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Few takers for Arctic route despite thaw

Higher costs, West-Russia tension over Ukraine, loan problems among reasons firms not taking the short cut

Published Tue, Oct 28, 2014 · 09:50 PM
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Bodoe, Norway

DESPITE high hopes for Arctic business from mining to shipping as the ice melts rapidly and temperatures rise twice as fast as the global average, few firms are saying that the sums still make sense.

An oil price slump and cheaper commodities, including iron ore, together with tensions between the West and Russia over Ukraine, are adding new disincentives.

Examples of extra outlay abound. Ice-breaking tankers able to carry gas from Siberia cost US$100 million,…

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