Draft Law on Northern Supply Will Introduce Unified Standards and Support Measures for the Arctic
February 13, 2025

The Ministry for the Development of the Russian Far East (Minvostokrazvitiya) in collaboration with the Far Eastern Institute of National Economy Planning (Vostokgospan) has developed a draft law that will regulate the Northern Supply, introducing unified rules and financial and infrastructure support measures for this crucial supply line. This was announced by Vostokgospan Director Mikhail Kuznetsov during a strategic session on "ESG Principles: Opportunities for Arctic Development in the New Geopolitical Realities" at the Northern Forum in Yakutsk.

According to Mikhail Kuznetsov, the Arctic is becoming a key transport route for the transportation of mineral resources, with the cargo flow increasing year by year. In addition, one of the vital functions of the Northern Sea Route (NSR) is the Northern Supply — a supply line for essential goods to remote territories. Currently, around 1 million tons of such cargo is transported along the NSR, with Yakutia being a leader, delivering 1.7 million tons annually.

Furthermore, Kuznetsov emphasized that Vostokgospan experts analyzed the impact of the Northern Supply on the socio-economic conditions of these regions. He noted that, with an inflation rate of 12% in Russia, in the remote northern territories, the inflation rate reaches 17%. This means that the cost of living is 5-7% higher than the national average, primarily due to the high transportation costs.

Photo: "Hydrographic Enterprise"