International logistics via NSR will be highly developed in five years - Russian deputy

MOSCOW. June 18 (Interfax) - The active development of the Northern Sea Route (NSR) will lead to it being used by other countries alongside Russia to deliver goods within five years, State Duma Deputy, First Deputy Chairman of the Energy Committee Igor Ananskikh said.

"The scope of tasks for the Northern Sea Route is colossal: the development of our territories, mining, and international logistics," he told Interfax.

"We are moving towards this, and in the near future, within five years, international logistics via the NSR will be greatly developed," he said. The Chinese have already sent one ship along the route in test mode, he said.

"Currently, products and goods are supplied to the Arctic region in one northern delivery, but the president has set the task of making navigation year-round in the near future, so that there will be a guaranteed route from Asia to Europe, among others. This route is shorter than through the Suez Canal, and it is easier, as there are no bottlenecks like in the Suez, and even more important, it is much shorter than sailing around Africa. Chartering a ship costs tens of thousands of dollars per day, maybe up to hundreds, and this route shortens the trip by 1-2 weeks. It is colossal money," Ananskikh said.

Russia has also discussed issues of cargo insurance along the NSR with the Chinese side. "As far as I know, there is no final decision yet, but both sides are interested. The Chinese understand that this is an economically profitable project, and they are also trying to participate in it," he said.