Outcomes of the 'Arctic: Territory of Dialogue

Home , Leonid Mikhelson, Maxim Akimov, Nikolay Kharitonov

OUTCOMES OF THE ‘ARCTIC: TERRITORY OF DIALOGUE’ INTERNATIONAL ARCTIC FORUM 2019 CONTENTS

Investing in the Arctic: 8 a new approach

Infrastructure – the foundation 14 for Arctic development

One Arctic for the 22 entire world

The Arctic – 27 territory of life THE INTERNATIONAL ARCTIC FORUM 2019 IN FIGURES

The Forum was attended by >3,600 representatives of the political, scientific, and business communities COUNTRIES REPRESENTED and leading media outlets from Russia and around the world

The Forum was covered by

845media representatives The Forum saw from the signing 16 of countries: Russia, Canada, China, Estonia, Finland, 45agreements France, Germany, Italy, Japan, Norway, Largest delegations: Slovakia, Spain, Sweden, the United worth Kingdom, Vietnam, and the United States RUB billion* • Norway • Sweden • Iceland 69,8 • China • USA • Canada 52countries • Finland • Denmark • Japan

4 INTERNATIONAL ARCTIC FORUM 2019 IN FIGURES INTERNATIONAL ARCTIC FORUM 2019 IN FIGURES 5 The ‘Arctic: Territory of Dialogue’ 5th International Arctic Forum was held on 9–10 April 2019 in St. Petersburg under the theme ‘The Arctic. An Ocean of Opportunity’. The Forum agenda was devoted to discussions on the comprehensive socioeconomic development of Arctic territories and the development of mechanisms for the discovery and effective exploitation of the region's resource potential.

“I am pleased to note that this Forum, which has now become a regular event, enjoys broad public support. Its noble goals unite expert and research communities, as well as prominent politicians and businesspeople from different countries – those who, in their official capacity or at the bidding of their heart, are involved in the important work of promoting the harmonious development of the Arctic and the preservation of its unique nature and the distinctive cultural traditions of the local peoples,”

said President of the Russian Federation Vladimir Putin in his welcome address to Forum participants.

6 Arctic: Territory of Dialogue Arctic: Territory of Dialogue 7 INVESTING IN THE ARCTIC: A NEW APPROACH

The Arctic is full of potential for invest- sumption is growing by about 1.6% annu- complex and the Bovanenkovsk and ment. ally, which is the highest rate of energy Kharasaveysk gas fields. consumption in the world. By 2035, the “According to preliminary estimates, share of natural gas in the global energy Chairman of the Management Board we have about 13 billion tonnes mix will reach 26%, compared to 23% and Member of the Board of Directors of oil and 95 trillion cubic metres today. Meanwhile, LNG's share of the gas of NOVATEK Leonid Mikhelson told of natural gas. They represent trade is expected to reach 51% by 2025, International Arctic Forum 2019 par- colossal planetary reserves,” said and 70% by 2040. As such, Russia is Vladimir Putin, President of the Russian poised to take up 30–40% of the global Federation. LNG market. “The Arctic is <...> a risk zone, but those risks are manageable; Experts estimate that the Arctic is home The Arctic is already Russia's primary it is a zone of efficient, to 13% of the world's undiscovered oil source of gas. predictable economic affairs.” reserves and approximately 30% of the world's undiscovered natural gas “Today, Russia produces 725 billion Maxim Akimov, Deputy Prime reserves. A significant portion thereof is cubic metres, of which 83% is pro- Minister of the Russian Federation located within Russian territory. duced in the Arctic zone. That gas is The Arctic accounts The Arctic is competitive, despite the fact that it ticipants that his company is currently for about home to The significance of these reserves is is produced in the Arctic, because of implementing a new project, Arctic growing with global demand for hydro- the low cost of production and very LNG-2, that boasts a higher capacity carbons, especially for natural gas. good quality of natural resources,” than the Yamal LNG project. A number % % said Alexander Novak. of major contracts related to this project As Minister of Energy of the Russian Fed- have already been signed, including 6 13 % eration Alexander Novak noted during Globally significant projects include the one making French energy corporation of Russia's GDP of the world's undiscovered the Forum, the rate of global gas con- Yamal liquefied natural gas production Total a shareholder. By the end of the and oil reserves and 83 % % of Russian gas comes 11 30 from the Arctic zone of investments of undiscovered natural in fixed assets gas reserves

International Arctic Forum, agreements The Arctic accounts for approx- The development of Arctic fields acts as were also signed with the Chinese imately 6% of Russia's GDP, and a driver for the development of Russia's companies CNODC and CNOOC. 11% of investments in fixed assets. economy as a whole. Negotiations are in progress with partners from the Persian Gulf, Japan, “The Arctic is <...> a risk zone, but “According to our estimates, LNG and South Korea. those risks are manageable; it is a projects will provide work for about zone of efficient, predictable eco- 800 Russian enterprises and create Russia's Arctic zone also contains sig- nomic affairs,” said Maxim Akimov, about 80,000 jobs all over Russia,” nificant reserves of nickel, copper, and Deputy Prime Minister of the Russian said Leonid Mikhelson. rare-earth metals. Federation.

