Abstract
The significant resource potential of the Arctic has attracted the attention of its adjacent countries and extra-regional states. The mineral and raw material base of the Arctic Zone of the Russian Federation (AZRF) comprises a wide range of minerals. However, due to its hydrocarbon reserves, the Arctic is considered to be the most important geopolitical and geo-economic macro-region for Russia. A significant portion of the Arctic hydrocarbons (about 19%) is concentrated in the territory of Russia’s shelf. The extraction of Arctic marine oil and gas resources and ensuring the sustainability of the Russian energy complex depend significantly on the level of Arctic development. Thus, the pace and quality of the development of AZRF are strategically important to ensure the national interests of the country. It has been proven that the implementation of the state program for AZRF development and strategic plans of the largest companies operating in the region consolidate the raw material nature of AZRF development. Rent becomes the main form of income. This article addresses the main directions of the region’s development and the factors that prevent a high level of industrialization, which increase attention to the withdrawal and redistribution of rental income. The article considers the Russian and foreign experiences of withdrawal and redistribution of oil and gas rental income, and analyzes the level of socio-economic development of AZRF. The authors suggest a methodology for assessing the impact of a country’s area and population size on the ability to achieve a high income due to hydrocarbons. The authors also explain the principles of rental income redistribution in the region as a basis for improving the level of AZRF’s socio-economic development and as a condition for transition from the “colonial model” of development to the “sustainable development” model. The study results can be used to elaborate a mechanism for rental income redistribution in AZRF and state programs for the region’s development.
Highlights
IntroductionThe Arctic is a major attraction, to the near-Arctic states (Russia, the USA, Canada, Norway, and Denmark), and to extra-regional states (China, Japan, India, etc.) due to its significant resource potential
The Arctic is a major attraction, to the near-Arctic states (Russia, the USA, Canada, Norway, and Denmark), and to extra-regional states (China, Japan, India, etc.) due to its significant resource potential.Russia, a leading country in hydrocarbon production, mines 83% of all produced gas and 12% of all produced oil in the Arctic zone [1]
“Basic Principles of Russian Federation State Policy in Arctic to 2035” [4] and strategic plans of the largest companies operating in the region consolidate the raw material nature of Arctic Zone of the Russian Federation (AZRF) development
Summary
The Arctic is a major attraction, to the near-Arctic states (Russia, the USA, Canada, Norway, and Denmark), and to extra-regional states (China, Japan, India, etc.) due to its significant resource potential. A leading country in hydrocarbon production, mines 83% of all produced gas and 12% of all produced oil in the Arctic zone [1]. The raw material base of the Russian oil and gas industry is characterized by the fact that large and highly profitable deposits are largely exhausted, and the most.
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