Due to the changing political situation and wars in the world, global trade is continuously being affected. At such a time, India and Russia are preparing to work together on a maritime trade route that can change the world’s trade map in the coming years.
According to media reports, Russian Prime Minister Mikhail Mishustin has recently approved Russia’s state nuclear energy company Rosatom to enter into an agreement with India for freight transportation on the Northern Sea Route. This step will give a new direction to the cooperation in the Arctic region between India and Russia.
What is the Northern Sea Route?
The Northern Sea Route is a sea route passing through the northern Arctic coast of Russia. It starts from the Barents Sea and goes to the Bering Strait. Till now this route was mainly used by Russia for its domestic goods and oil-gas projects in the Arctic, but due to climate change the Arctic ice is slowly melting. Due to this, this route has started remaining open for ships for a longer time than before. Russia wants this route to become a major international trade corridor between Europe and Asia in the future.
Great things about Northern Sea Route
- The Northern Sea Route (NSR) is a maritime trade route connecting the eastern and western parts of the Arctic Ocean.
- This route is considered to be the shortest sea route between Europe and Asia.
- The total length of the NSR is approximately 13,000 km, while the Suez Canal route is approximately 21,000 km long.
- Through this route the travel time can be reduced from about a month to less than two weeks.
- This entire route is located within Russia’s Exclusive Economic Zone and the Arctic Ocean.
- It starts from the Barents Sea and goes to the Bering Strait (between Siberia and Alaska).
- This route is mainly used to transport goods to the ports of Siberia.
- Some parts of this route remain snow free only for about two months in a year.
What will be the benefit to India?
For India, this is not just a new sea route but also a big opportunity both strategically and economically. Currently, most of the ships going to Europe pass through the Suez Canal, but if the use of the Northern Sea Route increases, the distance to reach some European countries may be reduced by about 40%. This can save up to two weeks in delivery of goods. In recent years, tensions have increased on sea routes like the Red Sea, the Strait of Hormuz and the Bab-el-Mandeb. In such a situation, countries like India and Russia now want to prepare alternative sea routes.
India-Russia trade will get a boost
India and Russia Has set a target of increasing mutual trade to 100 billion dollars by 2030. The Northern Sea Route can play an important role in achieving this goal. Russia is already sending large quantities of crude oil to India. In the coming time, LNG, coal, fertilizers and important minerals can also be transported to India through this route.
Not just business, opportunity in shipbuilding too
India’s interest is not limited to just freight transportation. There are also discussions between the two countries on Arctic shipbuilding, maritime infrastructure and training of Indian sailors to operate ships in the Arctic region. If this cooperation progresses, India’s shipbuilding sector can also become stronger and the country will get an opportunity to learn new technology.
Why does Russia need India?
After the Ukraine war, Western countries have imposed many economic sanctions on Russia. In such a situation, Russia now wants to increase trade with Asian countries. China is already a big partner in this project, but Russia does not want this entire project to depend only on China. Therefore, inclusion of a big and reliable partner like India is being considered an important part of Russia’s strategy.
This path is not easy
It will not be easy to make the Northern Sea Route completely successful. Snow remains frozen in the Arctic for many months of the year. At many places ships have to take help from icebreaker ships. Ports and other facilities there are still limited. Insurance, investment and international sanctions are also big challenges before this project. This means that this route will not immediately replace the Suez Canal, but its importance may increase significantly in the future.
preparing for the future
Experts believe that this agreement between India and Russia is more a preparation for the future than the need of today. If Arctic sea trade grows rapidly in the coming years, the countries involved in the initial phase may benefit the most. Through this project, India not only wants to create a new trade route but also wants to ensure its strong stake in the changing trade map of the world.
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