RF Government launches subsidizing of regular cargo transportation on the Northern Sea Route

RF Government launches the mechanism of subsidizing regular cargo transportation on the Northern Sea Route, according to the Government’s statement.

Decree No 397 was signed on 18 March 2022.

Reduced rates will be offered to Russian shippers of cargo using the Northern Sea Route. They will be subsidized by the federal budget. Those subsidies will apply to short-sea cargo traffic between the ports of Saint-Petersburg, Murmansk and the Far East region.

RUB 560 million will be allocated for that purpose annually.

Prime Minister Mikhail Mishustin reminded that cargo traffic on the Northern Sea Route totaled almost 35 million in 2021 and about the target of 80 million tonnes to be achieved by 2024.

“Amid the sanctions against Russia it is essential not to stop active development of the Northern Sea Route. Those are safe and reliable lanes within territorial waters and exclusive economic zone of our country,” said the Prime Minister at the meeting with his deputies held on 21 March 2022.

The Ministry for the Development of the Russian Far East and Arctic has been given instructions on prompt organization of work on subsidizing the shipping.

The Northern Sea Route is single transport system in the Russian Arctic sector. It stretches along the northern coasts of Russia across the seas of the Arctic Ocean (Kara, Laptev, East Siberian, Chukchi seas). The route links the European ports of Russia with the mouths of navigable rivers in Siberia and the Far East.