India Wins Russia's Icebreaker Contract, Defeating China
Russia has chosen India to jointly build four non-nuclear icebreaker ships worth $750 million, enhancing bilateral ties and India's role in Arctic navigation.
In one of the firsts, Russia has selected India over China to jointly build its 4 non-nuclear icebreaker ships worth $750 million i.e. ?6,000 crores. This is a significant geopolitical and economic development for India.
According to the reports, Russia is developing these non-nuclear icebreaker ships to develop its Northern Sea Route (NSR) and navigate the challenges posed by International Sanctions. International Sanctions are the economical, technological and energy limitations imposed by western countries on the supply of resources to Russia. It is the western countries’ way to protest against the 2022 Russian invasion of Ukraine & the ongoing Russia-Ukraine war aimed to change Russia’s "political behavior".
Because of these International Sanctions, American, European, and Canadian shipyards are unable to construct these vessels for Russia. Whereas other countries including China, South Korea, and Japan are fully booked till 2028 and cannot start the construction before that. Therefore, Russia selected India’s proposal.
India had submitted the proposal to jointly build these icebreaker ships in India to Russia through an Indian business delegation in November 2023 at the Eastern Economic Forum (EEF) in Vladivostok. Indian Minister of Ports and Shipping, Sarbananda Sonowal, has also visited Russia for the first time back then and held a meeting with Russia’s Minister of Development, Alexey Chekunkov. In the meeting, Sonowal had also expressed India’s eagerness to train its personnel in Arctic navigation and discussed the possibility of co-development of the Northern Sea Route as a significant transit hub. PM Modi had also discussed these projects with Russian President Vladimir Putin during his 2 day visit to Moscow in July 2024.
Russia wants to develop the Northern Sea Route as an alternative global shipping route as it offers faster transit between Northern Europe and East Asia (including India) than the famous Suez Canal route. Russia plans to transport around 150 million tonnes of crude oil, liquefied natural gas, coal, and other cargo annually by 2030.
Russia’s this plan requires construction of new ports, terminals, emergency response vessels, and 50 icebreakers and ice-class vessels out of which 4 non-nuclear icebreaker ships will now be jointly built by India in India. Russia has also promised additional orders in the future to India. Collaborating with Russia on this project will not only enhance Indo-Russia relationships but can also make India one of the key players in Arctic (North Pole) affairs. It also increases trade between India & Russia and India & Northern European countries benefiting India’s economy exuberantly.
To support this initiative, the Russian Direct Investment Fund (RDIF) and India’s Enso Group have agreed to jointly invest up to ?1,800 crore (approximately $225 million) in shipbuilding infrastructure development in India. Russian Nuclear energy company ROSATOM is scouting potential shipyards in India to develop to support this project. The Indian government is in talks with 2 shipbuilders—one government-owned and the other private—to construct these 4 icebreaker ships for Russia.
However, Russia is simultaneously also advancing its bilateral initiatives of Arctic routes with China to maintain strategic cooperation & good relationship with both India and China.
