Like all spatially delimited regions in international society, the Arctic is socially constructed. Political and economic considerations play prominent roles as determinants of the region’s boundaries, the identity of those states regarded as Arctic states, and the nature of the interactions between the Arctic and the outside world. From this perspective the recent history of the Arctic divides into two distinct periods: the late 1980s through 2007 and 2007 to the present. As the cold war faded, the Arctic became a peripheral region of declining importance in global political calculations. No one challenged the dominance of the eight Arctic states in regional affairs, and the Arctic Council focused on regional concerns relating to environmental protection and sus tainable development. Today, by contrast, the ‘new’ Arctic is a focus of intense glo bal interest, largely because climate change is proceeding more rapidly in this region than anywhere else on Earth with global consequences and because the increasing accessibility of the Arctic’s natural resources has generated enhanced interest on the part of outside actors. As a result, Arctic issues have merged into global issues, making the region a prominent arena for the interplay of geopolitical forces. Cooperative arrangements established during the first period (e.g. the Arctic Council) may require adjustment to operate effectively in the ‘new’ Arctic. Treated as a case study, the Arctic story provides an illuminating lens through which to analyze the forces that shape thinking about the nature of regions in international society and the role of cooperative arrangements at the regional level.

The article deals with modern features of the Arctic economy. It is shown that in those spheres and directions of economic activity, which are associated with the development of natural resources (primarily mineral resources) and focused on obtaining returns on investment, there is a strengthening of the role not only of new knowledge and new technologies, but also significantly increase the role and importance of forms of cooperation of the parties involved in the implementation of projects. This approach allows, on the one hand, to solve the problem of attracting investment in high-risk and, at the same time, high-yield projects, but it also will not allow to fully realize the opportunities associated with the development and use of domestic research and production potential in the implementation of projects in the framework of such “hybrid forms”. One of the direct and immediate consequences of this approach in the practice of field development in the Arctic zone of the Russian Federation (AZRF) is a significant increase in the knowledge-intensive service sector, which meets the needs for equipment and labor by borrowing foreign advanced technologies and the widespread use of interregional watch. These processes lead, in particular, to the fragmentation of the economic space of the country (reducing the degree of connectivity of the economies of different regions), as well as to the stagnation and extinction of urbanized settlements in the Russian Federation.

Intensification of Arctic shipping requires the regional states to take appropriate measures aimed at mitigation of emerging risks. This relates to ensuring the compliance by vessels with the relevant provisions of international law in the field of safety of navigation and protection of the marine environment. The Polar code, which entered into force in 2017, set the minimum safety and environmental standards for the vessels navigating in the severe waters of the Arctic and the Antarctic. However, under the Code the responsibilty for ensuring compliance with the requirements rests with the administration of the flag state. In general, this reflects the approach of the international law, according to which the flag state is fully responsible for ensuring that a vessel under its flag meets international standards. Nevertheless, polar shipping represents a special kind of activities, which requires special experience and skills, including of the flag state administration carrying out the control. The problem is aggravated by the fact that vessels navigate in the Arctic waters often under a flag of convinience, with states not being able to perform a proper control. One of the potential efficient measures to ensure the compliance with the provisins of the Polar Code by vessels in the Arctic is the development of a regional port state control mechanism. Such instruments are widely used on the regional level and are highly valued by the International Maritime Organization. Implementation of an Arctic port state control mechanism will require development of a vessel inspections system aimed at ensuring compliance with the Polar Code standards, exchange of information between participating states, in particular on non-compliant vessels and weather forecasts in specific areas of the Arctic. An important element of the Arctic mechanism should be engaging of non-arctic states from Asia and Northern Europe, given that states from these regions would be the ports of departure in case of a transit passage through the Arctic Ocean without entering the Arctic coastal states’ ports. An option of extending the mandate and scope of existing port state control mechanisms is also considered as an alternative to creating a new one specifically for the Arctic. However, this approach would entail more difficulties and would not ensure the needed involvment of all parties concerned.

