Victoria Pestova on Arkhangelsk proposals for Arctic Zone and Transarctic Corridor development

On July 27, 2026, in Arkhangelsk, a meeting chaired by Deputy Prime Minister Yury Trutnev discussed the comprehensive development project for the Arctic Zone and the Transarctic Transport Corridor (TTC). The Arkhangelsk Region presented measures worth 600 billion rubles, including the construction of a deep-water port (466.6 billion rubles) to accommodate large ocean-going vessels. The main barriers are the cost of rail delivery to the ports (25–35% of the tariff) and unresolved issues with Russian Railways regarding infrastructure connections. To enhance competitiveness, it is proposed to introduce reduced railway freight rates to Arkhangelsk and Murmansk, as well as to establish bonded zones in Arctic ports for duty-free cargo storage, launching a pilot project in the Arkhangelsk Region. This was reported by Deputy Minister – Head of the Arctic Projects Implementation Department at the Ministry of Economic Development, Industry, and Science of the Arkhangelsk Region, Victoria Pestova.

The economic efficiency of the TTC directly depends on the regularity and year-round navigation along the Northern Sea Route, which is to be ensured by the icebreaker fleet of Rosatom State Corporation. Once the Northern Sea Route becomes an all-season route, stable shipping lines will emerge on it. This will allow Russia to seriously compete with the Suez Canal for a share of global cargo traffic – an ambitious but entirely achievable benchmark for the country’s full participation in global trade.

The measures presented by the Arkhangelsk Region as part of the comprehensive development project for the Arctic Zone and the TTC concern the creation of a unified system for transforming the regional economy around the Transarctic Transport Corridor. The total investment for the major capital projects amounts to approximately 600 billion rubles. One of the key areas is the development of transport infrastructure. At the forefront is the anchor investment project for the construction of a deep-water area of the Port of Arkhangelsk, valued at 466.6 billion rubles. The project is directly linked to the development of the port, rail, and road infrastructure of the TTC.

A key condition for moving to the next stage is the approval of the investment declaration, which has passed review by the Federal Agency for Maritime and River Transport (Rosmorrechflot). At present, all comments have been addressed except for the issue concerning railway infrastructure – it is necessary to obtain initial data for designing the connection of the facility to public infrastructure. Our request is already being processed by Russian Railways.

To develop the existing capacities of the Arkhangelsk transport hub, the comprehensive project proposes including measures for dredging the approach channel to a draft of 11.2 meters, which would allow the port to receive vessels with 20% greater cargo capacity, as well as the modernization of the adjacent Solombalka railway station and the development of road infrastructure, which would increase the throughput capacity of the access routes to the port.

To unlock the potential of the Transarctic Transport Corridor as a unified global system, it is advisable to focus on addressing several important areas.

Introduction of reduced coefficients for railway freight rates

To kickstart the TTC route, it is necessary to attract cargo flows from the Northwestern and Central regions. However, this is currently constrained by the cost of rail transport: according to expert estimates, rail delivery of cargo to Arctic ports accounts for 25–35% of the multimodal tariff structure. The high cost of the «first mile» is one of the factors reducing the competitiveness of the TTC compared to alternative routes. The Arkhangelsk Region has repeatedly raised this issue at federal platforms.

The introduction of reduced coefficients for rail freight to the key ports of the Western Arctic – Arkhangelsk and Murmansk – is being considered as one possible solution. This would systematically load the route, free up congested capacity on existing routes, and create additional cargo flows – for example, container shipments to Arkhangelsk and coal shipments to Murmansk’s Lavna terminal. Ultimately, total traffic volumes would increase, and Russian Railways’ unit revenue per ton-kilometer would rise due to the reduced delivery distance to ports in the Western Arctic.

Establishment of bonded zones in Arctic ports

To increase cargo flows along the TTC between Russia and partner countries, it is necessary to develop innovations in cross-border logistics by creating mechanisms for «seamless» cargo processing on favorable terms. One such progressive solution is the establishment of bonded zones in Russian Arctic ports, similar to international practice, including China’s model. This would increase TTC cargo turnover by enabling the storage and processing of goods without paying customs duties until they are released for free circulation, as well as accommodating high-value-added production facilities. Within these zones, all types of fees would be replaced by a single bonded zone fee.

The issue of creating bonded zones in Arctic ports has already been discussed by the commission for the «International Cooperation and Export» strategic direction, chaired by the Governor of the Arkhangelsk Region, Alexander Tsybulsky, and has received support from the Russian Ministry of Industry and Trade. The Arkhangelsk Region could serve as a pilot site for implementing this mechanism, given its favorable geographic location, the presence of a major seaport, developed access routes, and the implementation of the «Arctic Express No. 1» project.

At the first stage, within the framework of interdepartmental cooperation, it is necessary to select the most promising territories for organizing bonded zones, taking into account their geography, transport accessibility, and direct shipping links with partner countries; determine the required amendments to Russian customs and tax legislation and the regulatory framework of the EAEU; calculate the optimal amount of the single bonded zone fee; and work out the inclusion of relevant measures in the national project «International Cooperation and Export.»