Government wants Northern Sea Route be cheaper than Suez Canal

MOSCOW, Mar 31 (PRIME) -- Deputy Prime Minister Yury Trutnev has ordered the Far East Development Ministry, the Transport Ministry, and state nuclear power corporation Rosatom to analyze the cost of cargo transportation through Russia’s Northern Sea Route and make it cheaper than the Suez Canal, Trutnev told reporters on Wednesday.

“I asked the Far East Development Ministry, the Transport Ministry, and Rosatom to hold a joint economic analysis. We have to make the cost of cargo transportation through the Northern Sea Route at least equal or lower, which would be even better, than the Suez Canal,” he said.

So far, transportation through the Northern Sea Route is about 30% more expensive than through the Suez Canal as the route is shorter. If state support is necessary, it should be provided, he said.

“It is impossible for us to make a large project generate profit immediately after its launch. We will have to invest money for some time after that. It is a common situation for any investment project. This is why we have to promote the project at the initial stage,” he said.

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