Global climate change in the Arctic has been unfolding more rapidly than in other parts of the world, and its impacts affect vulnerable northern ecosystems, health and well-being of the Northerners, economic sectors and infrastructure in the polar regions of the eight Arctic states. Consequences of climate change for human society are analysed in synergy with ongoing transformations in social, economic and institutional systems in the Arctic region. Their cumulative effect exposes a variety of challenges for sustainable development of the northern communities, regions and countries; it reveals a number of uncertainties in the future pathways within the transformative context, as well as a combination of risks and opportunities for societies; it requires human responses and adaptations to consequences of the Arctic change. Adaptation to climate change in combination with greenhouse gases emission reduction turns into an important component of climate policies and measures of the Arctic states. This article presents innovative results of analysis of the major trends and features in formation of adaptive governance in the Arctic. It emerges to be based on a polycentric design, and particularly, on coordination of response actions at various levels, on interactions and networks of a variety of the Arctic stakeholders, on taking into account local environmental and socio-economic contexts, on combination of multidisciplinary approaches and packaging of governance mechanisms and instruments. The study analyses the major developments and innovations in adaptation approaches, policies, and practices of the Arctic regions in N. America (Canada) and Europe (Norway). Its foci is on assessment of priorities, strategies and planning, institutions, economic instruments, climate services, application of structural measures for disaster risk reduction. It explores possibilities of regional exchange of best practices in the Arctic, and core barriers for success in implementation of adaptation policy options. The role of the Paris agreement in formation and structuring of adaptation policies and measure of the northern regions of the Arctic states is analysed.

Post-crisis development of national economy substantially is defined by global trends on restoration of growth rates. It is necessary to use the capacity of macro regions of the country among which the important place is taken by the Arctic Zone of the Russian Federation (AZRF). There is a need for a research of ability of structure of economy of the territorial subjects of the federation entering it in whole or in part to adapta tion to the changing managing conditions. It is important to reveal effectiveness of efforts of large and small business, the regional and federal bodies of authority and management, the available market institutes in general directed to activation of economic factors of AZRF. In article the hypothesis of a possibility of assessment of dynamics of change of this structure with the indicators characterizing structure of the gross regional product (GRP) of the territorial subjects of the Russian Federation included in AZRF is made and considered. The research of structure of this indicator is conducted during 2005–2016 with application of the index of structure offered by the author. It is revealed that during the analyzed period of fluctuation of the sizes of shares in structures of GRP of subjects of AZRF significantly differ among themselves. Entry into AZRF into the analyzed period had no significant effect on change of structure of GRP of the entering territorial subjects of the Russian Federation yet. It says about prevalence of the economic practice which developed under the influence of a geographical factor. In subjects of AZRF the trend on reduction of a share of agriculture, hunting and forestry, the processing productions, transport and communication and financial activity with simultaneous increase in a share of mining proceeds. Significant growth in a share of public administration and ensuring military safety is observed; obligatory social insurance at stagnation of the size of a contribution of education, health care and providing social services. Fluctuations of the sizes of shares in structures of GRP of subjects of AZRF are uneven that speaks about preservation of a trend on a variety of structures of regional economies. The insignificant tendency to more balanced participation of subjects of the district in creation of total amount of GRP due to high dynamics of the extracting sector is revealed. In the Arctic in the analyzed years the industrial logic of development assuming large-scale industrial exploitation of natural resources amplified.

The article shows that the modernization of existing and the creation of new industries in the developed territories, their infrastructure development is a priority in the development of the productive forces of the North, including the Arctic. Optimism about the Arctic vector of development, according to the author, should be moderate. The main directions of modernization of the existing economic systems are considered. These areas are associated with the forms of placement of production and settlement of the population in the form of territorial and economic complexes, geographically and economically remote industrial centers and the periphery of the predominantly rural type. Attention is focused on the rise of the role of the natural factor in the socio-economic development of the Arctic and Northern territories and the need for interregional integration in solving the problems of environmental protection. The solution of the problems of the Arctic and the North is connected with the improvement of relations in the system of economic federalism. The main point here is the coordination of public, state and corporate interests for the sake of improving the standard of living of the rooted population, providing the national and world markets with raw materials.

