Winners will receive budget funding for their projects. I suggest allocating an additional sum from the federal budget as part of this contest. My colleagues from the Government and the Finance Ministry and I have just discussed this matter. I will not give you any final figures, but we need to earmark this disbursement and provide this kind of assistance so that colleagues working on the objectives I have just mentioned have more opportunities for improving embankments, pedestrian areas and playgrounds, building parks, gardens, and so on.”
Arctic Security and Military Bases
“On a separate note, I would like to ask the Government to extend the programme of renovating military settlements, the closed administrative territorial units in the Arctic where our military personnel live with their families. This renovation programme should continue at least until 2030, with the annual federal budget support of at least ₽10 billion (US$118 million). I would like to emphasise that this is connected with the strengthening of our military presence in the region, where the number of our military personnel will be increased.
One of the tasks of our master plans and the renovation programme is to determine where new enterprises and jobs should be created, including those linked to the Trans-Arctic Transport Corridor, and where schools and kindergartens, outpatient clinics and hospitals, roads and communications, as well as housing are to be built. The defence and construction ministries are to work together with the regional authorities to coordinate plans for each facility, so as to determine the amount of resources needed for implementing this task and the allocation deadlines.”
Arctic Construction
“It is a specific Arctic feature that structures are built in conditions of perpetually frozen ground or permafrost, which explains the special requirements for building designs, structure and reliability. At the same time, we should take the dynamics of climate change into account to forecast potential risks. I propose establishing a special research centre to monitor perpetually frozen ground with contribution from the leading federal and regional institutes. Their research projects will provide the scientific basis for the technology of adjusting Arctic infrastructure to the melting of permafrost.
I know that a register of best Arctic construction practices has been compiled. This regional experience should be expanded. I hope that it will incorporate the idea of multipurpose Arctic centres, where social and administrative offices, sports centres and service facilities are located under one roof, in the same building.
Of course, we must always take the opinions and requests of those who live in the North into account. For example, people openly complain about the shortage of the so-called service economy in Arctic cities and towns, meaning recreation facilities, including those for families and children, as well as cultural and educational venues. We must develop this segment and encourage the relevant business initiatives.”
Investment Incentives
“We have a special support programme for small and medium-sized enterprises in the Extreme North. Its efficiency must be upgraded. I would like to ask the Government to adjust the parameters of this programme, in particular, to expand the list of sectors with access to this programme and to create additional subsidised loan opportunities for these companies.”
Arctic Healthcare
“I would like to say a few words about healthcare. The accessibility of medical services in the North is objectively limited compared to central Russia; the situation is even worse in remote communities. I ask the Government to prepare a special mechanism for financing medical care in these areas.
In addition, healthcare in the northern regions must be enhanced with the introduction of digital technologies. The residents of these regions must be served by mobile paramedic stations equipped with artificial intelligence tools, which can conduct physical check-ups both remotely and at the scene, diagnose certain diseases and provide recommendations for treatment.”
Environment
“The environment remains a sensitive issue for the Arctic and its residents. Let me remind you that at our first forum, which was initiated by the Russian Geographical Society, we announced the launch of a “general clean-up” of the Arctic, to remove scrap metal, remnants of fuel and lubricants and other waste.
The project, launched by the Russian Geographical Society and supported by the Ministry of Natural Resources and Environment, brought together thousands of volunteers and public organisations. We will certainly continue this effort. We will also ensure comprehensive environmental protection of Russia’s Arctic zone, in particular by clearing Arctic waters of sunken ships, which is a pressing problem that needs to be addressed. Predictably, everything requires funding, so the relevant government agencies will need to work on all these issues, including to earmark the necessary funds year by year.
We will remove technological waste and reclaim land, focusing on bringing Arctic cities and towns up to standard. We will carry out the so-called revitalisation of abandoned areas, buildings and lands, to return them to circulation to serve the interests of local residents.
In fact, we are repaying our debt to the Arctic. We cannot afford to accumulate more debt to its unique nature. With all the plans in place for the region’s economic development, it is essential to maintain a balance between the use of its natural resources and nature conservation.”
Other Arctic Developments and Opportunities
“A new polar station will be built in the Yamalo-Nenets Autonomous Area, in the Polar Urals, to test new environmentally friendly technologies. The new scientific research and educational station, Snowflake, will be established by the end of 2028. An international team of researchers will use it to test green technologies being developed for the Arctic, with applications ranging from essential services, telecommunications, and medicine to new materials.
