ABSTRACT
This chapter examines the sustainability of the development of the Russian Arctic regions based on oil and gas production and analyzes the contribution of these regions to the development of the Russian economy as a whole. It classifies the regions into three groups according to macroeconomic and demographic statistics. The chapter examines the contribution of the regions to the development of the Russian economy. It discusses risks and challenges to the development of the Arctic regions of Russia. Since the Russian Arctic areas are vast and significantly different from each other, the chapter distinguishes three types of region. The share of the manufacturing industries in gross regional production of seven regions of the Arctic is not large. Although the Russian government has tried to diversify its economy in order to reduce the dependency on oil and gas, the financial resources for diversification or modernization of the economy will be provided by the oil and gas sector.
