23 May 2023 13:32

Russian deputy PM Trutnev allows for subsidizing tariffs for transporting cargo via NSR at first stage

SHANGHAI. May 23 (Interfax) - Tariffs for transporting cargo at the first stage of developing the Northern Sea Route (NSR) could require subsidies, and attracting additional cargo volumes along the NSR will depend on the economic efficiency of the route, Russian Deputy Prime Minister Yury Trutnev told reporters.

"We must first of all create the NSR's entire infrastructure and render all transportation along the route more economically viable, because companies will choose according to what is faster, less expensive and more reliable," Trutnev noted.

"I am considerably more interested in tariffs at this time. I am afraid that we will have to subsidize transportation along the NSR. Moreover, we will be able to say what additional cargoes could be accepted based on decisions taken depending on the volume of subsidies," Trutnev explained.

"The matter of subsidizing arises from the fact that we have tight monetary constraints and fairly short recoupment periods of around seven years that companies have included in projects. Therefore, I think that we will have to subsidize tariffs for most of the projects within seven years of recoupment. Then it will depend on how the economy appears," Trutnev clarified.

A chain of hubs is already being created as part of the NSR. "In terms of gas, our hub is already connected to Kamchatka. Where the others will be will depend on both the carrier companies and the regions. The process cannot be forced, and it must occur based on economic efficiency," Trutnev said.

Russia plans to utilize the potential of the NSR more actively as the shortest route from Asia to Europe.