Why Russia's Northern Sea Route is a risk for global trade

"Shipping goods along the Northern Sea Route can reduce travel distance by up to 40%, compared to going via the Suez Canal, which is the most common route between Asia and Europe."

"Moscow had planned to move 80 million tons of cargo through it by 2024, but those ambitions were stymied by the 2022 Russian invasion of Ukraine and the western sanctions that followed."

"Even so, Russia is continuing significant investment, budgeting 1.8 trillion Russian Rubles (around 20.5 billion, $24 billion) for NSR development until 2035."

"The NSR remains primarily a route for Russian crude oil and liquid natural gas (LNG), which formed more than 80% of cargo passing along in 2024."

The Northern Sea Route (NSR) is promoted by Russian officials as a safer and more efficient maritime path between Asia and Europe. It can reduce travel distance by up to 40% compared to the Suez Canal. However, its usage is limited due to geopolitical tensions, particularly the war in Ukraine, which has hindered cargo movement. In 2022, only 38 million tons of cargo passed through the NSR, far below the planned 80 million tons. Despite this, Russia continues to invest heavily in NSR development, focusing primarily on crude oil and LNG transport.

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