- A logistics support agreement ratified in Moscow opens the door for Indian naval and commercial vessels to access Arctic ports.
- The pact supports cooperation on the Northern Sea Route, a shipping corridor that could reduce transit distances by up to 40%.
- Joint shipbuilding, icebreaker assistance, and seafarer training are now on the agenda as the Arctic becomes a strategic trade frontier.
India is set to enter a new phase of maritime cooperation with Russia after the Reciprocal Exchange of Logistics Support agreement was ratified in Moscow ahead of the recent leadership visit to New Delhi. The deal formalises access to Russian Arctic ports and support services, marking India’s first structured step into a region now gaining commercial relevance as ice coverage retreats.
The Arctic has been discussed for more than a decade as a future shipping corridor, and this agreement positions India to participate rather than observe from a distance.
Northern Sea Route Offers Time and Cost Advantages
Russia has promoted the Northern Sea Route as a commercial alternative to the Suez Canal. Analysts note that the Arctic passage could reduce distances between Northern Europe and the Indo-Pacific by up to 40%, cutting fuel consumption and transit times, and allowing vessels to complete more voyages each year.
Studies referenced by shipping firms suggest potential cost reductions between 17% and 33%, driven by shorter distances, fewer conflict risks and potentially lower insurance premiums.
For a country moving 95% of its merchandise trade by sea, even small efficiency gains translate into significant savings.
Infrastructure and Expertise Will Be Critical
Arctic operations require specialised assets. Russia currently operates the largest fleet of nuclear icebreakers capable of clearing routes through frozen waters. Indian industry recognises the gap in icebreaking capability, polar navigation and cold-weather operations — making cooperation essential.
Under RELOS, Indian vessels will be able to refuel, seek repairs and request icebreaker escorts at Russian facilities. Officials indicated this could extend to access across dozens of naval and logistical sites stretching from the Arctic to the Pacific.
Integrated Corridors Shape New Trade Architecture
The plan aligns with other connectivity projects, including the International North–South Transport Corridor and the Chennai–Vladivostok Eastern Maritime Corridor, which already reduce travel time compared to the Suez route. These corridors form a multi-modal framework linking India to Europe and Asia-Pacific markets.
Shipbuilding partnerships are also under discussion, including proposals to jointly construct Arctic-capable vessels as India expands its shipyard capacity with new government incentives.
Training initiatives for seafarers are also underway, establishing skills India previously lacked and supporting employment in specialised maritime sectors.
Geopolitical and Commercial Balancing Ahead
Increased Arctic cooperation gives India greater room to engage in a region where global competition is rising, particularly as Russia looks for broader partnerships and reduced dependence on a single market.
However, trade imbalances, sanctions, and payment mechanisms remain challenges for commercial flows — factors that will influence how quickly cooperation translates into economic outcomes.
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Source: Marine Insight
