ESTABLISHING AND USING A RUSSIAN ARCTIC DEVELOPMENT FUND: LESSONS FROM  INTERNATIONAL EXPERIENCE IN REVENUE REDISTRIBUTION AMONG ARCTIC STATES

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Roman V. Badylevich1, Mikhail V. Ulchenko2

1, 2Luzin Institute for Economic Studies of the Kola Science Centre of the Russian Academy of Sciences, Apatity, Russia

1ramapatit@rambler.ru, ORCID 0000-0002-3164-8745

2m.ulchenko@ksc.ru, ORCID 0000-0002-5227-1772

Abstract. An analysis of the experience of Arctic states conducted in this study reveals a range of approaches to the redistribution of revenues generated by economic activities in the Arctic. The Norwegian model involves establishing a sovereign wealth fund based on the principle of safeguarding the well-being of future generations. The U.S. model also relies on a dedicated fund, the Alaska Permanent Fund, but provides for the direct distribution of revenues to permanent residents of Alaska. The Canadian model is characterized by decentralization and a strong emphasis on the rights of Indigenous peoples. Territories and provinces receive a share of federal revenues derived from resource extraction, while local communities participate directly in mineral development projects and Arctic regions receive targeted grant support. The Danish model provides direct financial assistance to Greenland through so-called block grants. Although this mechanism does not constitute a system for redistributing Arctic revenues per se, it enables Greenland to retain revenues generated by economic activities within its territory. Based on the comparative analysis, the study develops practical recommendations for establishing and operating a Russian Arctic Development Fund as a three-tier system comprising an Arctic Future Generations Fund, a Project Financing and Infrastructure Development Fund, and an Indigenous Peoples and Arctic Municipalities Development Fund. The scientific and practical significance of the study lies in developing recommendations for implementing mechanisms to redistribute revenues generated by economic activities in the Arctic through the establishment and operation of a Russian Arctic Development Fund.

Keywords: development, Russian Arctic, fund, revenue redistribution, international experience

Acknowledgments: This research was supported by the Russian Science Foundation, Grant No. 24-28-20154, “Development of Tools for Attracting Additional Financial Resources to Ensure the Sustainable Development of the Arctic Region in Modern Geopolitical Conditions.”

For citation: Badylevich R. V., Ulchenko M. V. Establishing and using a Russian Arctic Development Fund: Lessons from international experience in revenue redistribution among Arctic states. Sever i rynok: formirovanie ekonomicheskogo poryadka  [The North and the Market: Forming the Economic Order], 2026, no. 3, pp. 235–248. doi:10.37614/2220-802X.3.2026.93.016.

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