Russia Plans 'Strategic' Economy Boost in Arctic

A large port that will be built in Russia's far northwestern Murmansk region by 2028 will boost the local economy, regional governor Andrey Chibis said.

Chibis made the remarks after Belarusian investors signed an agreement on Monday with the Murmansk regional government to construct a terminal for the transshipment of Belarusian cargo.

Belarusian leader Alexander Lukashenko is a close ally of Russian President Vladimir Putin. Belarus, a former Soviet Union republic, has maintained strong relations with Russia since Putin launched a full-scale invasion of Ukraine in February 2022.

While Belarus hasn't directly joined the Ukraine conflict, Russian troops have been allowed to perform exercises on Belarusian territory since before the beginning of the war. The country was used by Russia to launch its invasion of Ukraine.

Arctic Gate Marine Terminal LLC, established by Belarusian investors, will build the port, which is expected to handle 25-30 million tons of cargo annually.

Chibis praised the project, saying it will pave the way for new jobs and investments in the region.

"For the Murmansk Region, this [the port's construction] means new jobs, investments, additional work not only for those who will work at the port but also for those who will build the port," the governor told reporters, Russia's state-run news agency Tass reported on Tuesday.

"My colleagues and I said that all interested and qualified companies in the Murmansk region should participate and work at this construction site," Chibis said.

"It will be also a strategic project on the Kola Bay's western shore," Chibis continued, referring to the bay of the Barents Sea in Murmansk.

"Consequently, we need to increase the railway capacity, about which I have asked the Russian president. Those are investments in the economy, jobs, salaries and permanent jobs, including those at a new level," the governor added.

Andrey Bunakov, director general of Arctic Gate Marine Terminal LLC, said the port's planned annual capacity is 25-30 million tons of cargo.

"The transshipment volumes that we expect to provide for in the design solution are up to 25-30 million tons per year...We estimate that the first cargo should arrive in 2028," Bunakov said.

Bunakov said the port's construction is "an expansion of the export potential of both the Republic of Belarus and the Russian Federation," and that it will handle both bulk cargo and petroleum products.

News of the port's construction was first announced by Belarusian Prime Minister Roman Golovchenko on April 16.

Russian state-run news agency Interfax reported, citing a source familiar with the negotiations, that it's the result of two years of negotiations between Russia and Belarus.

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