8 Investing in the Arctic: a new approach Investing in the Arctic: a new approach 9 OBJECTIVE: SOLUTIONS Comprehensive support of projects in the Arctic region

There are a number of macroeconomic • Developing domestic software for LNG The Russian government is paying par- the Far East Development Fund for problems that are barriers to harness- plants (currently, 80% of software is ticular attention to the development of selective financing of Arctic projects.” ing the economic potential of the Arctic. foreign) based on government procure- the Arctic region. The foremost of these is the significant ment. “We will expand the work of all Far cost of operations, which is related to New government bodies have been created Eastern development institutions to increased spending on transporting fuel, • Localizing the production of seismic to manage the territory: the Arctic is part of the Arctic region. This means that materials, and equipment; the cost of equipment in Russia. the purview of the Ministry for the Develop- we will help with land procurement, labour; accelerated technological depre- ment of the Russian Far East. “This year individually supervise each pro- ciation; the need to compensate for eco- • Improving financing mechanisms for we are going to draft and adopt a ject, provide support when it comes logical risks; and underdeveloped infra- fundamental and applied research in new strategy for the development of to protection from inspections, and structure. the Arctic, taking into account sustain- the Russian Arctic up to 2035,” said provide financing at subsidized able development principles. Vladimir Putin, President of the Russian rates,” said Yury Trutnev, Deputy Prime Forum participants also noted the lack of Federation. Minister of the Russian Federation and technologies for Arctic geological explo- Presidential Plenipotentiary Envoy to the ration and dependence on foreign suppli- President Putin has also said that all avail- Far Eastern Federal District. ers of goods and services. This problem Experts from the SKOLKOVO able investment support tools must be lev- is becoming increasingly significant due Moscow School of Management eraged in order to increase investment in Speaking at the Forum, Minister for the to sanctions. predict that LNG projects could see the region and launch new projects, includ- Development of the Russian Far East and ing tools that have been used successfully the Arctic Alexander Kozlov highlighted “Nobody yet possesses the technology in Russia's Far Eastern region development that his agency offers two types of tax needed to develop deposits located > RUB programmes. Taking the specific fea- benefits for new projects in the Arctic in water bodies which are largely tures of the Arctic into account, “investors zone. under ice. <…> State support for the should and will receive more advanced programme to build drilling capac- and more stable preferences,” he said. • The first option confers tax benefits for ity is not tangible, due to the fact that 10 years for projects worth up to RUB said 300 The Russian Federation has already devel- 100 billion and for 15 years for pro- it is completely non-existent,” Mikhail Grigoryev, Director and co-owner billion oped government programmes in six jects worth upwards of RUB 100 billion. of GECON Geological Consulting Centre. in additional investments before strategic development areas related to The corporate income tax, extractive 2023. This would allow medium- the Arctic: aviation, shipbuilding, special resource production tax, property tax, “Exploration of hydrocarbons and tonnage LNG production capacities technologies, navigation, oil and gas tech- and land tax would be 0%, with 7.6% equipment for shelf development: to increase by nologies, and special materials. Those insurance contributions. we must attain independence here involved in the implementation of innova- by 2021, given the pressure on our tive projects as part of these government • The second option involves benefits energy companies from the sanc- programmes should receive support in the over the entire implementation period tions,” said Oleg Ryazantsev, Deputy million form of tax benefits. of the investment project: a 7% income Minister of Industry and Trade of the 5 tonnes tax rate (preserving regional taxes); a Russian Federation. The Government of the Russian Fed- favourable 0.3 ratio for the extractive eration has already been instructed to resource production tax; 7.6% insur- According to representatives of major work with the expert and business com- ance contributions; and a 0% rate for companies involved in developing the LNG projects will create munities on drafting a special federal property and land taxes. Arctic region, efforts must soon be law regarding a dedicated system of focused on attracting investment to preferences for investors in the Arctic The second option is more favourable to address the following issues: zone. President Vladimir Putin proposed businesses and regions, Trutnev noted. > 80,000 “expand[ing] the work of Far East- • Creating and implementing government jobs across Russia ern development institutions to the Four groups are planned to receive these support for developing domestic drilling Arctic as well, [and] if necessary, benefits: shelf hydrocarbon producers, capacities. [expanding] the capitalization of continental hydrocarbon producers,

10 Investing in the Arctic: a new approach Investing in the Arctic: a new approach 11 liquefied natural gas producers, and other projects. Separate preferential tax regimes will be developed for each of these groups.

