Russia, India Boost Arctic Cooperation with Joint Shipbuilding Projects

Last week, Russia and India held important talks to explore new areas of cooperation, with a particular focus on joint Arctic shipbuilding projects. 

Russia’s state nuclear agency, Rosatom, announced key developments after the first meeting of a working group focused on collaboration on the Arctic’s Northern Sea Route (NSR). 

The meeting took place in New Delhi and brought together senior officials from both countries, including Vladimir Panov, Rosatom’s special representative for Arctic development, and Rajesh Kumar Sinha, India’s Deputy Minister of Ports, Shipping and Waterways. 

The discussions highlighted several potential areas of cooperation, such as boosting Russian-Indian cargo transit through the NSR and creating training programs for Indian sailors to navigate the icy Arctic waters. 

One of the most promising outcomes was the discussion of a draft intergovernmental memorandum of understanding. This document could set the stage for more formalized cooperation between the two nations in the shipping sector, potentially paving the way for more joint initiatives in the future. 

Rosatom has played a crucial role in the development of the Northern Sea Route since being appointed its infrastructure operator by the Russian government in 2018. The company oversees a federal project aimed at turning the NSR into a year-round transportation corridor that connects Europe, Russia, and the Asia-Pacific region. This route is becoming increasingly strategic, as it offers a much shorter maritime link between Eurasia’s western regions and the Asia-Pacific, significantly reducing shipping times. 

The growing importance of the NSR is closely tied to Russia’s broader strategy to find alternative trade routes in response to Western sanctions imposed due to the ongoing Ukraine conflict. With climate change making the Arctic waters more navigable during certain months, the NSR is emerging as a more viable option for freight transport, particularly for routes between Northern Europe and Asia. 

The Northern Sea Route (NSR), especially the Northeast Passage (NEP), is a shipping lane defined by Russian legislation running between the Atlantic and Pacific Oceans, specifically along Russia's Arctic coast from Murmansk on the Barents Sea, past Siberia, to the Bering Strait and the Russian Far East. 

While the Suez Canal route between Europe and Asia covers 21,000 kilometres, the Northern Sea Route (NSR) spans 13,000 kilometres. The NSR is approximately 30-40 percent shorter than routes that use the Suez Canal, which save fuel and reduces environmental impact.

In 2022, Russia approved a $29 billion plan to develop the NSR until 2035, aiming to solidify the route’s role as a major artery of the Russian Arctic. 

However, the route is currently ice-free for only about two months each year, making it crucial to build Arctic-class vessels to ensure year-round operation. To address this challenge, Rosatom officials stressed the need to construct up to five such vessels in the coming years.