{"id":10964,"date":"2023-11-22T06:56:00","date_gmt":"2023-11-21T19:56:00","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=10964"},"modified":"2024-10-21T20:27:23","modified_gmt":"2024-10-21T10:27:23","slug":"russia-china-eye-arctic-transhipment-to-drive-timber-trade","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/russia-china-eye-arctic-transhipment-to-drive-timber-trade\/","title":{"rendered":"Russia &#038; China Eyes Arctic Transhipment to Control Timber Supply!"},"content":{"rendered":"\n<p>Russia and China have big plans for the Arctic, with the two superpowers now collaborating on Northern sea routes for oil, gas and timber.<\/p>\n\n\n\n<p><a href=\"https:\/\/thebarentsobserver.com\/en\/arctic\/2023\/09\/russian-arctic-regions-strengthen-bonds-beijing\">As reported in Norwegian media sources<\/a>, a delegation of Russian governors met with leaders of the Shandong Port Group to discuss new shipping routes.<\/p>\n\n\n\n<p>On the agenda is Russia&#8217;s Arctic timber trade, with the company transporting Russian timber to global markets through the Chinese &#8216;red lane.&#8217;<\/p>\n\n\n\n<p>The meetings are the latest in a series between the governors and Chinese officials in the aftermath of Xi Jinping&#8217;s visit to Moscow in March.<\/p>\n\n\n\n<p>&#8220;We are entering a new level of partnership with China,&#8221; according to Murmansk Governor Andrei Chibis.&nbsp;<\/p>\n\n\n\n<p>China and Russia, Governor Chibis said, &#8220;have a joint interest in the development of the Northern Sea Route.&#8221;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"597\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/china_1.jpeg\" alt=\"\" class=\"wp-image-10966\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/china_1.jpeg 750w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/china_1-600x478.jpeg 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/china_1-300x239.jpeg 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/china_1-696x554.jpeg 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/china_1-528x420.jpeg 528w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><figcaption class=\"wp-element-caption\">Top FSB Border Guards officials and leaders of the Chinese Coast Guard meet in Murmansk. (Photo Credit: Supplied by Murmansk Twitter)<br><\/figcaption><\/figure>\n\n\n\n<p>According to Governor Chibis, the ice-free waters of Murmansk offer direct access to the World Sea without the need to traffic through international straits.<\/p>\n\n\n\n<p>Over the past four years, trade turnover between Murmansk and China has increased by 140 per cent, and, according to Governor Chibis, the Chinese want more.<\/p>\n\n\n\n<p>He said Chinese companies are interested in the Northern Sea Route and want to invest in shipbuilding in the Kola Peninsula.<\/p>\n\n\n\n<p>&#8220;I am confident that we will succeed in boosting interaction with Chinese partners,&#8221; Governor Chibis said.<\/p>\n\n\n\n<p>The Arctic has emerged as a &#8216;Cold War&#8217; battleground, with Russia, China, the EU and the US all eying off new trade routes due to retreating ice caps.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"715\" height=\"558\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/1-s2.0-S0308597X22003220-gr1.jpg\" alt=\"\" class=\"wp-image-10967\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/1-s2.0-S0308597X22003220-gr1.jpg 715w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/1-s2.0-S0308597X22003220-gr1-600x468.jpg 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/1-s2.0-S0308597X22003220-gr1-300x234.jpg 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/1-s2.0-S0308597X22003220-gr1-696x543.jpg 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/1-s2.0-S0308597X22003220-gr1-538x420.jpg 538w\" sizes=\"auto, (max-width: 715px) 100vw, 715px\" \/><figcaption class=\"wp-element-caption\">Potential location for an Arctic transhipment hub. (Photo Credit: <a href=\"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S0308597X22003220\">Arctic transhipment hub planning along the Northern Sea Route: A systematic literature review and policy implications of Arctic port infrastructure<\/a>)<\/figcaption><\/figure>\n\n\n\n<p>In fact, <a href=\"https:\/\/www.brown.edu\/news\/2022-06-22\/arctic\">according to a report published by Brown University last year,<\/a> &#8220;the Arctic&#8217;s navigability will increase so greatly that it could yield new trade routes in international waters.