Russia’s nuclear agency Rosatom, which owns a fleet of nuclear icebreakers, has revealed it is in talks with oil companies to divert Russian crude oil from Baltic Sea ports to the Northern Sea Route (NSS), which runs through the Russian Arctic, to facilitate delivery. to Asia, reports El Periodico, cited by Rador.

“The embargo imposed by European countries on the supply of Russian oil and petroleum products not only became a challenge, but also opened a new window of opportunity for the transportation of a larger number of cargoes through the Republic of Moldova,” the head of Rosatom, Oleksiy Likhatsev, said on Wednesday. President Vladimir Putin.

Likhachev says that Rosatom, together with Russian companies, is now working to “redirect Russian oil from the Baltic ports to the Northern Sea Route, the safest and most attractive route.” Thanks to this, he said, it became possible to “transfer a lot of shipping activities from the west to the east” against the background of Western sanctions against Russian ships and insurers, as well as against Russian crude oil and its derivatives.

The Arctic route was launched in 2011 by Russian President Vladimir Putin, but it is a project for the future, as the Kremlin does not expect it to be operational as a full-fledged international corridor until 2035.

The ship has to travel 10,600 kilometers to get from the Russian city of Murmansk to the Chinese port of Shanghai, and if it decides to cross the Suez Canal, it will have to travel 17,700 kilometers.

In addition, the Suez crossing takes an average of 35 days, while the Russian-promoted artery saves 10-12 days per vessel, which would save up to €500 million a year through “lower carbon emissions.” Moscow.

The price of Brent oil recently suffered its biggest drop this year (17% since April). Experts expect the price to return to around €80 per barrel, although volatility is extreme. Russian oil exports were more than 8.3 million barrels per day, a very high level that also weighed on markets despite the missed output cut announcement.

Sanctions against Russia increase price volatility, and experts believe that OPEC+’s ability to respond is currently less than in the past. If Chinese demand picks up, prices may rise slightly.

In this context, Likhatsev said that Rosatom and Russia’s largest independent producer of natural gas, Novatek, plan to launch year-round transportation in early 2024.

The company expects that about 80% of the liquefied natural gas (LNG) produced as part of the planned launch of the Arctic LNG 2 project with a capacity of 20 million tons per year will be supplied to Asian markets.

Last month, Deputy Prime Minister Oleksandr Novak said the country would divert 140 million tons of crude oil and petroleum products to Asia this year and deliver only 80-90 million tons to Europe because of sanctions.

In 2022, Russia sent 220 million tons of crude oil and oil products to Europe. The head of Rosatom explained that last year the cargo traffic on this route amounted to 34 million tons, which is 2 million more than expected, and this year the goal is to reach 36 million tons.

“We are working with the Ministry of Development of the Far East and companies to achieve this ambitious figure,” Likhatsev said.

Not only Russian companies are showing interest in the Northern Sea Route, but also companies from other BRICS countries (Brazil, Russia, India, China and South Africa) and from the Middle East, noted the head of Rosatom.

“In connection with this, work is underway to attract partners from friendly countries not only in transit through the Republic of Moldova, but also in the development of infrastructure,” he said. Russia presents the Northern Sea Route as a real alternative to the Suez Canal. , the option is becoming increasingly available due to the retreat and thinning of the ice in Russia’s Arctic regions, El Periodico reports.