Draft laws on investment activity support measures must be submitted for consideration to the state Duma of the Russian Federation before 1 July 2019.

Forum participants added a number of other proposals for attracting investment to Russia's Arctic zone:

• Returning the right to offer tax benefits for Arctic projects and their suppliers to the regions. Implementing an increasing depreciation coefficient for equipment for Arctic projects. • Providing tax credits for geological exploration in the Far East and Arctic.

The combined worth of 150 prospective Arctic projects included in the Russian Ministry of Energy’s list for early 2019 is almost RUB 5 trillion 18 Advanced Special Economic Zones have been created in the Russian Far East over three years. These programmes will be expanded to the Arctic

12 Investing in the Arctic: a new approach Investing in the Arctic: a new approach 13 INFRASTRUCTURE – OBJECTIVE: THE FOUNDATION FOR Development of the Northern Sea Route In accordance with Presidential we will develop the communication Executive Order ‘On National Goals and and coastal infrastructure, ARCTIC DEVELOPMENT Strategic Objectives of the Russian including port facilities, navigation, Federation to 2024,’ the volume of cargo and meteorological aids, and ensure travelling along the Northern Sea Route safe commercial navigation,” said According to President of the Russian Federation Vladimir Putin, special (NSR) is planned to reach 80 million President of the Russian Federation attention should be paid to the development of transport and other support tonnes annually by 2024. Vladimir Putin. infrastructure in the Arctic Region: “We are well aware that this is a necessary An increased flow of cargo along the “We cannot afford mistakes in the foundation for future investment and business initiatives.” NSR requires the advanced development Arctic and must ensure that state of port infrastructure and maritime navigation security systems can security. keep up with the pace and intensity of traffic,” said Sergey Frank, Chief “In order for this global transport Executive Officer and Chairman of the corridor to operate at full capacity, Executive Board of Sovcomflot.

The development of port infrastructure In 2030, the navigation season in the must be comprehensive: ports must Arctic will last plan to be technologically prepared, which is somewhat longer than with enough dockers, loading and under current conditions. During unloading technology, and personnel. that time, the concentration of million tonnes ice in the water will reach up to 9 10%, according to forecasts by weeks annually the Russian International Affairs 80 by 2024 Council SOLUTIONS The development of port infrastructure There is already progress in the develop- must be comprehensive: ports must ment and modernization of port capacities. plan to be technologically prepared, with enough dockers, loading and unloading “There are 18 ports located in the Arc- technology, and personnel. tic zone, 6 of which are located along the Northern Sea Route. <...> In the “The infrastructure of a northern larger ports in Murmansk Region, seaport must not only be focused in Sabetta, in Arkhangelsk, we are on transit, on the passage of ships, seeing the creation of full-scale mar- refuelling, bunkering, and resupply. itime safety systems, including sys- There must also be a focus on con- tems for controlling the movement of venience, on the logistics of tried and ships,” said Andrey Lavrischev, General affordable routes for the movement Director of Rosmorport. of goods and cargo, for both export and the mainland,” said Ruslan Davy- “Today, on the one hand, we are dov, First Deputy Head of the Federal working on a new port solution – the Customs Service of Russia. deep-water Arkhangelsk seaport.

