Russian state nuclear agency Rosatom has signed a memorandum of understanding with a Chinese shipping company to establish a year-round container line between the two countries via the Northern Sea Route (NSR) of the Arctic.
Russian President Vladimir Putin has discussed the prospects for the Arctic corridor as Russia shifts its trade eastward in response to Western sanctions over the Ukraine conflict.
Rosatom said the agreement with Chinese company Hainan Yangpu Newnew Shipping Co. Ltd will establish a joint venture for the design and construction of container ships and the shared operation of the shipping line.
The agreement was signed at Russia’s annual economic forum in St. Petersburg. This event once attracted major Western banks and executives, but now they are mostly from countries that still maintain friendly relations with Russia, including China.
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Vladimir Panov, Rosatom’s special representative for Arctic development, stated that 12 crossings are planned for 2024 and that the companies hope to transport up to 50 million tons of cargo per year.
“Our main task is to build up to five Arctic-class vessels, which will enable the company to operate on the Northern Sea Route all year round,” Panov said.
Rosatom last year launched a joint venture with Dubai’s DP World to develop container shipping through the Arctic, a route made viable by the melting of Arctic sea ice due to climate change.
The agreement with the Chinese company Hainan Yangpu Newnew Shipping Co. Ltd will establish a joint venture for the design and construction of container ships
Panov said Rosatom had transported more than 2 million tons of transit cargo in 2023, a “record” amount. “This year, when we are working with carriers, we can talk about a new record: we plan to transport up to 3 million tons,” he said.
DP World Chairman and CEO Sultan Ahmed bin Sulayem said the NSR has been a game-changer for shipping. Supply chain issues and geopolitical instability necessitated alternatives to traditional sea routes. “But you can’t sell something you don’t have,” Bin Sulayem said. “The important thing is that this has to start.”
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