While Russia’s economy is increasingly burdened by Western sanctions, Moscow has recently made crucial headway with a new Arctic transport corridor, which could have far-reaching economic and geopolitical consequences. Last month, Maersk, which is the world’s largest shipping firm, made headlines by sending its first cargo ship through Russia’s Northern Sea Route. The NSR links Asia to Europe, utilizing Russian waters in the Arctic Ocean. Moscow’s case for promoting the NSR is obvious. The route between Asia and Europe is about two weeks shorter than its Suez Canal competition. Fewer days at sea means faster delivery times and lower fuel and personnel costs. There are also fewer vessels using the NSR and with Russian policing the route, piracy is not a concern, unlike in the Suez Canal or the Malacca Strait.

Even though Russia has long used the route, the NSR is now attracting global attention due to climate change. Although it is only currently accessible for roughly three months of the year, this window — along with its global importance — is only expected to widen over the coming years as temperatures rise. But this new transport corridor, linking South Korea to St. Petersburg, is already redefining the international flow of goods and services. Capitalizing on increasing Asian demand for Russian natural gas exports, Moscow will increasingly link its Yamal production directly to the growing North East Asian markets of South Korea and Japan. This is dire news for the shipping economies in the region, like Singapore, which rely heavily on the tariffs generated by their role in the global transportation chain. For much of the past decade, analysts have said the NSR is merely a pipedream. Some critics have argued that the isolated nature and operational environment of the Arctic was a roadblock. Others argued that in order to be competitive, the NSR must be accessible year-round. Experts also have suggested that Russian energy is a thing of the past, citing “game-changing” U.S. LNG.