14 Infrastructure – the foundation for Arctic development Infrastructure – the foundation for Arctic development 15 On the other hand, we are developing Reducing the icebreaker escort cost “Projects already being imple- what we have. Digitalization needs could help establish a flow of cargo from mented, especially those related to to be on its way to ports today,” the opposite direction. Novatek, could produce approx- said Igor Orlov, Governor of Arkhangelsk imately 47 million tonnes. The Region. “Last year was the first time remaining 33 million tonnes have that container cargo shipments not yet been provided for by pro- President Vladimir Putin invited foreign traversed the Northern Sea Route jects ready for implementation. <...> partners to join Russia in creating hub from the east to the west, which There are a number of projects that ports at the endpoints of the route in Mur- is a good sign,” said Sergei Ivanov, are in one or another stage of prepa- mansk and Petropavlovsk-Kamchatsky. Special Presidential Representative for ration,” said Trutnev. He also noted that upgrades to Arctic Environmental Protection, Ecology and coast harbours must also apply to riv- Transport. “We will synchronize the develop- er-sea traffic capabilities. ment of port infrastructure with the It is vital that the development of Arctic implementation of infrastructure Forum participants discussed the impor- resources and building of infrastruc- projects,” said Alexander Kozlov, Min- tance of creating a long-term tariff system ture occur in parallel. The main pre- ister for the Development of the Russian for cargo transport and developing solu- requisite for increasing the volume of Far East and the Arctic. tions to reduce icebreaker escort costs. cargo shipments along the Northern Sea Route to 80 million tonnes is the Trutnev also noted that the Ministry for “The icebreaker escort fee must be creation of new industries in the Arctic the Development of the Russian Far East, competitive and reasonable. The that would function as a sort of cargo Rosatom, and the Ministry of Transport state invests in this operation in baseline, noted Yury Trutnev, Deputy have been instructed to prepare an eco- Upgrading the fleet and building order to minimize the tariff burden Prime Minister of the Russian Feder- nomic model for the development of the on carriers and other businesses,” ation and Presidential Plenipotentiary Northern Sea Route within the next two to OBJECTIVE: ice-class vessels said President Putin. Envoy to the Far Eastern Federal District. three months.

An icebreaker fleet of The year-round function of the NSR Minister of Transport of the Russian Fed- approximately depends on both the construction of nec- eration and Head of the Federal Agency essary infrastructure and a large-scale for Maritime and River Transport. upgrade of the icebreaker fleet. “Setting up a decent transport infra- “In order to completely implement structure for Arctic exploration 150 vessels the projects, the fleet, including ice- without a sizeable fleet is outright is required for the implementation breakers, transport, and support impossible,” said Alexei Abramov, Head of planned projects. Fifty vessels vessels, must number about 150 ves- of the Federal Agency on Technical Reg- are currently in operation sels, 50 of which are already oper- ulating and Metrology (Rosstandart). ational,” said Yury Tsvetkov, Deputy SOLUTIONS

Three new nuclear icebreakers – Arktika, exist by then,” said Alexey Likhachev, “We should determine capacity Sibir, and Ural – are currently being built Chief Executive Officer of Rosatom State ranges — what is suitable for which in St. Petersburg. By 2035, Russia's Arctic Atomic Energy Corporation. Rosatom is region. We should know if an ice- fleet should include at least 13 heavy ice- ready to reach beyond the goal of 80 mil- breaker must be designed to also breakers, 9 of which will be nuclear ves- lion tonnes, towards facilitating a cargo be used as a rescue ship, to clean sels. They will also include Leader-class turnover of 92.6 million tonnes by 2024, emergency oil spills, to be used as a icebreakers. added Likhachev. tugboat, to have a helicopter deck, and to contain medical facilities,” “We were sent a government resolu- Technology producers have expressed said Mustafa Kashka, General Director of tion to build two more universal ice- the desire for exact government orders of Atomflot. breakers by 2030. A fleet capable of necessary vessels: year-round NSR operations has to

16 Infrastructure – the foundation for Arctic development Infrastructure – the foundation for Arctic development 17 Comprehensive development OBJECTIVE: of the transport system SOLUTIONS

