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International Cooperation for the Development of the Economic Potential of the Arctic Zone

International Cooperation for the Development of the Economic Potential of the Arctic Zone

Moderator — Yevgeny Lukyanov, Deputy Secretary of the Security Council of Russia

A Conference on the Economic Development of the Arctic was held as part of SPIEF 2016. The plenary session speakers presented on the topic of ‘International Cooperation for the Development of the Economic Potential of the Arctic Zone’. They also specified the key areas of future activity in the Arctic, highlighted the key points of the current activities and acknowledged the achievements of the Russian companies that operate in the Polar Circle.

The plenary session moderator Yevgeny Lukyanov, Deputy Secretary of the Security Council of Russia, explained that those who cooperate in the Arctic should be guided by the economic cooperation mechanism. He defined the three key directions, which the activity in this area should follow: increasing transparency of legal regimes, preserving and developing the human capital and maintaining the ecological balance.

The Russian Minister of Natural Resources and Environment Sergey Donskoy generally agreed with Mr. Lukyanov. Nevertheless, he stressed that the top development priorities in the Arctic are the use of the Russian mineral resource base and the Northern Sea Route. The other two aspects of the Arctic Programme, namely – the human capital and ecology, are closely related to them.

Vladimir Barbin, Ambassador at Large of the Ministry of Foreign Affairs of the Russian Federation, informed that the Arctic operations account for over 15% of the Russian GDP and 20% of export. He mentioned that more than 145 projects are planned to be implemented in the Arctic with a considerable share of private investments.

Tero Vauraste, President and CEO of Arctia Company and Vice Chair of the Arctic Economic Council, reported that new investment systems development had been already started. The initiative comprises 10–12 items that condition sustainability of the principles and criteria for investments formation.

Sergey Frank, President and CEO of Sovcomflot, Presidium Member of the Maritime Board under the Government of the Russian Federation, reported that new technology and transportation principles had been implemented in the Company. The Company is embarking on year-round navigation from the Ob River entry in August 2016, which used to be impossible before. Mr. Frank noted the strong Helsinki–St. Petersburg cluster, also mentioned previously by Paavo Lipponen, the Prime Minister of Finland (1995–2003). Besides, Sovcomflot does not use any state subsidies, Mr. Frank emphasized, and its three latest projects had been financed by Russian banks.

Activity on the Northern Sea Route is ramping up each year and will triple by 2020. Yamal LNG Project is going to ensure incremental production. Mr. Frank also pointed out that there is a need for strong administrative regulation in the Arctic. Attention should be also paid to staff training, that is to say, to the human capital.

As part of a plenary session, an agreement was concluded between the Russian Association of Polar Explorers and the Roscongress Foundation. The agreement was signed by Artur Chilingarov, Special Representative to the President of the Russian Federation on International Cooperation in the Arctic and Antarctic, President of the Russian Association of Polar Explorers, and Alexander Stuglev, Chief Executive Officer of the Roscongress Foundation.

Mr. Chilingarov announced that thanks to this Agreement business events devoted to the Arctic problems will be held as part of the St. Petersburg International Economic Forum on an annual basis.

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