Oxford Energy Podcast – The role of the Northern Sea Route for Russia’s Arctic hydrocarbon developments and Russia’s LNG exports
The Northern Sea Route (NSR) – an Arctic seas shortcut between Europe and Asia – has emerged as a new strategic opportunity for unlocking and monetizing Russia’s vast oil and gas reserves in the Arctic. In this podcast David Ledesma discusses with Vitaly Yermakov how the NSR is an important element of Russia’s Arctic strategy, that now incorporates active development of the hydrocarbon riches in the Russian Arctic, development of the Arctic ports and other infrastructure. The discussion also notes how expanding the use of the NSR will require Russia to expand its domestic capabilities in shipbuilding of Arctic-class tankers and the development of a new generation of nuclear icebreakers that involve economic multipliers and are seen as important engines of economic growth and job creation in Russia. Russia has formulated ambitious goals for increasing NSR transportation turnover by 2035, relying primarily on a handful of oil and LNG projects by Gazpromneft, Novatek, and Rosneft. From a geo-political standpoint, the NSR provides a new avenue for developing international relations with new and existing customers for Russian hydrocarbons, while also allowing Russia to compete with key rivals in a rapidly globalizing market.