Why A Floating Nuclear Plant Signals Russia's Arctic Ambitions

Researchers with the Business Index North project have just investigated Russia's Arctic investments.

Business Index North, or BIN, is a research project at the High North Center at Nord University.

In the newly published report, they have found that Russia accounts for 50-60 percent of all Arctic investments.

The rest is divided among the seven other Arctic nations, including Norway.

This illustrates Russia's strategic positioning in the Arctic region and the importance of closely following developments in the years to come, according to the authors.

"There is a strong will from Russia to develop the region", says Andrey Mineev, leader of the BIN project.

Small Region Stands Out

The largest investments are taking place in Yamalo-Nenets, in the far northwest of the Siberian plain.

Along with the regions of Sakha (Yakutia), Krasnoyarsk, Komi, Nenets, and Murmansk, these areas account for 80 percent of Arctic investments. These investments are related to, among other things, mineral extraction, production, and transport.

But there's one graph that stands out in the report, and that's the investments in Russia's easternmost Arctic region. A small Arctic region named Chukotka.

This area is so far east that the distance to American Alaska is only a few kilometers, across the Bering Strait.

Important Strategic Area

While investments in the Russian Arctic generally have decreased by 18 percent in the period 2017-2022, investments in Chukotka have increased by 388 percent.

The report indicates that there is a Russian ambition to make Chukotka a focal point for Russia’s economic and geopolitical ambitions in the Arctic.

The sharp increase in investments in Chukotka is linked to several large projects:

1. Mining: Significant investments in gold and copper production.
2. Energy: The floating nuclear power plant Akademik Lomonosov in Pevek.
3. Infrastructure: Development of new maritime terminals for the Northern Sea Route.

It's noted that the development in Chukotka can be seen as a sign of Russia's future ambitions in the Arctic. This includes long-term goal to increase the traffic along the Northern Sea Route.

This route goes from Novaya Zemlya in the west to the Bering Strait in the east along the coast of Russia, and enables faster transport of goods between Europe and Asia.

"Although Chukotka is a small region, this development provides an interesting insight into Russia's Arctic strategy", researcher Mineev explains.

Home Of A Floating Nuclear Power Plant

Chukotka is also notable for another reason: Being home to the world’s first floating nuclear power plant.

The Akademik Lomonosov, built on a 144-meter long platform and housing two reactors, made headlines in 2019 when it was towed along the Norwegian coast to Murmansk.

Its remarkable capacity to power a city of 100,000 people starkly contrasts with Pevek's population of just 4,230, underscoring the scale of Russia's Arctic ambitions.

Deploying such advanced technology in a sparsely populated area like Pevek serves multiple strategic purposes. It not only helps combat depopulation but also ensures a stable presence in strategically important regions of the Russian Arctic, reinforcing national security and economic interests.

It also replaces an outdated coal-fired power plant and reduces the strain on the aging Bilibinskaya nuclear plant, aligning with Russia’s increased emphasis on environmental responsibility in its Arctic development strategies.

Currently operating at 30 percent capacity, the plant also aligns with a even broader strategy: As melting ice opens new shipping routes and improves access to oil and gas reserves, Russia try to position itself to capitalize on emerging opportunities in the region.

However, the floating nuclear power plant remains controversial, with concerns raised by environmental groups and neighboring countries about its safety and potential ecological risks​.

In any regards; the presence of this 'oversized' facility in Chukotka signals Russia's long-term commitment to industrial development in the Arctic. It represents not just an energy solution, but a statement of Russia's ambitions to dominate the changing northern parts.

Prioritizes Resource Extraction

The recent BIN report broadly shows that the extraction of natural resources is of the highest priority in the economy of the Russian Arctic.

The figures show that almost 60 percent of investments in the Russian Arctic go to this sector, compared to only 16.8 percent for Russia as a whole.

This underscores the region's strategic importance for the country's resource development.

The report also shows that Russia has great ambitions for the future:

Further development of energy and transport infrastructure and extraction of natural resources are deemed central, but science and technology and sustainable socio-economic development are also considered important focus areas.

"There is also great uncertainty about whether Russia will manage to implement all its plans", researcher Andrey Mineev says.

Read the full report.