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Russia must ramp up its presence in the Arctic, Prime Minister Mishustin says

Work in the Arctic continues throughout the year, the head of government said

MURMANSK, October 21. /TASS/. Russia must ramp up its presence in the Arctic in order to ensure its economic interests and national security, Prime Minister Mikhail Mishustin said Wednesday.

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"We must ramp up our presence in the Arctic: by doing this, we solve the tasks of ensuring national security of our country and its economic interests," the prime minister said during a meeting on the development of the Northern Sea Route.

Work in the Arctic continues throughout the year. "We increase the cargo volume, despite the global trade restrictions: over 9 months of this year, the total shipment volume reached 24.5 million tonnes," the prime minister said.

He also recalled that the goal is to bring the shipment volume to 80 million tonnes by 2024, which, he hopes, will be achieved.

The prime minister noted the measures taken in order to develop the Northern Sea Route infrastructure. "Transportation of liquefied natural gas by the Northern Sea Route accounts for about 65%; LNG producers enjoy a wide array of tax cuts and preferences," he said, pointing to zero tax on fossil fuel mining and the regions' right to provide a profit tax benefit.

"In order to further stimulate Russian cargo exports, a decision was made to reduce the value-added tax for sea transportation and corresponding icebreaker escort to zero," Mishustin said.

"The icebreaker fleet is Russia’s serious competitive advantage and a long-term investment in the future," the prime minister said.

According to Mishustin, "the Arktika [icebreaker, commissioned Wednesday] will be joined by four more icebreakers that are based on cutting-edge innovative technologies."

These ships are being constructed in St. Petersburg, the head of government said. A contract has been signed for the construction of a Lider-class icebreaker that will make it possible to use the Northern Sea Route throughout the year.

"The infrastructure that we create for the Russian cargo today serves the basis for future growth of international transit shipments," the prime minister said.

He noted that the state invests in development of the infrastructure; port terminals and railroad network are being built, while "the entire volume of state investment exceeds 110 billion rubles."

"Reliable communications must be established throughout the Northern Sea Route," Mishustin said. According to the prime minister, "over 550 socially important facilities are currently connected to the Internet in the Arctic, and this number must be doubled in the next three years."

He added that an underwater optic fiber line is being provided in the Far East, which will connect Chukotka to the country’s single communications network.

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