Russia is ready to cooperate with other countries on the Northern Sea Route (NSR) within the framework of existing international maritime law, Russian President Vladimir Putin said on Wednesday. China and South Korea have already shown notable interest in the alternative supply route. However, the key problems remain the underdeveloped port infrastructure along the NSR and the need to find a reputable insurance company to cover the risks.
‘Russia has always, and I mean always, been ready to cooperate in using the advantages of the Northern Sea Route, naturally within the framework of existing maritime law,’ Vladimir Putin stressed.
Last week, Alexei Gruzdev, deputy minister of industry and trade, said Russia was proposing that BRICS countries participate in the development of the NSR as investors and operators, as well as develop transport and logistics infrastructure to facilitate the movement of industrial goods.
‘The promotion of industrial products is impossible without effective transport infrastructure. Therefore, we proposed considering the creation of transport and logistics hubs in countries where we are present, to ensure the unimpeded movement of industrial goods,’ he said.
Moscow presents the NSR as an alternative transport route to Europe. ‘The NSR is a real and absolutely safe alternative to existing routes. The shorter distance reduces delivery times and cuts fuel, freight and other transport costs,’ Gruzdev said. He added that the route was becoming particularly relevant amid instability on traditional trade routes.
The list of countries showing interest in the NSR is indeed growing. This week, Chinese shipping company Sea Legend Shipping is launching a regular container service from China to Europe via Russia’s Northern Sea Route, the Chinese state-run Global Times reported.
According to media reports, during the Arctic navigation season the carrier plans to operate eight weekly sailings through October 3. Similar voyages had previously been one-off operations, but the company is now launching a regular service. The route is primarily aimed at high-value cargo requiring rapid delivery
The main motivation is a substantial reduction in transit times. Containers operated by Sea Legend Shipping on its ‘Arctic Express China-Europe’ service will cover the distance in 20–22 days. The route through the Suez Canal takes about 40 days, while sailing around the Cape of Good Hope takes about 50 days.
Chinese suppliers are also seeking to make supply chains more resilient and diversify them amid growing risks associated with international shipping. According to Hu Qimu, a professor at the Institute of Maritime Silk Road Studies at Huaqiao University, traditional routes still have advantages in terms of capacity and infrastructure, but geopolitical tensions have increased costs, forcing carriers to look for additional routes
During the 2025 season, Chinese vessels made 23 voyages along the NSR. The volume of containerised cargo transported from China to western ports via the NSR was estimated at 400,000 tonnes.
South Korea is also planning to launch cargo routes along the NSR. According to reports, the country will send its first vessel along the route next week. ‘The 2,800-TEU Panstar Group vessel is due to leave Busan on August 22 on South Korea’s first Arctic container voyage to Europe,’ Lloyd’s List reported.
South Korean company Panstar Line previously acquired the 2,700-TEU container ship HMM Mombasa specifically for Arctic voyages. The PanStar Acro will reach Felixstowe in Britain in 18 days, calling at the ports of Rotterdam, Hamburg and Gdansk.
‘The route is described as a new logistics corridor connecting Busan with Europe and cutting transit times by about 20-30 days compared with routes through the Suez Canal. The company plans to carry at least 1,300 TEU, roughly half the vessel’s nominal capacity,’ specialist media reported.
South Korean companies plan to export car parts and synthetic resins, as well as used cars, food, cosmetics, steel products and liquid cargoes.
South Korea views the voyage as a strategic step towards securing alternative export routes amid instability in the Middle East and the risk of the Suez Canal being closed, said Irina Strelnikova, director of the Centre for Interdisciplinary Arctic Studies at the Higher School of Economics. In May, South Korea adopted a special law regulating the country’s participation in the development of the Northern Sea Route. According to Strelnikova, the adoption of the law marks South Korea’s shift from individual corporate initiatives to a systematic state policy aimed at turning the country into a ‘leading maritime power in the era of the NSR’.
In July, it was reported that the Russian government had accepted Rosatom’s proposal to sign a memorandum between Russia and India on developing cooperation in maritime cargo transportation along the Northern Sea Route.
Shipping companies are showing growing interest in transporting cargo through the Arctic and along the NSR because the route can save time and money while avoiding conflict zones, Western media have noted. According to Veson Nautical, 167 ice-class vessels were built last year, the highest figure in more than a decade. Another 164 are due to be built this year.