The Arctic is a territory of great opportunities for specialists in various fields, for entrepreneurs, for young people, and for families who have lived here for generations or have only recently moved and are planning to settle, buy or build a home here.
We have already extended the Arctic mortgage programme until 2030. It offers an annual interest rate of two percent and lowers the requirements for borrowers. This includes cancelling the requirement for teachers and medical workers to have an employment history in the North before applying for a housing loan. Participants in the special military operation can also benefit from these Arctic mortgages along with people working for defence manufacturers.
Substandard and hazardous housing has become an extremely urgent issue for people in the North. I instruct the Government to draft a targeted action plan by September 1, 2025. It must address this issue and cover at least a ten-year period.
Moving on, the Accessible Rentals programme has been launched in Russia’s Far East, as you know. It offers affordable rentals to young people coming to the Far Eastern regions, graduating there or taking a job there. This programme consists of using regional and federal funds to subsidise rental payments.
I suggest that we expand this programme to include the key Arctic communities. This way, we will make rentals more accessible for people starting their careers in this region, as well as those who want to live and work there. This programme must cover the Arctic in 2026.
We have agreed to extend the Muravyov-Amursky 2030 training programme in public administration to cover the Arctic regions. We have already done this. I am certain that this kind of training will help many talented administrators jump-start their careers and would benefit the Arctic and the country in general.
There is one more thing I would like to mention. The North has always attracted brave people and true leaders. Outstanding researcher, polar explorer and scientist Artur Chilingarov was one of them. I suggest that in his memory we establish a special grant programme for supporting youth initiatives as part of environmental, educational and research projects in the Arctic.
Efforts to explore and develop the Russian North and to overcome the challenges related to its harsh climate while enabling the state to reach new promising horizons – all these objectives have inspired many generations of our ancestors, including medieval sailors and Novgorod merchants, those who pioneered Arctic exploration in the 16th and 17th centuries, industrial leaders of the 18th and 19th centuries, researchers, polar explorers, engineers, Soviet workers, and companies in present-day Russia which launched major Arctic projects in the early 2000s.
Today, the North has become central to our development efforts. This is a sovereign and historical choice for us. This means that the objectives we set for and address in the Arctic, and the projects we undertake here must match this historical scale and have a horizon spanning decades, if not centuries.
We will do everything to consolidate Russia’s leadership in the Arctic despite all the challenges and travails we face today. We will provide for the region’s comprehensive development and create a solid foundation for future generations.”
Summary
Putin’s speech was extensive, and covered a huge amount of development ground. Takeaways are very specific, however can be broadly broken down into three main areas:
Big Ticket Infrastructure Development
Putin specifically mentioned infrastructure development, especially in rail and port developments. He attached these to essentially energy and related exploration and investment, not actually mentioning they were the same thing yet alluding to this. Clearly, this anticipates some collaborations between mining and exploration companies and the infrastructure sector, including port, road, rail and logistics operators. Putin also alluded to foreign investment. In these cases, it becomes apparent that future JV operations in the Russian Arctic will require the expertise of project specific consortiums, each with their own level of experience to contribute to what remain difficult to access regions with minimal infrastructure and difficult conditions. We can expect to see in coming years some unusual and unique corporate international collaborations take place in the Russian Arctic.
Social and Urban Development
Putin laid great importance of social and urban development in order to attract a sustainable and prosperous society in the Arctic. The Murmansk University is a world leader in Arctic technologies and studies and will prove crucial to developing new equipment, products and academic understanding of the region, including social and urban planning, with influence extending into the United States, and Canada.
The European Arctic
Denmark, Finland, Iceland, Norway, and Sweden, together with regional neighbours such as the Baltic States, run the risk of being completely excluded from Arctic relevance unless they improve relations with Russia. The danger for them is that they become isolated from Far East Asia, with the quickest routes being across either the massive Trans-Siberian and related infrastructure when upgrades and capacity are improved, as well as the Northern Sea Route. These routes will be inaccessible to them if the current problematic relations with Russia remain constant.
An alternative for Europe (and the United States) is to develop an secondary Arctic route, interestingly enough via Greenland. However, this remains a longer, and therefore more costly route and in any event neither Europe or the United States possesses the required nuclear icebreaker technologies. Unless a recalibration of the European Union’s strategy towards the Arctic is considered, the expense of supply chains to and from Asia will render the European part of the Arctic, in addition to the main markets of Western Europe, non-competitive – unless, ironically enough, they route via Belarus.
