Development of managerial solutions improving Northern Sea Route exploitation

Abstract

The main purpose of the current study is to find beneficial and win-win solutions of the NSR exploitation for Russian side. Main tasks are: - To determine the factors which influence the navigation along the Northern Sea Route; - To examine the role of the Russian state in this matter, its interest and the interest of Russian companies; - Compare the indicators (revenue, costs, profit) of using the NSR instead of the Suez Canal; - Give recommendations on future possible strategy for the NSR development from the perspective of Russian companies. Main results are: - the NSR currently is not a cost-effective route compared to the Suez Canal; - weather conditions, ice cover, lack of equipment, long and complicated process of obtaining permission to navigate through the NSR, need for insurance negatively influence the NSR; - public-private partnership is the most appropriate way of improving the current situation.