&#8221;&nbsp;<\/p>\n\n\n\n<p>&#8220;This not only reduces the shipping industries carbon footprint but also weakens Russia&#8217;s control over trade in the Arctic.&#8221;<\/p>\n\n\n\n<p>Lead author Amanda Lynch said the time to think critically about the legal, environmental and geopolitical implications is now.<\/p>\n\n\n\n<p>In Russia, the Kremlin now offers tax breaks and subsidies to businesses investing in &#8216;capacity building&#8217; projects in the Arctic. <\/p>\n\n\n\n<p>The 2020 legislation will see over US $300 billion invested in Arctic infrastructure over the next 15 years to make &#8220;the Arctic popular with Russian youth.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Putin remarked today that the Northern Sea Route (NSR) holds significant importance, irrespective of the current Ukraine conflict and associated sanctions against Russia.<br><br>NSR runs along Arctic ports and major rivers of Siberia and is widely used for fuel, timber, and minerals\u2026 <a href=\"https:\/\/t.co\/5zwRooqpJh\">pic.twitter.com\/5zwRooqpJh<\/a><\/p>&mdash; Yasmina (@yasminalombaert) <a href=\"https:\/\/twitter.com\/yasminalombaert\/status\/1658869454233563141?ref_src=twsrc%5Etfw\">May 17, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The investment will see 200,000 jobs created in the region, focusing on LNG, petrochemical, mining and timber industries.&nbsp;<\/p>\n\n\n\n<p>These incentives stimulate economic activity and the construction of towns, power plants, ports, and airports and stem the outmigration of the population from the region.<\/p>\n\n\n\n<p>Since Russia invaded Ukraine, the country&#8217;s relationship with China took on even greater significance. More than 83% of Russia&#8217;s timber export goes through Chinese supply chains,&nbsp;<a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/russian-conflict-timber-continues-to-finance-ukraine-war\/\" rel=\"noreferrer noopener\">with China now Russia&#8217;s distribution point to global forest markets.&nbsp;<\/a><\/p>\n\n\n\n<p>For their part, Chinese shipping companies like the Shandong Port Group play a crucial role in Russia realising its Arctic aspirations. <\/p>\n\n\n\n<p>The company includes four major seaports in the Chinese Shandong region and last month, Wood Central understands they visited the Russian Arctic region to look at local port development projects.<\/p>\n\n\n\n<p>Komi Governor Vladimir Uiba &#8211;<a target=\"_blank\" href=\"http:\/\/Komi Governor Vladimir Uiba - who has strong ties to the failed Wagner group - is pushing to attract Chinese investment to the forest processing.\" rel=\"noreferrer noopener\">&nbsp;<\/a><a target=\"_blank\" href=\"https:\/\/thebarentsobserver.com\/en\/2023\/03\/north-russian-governor-bonds-mercenary-wagner-group#:~:text=Vladimir%20Uiba%20has%20himself%20no%20military%20background%2C%20but,he%20served%20as%20federal%20deputy%20Minister%20of%20Health.\" rel=\"noreferrer noopener\">who has strong ties to the failed Wagner group&nbsp;<\/a>&#8211;&nbsp;<a target=\"_blank\" href=\"https:\/\/thebarentsobserver.com\/en\/arctic\/2023\/09\/russian-arctic-regions-strengthen-bonds-beijing\" rel=\"noreferrer noopener\">is pushing to attract Chinese investment in forest processing.<\/a><\/p>\n\n\n\n<p>Komi is Russia&#8217;s second-largest state and is home to the Virgin Komi Forests &#8211; a UNESCO World Heritage Site and the largest virgin forest in Europe.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Three large investment projects in the forest sector completed in Komi<br><br>Enterprises have invested a total of about 4 billion rubles. When these enterprises reach their full design capacity by 2023, the volume of harvested timber will increase by over 2.3\u2026 <a href=\"https:\/\/t.co\/3pnJqtXSfz\">https:\/\/t.co\/3pnJqtXSfz<\/a> <a href=\"https:\/\/t.co\/d9FfA68uHN\">pic.twitter.com\/d9FfA68uHN<\/a><\/p>&mdash; WhatWood agency (@whatwood_en) <a href=\"https:\/\/twitter.com\/whatwood_en\/status\/1365322032594960389?ref_src=twsrc%5Etfw\">February 26, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>At the same time, the Governor of Arkhangelsk, Aleksandr Tsybulsky, in May this year, told General Consul Wang Wenli that his region now increasingly looks toward China.