China and Russia have deepened their cooperation on Arctic shipping routes, a move that comes as both countries face increasingly strained relations with the West. The two nations have agreed to jointly develop the Northern Sea Route, which stretches 5,600 km (3,500 miles) from the Barents Sea, located near Scandinavia, according to reports from Chinese media.
In a related development, two Chinese heavy-lift vessels recently arrived off the coast of Russia’s Arctic LNG 2 project. The vessels had made a five-week journey through early winter sea ice, delivering large-scale power generation modules for the project. These modules were built over the past two years by Wilson New Energies, a Chinese engineering and construction company.
Despite this, there is a strong possibility that the power infrastructure will remain unused for the time being. Russia’s Novatek has paused operations at its Arctic LNG 2 project and has no plans to restart them this winter. This halt represents a major setback for Russia’s gas expansion goals. The Arctic LNG 2 project, located on the Gydan Peninsula, is central to Russia’s strategy to increase its global LNG market share from 8% to 20% by 2030-2035.
The project has also faced challenges from international sanctions. After the U.S. imposed new sanctions in 2023, foreign investors withdrew from the Arctic LNG 2, suspending their financial support and commitment to purchasing LNG from the plant. These sanctions are part of broader measures by the U.S. and its Western allies aimed at limiting Russia’s financial resources, particularly in relation to its war in Ukraine.
Meanwhile, China has become Russia’s second-largest crude oil buyer, behind India, following a decline in European imports after Russia’s invasion of Ukraine. Earlier this year, the two countries reaffirmed their “comprehensive partnership” and “strategic cooperation,” expressing their opposition to Western-led military and political alliances.
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