The paper contemplates massive transformation processes in the Russian Arctic zone, identified by the authors as the “re-development” of the Arctic, which integrate resource-intensive but necessary exploitation of the huge “Soviet legacy” and construction of the novel industrial and social facilities and infrastructure. The key role of Russian Arctic “re-development” as the most appropriate model at the country and regional levels is substantiated. The success of the Arctic development will depend to a decisive extent on the advanced revision of the basic provisions of the current state of industrial, energy, transport, demographic, etc policies. The paradoxes of the demographic situation in the Russian Arctic are considered and the directions of the organization of health care system in this macro-region are introduced taking into account: (a) specificity of the urbanized and rural areas in the Western and Eastern (beyond the Urals) parts of the Russian Arctic; (b) specific needs for medical service provided to miners and metal workers, servicemen, sailors and shift workers as well as communities of the indigenous peoples of the Russian North. Peculiarities of interaction between the state policy and that of the big corporations in the Arctic are disclosed including those concerning climatic risks mitigation. Given this perspective the public policy measures to regulate greenhouse gas emissions proposed by the Ministry of economic development of the Russian Federation are critically assessed. In conclusion, the consistency of recent changes in the development policy in the Russian Arctic that should result in organization of a special Federal ministry for the Arctic is substantiated.

A strong global interest in the hydrocarbon resources of the Arctic emerged in the mid-2000s, after the US Geological Survey published data on its petroleum potential. While oil prices were rising, an “Arctic optimism” prevailed everywhere, and it was anticipated that a broad-scale oil production in the Arctic would soon begin. At that time, a political aspect dominated in the Russian plans to develop Arctic offshore. Russia intended to prove that it was an energy power capable of establishing a new petroleum province in the Polar seas to replace the aging West Siberia. But later the global energy sector underwent radical changes, and optimism was gradually replaced by realism. The decline of oil prices and introduction of anti-Russian sanctions contributed to the downgrading of the Arctic plans in Russia. Besides, the monopoly of Gazprom and Rosneft over the Arctic shelf hinders the development of its hydrocarbon resources because the state companies do not have sufficient competencies to operate offshore fields on their own. After 2014, Russian oil companies began to revise downwards their plans of oil production in the Arctic seas. Given the sanctions and low oil prices, now relevant ministries also more realistically perceive the prospects of the northern continental shelf development, and their new attitude is clearly visible in their public statements. Thus, they indirectly admit that Russia is not ready yet for environmentally sustainable activities in the Arctic offshore. Actually, many experts and oil companies previously demonstrated a cautious approach to the possibility of the broad-scale oil production in the Polar seas reminding that the potential of the mature Russian oil provinces onshore is still significant. Now, the government makes a strong focus on the onshore alternatives to the Arctic shelf of Russia: the development of hard-torecover reserves, enhanced oil recovery, and support of small and mid-size companies, i.e. the priorities seemingly shift from the extensive to the intensive mode of the sector development. However, pessimistically one can recall that such plans were often made in the past and they remained on paper. Ultimately, broad-scale oil production on the Arctic continental shelf will not begin before 2035. Russian oil and shipping sectors benefit from such time-out, because they receive a chance to train qualified per sonnel capable of operating on the Arctic shelf with strict adherence to the environmental sustainability principles.

