The Legal Framework for the Development of the Arctic in the Context of Global Change

Key conclusions

Socially responsible business plays a major role in the development of the Arctic

“The role of business is very important. Within the framework of the Ministry for the Development of the Far East such a standard of business responsibility to the local population and the indigenous [residents. – Ed.] has been developed. This autumn there will be a conference in Murmansk on the initiative of the Presidency of the Russian Federation [in the Arctic Council – Ed.] for the first time in order to talk about ESG – environmental, social, governance, responsible business conduct, [about that. – Ed.] what social components mean for ESG of the Arctic Region,” Nikolay Korchunov, Ambassador-at-Large of the Ministry of Foreign Affairs of the Russian Federation; Chair of the Senior Arctic Officials, Arctic Council.

“How to support small business when it is in a little village? Even by the state, there is public procurement. But <…> all deliveries are won by Moscow, St. Petersburg organizations,” Pavel Volkov, State Secretary, Deputy Minister for the Development of the Russian Far East and the Arctic.

“Most states and businesses are interested in sustainable exploration and development of the Arctic region. In opposition to the ideas of conservation and prohibitions, the initiative to develop standards for sustainable business in the region arises with increasing frequency,” Ekaterina Salugina-Sorokovaya, General Director, International and Comparative Law Research Center.

PROBLEMS

Dependence of living conditions on external factors

“We need to ensure that citizens know that they have fuel, food, that they can survive. <…> We should understand that, of course, we will not create those conditions for a person living in a remote village, that we create in Moscow,” Pavel Volkov, State Secretary, Deputy Minister for the Development of the Russian Far East and the Arctic.

“Here is the different approach to organizing life. It is more difficult. We would like to see a clearer competitive platform in the Arctic. People who come to work there want to live and develop in the same way. It is true that the Central Russia is easier to be developed. <…> In the Arctic, much of our life mostly depends on the northern delivery, on how much [investment. – Ed.] and [to what extend. – Ed.] certain movements, deliveries were made on time,” Elena Shumilova, Member of the Committee on Federal Structure, Regional Policy, Local Self-government and Affairs of the North.

Complexity of doing business, lack of a competitive market

“We can imagine what the input conditions are necessary for business to be developed. In fact, it seems like there is no market, no goods, no work, no services, because it is a very difficult area. That is why all our logic for the future, for improvement, is designed for us to show our colleagues that a country of 10,000 kilometres long and 55,000 kilometres across is still different,” Pavel Volkov, State Secretary, Deputy Minister for the Development of the Russian Far East and the Arctic.

“Long terms of investment cycles in the mining industry are 7–10 years. Seven years have passed by the time you put the facility into operation, the terms of financing and legislation have been changed, the worst thing is that the demand for products or the price for it has changed. And the project that you considered effective becomes unattractive after some time,” Dmitry Pristanskov, State Secretary, Vice-President, Norilsk Nickel.

SOLUTIONS

Integrated approach to the development of regions based on scientific data

“The issues of both northern delivery and the Northern Sea route are extremely important for us in terms of ensuring the connectivity of our northwestern regions with the Far East, important in terms of regional development, important in terms of developing transport accessibility. All these questions are interrelated. Their solution requires an integrated approach. And it is important that the integrated approach is to be built on a scientific basis,” Nikolay Korchunov, Ambassador-at-Large of the Ministry of Foreign Affairs of the Russian Federal; Chair of the Senior Arctic Officials, Arctic Council.

“Russia should be the flagship of Arctic science, <…> moreover of the world level. We do not exclude [ourselves. – Ed.] from this equation, since it is impossible having excluded Russia, to observe how the climate is changing there, what is happening in our eastern Arctic seas. Such cooperation of universities between those scientists of those countries who are ready to cooperate is very important,” Anastasia Likhacheva, Dean of the Faculty of World Economy and World Politics, National Research University Higher School of Economics.

“Based on science, medicine, education, just on more thorough research, human relations should turn the economy around, turn to a person, not only for the development of the region, but for the development of everyone living in the territory,” Elena Shumilova, Member of the Committee on Federal Structure, Regional Policy, Local Self-government and Affairs of the North.

“You know that our Ministry [of the Russian Federation for the Development of the Far East and the Arctic. – Ed.] was formed ten years ago to pursue development of the Far East in integrated manner. Our ministry was very different from all other federal executive bodies. You know that our management system is based on the sectoral principle – someone is for transport, someone is for another, we are for the whole “jacket” in general. It seems that we established a management system,” Pavel Volkov, State Secretary, Deputy Minister for the Development of the Russian Far East and the Arctic.

Creating living conditions similar to the opportunities in the Central Russia

“People coming consciously to conquer the Arctic make their choice. They make a choice perhaps for the rest of their lives. They go, work, conquer the Arctic, prove to themselves that they can. But it is important to create certain conditions. They should be no less interested, local governments and local authorities should create conditions for life, so that people have the same opportunities as in Central Russia,” Elena Shumilova, Member of the Committee on Federal Structure, Regional Policy, Local Self-government and Affairs of the North.

“Improving the well-being of Arctic residents is also on the agenda,” Nikolay Korchunov, Ambassador-at-Large of the Ministry of Foreign Affairs of the Russian Federal; Chair of the Senior Arctic Officials, Arctic Council.

“At least one trillion rubles a year should be invested, starting from the medium-term programme in order to reach the level of the Central Federal District. <…> It is necessary to build an investment climate, investment opportunities to help entrepreneurship to develop, so that the social sphere develops through the country,” Pavel Volkov, State Secretary, Deputy Minister for the Development of the Russian Far East and the Arctic.

For more information, go to the Roscongress Information and Analytical System roscongress.org.

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