EU shipping companies effectively lose access to Northern Sea Route

(MENAFN) European Union shipping companies have effectively lost access to the Northern Sea Route (NSR) because of sanctions against Russia, the Financial Times reported, citing industry insiders. The route, which significantly shortens maritime travel between Europe and the Asia-Pacific compared to the Suez or Panama Canals, is increasingly being used by vessels linked to Russia or China.

Due to geopolitical risks, Western shipping firms are steering clear of the NSR, said Daniel Richards of Maritime Strategies International. Major operators like Danish shipping giant Maersk have halted Arctic activity and ended ties with Russia to comply with EU policies.

The NSR heavily depends on Russian infrastructure, including ports and icebreaker support provided by the state-owned nuclear agency Rosatom. The route from Yokohama, Japan, to Murmansk, Russia, is over 7,000 km shorter than traditional southern shipping lanes.

Moscow has dismissed the Western sanctions as illegal and ineffective, arguing they have backfired on the countries enforcing them. Russian President Vladimir Putin and other officials claim the measures have not damaged Russia’s economy or isolated it globally. Meanwhile, European business leaders have acknowledged that sanctions have harmed EU companies, especially small enterprises.

Ferdinando Pelazzo, president of the Italian-Russian Chamber of Commerce, noted that European SMEs have suffered most. Siegfried Russwurm, head of Germany’s BDI industry group, warned of growing deindustrialization risks as a result of Berlin’s energy policy and high costs following the loss of Russian fuel imports.

Despite the sanctions, cargo traffic on the NSR has surged. Putin reported that shipments rose from 4 million tons in 2014 to nearly 38 million tons in 2023—five times the Soviet-era record—and projected volumes of 70–100 million tons by 2030.

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