China and Russia Expand Arctic Trade as Northern Sea Route Gains Importance | Ukraine news

A few months of navigable water are enough to attract energy cargoes, new container plans and scrutiny over what happens beyond the ice.

The Northern Sea Route along Russia’s Arctic coast is increasingly shaping closer trade and energy ties between China and Russia. Although the route is covered by ice for most of the year, during its short navigation season it allows cargo to be transported between Asia and Europe faster than via the traditional Suez Canal route.

For Moscow, the Arctic route is especially important under sanctions, while for Beijing it provides an additional channel for supplies of energy resources and goods. At the same time, intensive shipping in the Arctic is accompanied by challenging weather conditions, environmental risks, and security concerns.

The Arctic route for exports of Russian LNG to China

At the end of May, the tanker Christophe de Margerie, linked to the export of gas from the sanctioned Russian Arctic LNG-2 project, traveled along the Northern Sea Route to Kamchatka. Vessel-tracking data and satellite imagery indicated that the cargo was transferred to a floating storage facility in one of the remote bays.

Afterward, the sanctioned tanker Arctic Mulan, reportedly loaded with this gas, set sail for the Chinese port of Beihai. In July, the same vessels repeated a similar operation.

This logistics scheme shows that the Northern Sea Route has become one option for supplying Russian liquefied natural gas to China despite U.S. sanctions. In the first half of the year, China’s imports of Russian LNG via all routes rose by nearly 28%.

Chinese companies expand shipping through the Arctic

China is also strengthening its commercial presence along the Arctic route. The shipping company Sea Legend plans to establish a regular seasonal container service between China and Europe. Estimated cargo transit times along this route could be as short as 20 days.

New New Shipping has launched a route from Tianjin to Murmansk. It complements shipments of Chinese industrial goods to Russia and the transport of Russian raw materials in the opposite direction.

According to schedules from the China Shipowners’ Association, at least six Chinese companies may make more than 50 voyages along the Northern Sea Route during the season.

Why the Northern Sea Route remains challenging

Despite its potential time savings, Arctic shipping is not a simple substitute for the route through the Suez Canal. To travel along the Northern Sea Route, vessels must register their voyages through a Rosatom body, and the navigation window is limited to a few months.

The situation is further complicated by rapid changes in ice conditions and weather. Key risks also include:

• possible vessel accidents in hard-to-reach areas of the Arctic;
• the risk of fuel spills and other pollution in the fragile Arctic ecosystem;
• the use of aging tankers associated with the “shadow fleet”;
• dependence of shipping on Russian infrastructure and permits to operate along the route.

Trade and security issues in the Arctic

Western countries are drawing attention not only to the growth of trade between China and Russia through the Arctic, but also to the possible security implications of Chinese activity in the region. Concerns include Chinese scientific expeditions, the expansion of its polar fleet, and previous joint operations by China and Russia.

Beijing says that its work in the Arctic complies with international law and is aimed at peaceful development. Moscow, meanwhile, is seeking to retain control over the strategic sea route, viewing China primarily as a major energy buyer and an important trading partner.

Thus, the Northern Sea Route is gradually becoming another important element of economic ties between China and Russia. Its development could reshape some global logistics flows, but harsh natural conditions, sanctions pressure, and environmental threats will remain decisive factors for this route.