Private land in the Norwegian archipelago of Svalbard is being auctioned off by its owner and has sparked strong interest from Chinese buyers, according to a lawyer in charge of the auction. The sale of this land is likely to cause a difficult geopolitical situation for Norway and NATO due to Svalbard's strategic location in the Arctic Ocean.
The Svalbard archipelago lies about 650 kilometers from Norway at a geopolitically sensitive point in the Arctic.
An international treaty gives Svalbard an unusual legal structure that prohibits most military activities. But in recent years, that hasn't stopped countries like Russia and Norway from continuing with their strategic plans.
Now even China can become part of this competition, because at the beginning of May a private owner put an area of 60 square kilometers on the market for 326 million dollars. The lawyer responsible for the sale, Per Kyllingstad, has said that there is "concrete interest" from Chinese buyers.
Analysts have said that Norway would not support the sale of this land to a Chinese buyer. Norway has said the sale requires its approval. But, lawyer Kyllingstad has denied this.
"100% incorrect. We have obtained a legal opinion from one of the biggest law firms in Oslo on this, and the matter is absolutely clear.”
The Norwegian Minister of Trade, Industry and Fisheries told VOA in an emailed statement that "We do not agree with the lawyer responsible for the sale. There is also no permission to start negotiations regarding the transfer of the property without the consent of the Ministry Norwegian Board of Trade, Industry and Fisheries".
But Kyllingstad says he will continue with the auction process.
An analyst has explained the reasons for the possibility of an intervention by the Norwegian government in the process of selling this land.
"The Arctic is receiving much more international attention due to security concerns. There are many concerns that tensions between the West and Russia could spread to the Arctic area as well. So the timing of the sale of this land is delicate," said Marc Lanteigne. from the Arctic University of Norway.
Analysts have stated that China is interested in gaining access to untapped natural resources in the Arctic and advantageous military positioning in new sea lanes created by melting ice.
"China has made a lot of effort to emphasize that it has no military goals in the Arctic and that it has a very small military presence in the Arctic. China has engaged militarily in the Arctic only once in cooperation with Russia," said expert Marc Lanteigne.
Some experts have pointed out that the land that has been put up for sale in Svalbard has been declared a national park. Operating motor vehicles may be illegal, so the use of this land by buyers may be problematic, except for scientific research.
But Kyllingstad said buyers are focused on the long-term benefits of this land.
"They are looking at this as a long-term investment, as an opportunity to get a foothold in the Arctic, and maybe not as something to invest in now, but as the only opportunity to buy land in the next 10 to 100 years in the so-called High Arctic.”
Kyllingstad said the seller, which local media say is a company owned by a Norwegian of Russian origin, is not concerned about selling land to countries like China, where there are human rights abuses. He noted that philanthropists can also buy the land.
But in the end, Kyllingstad said the land will be sold to the highest bidder.
