Arctic Yearbook 2015 - Page 43

43 Arctic Yearbook 2015 Comparison of delivery mechanism for fuels in Alaska and Chukotka The Chukotka Autonomous Okrug is relatively similar to Alaska (USA) in terms of fuel delivery conditions. Similar to Chukotka, Alaska is characterized by a poorly developed transportation network, as compared with other American states. However, there are significant varieties in organization of fuel delivery in both the regions. The characteristic feature of the transportation system in Chukotka is a total lack of railroads and pipelines. Major cargo transportation over Chukotka is performed via marine, air, and motor transport, while in Alaska, southwards from the Arctic zone borderline, the Alaska Railroad is in place (760 km). Although the railroad runs within the state limits and has no access from outside the region, its mere existence significantly simplifies cargo transportation to nearby settlements. In Chukotka, the network of roads accessible all year round was constructed only in 2011-2012. Their total length makes 4500 km, including 568 km long dirt roads, 1300 km long winter roads with prolonged terms of exploitation, and 2700 km long winter roads (Voroncova 2015). In Alaska, the network of motor roads with concrete surface covers the central and southern parts of the state, the roads’ total length being about 20,000 km. Northern areas of Chukotka are accessible for less than 3 months. Limited terms of goods delivery to these areas are due to severe climatic conditions. Waters in the region are navigable for about 3 months, and ice breaker steering is required to deliver goods for the rest of the year, which significantly increases expenditures. Southern areas of Chukotka depend on marine navigation for 3-6 months, as goods delivery is performed predominantly via the sea route (Vasiliev et al. 2009). By contrast, ice-free coastal areas of Alaska where big cities and settlements are located are open to goods delivery all the year round. The so-called “northern delivery” is performed only for settlements located in Central and Western Alaska (Szymoniak et al. 2010). Most of the rural settlements in western Alaska and northern Chukotka are road-less and are not interconnected. As such, fuel delivery to some rural settlements is performed by air. Coal and oil products in Chukotka and diesel fuel in Alaska form the backbone of fuel delivery. State regulation of long term product delivery in Sakha Republic (Yakutia) Financing schemes for goods delivery to the north comprise one of the most complicated areas of finance (Gritsevich 2008). The system of state support of fuel delivery has undergone several changes in its long history. Under a centralized planning framework, the purchase and delivery of goods was performed by assigned enterprises, financed from the state budget. However the state financing of pre-scheduled delivery of goods was terminated as an article of budget expenditures in 2003, and subventions from the Fund for Finance Support of Russian Federation Subjects ceased to be purpose-oriented. Barakaeva, Batugina & Gavrilov