Russia's renowned polar geological company is closing the doors
The closure of a company that has made a series of major mineral resource discoveries across the Arctic might mean a looming crisis for the Russian geological exploration industry.
Since it was established in 1962, the Polar Marine Geosurvey Expedition (PMGE) has been one of Russia's leading institutions on geological exploration in the Arctic.
But the renowned company has come to the end of the road. The mounting focus on the Arctic and its vast mineral resources notwithstanding, the PMGE will be shut down this month.
"Well, friends, we have some terrible news to share with you!!! From February 12, 2026 the Polar Marine Geological Expedition will cease to exist!!!!" an announcement posted on a local social media page recently read.
The message triggered a wave of reactions.
"It is a pity that this strategic enterprise, which over many years of existence has made a huge number of discoveries and explored the locations of mineral deposits on the seabed at depths of up to 4,000 metres, has been closed down," a reader wrote in a comment.
"How is it possible to close a company that has now equivalent anywhere in the world at a time when the president has set a course for the exploration and development of the Arctic and the Antarctic," a another person commented.
It was the St. Petersburg-based newspaper Fontanka that first covered the story.
The PMGE is known for its discovery of the Pavlovsky lead and zinc field in Novaya Zemlya, gold fields in the Severnaya Zemlya archipelago, rare earth deposits in Yakutia, as well as mineral in the New Siberian Islands, and more.
At its disposal has been two ageing geological survey ships, the Akademik Aleksandr Karpinsky and the Professor Logachev.
A recent upgrade of the latter ship put the PMGE in a difficult debt situation. Reportedly, the shipyard that conducted the repair was not paid and subsequently took the PMGE to court. The yard requests 277 million rubles (€3 million).
"The company can operate if it has orders and they are fulfilled. If there are no orders, the company cannot operate, even if it has historical value," a person familiar with the situation told Fontanka.
The PMGE is part of Rosgeologia, a state-controlled holding company on geological exploration. Reportedly, also Rosgeologia is experiencing serious economic problems. The company in 2024 had a deficit and its equipment and vessels are increasingly in a dire condition.
Despite a mounting international attention to the Arctic and its natural resources, the Russian state is cutting its budgets for geological exploration in offshore Arctic areas.
At the same time, the state is moving its attention to land-based resources.
Along with all the subsidiaries of Rosgeologia, the PMGE has been subject to US sanctions since early 2024.
The company has a long history of cooperation with international partners, among them the Norwegian Petroleum Directorate, the Norwegian Polar Institute and the University of Bergen, the company's website reports.
