Evaluation of investment market size in the Arctic: A case study of the Murmansk region

This article forms part of a broader study focused on developing financial instruments to attract additional investment for the sustainable development of the Arctic amid evolving geopolitical challenges. Before new financial mechanisms can be designed or existing ones refined, several foundational issues must first be addressed—some of which are explored in this study. The research examines investment flows into fixed assets in the Murmansk region, analyzing funding sources and sectoral distribution. Findings indicate that project financing relies predominantly on external sources, with their share increasing relative to internally generated funds over the study period. The federal budget serves as the primary source of external investment, while alternative channels—such as household savings and credit sector resources — remain largely untapped. Furthermore, the study reveals that businesses and regional authorities primarily direct investments toward maintaining core operations to ensure economic stability and meet essential public service needs. However, this approach does little to drive long-term socio-economic growth. Recognizing this limitation, the Murmansk region — like many others — has attempted to address the issue through regional development corporations. An assessment of these institutions indicates that key steps have been taken to stimulate investment, with several projects already completed and others in progress or under preparation. Ultimately, the study concludes that while the Murmansk region holds substantial investment potential, its development is constrained by a lack of financial resources. This shortfall could be partially alleviated through the implementation of innovative or adapted financial mechanisms.