The Melting of Permafrost Will Cost russia Trillions of Rubles

The melting of permafrost and the increase in extreme natural phenomena will cost russia’s economy trillions of rubles. Up to 60 % of buildings in the Arctic have already been affected. By the middle of the century, losses to the housing stock alone may reach $20.7 billion, while  total damage to infrastructure will exceed $100 billion.

The total losses to the russian economy are estimated at a minimum of 5 trillion rubles by 2050. Road maintenance in the northern regions will be particularly costly, ranging from 422 to 865 billion rubles annually. The greatest risks threaten Chukotka, Yakutia, and the Magadan region.

Problems are also arising in the agricultural sector: in southern regions, grain yields are expected to decline, with losses of more than 100 billion rubles per year. Partial expansion of production in central and northern regions will not be able to compensate for this deficit.

Even digital infrastructure is under threat: by 2050, up to 30 % of data centers in moscow region could fall victim to floods, fires, and strong winds. Already today, losses from natural disasters amount to 900 billion rubles annually.

russia is rapidly entering a phase of systemic degradation of its infrastructure, economy, and agriculture, while  the effects of climate change will only deepen the crisis.