he Russian Arctic has over the last ten years seen rapid development of hydrocarbon extraction projects and sea-borne transportation of liquefied natural gas and oil. Plans are calling for further expansion of both energy production and shipping, including whole-year use of the Northern Sea Route with the help of a modernized fleet of nuclear icebreakers, which eventually will facilitate growth in international transit traffic between the Pacific and the Atlantic. This chapter takes stock of developments and discusses the outlook considering the war in Ukraine, climate change and possible international legal disputes. It points at dilemmas and contradictions in Russian policy: protectionism and control vs. need for investments, rapid development of LNG vs. preference for own shipbuilding industry, control of the NSR area vs support for the Law of the Sea, climate change as an argument for more use of NSR vs. constant or more ice as a reason to build more icebreakers. Continued expansion will require huge investments and entail large risks.