THE MINING SECTOR OF THE RUSSIAN ARCTIC: INDUSTRIAL POTENTIAL ASSESSMENT

Abstract

The Arctic regions of Russia are primarily focused on the extraction of raw materials, and the mining sector has witnessed an increase in added value in recent years. On average, 84% of taxes and fees contributed to the budget system of the Russian Federation originate from the Arctic’s mining sector, which highlights the importance of analyzing the activities of this sector. This article aims to assess the industrial potential of the mining sector in the Russian regions located in the Arctic zone. Such an assessment identifies the potential uses of a combination of resources to enhance the economic development of these regions. The study employed various theoretical methods such as generalization, comparison, and systematization, along with empirical analysis including statistical observation and graphical interpretation. The research draws upon scientific publications related to the industrial potential of Russian regions, utilizing data from the Federal State Statistics Service to evaluate the mining sector’s potential in the Arctic regions. The article discusses the advantages and limitations of current methodologies for ranking Russian regions based on the industrial potential of the mining sector. Building upon the study, a comprehensive methodology is proposed, which involves assessing the industrial potential of the mining sector through the calculation of indices based on 17 indicators grouped into five domains: materials and technology, innovation and investment, finance, labor, and infrastructure. The proposed methodology was applied to analyze the industrial potential of the mining sector in four Russian regions located within the Arctic zone for the period from 2017 to 2021. The findings indicate that the Murmansk region exhibits the highest industrial potential in Russia’s Arctic mining sector, with the Yamalo-Nenets Autonomous Okrug ranking second. The Nenets Autonomous Okrug and Chukotka Autonomous Okrug display relatively low potential in the mining sector.

Keywords

• mining sector
• arctic regions
• methodology
• indicators
• assessment
• ranking
• industrial potential