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Andrei Chibis reported that, in pursuance of the Presidential instruction that had been issued following the International Arctic Forum in Murmansk in March, the State Council Commission for the Northern Sea Route and the Arctic drafted proposals concerning the comprehensive development of the Arctic in cooperation with the Russian Maritime Board. The issue is about creating a single integrated project to develop the Arctic and the Trans-Arctic transport corridor, including the Northern Sea Route. The Governor noted that with only two percent of the population, the Arctic accounts for up to ten percent of the country’s GDP. Russia is the undisputed leader in the Arctic region, accounting for 46 percent of GDP produced in the global Arctic.

The President suggested discussing issues that matter most from the perspective of the Murmansk Region. Andrei Chibis noted a serious challenge where the projects currently underway ensure growth in cargo traffic only until 2035. After that, there is a significant risk of a decline in cargo traffic along the Northern Sea Route. The projects and deposits currently under development will be depleted by that time, and one of the key challenges now is to identify lucrative investment areas in order to keep the cargo flow up and running.

The discussion also covered the gas infrastructure development, which is, according to the Governor, a matter of critical importance, as it is important not only for the local households, but changes the structure of the Murmansk Region’s economy as well. Processing locally what is produced locally is crucial. For example, apatite concentrate is produced locally but is then transported to a distant processing facility. It then gets back as fertiliser and exported through the ports. Processing locally would create added value, reduce costs, and increase tax revenue.

Andrei Chibis asked the President for support to ensure that gas prices for industrial consumers, following the region’s gas supply programme, remain at the average level for the country’s north-western regions. This measure would create competitive conditions for the development of new industrial capacity in the region. Vladimir Putin also drew the governor’s attention to the fact that industrial growth will inevitably increase the scale of the waste problem, while the region has already accumulated a significant amount of waste. Mr Chibis reported that technical solutions and appropriate technologies were currently being developed, including for the decades-old waste sites. Work is underway to identify options for their processing and for extracting useful components that previously could not be recovered due to technological limitations.

The governor also noted that the region currently ranks second in the National Environmental Rating. Nevertheless, accumulated environmental damage in the Arctic does exist. There are issues related to industrial enterprises, an active volunteer movement, and, more broadly, a comprehensive commitment to preserving the Arctic environment while advancing industrial development.

The President further stressed that accumulated environmental damage, and environmental protection in general, is a public health issue. There are problems requiring special attention in this sphere, particularly given the rise in cancer and other neoplastic diseases in the Murmansk Region. Andrei Chibis reported that diagnostic rates had significantly improved and that construction of a new oncology centre wing was nearing completion; the facility is expected to be a cutting-edge medical institution. He also requested the President’s support for the planned construction of a children’s hospital, noting that the site, technical solutions, and medical and technical specifications are already prepared.

The President also highlighted the need to modernise children’s social infrastructure such as schools and kindergartens, pointing out that more than 70 percent of such buildings in the region required major renovation. Mr Chibis assured the President that the regional administration was actively addressing this issue, with eight new kindergartens built in recent years. This year, a new, modern school – the Governor’s Lyceum – was opened, equipped with advanced educational technologies. Its main areas of study include the Northern Sea Route, Arctic mineral resources and bioresources, providing students with early career orientation in these fields. These areas are also being developed at the regional university, where a world-class campus is currently under construction.