Of principal importance are the con- effect of the projects being imple- Such a goal requires both the improve- The Russian Federation is currently Increases in businesses’ purchasing a unified and balanced air transport sys- nections between Arctic territories and mented there,” said Vladislav Onish- ment of rail access to sea ports and the implementing a number of large-scale power with regards to aviation technol- tem in the Arctic zone, which will lay the neighbouring regions. This requires chenko, Head of the Analytical Centre development of Arctic aviation. projects aimed at the creation of trans- ogy and subsidies of regional flights are foundation for the development of new comprehensive development of the for the Government of the Russian Fed- port infrastructure on the continental key to developing flights and upgrading technologies and cutting-edge aircraft. transport infrastructure. eration. “The Russian Arctic accounts for portion of the Arctic zone. fleets. 30–40% of all domestic flights; up “In the context of transport system “Only through comprehensive to 80% of Arctic flights are socially A key project is the construction of the “Today, regional passenger flights development in the Arctic, the issue development of the transport infra- important. <…> Use of aircraft Northern Latitudinal Railway (NLR). are not financed from the federal of connectivity between the regions structure are we able to ensure in the Arctic is aimed at ensuring According to the Ministry of Transport budget; this burden fully falls on The Northern Latitudinal Railway of the Arctic, the Far East, the habitability of the northern regions safety, supporting business pro- of the Russian Federation, the NLR will the regional authorities. We repeat- (NLR) will shorten transport routes Urals, and Siberia assumes great and develop the base points of the jects and developing territories,” significantly shorten (by up to 1,000 km) edly put forward initiatives to make from deposits in Western Siberia's importance. <...> These intercon- Northern Sea Route: Dikson, Kha- said Igor Kovalev, Head of the Scientific transport routes from deposits in West- an amendment to executive order northern districts to the Baltic, White, nections will fundamentally influ- tanga, Dudinka,” said Sergei Men- Project Research Management Com- ern Siberia's northern districts to the 1242 and extend it to helicopters. Barents, and Kara seas by ence the rate of economic develop- yailo, Presidential Plenipotentiary Envoy plex at the Professor Zhukovsky Central Baltic, White, Barents, and Kara seas. We hope that sooner or later we will ment, the comfort of living, and the to the Siberian Federal District. Aerohydrodynamic Institute. The project will also help solve the issue get results,” said Dmitry Danilov, Dep- of congestion on the existing southern uty Director General for Civil Helicopter route, which connects to the Trans-Sibe- Sales at Russian Helicopters. rian Railway. 1,000 In addition, business representatives km claim that regulation in the industry must “Today regional passenger be simplified, including with regards long-term certification of machines. flights are not financed from Measures also need to be taken to the federal budget; this burden encourage the use of domestically pro- fully falls on the regional duced aircraft and components. authorities. We repeatedly put forward initiatives to “We have produced fourteen L-410 aircraft; in early make an amendment to 2020 another 22 aircraft will be executive order 1242 and supplied to the state and civilian extend it to helicopters. aviation. <…> Most production We hope that sooner or later operations have been kept within The most important area of focus is the we will get results.” the company. When we have the development of the Unified Protected engineering documentation for Information and Telecommunication Dmitry Danilov, Deputy Director an airframe, we can produce it System of the Transport Complex of the General for Civil Helicopter Sales at under any sanctions, limitations, Arctic Zone of the Russian Federation Russian Helicopters or breaks of relations. The key com- to facilitate navigation, the control of ponents – engines, electronics, and cargo flows, and the transport of pas- A project to construct a 170 km railway other important systems, including sengers. It is meant to serve all types between Bovanenkovo and Sabetta landing gears – give us confidence of transport – marine, river, air, rail, and to serve as an extension of the NLR that production of this in-demand road. According to Dmitriy Repin, Pro- is under development. The creation of aircraft will continue uninter- ject Manager of the system, “The pilot the Murmansk Transport Hub (MTH) rupted,” said Mikhail Peresadin, Deputy project of this system will operate in involves the construction of the Lavna Director General of Ural Works of Civil Arkhangelsk Region.” coal terminal, a new railway line on the Aviation. western shore of the Kola Bay, and the development of the eastern shore’s Forum participants also proposed devel- existing railway infrastructure. oping a roadmap for the development of

18 Infrastructure – the foundation for Arctic development Infrastructure – the foundation for Arctic development 19 OBJECTIVE: Developing energy infrastructure

A reliable energy supply is essential for Arctic conditions require the develop- regional development. Arctic states ment of accessible, reliable, and easy- are faced with a number of overarch- to-use technologies that are capable of ing problems in this area, including dis- supplying isolated areas with electricity, tances from central energy grids, the despite the build-up of ice, high humidity, use of expensive diesel fuel to generate and critically low temperatures, all while energy, high electricity rates, and the using clean sources of energy. unique way of life of indigenous peoples.

SOLUTIONS

When it comes to isolated energy net- works in isolated Arctic areas, the most promising options are integrating small “Energy in the Arctic is power units that use fossil fuels; small very specific. There are no nuclear power reactors; small mobile consumers for major power power units; and renewable energy generation. It needs to be technologies. distributed in low-power “Energy in the Arctic is very spe- capacities.” cific. There are no consumers for Mikhail Kovalchuk, President of major power generation. It needs to the Kurchatov Institute National be distributed in low-power capac- Research Centre ities,” said Mikhail Kovalchuk, Presi- dent of the Kurchatov Institute National Research Centre.

“We studied a number of regions and came to the conclusion that the optimal energy solution would use biomass and other renewable sources of energy,” said Raif Vasilov, Deputy Head of the NBICS Nature-like Technologies Complex at the Kurchatov Institute National Research Centre.

Rosatom State Atomic Energy Corpora- tion made a significant breakthrough in this area with their creation of the world's first floating nuclear power station, the Akademik Lomonosov. It is expected to be licensed in July 2019.

