Norway blocks sale of last private land on Arctic archipelago Svalbard after Chinese interest

Minister says sale to foreign actors such as China could ‘disturb stability in the region and potentially threaten Norwegian interests’

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Spitsbergen island in Svalbard Archipelago, northern Norway. Photo: AFP

Published: 1:13am, 2 Jul 2024

The Norwegian government said on Monday it had blocked a plan to sell the last privately owned piece of land on the strategic Arctic archipelago of Svalbard in order to prevent its potential acquisition by foreign actors such as China.

The remote Sore Fagerfjord property in southwestern Svalbard - 60 sq km (23 square miles) of mountains, plains and a glacier - was on sale for €300 million (US$326 million).

The archipelago is located halfway between mainland Norway and the North Pole, in an Arctic region that has become a geopolitical and economic hotspot as the ice melts and relations grow ever frostier between Russia and the West.

The Nansenbreen glacier in the Borebukta Bay, located at the northwestern side of Isfjorden, in Svalbard Archipelago, northern Norway. Photo: AFP

Twice the size of Belgium, Svalbard is governed under an unusual legal framework that allows foreign entities to gain footholds in the region.

A treaty signed in 1920 recognises Norwegian sovereignty over the territory but it also gives citizens of the signatory powers - which include Russia and China - the same rights to exploit its mineral resources.

Russia, for example, has maintained coal mining communities on Svalbard, via the state-run company Trust Arktikugol, for decades.

Yet Norway, keen to protect its sovereignty, would not look kindly on the property falling into foreign hands, and the government said on Monday a potential sale will require state approval under national security law.

“The current owners of Sore Fagerfjord are open to selling to actors that could challenge Norwegian legislation in Svalbard,” Trade and Industry Minister Cecilie Myrseth said.