The sectoral structure of the Northern sea transport corridor is defined, the set of the transport tasks provided to them - the international transit, import and export operations, internal transportations is considered. It is shown that in relation to the water area of the sector of the Northern Sea Route both the international, and internal transportations (big cabotage and intersectoral transportations) can be referred to transit. The analysis of transit transportations across the Northern Sea Route between the countries in 2010-2018 is carried out, dynamics and commodity structure of transit is defined. Dynamics of transit transportations of main types of freights is considered: bulk freights (oil products, gas condensate), bulk cargoes (iron ore, coal). The analysis of dynamics of in-Russian transit transportations across the Northern Sea Route is carried out; dynamics of transportations of frozen fish which transportation the possibility of creation of the year-round container line between the ports of Petropavlovsk Kamchatsky, Murmansk, Arkhangelsk and St. Petersburg contacts is separately considered. Results of development of transit transportations in 2010-2018 are generalized and the factors defining demand of transit transportations of different types of freights are defined. Assessment of prospects of development of transit freight traffic by foreign shipping companies (Maersk) is given. The conclusion is drawn that a priority of development of navigation in the sector of the Northern Sea Route is providing national investment projects - transportations of mineral resources and ensuring activity of mining companies. At the same time, creation of a steady system of transportation of the Arctic mineral resources defines problems of development of icebreaking, navigation and hydrometeorological providing that will lead to reduction of risk of the Arctic navigation and will increase appeal of the sea Arctic transport system in general. It is defined that emergency conditions for development of navigation in the water area of the Northern Sea Route are: expansion of group of the domestic Arctic linear icebreaker fleet; central planning of sea freight transportation and coordination of actions of participants which could increase appeal of use of the Northern Sea Route including for transit transportations.

Dramatic changes, mainly caused by global warming and globalization in recent decades, have been evident in the Arctic. The peace and stability of the Arctic, scientific research in the region, potential business opportunities and international governance have sparked widespread attention and debates around the globe. The joint establishment of the Polar Silk Road (PSR) is tantamount to international cooperation initiative between Russia, China and the related Arctic countries, which is intended to achieve common development and joint governance of the Arctic through knowledge accumulation, helps to promote interconnectivity and sustainable development in the region. As a part of China’s Arctic policy and cooperation between Eurasian Economic Union (EAEU) and the Belt and Road Initiative (BRI), China focuses on the coordination of national interests and strategies of relevant states regarding development of Arctic sea routes and infrastructure, prioritizes knowledge accumulation and scientific research as the guiding principle for cooperation, promotes green technology solutions and humanistic concerns, and recognizes the PSR cooperation as a new growth pole for China-Russia pragmatic cooperation. However, due to fragile natural environment and political, economic and social sensitivities of the Arctic, significant interference of global and regional geopolitics, potential challenges of global environmental politics, Acknowledgement and capacity gaps between participants, economic and technological uncertainties are major challenges for feasibility and efficiency of cooperation, requiring more in-depth scientific research, comprehensive assessments and regular coordination and communication between all stakeholders.

The article discusses current issues of Arctic governance. The main motives of the growing interest of the world community to this region are revealed. Comparative analysis of the conceptual framework and key priorities of the Arctic policy of the Russian Federation and other circumpolar powers based on a study of their national Arctic strategies. It was determined that the main difference between the Russian model of managing the Arctic zone lies in the priority of exploitation of natural resources on the basis of creating an optimal configuration of the main factors of industrial production, while the policy of foreign northern countries is aimed primarily on the sustainable development of the Arctic territories and at achieving their social sustainability through the comprehensive development of Arctic local communities. In our opinion, it is advisable for the Russian Federation to apply such a model where the state vector of Arctic policy is oriented, first of all, to the social component of territorial development as for the basis for a comprehensive balanced development of the Arctic zone and for ensuring the country’s national security. Namely, – the implementation of the model of sustainable development of the Arctic territories, the main elements of which are rational and careful nature resource use in the Arctic zone, limitation of negative environmental impact and conservation of the biodiversity of the Arctic territories, orientation on the national policy not only on the indigenous peoples of the North, but also on the local population living here, improving the quality, conditions and standard of living, as well as close mutually beneficial international cooperation on municipal, regional and global levels.