20 Infrastructure – the foundation for Arctic development Infrastructure – the foundation for Arctic development 21 ONE ARCTIC FOR THE ENTIRE WORLD

22 One Arctic for the entire world One Arctic for the entire world 23 Environmental OBJECTIVE: protection

Climate change is the most important As the ice melts, plants and animals that factor that needs to be considered when had been frozen start to decompose, developing the Arctic. Global warming, which increases the concentration of caused by increases in greenhouse gas carbon dioxide and methane in the atmo- emissions (see Fig. 1), is a threat to the sphere and leads to further warming. region’s fragile ecology. These changes do not just have a signif- The temperature of the atmospheric icant effect on the Arctic environment surface layer in the Arctic is growing and the way of life of people living in the at twice the rate than in the rest of the Arctic region – they affect the climate of world (see Fig. 2). This warming has the entire planet. decreased the extent of snow cover and the Arctic ice pack, and increased Arctic “Global warming and its effect on river discharge. the Arctic may not only lead to an

environmental and ecological disas- ter. Potentially, they are a security threat of global proportions,” said SOLUTIONS Stefan Löfven, Prime Minister of the Kingdom of Sweden.

“The Arctic is a structure that deter- Arctic research needs to be stepped up activity in the Arctic zone. In the course said Dmitry Kobylkin, Minister of Natural mines the climate and the future and the situation in the region needs to of the major clean-up of Arctic areas Resources and Environment of the Rus- of the Earth. Shattering it is easy, be monitored continuously. International that has been ongoing since 2012, sian Federation. regaining it would be challenging, if cooperation is the foundation to solving over 80,000 tonnes of waste have been not impossible,” said Andrey Fursenko, environmental issues. removed and disposed of. “Actually, shipping emissions concentration (ppb) concentration 2 2 Aide to the President of the Russian Fed- account for only 2.2–2.5% of global CO eration. During its chairmanship of the Arctic “In the coming years we will clean emissions, so we have to bear in mind Council in 2021, Russia will prioritize up six major environmental dam- that fact. But, of course, we need Pollution, including plastic waste, also advancing environmentally friendly and age sites in Arkhangelsk and Mur- solutions, and I will bring you up-to- poses a significant environmental threat nature-inspired (biomimetic) technolo- mansk regions, in the Nenets Auton- date on some of the Finnish solutions to the Arctic region and the World Ocean. gies across all areas – in industry, trans- omous Area, Karelia, and Yakutia in terms of reducing shipping emis- port, and the energy sector. as part of the Clean Country federal sions. The first one is a rotor sail Forum participants were especially con- project. We will also clean up over system <...> which is installed on a cerned about the lack of research on the “When contemplating Arctic devel- 200 square kilometres in the Kola vessel and can reduce fuel consump- 2 Fig. 1: CO Concentrations in the atmosphere of the Arctic. Carbon Cycle Gases. Barrow effect of climate change on the region. opment, we must be clear about the Bay area,” said Vladimir Putin, President tion based on wind conditions by Atmospheric Baseline Observatory, United States: www.esrl.noaa.gov/gmd/dv/iadv/ graph.php?code=BRW&program=ccgg&type=ts (date information accessed: 18 April 2019) kinds of technologies we are to bring of the Russian Federation. 5 to 20% ,” said Tero Vauraste, Chairman “The impact of climate on the Arctic there. It was with good reason that of the Arctic Economic Council and Presi- is a serious scientific question that during the Forum's Youth Day we Transitioning ships to environmentally dent of Mariadi Oy. С

O the whole world and experts are discussed the use of nature-inspired clean types of fuels could have a signif- now facing,” said Alexander Sergeev, technologies that preserve natural icant impact: Another promising area is the transition President of the Russian Academy of resources,” said Mikhail Kovalchuk, of public energy services to biofuels Sciences. President of the Kurchatov Institute “We plan to reduce harmful trans- and LNG. National Research Centre. port emissions through the devel- Температура, Температура, 60–90° N Global opment and use of a new environ- “Year after year, we have been There needs to be support for projects mental class of hybrid vessels and constructing boilers which oper- aimed at taking measures to reduce by promoting a green shipping ate on lumber waste. We do not Fig. 2: Arctic and global mean annual land surface air temperature (SAT) anomalies. Official website of the Arctic Program: www.arctic.noaa.gov/Report-Card/Report-Card-2018/ environmental damage and to elimi- programme in the Arctic, includ- use coal, and are halting the use ArtMID/7878/ArticleID/783/Surface-Air-Temperature (date information accessed: 18 April 2019) nate the adverse effects of industrial ing through the use of LNG fuel,” of diesel fuel across large parts of

