Tatiana Mitrova speaks at North Pacific Arctic Conference
11/08/2017
The Director of Energy Center gave a speech at the sixth North Pacific Arctic Conference on “Building Capacity for a Sustainable Arctic in a Changing Global Order”. This interdisciplinary conference, as in previous years, was organized by the East-West Center and Korea Maritime Institute, bringing together experts from Canada, China, Korea, Russia, the United States and Japan. The aim of the conference was to present innovative ideas on the sustainable development of the Arctic, exchange opinions and draw public attention to the issue. The conference was held in the Hawaii Imin International Conference Center on 9 to 11 August.
Tatiana Mitrova gave several presentations at the conference on her research report entitled "Responsible economic development in the Arctic: a view from Russia". The expert noted that the Arctic is a key region for the future of the Russian economy and that the Arctic territories are important for Russia not just for the domestic economy, but also from a national security and geopolitical standpoint. The area is of great importance for the development of oil and gas resources. The harsh climate is not the only obstacle to developing the Arctic. Sanctions have hampered the development of hydrocarbon deposits, as they have significantly limited Russian oil and gas companies’ access to the latest technology and equipment. Attempts to replace this technology with equipment from China have not yet been successful, as Chinese companies are behaving very cautiously during this period of sanctions and are very risk-averse. Some projects that were under development in 2012-2013, such as oil production on the Kara Sea shelf and plans to develop the Shtokman gas condensate field, have been rendered impossible for the time being without foreign equipment and technology.
Meanwhile, Russia’s current approach to the development of the Arctic region is through the Ministry of Economic Development’s strategy focusing on "core development zones of the Arctic," which concentrates on several key territories in the Arctic (eight core zones in total). The strategy deems the best way to develop the Arctic, both from a mineral mining perspective and from other economic standpoints, is to concentrate resources in several priority areas. In order for these Arctic projects to succeed it is also important to attract private investments. The State Program for the Development of the Arctic estimates that its share in the total amount of financing for the development of the region will be 80%. Positive examples of such public-private partnerships already exist: the involvement of Norilsk Nickel in developing the infrastructure of the city of Norilsk and the participation of NOVATEK in the construction of the port of Sabetta.
"Russian policy on the development of the Arctic has recently come up against unpredicted challenges. It is not yet clear how to deal with them, especially in a situation where financial resources are limited and access to technology is constricted. Under these conditions, it is especially important that the expert community offers new creative ideas aimed at the development of the Russian Arctic, and in a format adapted to the perception of politicians", Mitrova remarked.
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