In the first five months of this year, 14.5 mln tonnes of cargo were transported along the NSR, up 13% from a year earlier, said Alexei Chekunkov, head of the Ministry for the Development of the Russian Far East and the Arctic. A total of 37 mln tonnes was transported along the NSR in 2025. Transit traffic reached a record 3.2 mln tonnes. In 2025 alone, 1,196 permits were issued for vessels to pass along the NSR. Cargo traffic has increased almost tenfold over the past decade, the official said.
Maria Nikitina, a transport and logistics expert at the Stolypin Institute for the Economics of Growth, says international interest in the NSR is being driven by two important factors.
‘The first and most obvious is the search for an alternative to conventional West-East logistics because of problems in the Middle East, the Suez Canal and the Strait of Hormuz. The second is that countries with at least some advantages for developing the Arctic, whether in technology or cargo, have begun to notice Russia’s weaknesses in developing this route: a lack of financing, insufficient domestic cargo volumes and problems with access to technology. Taking advantage of the moment, those interested in the Arctic are ostensibly coming to help us, but in reality they are developing their own capabilities in the Arctic zone,’ she believes. Nikitina also notes that China does not recognise Russian sovereignty over the NSR, considering it an area of freedom of navigation.
‘However, anyone entering this project now needs Russian support. This applies to icebreakers, navigation and ports. But the time is now ideal for raising their potential as full-fledged participants in Arctic logistics. China is taking advantage of this first as a major source of cargo, and South Korea as the world’s largest shipbuilder,’ the expert says
Russia is also actively developing the sector, says Vasily Kutin, director of analytics at Ingo Bank
‘The nuclear icebreaker fleet is being expanded, with new powerful vessels under construction, including the Leader project; ports are being modernised; logistics hubs are being created; and integration with rail and road corridors is under way. There is also a long-term goal of turning the NSR into a sustainable international artery, while the “Greater Northern Sea Route” concept expands the route’s geography to include ports in the Baltic and Far East,’ he says.
Alexander Vorotnikov, coordinator of the expert council at the Arctic Development Project Office, believes Russia needs to continue expanding its icebreaker fleet. ‘If we are aiming for year-round operation of the Northern Sea Route, the existing number of icebreakers is insufficient. In my view, icebreaking capacity needs to be at least doubled. The construction of the Leader-class nuclear icebreaker is also important, as it should significantly expand the possibilities for year-round navigation,’ he says. Russia needs not only LNG carriers, but also tankers, container ships, bulk carriers and other specialised vessels capable of operating in severe ice conditions, he adds. A specialised technical fleet is also needed, including vessels for dredging operations.
Experts continue to identify underdeveloped port infrastructure as one of the NSR’s main problems.
‘Many existing facilities along the NSR route are effectively port stations rather than fully fledged modern ports: there is a shortage of berthing capacity, equipment and facilities for handling different types of cargo. Emergency and rescue infrastructure also needs further development, because the safety of Arctic shipping is a fundamental condition for increasing cargo traffic,’ Vorotnikov points out.
He believes public-private partnership mechanisms should be used to further develop the NSR.
‘These could include concession agreements for port infrastructure, life-cycle contracts, and projects to build road and rail links to ports,’ the expert suggests.
Cargo insurance also remains an issue
‘A shipowner cannot properly operate a vessel or send it on a voyage without insurance coverage. Therefore, Russia needs to develop its own marine insurance system, including national insurance mechanisms. This is particularly relevant in the context of developing national shipping under the Russian flag. At the same time, it is necessary to build cooperation with insurers from friendly countries. China, India, Southeast Asian countries and other states interested in using the NSR have their own major insurance companies. Cooperation with them would help reduce risks and create clearer conditions for international carriers,’ Vorotnikov believes.
It is worth noting that last year the Russian authorities included plans in the draft Strategy for the Development of the Northern Sea Route and the Trans-Arctic Transport Corridor through 2050 to create a national insurance company for Russian vessels exporting raw materials. For now, Britain remains the leading player in the market for mutual shipowners’ insurance and hull insurance
The emergence of a state-backed insurer with sufficient capitalisation and government support would enable Russia to provide insurance coverage for shipments along NSR routes. However, such a Russian entity would then need to secure recognition from friendly countries
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