In August, a test delivery of timber along the Northern Sea Route from Pomorie to China will take place

In August this year, Russia will conduct a test delivery of timber along the Northern Sea Route (NSR) from Arkhangelsk to Shanghai. This event will be a key step for the domestic timber industry, which is seeking to find new ways to export its products in response to anti-Russian sanctions, which have significantly reduced its access to the European market.

Olga Kalyuzhnaya, President of the Russian Forest Association: “After the All-Russian Meeting on the Development of the Timber Industry Complex in February this year, representatives of the forest industry have got prospects for improving the situation. The most important of them is the possibility of increased transportation of products through the ports of the North-West and St. Petersburg, as well as along the NSR. Businesses will be able to benefit from subsidies that will cover up to 80% of their logistics costs. In contrast to the previous system, where small companies were compensated for most of the costs, and large ones - no more than 5%, the amount of financial support for large enterprises will be increased. In addition, if earlier the transport subsidy was allocated only for pulp and paper products and fuel pellets, this year it can also be received for plywood and sawn timber. This support measure is designed for the next 2-3 years”.

Northern sea transit to the east takes almost half the time than by rail, but is still much more expensive. Cooperation can reduce the cost of logistics along the Northern Sea Route when a reverse flow of goods goes along the same transport corridor: chemicals, consumables, equipment. A significant volume of this product is now imported to the North through Moscow and St. Petersburg, instead of being sent by return flights of Arkhangelsk ships along the NSR. If we combine the cargo traffic of the Arkhangelsk region and the Komi Republic (provided that titanium and quartz sand are transported from the Pizhma deposit), in aggregate it will be equal to the Moscow one. It is also possible to increase the traffic of the Northern Sea Route and make it more profitable by sending continental cargo to the NSR along the rivers - such experience is already being gained in Siberia.