24 One Arctic for the entire world One Arctic for the entire world 25 our region. In March, Arkhangelsk said Lev Levit, Representative of the “Technical committees have Region and Rostec Corporation Governor of the Arkhangelsk Region for developed six international and THE ARCTIC – signed an agreement to construct the Development of the Arctic. fourteen national Arctic security an LNG plant with a capacity of standards. These concern, above 120,000 tonnes per year. This work Forum participants also underscored the all, a safe work environment, TERRITORY in the field of LNG will benefit a importance of compliance with interna- environmental protection, specific huge number of regions. <...> RUB tional climate agreements and increasing requirements for life support 14 billion is being invested in total,” investment in the reduction of carbon systems, evacuation and rescue of dioxide. personnel, and special equipment OF LIFE and materials for the mining and There needs to be a system of standards shipment of hydrocarbon resources for doing business in the Arctic. Business in the polar climate,” said Tatyana could play a significant role in this matter. Lobanova, Deputy Head of the Strategic Development Department at Gazprom. “The strategic objective is the development of a polar operations man- The expansion of scientific research in > the Arctic and measures to help with agement system. <...> With peer sup- 80 port from Rostec State Corporation, adapting to climate change is also tonnes of waste we managed to transition from cor- necessary. Scientists spoke in favour of porate standardization to cross-sec- studying the entire complex of physical, have been removed and toral standards. Now we want to chemical, and biological aspects of the disposed of since 2012 implement it in a machine-readable processes occurring in the Arctic. as part of a major Arctic format so that the Arctic standards clean-up can keep pace with the times,” said Nikita Kuprikov, Director of Polar Initiative.

