Economic Basis
Barentsburg started as a Dutch mining town in the 1920s. In 1932 the Dutch sold their concession to the Soviet Union. Since 1932 the Russian state-owned Arktikugol Trust has been operating on Svalbard. The main economic activity is coal mining by the Arktikugol (Арктикуголь) company, although tourism is beginning to be developed. The distance from Longyearbyen to Barentsburg is about 55 km but there are no roads connecting the two settlements. Most contact between the two is by boat, or helicopter.
Coal is still mined in Barentsburg and regularly exported to (generally) buyers within Northern Europe. The town relies entirely on mainland Russia for food and coinage. There have been instances in which not enough food was sent, and aid packages were sent from Longyearbyen. Also, the coal company has been known not to pay employees until they finish their three-year contract and return to Russia. Tourism is still only an embryonic industry and is not generating enough income to revive the town.
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