In order to stop foreign entities like China from potentially acquiring the last privately held land on the strategically located Arctic archipelago of Svalbard, the Norwegian government said on Monday that it has stopped a plan to sell the territory.For 300 million euros ($326 million), the secluded Sore Fagerfjord property in southwest Svalbard, which spans 60 square kilometers (23 square miles) and includes mountains, plains, and a glacier, was up for sale.
The archipelago is situated in an Arctic region that has grown increasingly significant in terms of geopolitics and economics as the ice melts and ties between Russia and the West get more chilly. It is situated midway between the North Pole and the Norwegian mainland.Svalbard, which is twice the size of Belgium, is controlled by a peculiar legal system that permits foreign companies to establish themselves there.
While a 1920 treaty acknowledges Norway’s sovereignty over the region, it also grants the residents of the signatory powers China and Russia, among others equal rights to utilize its mineral resources.For many years, Russia, for instance, has supported Svalbard coal mining villages through the state-run enterprise Trust Arktikugol.
However, Norway is eager to maintain its sovereignty and would not tolerate the land ending up in foreign hands. As a result, the government announced on Monday that any prospective sale would need state clearance in accordance with national security law.Trade and Industry Minister Cecilie Myrseth stated, “The current owners of Sore Fagerfjord are open to selling to actors that could challenge Norwegian legislation in Svalbard.”
“It could disturb stability in the region and potentially threaten Norwegian interests,” she stated. According to Fredrik Sejersted, the attorney general representing the government, the ministry again made an offer of 20 million kroner ($1.9 million) for the property last week.That bid, which was a negligible portion of the owners’ 300 million euro asking price, was turned down.
The sellers’ attorney, Per Kyllingstad, has previously told AFP that he has seen “hard evidence of interest” from prospective Chinese purchasers who “have been demonstrating a genuine interest in the Arctic and Svalbard for a long time.” The “last private land in Svalbard, and, to our knowledge, the last private land in the world’s High Arctic,” he claimed, is now up for grabs on this special piece of property.
Kyllingstad did not reply to the government statement right away.According to local media, the sale of the property is a firm headed by a Norwegian who was born in Russia.The price and viability of the sale have critics who are skeptical. The property’s protected zones, where construction and motorized transportation are forbidden, deprive it of its commercial worth. It is located in the southwest of the archipelago, an area lacking in infrastructure or roads.
The majority of the land, including the Sore Fagerfjord property, has been declared protected areas where construction and motorized transportation are prohibited. The Norwegian state controls 99.5 percent of Svalbard.However, the sellers contend that owners are free to use and develop their lands, citing the 1920 treaty.
The second-last remaining parcel of private land on Svalbard, close to Longyearbyen, the main town of the archipelago, was apparently being considered by Chinese investors. In 2016, the government paid 33.5 million euros to purchase it. China has identified itself as a “near-Arctic state” and intends to play an increasingly important role in the region since its 2018 white paper on the Arctic, which was an indication of the country’s interest in the region.