26 One Arctic for the entire world The Arctic – territory of life 27 Improving OBJECTIVE: quality of life SOLUTIONS

“All Arctic regions should be brought The national projects are meant to • Training healthcare and occupational • Creating methodologies for creating a to the level of at least the national serve as the primary instruments health and safety specialists in Arctic comfortable environment in the Arctic, average in key socioeconomic “Over 200,000 people, i.e. 10% for social development in the Arctic conditions. According to Igor Bobrovnit- taking into account its unique climate indicators and living standards. of the current population, regions. However, Forum participants skiy, Deputy Director of the Centre for conditions. “When it comes to improv- I would like to emphasize that this are ready to leave the proposed a number of additional mech- Strategic Planning and Management of ing welfare, we should make sure that >200,000 task should not only be clearly Russian Arctic.” anisms that would help improve the Biomedical Health Risks of the Ministry the environment that we are creating is defined in the new strategy of Arctic Nikolay Kharitonov, Chairman of situation when it comes to healthcare, of Health of the Russian Federation, “an multi-functional, so that the public can people development but should also serve the Committee for Regional Policy housing construction, and education. application has been submitted to use it during very long winters and very Most importantly, the needs and unique said Vladimir Yakus- are ready to leave the as a guide for the work of all federal and Issues of the North and Far East the Ministry of Education and Sci- short summers,” Russian Arctic departments and regional authori- of the State Duma of the Federal characteristics of each region must be ence to establish a new specializa- hev, Minister of Construction, Housing, ties of Russia. It is absolutely neces- Assembly of the Russian Federation taken into account in the development tion: occupational and environmen- and Utilities of the Russian Federation. sary to take into account the specific of these areas. tal medicine, which would combine nature of the problems facing the The processes of demolishing dilap- the prevention of both occupational • Developing new technical regulations indigenous minorities of the North,” idated and hazardous housing and diseases and diseases caused by for Arctic construction, taking the said President of the Russian Federation improving the quality of housing avail- Developing the health- adverse environmental factors.” use of new technological and energy- Vladimir Putin. able in the Arctic is slowed down by efficient solutions into account, as well The working population the harsh climate (resulting in a short care system • Implementing the concept of ‘One as increasing the stability and reliability in Chukotka has a The Arctic region is currently falling construction season) and high costs. Health’ (One Health – One Arctic), of life support systems. This will, among times behind in social development compared • The formation of a government pro- which highlights the importance of pay- other things, lower the cost of utilities higher to average national figures. “We often underestimate this fac- gramme for healthcare in the Arctic ing attention to people and the environ- and reduce environmental impact. tor [cost of construction in the zone, including the increase of financing ment, as well as to the health of people, mortality “Life expectancy in all regions, Arctic]. <…> Diesel fuel costs 21% through the compulsory medical insur- animals, and plants as an intercon- • Developing public-private partnerships 1.7 rate except Yamal, is lower than the more, piles – 78% more, cement – ance system, which would be used to nected system. and getting city-forming enterprises than the Russian national average. national average. It’s 66.1 years in 83% more, and concrete pipes and address the deficit of medical staff. involved in creating a comfortable urban Increasing life expectancy in Arctic Chukotka, while the [presidential] plates – 50% more. If we add costs • Improving and developing monitor- environment. “We can only begin the regions is a key government objective decree dictates that we must reach and price rises due to hardship • Including Arctic regions in the District ing mechanisms for factors affecting construction process <…> when fed- 78 years. The mortality rate among pay, end up with costs which are Doctor programme and implementing health, including the microclimate and eral money, regional money, and the working population is signifi- 2–2.5 times higher per square the Arctic Doctor programme in iso- state of the environment. money from Nornickel's city-form- cantly higher than average in Russia: metre,” said Vladimir Solodov, Chair- lated settlements. ing enterprise is allocated,” said in Chukotka – 1.7 times higher, the man of the Government of the Republic • Improving mitigation and control Rinat Akhmetchin, Mayor of Norilsk. Republic of Karelia – 1.3 times, the of Sakha (Yakutia). • Digitalizing healthcare and develop- measures for illnesses and strength- Republic of Komi and Arkhangelsk ing telemedicine systems. “We have ening international cooperation in Arc- • Increasing federal support for housing Region – 1.2 times. There is a high The lack of a comfortable living envi- confirmed plans that would allow tic healthcare. construction and projects to create a > percentage of dilapidated housing: ronment, including difficulties accessing all medical organizations in each comfortable urban environment that 100 in Yakutia it is 7 times higher than a high-quality education, has resulted in region above the level of medical take into account the Arctic's unique medical and average in the country, in Yamalo- a major population drain. and obstetric stations to get an Building and creating characteristics. “We are going to be obstetric stations Nenets Autonomous Region – 5 times, internet connection this year. Med- more insistent about adjusting and in Arkhangelsk – 3–4 times,” said Alex- “Over 200,000 people, i.e. 10% of ical and obstetric stations will be a comfortable urban increasing funds for supporting will be built in the Arctic in the ander Kozlov, Minister for the Development the existing population, are ready to able to get connected to the internet national projects <…> in the Arctic,” near future. environment of the Russian Far East and Arctic. leave the Russian Arctic.” said Nikolay next year. <...> More than 100 med- said Andrey Chibis, Acting Governor of Kharitonov, Chairman of the Committee ical and obstetric stations will be • Forming a strategic plan for housing Murmansk Region. Approximately The low life expectancy is due to both for Regional Policy and Issues of the built in the Arctic in the near future. construction in the Arctic which takes mobile the harsh climate and an insufficiently North and Far East of the State Duma Approximately 44 mobile tele- into account the labour needed to imple- telemedicine developed healthcare system. of the Federal Assembly of the Russian medicine units will be purchased. ment projects in the region. “It is crucial Developing education 44 units Federation. RUB 1 billion has been set aside to prepare a strategic development plan and science In certain regions, levels of access to a for these purposes in 2019–2020,” for the North with consideration given will be purchased. RUB 1 billion doctor are 40% below current standards. said Evgeny Kamkin, Deputy Minister of to the required number of people, towns has been set aside for these At the same time, climate change in the Healthcare of the Russian Federation. and rotation villages,” said Igor Shpek- • Creating a scientific and education purposes in 2019–2020 Arctic and global warming increase the tor, President of the Union of Cities of centre in the Arctic. “We have begun risk of infectious diseases. the Arctic Circle and Extreme North. establishing science and education

28 The Arctic – territory of life The Arctic – territory of life 29 centres in various Russian regions; • Focusing efforts within the Arctic • Digitalizing education: creating a ‘vir- they integrate the capabilities of Council to develop joint educational tual university’ in the form of educa- universities, research institutes, the standards for preparing Arctic tional online platforms that would pro- business community and the real specialists for international projects. vide access to high-quality education economy, <...> ensure the develop throughout the Russian Arctic. ment of fundamental research, and • Fostering partnerships between will help address applied and prac- universities, research centres, and • Ensuring the effectiveness of financing tical tasks of developing the Arc- colleges specializing in Arctic issues. mechanisms for fundamental and tic,” said Vladimir Putin, President of “Any research in the Arctic and applied scientific research, which would the Russian Federation. training of Arctic researchers take the climate, social, and other should, of course, be interdisci- unique characteristics of the Arctic and • Developing educational programmes plinary, because the time is long sustainable development principles and creating an educational infra- gone when single-discipline spe- into account. structure that takes into account the cialists could resolve problems demands of businesses and invest- without comprehensive knowledge ment projects that are being imple- about the region where they work,” mented or are planned to be imple- said Sergey Aplonov, Director of the mented in the Arctic. Arctic Research Centre at St. Petersburg State University.

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