Abstract:

China is one of the key players in international trade and one of the world’s largest energy consumers.  Arctic waterways and natural resources can have an enormous impact on China’s energy strategy and economic development in general. For China, the sea passage through the Arctic is a way to slash shipping time and, therefore, to cut the costs of transporting goods to Europe and North America. The passage is free of charge and ships of all flags are granted access by the Northern Sea Route Administration. This paper aims to evaluate how attractive is the Northern Sea Route (NSR) for Chinese investors, in particular regarding Russian icebreaker-building projects. Icebreakers are necessary to provide escort services for vessels in the winter/spring period in the eastern part of the Arctic. The study also seeks to shed light on the challenges that the NSR poses for Russian and foreign partners, for instance, the specific aspects of operating ice-class vessels for Arctic and non-Arctic seas in different navigation periods. The study evaluates the overall results of the NSR's operation with a special emphasis on the transit of cargo to and from China in 2012-2018. An overview of the major international ports serving the cargo traffic to and from China via the NSR in 2011-2018 is given. For more robust results the study uses statistical data from Russian and Chinese sources.In conclusion, the ways of attracting more foreign investment for the development of the route as a transport corridor connecting Asia, Europe and North America are assessed and possible areas of further research such as studying the opportunities for international trade and economic cooperation between Russia and China for the development of the Northern Sea Route are delineated.