Norway’s government has blocked the sale of the last piece of private land in the Svalbard Archipelago, known as Sore Fagerfjord, to prevent it from being acquired by Chinese buyers.
Covering an area of 60 square kilometers, Sore Fagerfjord is composed of mountains, plains, and glaciers, located in a remote region in the southwest of the Svalbard Archipelago. Interested buyers could purchase this property for 300 million euros (approximately 326 million US dollars).
Upon learning of the interest from Chinese buyers to acquire the property, the Norwegian government notified the owners that they can only sell the property with approval from the Norwegian government.
Public information reveals that the Svalbard Archipelago is Norway’s northernmost territory, situated in the Arctic region. In recent years, the area has become a hotspot for geopolitical and economic interests.
According to the 1920 Svalbard Treaty, Norway has sovereignty over the territory but also allows citizens of signatory countries, including China and Russia, to mine resources.
Representing the seller of Sore Fagerfjord, lawyer Per Kyllingstad told the local newspaper Aftenposten, “China (CCP) is a potential buyer. For a long time, China (CCP) has shown great interest in the Arctic. If they establish a foothold there, it will have significant strategic importance for China (CCP).”
Norway, keen on protecting its sovereignty, does not want the property to fall into foreign hands. The government stated on Monday (July 1) that potential sales require approval for national security under Norwegian law.
Trade and Industry Minister Cecilie Myrseth expressed concern that the owners of Sore Fagerfjord may sell the land to those who could challenge Norway’s legislation in Svalbard, potentially destabilizing the region and threatening Norwegian interests.
Lawyer Kyllingstad previously mentioned that potential buyers from China have shown specific signals of interest. These Chinese buyers have long displayed genuine interest in the Arctic and Svalbard.
He noted that acquiring this land presents a unique opportunity to own the “last piece of private land in Svalbard, as far as we know, the last private land in the high latitude Arctic region in the world.”
According to Agence France-Presse, Kyllingstad did not immediately respond to the Norwegian government’s announcement.
Local media reported that a lawyer from the Norwegian government stated the commercial value of the land is almost zero due to its difficult accessibility and strict environmental restrictions.
The rationale behind the interest from the Chinese buyers remains a subject of concern.
Trade and Industry Minister Myrseth cautioned that anyone willing to pay a “disproportionately high price” for Sore Fagerfjord may have intentions to challenge Norwegian laws and national security.
In 2016, the Norwegian government spent 33.5 million euros to acquire the second-to-last piece of private land in the Svalbard Archipelago, which reportedly also drew attention from Chinese investors.
(Based on reports from Agence France-Presse and the Financial Times.)