Figure 1. The various Northern Sea Route options

Alaska

M

Coastal Route

Figure 1. The various Northern Sea Route options.

eliminating all foreign traffic. Before 1991, the last

breakers since 1977. Year-round maintenance of

transit of the NSR by a foreign ship was in 1940.

the entire route is currently being promoted by the

However, in October of 1987, then-General Secre-

Russians as a way of bringing hard currency into

tary Mikhail Gorbachev announced a new spirit

the country. The shorter shipping route might serve

of cooperation in Arctic regions. As one item on

to open the entire northern region to increased

the agenda, he proposed opening the Northern

economic development, foreign trade, and tour-

Sea Route, with certain restrictions, to all foreign

ism.

vessels for peaceful and commercial purposes. This

The shift from socialism to a privatized, mar-

landmark change of policy was the first step in the

ket-driven economy in the Soviet Union that be-

privatization of Russia's Arctic fleet. Important

gan around 1985 resulted in economic and social

assets, the NSR and the northern fleet continue to

disruption. The problems were compounded in

be promoted for bringing foreign currency into

1991 with the transformation of the Soviet Union

the country by "selling" premiere Russian ice navi-

into the Commonwealth of Independent States

gation capabilities to the world. The Russians have

(CIS). One way to address these problems may lie

proposed the following ways of employing their

in the Commonwealth's ability to stimulate do-

Arctic fleet to raise foreign capital:

mestic growth and attract foreign trade. Although

Escorting foreign ships along the route with

it was fortunate that authority over the entire NSR

Russian icebreakers,

transferred intact to the new Russian Federation,

Transporting foreign goods aboard Russian

inexperience with free enterprise and reduced state

ice-strengthened cargo ships,

subsidies have resulted in unemployment and ex-

Encouraging the export and coastal move-

cess capacity in all sectors of the economy, includ-

ment of Russian goods in foreign ships,

ing the Arctic marine transportation system.

Historically, the USSR claimed that crucial sec-

Employing idle Russian icebreakers and

cargo vessels in the U.S. and Canadian Arc-

tions of the Northern Sea Route passed through

tic,

its sovereign waters and they guarded these care-

Promoting Arctic tourism.

fully from incursion by foreign vessels, effectively

5