Over recent years, the Arctic has become a key focus for the Russian Government, not only for the region’s strategic importance but also for the economic potential that remains largely untapped due to poor accessibility of large parts of the territory and their detachment from major transportation and energy systems of the country. At the same time, considering the vulnerability of the Arctic ecosystem and the global trends toward energy transition and decarbonization, Renewable energy systems will likely need to play a key role in realizing the region’s potential. Renewables have experienced exponential growth in recent years, as governments and societies are starting to understand the long-term implications of continued hydrocarbon reliance and the need for diversification and sustainable solutions for the future. The long-term sustainability of the economic development of the Arctic regions will be influenced by global environmental and climate regulation, as well as the ongoing transformation of energy markets. As more and more of Russia’s economic partners are stepping on the path of carbon neutrality and increasing their goals to reduce emissions through improved energy efficiency measures and integration of green energy sources, Russia will need to consider embracing these global trends and begin incorporating the necessary policy changes in order to stay relevant and competitive in the long-term. Now is the perfect time to adopt the necessary incentives and prioritize resilient investments to help drive the country towards overcoming future economic and climate challenges and turn some of these potential hurdles into growth opportunities.