<\/p>\n\n\n\n<p>&#8220;Now is the ideal time for adding new impulses to our partner relation,&#8221; Governor Tsybulsky&nbsp;<a href=\"https:\/\/vk.com\/a.tsybulskiy?w=wall358141318_133219\" target=\"_blank\" rel=\"noreferrer noopener\">said<\/a>.&nbsp;<\/p>\n\n\n\n<p>&#8220;Arkhangelsk Oblast is in a serious way changing its export policy, and we plan a significant increase in supplies to China of wood products.&#8221;<\/p>\n\n\n\n<p>China is exploiting Russia&#8217;s weakened position in international affairs and significantly strengthening its influence over the Russian economy.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"940\" height=\"580\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/ForGtnBaMAc7VKv-1.jpg\" alt=\"\" class=\"wp-image-10965\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/ForGtnBaMAc7VKv-1.jpg 940w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/ForGtnBaMAc7VKv-1-600x370.jpg 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/ForGtnBaMAc7VKv-1-300x185.jpg 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/ForGtnBaMAc7VKv-1-768x474.jpg 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/ForGtnBaMAc7VKv-1-696x429.jpg 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/ForGtnBaMAc7VKv-1-681x420.jpg 681w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/ForGtnBaMAc7VKv-1-356x220.jpg 356w\" sizes=\"auto, (max-width: 940px) 100vw, 940px\" \/><figcaption class=\"wp-element-caption\">Russian President Vladimir Putin with Aleksandr Tsybulsky visiting the Ustyansky timber industry complex Arkhangelsk earlier this year. (Photo Credit: Supplied by Aleksandr Tsybulsky Twitter)<\/figcaption><\/figure>\n\n\n\n<p>Chinese companies have increased major stakes in several Russian industrial projects in the Arctic, including the Yamal LNG and Arctic LNG 2 projects.<\/p>\n\n\n\n<p>In a&nbsp;<a target=\"_blank\" href=\"https:\/\/mid.ru\/ru\/foreign_policy\/news\/1903527\/\" rel=\"noreferrer noopener\">meeting<\/a>&nbsp;between Russian Arctic Ambassador Nikolai Korchunov and China&#8217;s Special Representative Gao Fen in early September this year, both parties underlined the strategic character of the bilateral Arctic cooperation.<\/p>\n\n\n\n<p>According to the Russian Foreign Ministry, the two men exchanged views on possible ways to further strengthen interaction in the Arctic in light of the new geopolitical situation.<\/p>\n\n\n\n<p>&#8220;Both sides underlined the high priority of the Arctic in the context of the development of national interests of Russia and China.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Russia and China have big plans for the Arctic, with the two superpowers now collaborating on Northern sea routes for oil, gas and timber. As reported in Norwegian media sources, a delegation of Russian governors met with leaders of the Shandong Port Group to discuss new shipping routes. On the agenda is Russia&#8217;s Arctic timber [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":13065,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[52,53,32,46],"tags":[],"ppma_author":[70],"class_list":{"0":"post-10964","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-asia","8":"category-europe","9":"category-global-news","10":"category-industry"},"authors":[{"term_id":70,"user_id":2,"is_guest":0,"slug":"jason","display_name":"Jason Ross","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=10964"}],"version-history":[{"count":4,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10964\/revisions"}],"predecessor-version":[{"id":15517,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10964\/revisions\/15517"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/13065"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=10964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=10964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=10964"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=10964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}