The Arctic… This once-inhospitable corner of the world is becoming the next global commons as the polar ice cap melts. Increasingly navigable seaways and new access to natural resources create new opportunities for greater collaboration between Arctic and non-Arctic nations.
To look at this issue in depth, the Institute for the Study of Diplomacy at Georgetown University convened a working group which issued the report called “The New Arctic: Navigating the Realities, Possibilities, and Problems”. Click on that link:
https://isd.georgetown.edu/sites/isd/files/the_new_arctic_-_working_group_report_2018.pdfThe researchers concluded that resource extraction and expanded sea lines will be of particular importance in the coming years.
Unfortunately, we do not cooperate with the largest player in the Arctic – Russia, because of political tensions. But everyone knows that the joint work on the implementation of projects is helping to strengthen mutually beneficial relations.
As an entrepreneur I can say that, from an economic perspective, there is much to think about. Because under the Russian ice there is more oil than in the OPEC countries all together. However the launch of new projects in this region is associated with high costs and the need of advanced technologies. And in order to develop these territories Moscow is ready to go for a dialogue and concessions.
At the moment, the best example of successful international cooperation in the region is Russian-Chinese Yamal liquefied natural gas (LNG) project – the construction of a plant for the production of liquefied natural gas with a capacity of about 16,5 million tons. Here is the link:
https://news.cgtn.com/news/3d3d774e3245444e79457a6333566d54/share.htmsBesides, melting ice means new polar routes, shortened transit times and significant commercial advantages. What Moscow calls the Northern Sea Route (NSR) stretches across 3, 000 miles. Russia will no doubt seek business partners to develop the NSR infrastructure.
So why not taking this opportunity? I think the time to think not about politics but about economic benefits has come! Nothing personal, just business.