China and Russia sign agreement to establish Arctic shipping company

According to Xinhua News Agency, Chinese President Xi Jinping and Russian President Vladimir Putin jointly signed the "Joint Statement of the People's Republic of China and the Russian Federation on Developing a Comprehensive Strategic Partnership of Coordination for a New Era" in Moscow on May 5. The statement mentioned that it will promote cooperation on sustainable development in the Arctic between China and Russia, and expand the development and utilization of the Arctic shipping route and cooperation in infrastructure, resource development, tourism, and ecological environmental protection in the Arctic region, based on the rights and interests of coastal states.
To actively respond to the Sino-Russian joint statement, on June 7, local time, in the presence of Deputy Prime Minister of the Russian Federation Maxim Akimov, COSCO SHIPPING Group, NOVATEK, Sovcomflot, and the Silk Road Fund signed the "Agreement on the Arctic Shipping Limited Liability Company" in St. Petersburg, Russia. Xu Lirong, Chairman of COSCO SHIPPING Group; Wang Yanzhi, Executive Director and General Manager of the Silk Road Fund; Leonid Mikhelson, Chairman of the Board of Directors of NOVATEK; and Sergey Frank, President and CEO of Sovcomflot, signed on behalf of their respective parties.

The signing of the four-party cooperation agreement is an important measure for enterprises of the two countries to actively implement the statement of the leaders of the two countries on jointly promoting cooperation on sustainable development in the Arctic, to practice the Belt and Road Initiative, build the "Ice Silk Road", and actively participate in the commercial operation of the Arctic shipping route. It will provide new opportunities and inject new impetus for the two countries' enterprises to jointly develop and utilize the Arctic shipping route. According to the four-party agreement, the parties will establish a long-term partnership, provide joint development, financing, and implementation of year-round logistics arrangements for the transportation of goods from the Arctic region of the Russian Federation to the Asia-Pacific region, and organize the transportation of goods between Asia and Western Europe through the Arctic shipping route.

All parties believe that this will help to further develop the Arctic shipping route into a global commercial transportation corridor between the Pacific and Atlantic basins, playing a role in further optimizing and smoothing international trade channels, promoting global connectivity and economic growth.

Deputy Prime Minister Akimov of the Russian Federation said in his speech

On behalf of the Russian government, I congratulate the four parties on the establishment of a joint venture to jointly promote Arctic shipping. The Yamal project is of strategic significance to Russia, and logistics transportation is crucial to the success of the project. The Russian government welcomes the participation of capable companies. Arctic transportation is currently mainly oil and gas, and it is believed that various goods, including containers, will be transported through the Arctic shipping route in the future. The Russian government will provide support for cargo transportation.

Leonid Mikhelson, Chairman of the Board of Directors of NOVATEK, said in his speech that the Russian government proposed that the annual cargo volume of the Arctic shipping route will reach 80 million tons in 2024, of which 50% will be undertaken by NOVATEK. COSCO SHIPPING is the world's largest shipping company, Sovcomflot is a major Russian shipping company, and the Silk Road Fund is a financial partner. The establishment of a joint venture by the four companies is very significant for ensuring Arctic transportation. We will ensure the success of the project and a good level of profitability.

Xu Lirong said in his speech at the signing ceremony that yesterday, President Putin and President Xi Jinping met, and President Xi clearly stated that he supports Chinese companies in participating in Arctic construction. COSCO SHIPPING Group is one of the world's largest shipping companies using the Arctic shipping route. We are full of confidence in cooperation and will work together to develop the Arctic shipping route well.

Sergey Frank, President and CEO of Sovcomflot, said in his speech that the four parties should work together to ensure the reliability and safety of the development of the Arctic shipping route. It is believed that the Arctic shipping company will provide strong support for the sustainable development of the joint development of the Arctic shipping route by China and Russia, and promote the business development of various enterprises.

Wang Yanzhi, Executive Director and General Manager of the Silk Road Fund, said that the four-party cooperation to develop the Arctic shipping route is of strategic significance. The Silk Road Fund will work with all parties to ensure mutually beneficial cooperation.

国家丝路基金执行董事、总经理王燕之表示，四方合作开发北极航道具有战略意义。丝路基金将于各方将共同努力，确保互利共赢的合作。