The Norwegian government halted a plan to sell the last privately owned land on Svalbard to prevent its purchase by China. The 60 square kilometres of remote land, priced at 300 million euros, lies in a strategic Arctic region between Norway and the North Pole. Governed by a unique legal framework, Svalbard allows foreign entities to operate there. The property's seller, a company owned by a Russian-born Norwegian, has received interest from Chinese buyers. Critics doubt the sale's feasibility due to the land's lack of infrastructure and commercial value. In 2016, Norway bought another private Svalbard property eyed by China.
The Norwegian government recently cancelled a plan to sell the final privately owned parcel of land on the strategically important Arctic archipelago of Svalbard, aiming to prevent its purchase by China. The remote Sore Fagerfjord property, located in southwestern Svalbard, spans 60 square kilometres (23 square miles) of mountains, plains, and a glacier, with an asking price of 300 million euros (USD 326 million).
The archipelago Is situated halfway between mainland Norway and the North Pole, in an Arctic area that has become a geopolitical and economic focal point due to melting ice and increasingly tense relations between Russia and the West.
Svalbard operates under a unique legal framework that permits foreign entities to establish a presence in the region. A treaty signed In 1920 acknowledges Norwegian sovereignty over the territory, but it also grants citizens of the signatory countries, including Russia, the right to exploit its mineral resources.
For decades, Russia has sustained a coal mining community on Svalbard through the state-owned company Trust Arktikugol.
However, Norway, eager to safeguard its sovereignty, would oppose the property being acquired by foreign entities. The government announced on Monday that any potential sale would need state approval under national security law.
The current owners of Sore Fagerfjord are open to selling to parties that could challenge Norwegian legislation in Svalbard was said by Trade and Industry Minister Jan Christian Vestre. It could destabilise the region and potentially threaten Norwegian interests. Lawyer Per Kyllingstad, representing the sellers, previously informed AFP that he had received "concrete signs of interest" from potential Chinese buyers, noting their long-standing interest in the Arctic and Svalbard.
This piece of land represents a unique opportunity to acquire the last private property in Svalbard and, as far as we know, the last private land in the world's High Arctic was stated by him in response to the announcement. According to local media, the property's seller is a company owned by a Russian-born Norwegian.
Critics question the price and feasibility of the sale. The property is in the southwest part of the archipelago, an area without infrastructure, and it includes protected zones where construction and motorised transport are banned, reducing its commercial value. In 2016, the government paid 33.5 million euros to acquire the second-to-last piece of private land on Svalbard, which was also reportedly being considered by Chinese investors.
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