Russia’s Arctic budget to be reshaped

On 21 September, the Russian Government okayed the draft national budget for 2022-2024. Initial plans as regards expenditures concerning certain Arctic projects will be revised, the draft says.

First off, according to the explanatory note to the draft, funding for activities relating to Russia’s chairmanship in the Arctic Council in 2021-2023 will increase by 4.3 billion rubles. The additional funds will be spent via the Federal Program for Social and Economic Development in the Russian Arctic, whose budget is set at 8.12 billion rubles for 2022, 7.49 billion rubles for 2023 and 5.86 billion rubles for 2024.

Secondly, in 2022, the federal project to develop the Northern Sea Route will receive 4.1 billion rubles more than planned. The funds will be streamed into the construction of the Utrenniy terminal in the Sabetta sea port, which is required for launching Arctic LNG -- a major international investment project to be implemented in the Russian Arctic. In turn, in 2024, 10.5 billion rubles will be deducted from this project to finance the construction of the first Leader-class icebreaker funded under another budget item.

Overall, the federal budget will spend on developing the Northern Sea Route 51.8 billion rubles in 2022, 17.6 billion rubles in 2023 and 12 billion rubles in 2024.

Thirdly, in 2022, the governmental expenditures on the construction of the Leader-class icebreaker will see a drop by 4.1 billion rubles; however, more funds will be allocated for the construction later on.

By 1 October, the draft is to be submitted to the national parliament for approval.