Norwegian authorities have blocked the sale of the last private plot of land on the Svalbard archipelago in the Arctic. The reason: national security concerns due to increased activity by Russia and China in the region, writes the Financial Times.
„The owners of Søre Fagerfjord have long stated that they want to sell the property and that they are open to a deal. However, this could destabilize the region and potentially threaten Norwegian interests,” said Norwegian Minister of Trade and Industry Cecilie Mirset.
Svalbard is Norwegian territory, but due to its unusual legal status the archipelago has Russian settlements and mining activities. Norway owns most of the land, but Russia has four major facilities there, the FT notes.
Søre Fagerfjord, located south of the city of Longyearbyen and the Russian village of Barentsburg, was put up for sale in early 2024. The property has little value due to its location in a conservation area, so anyone willing to pay “disproportionately high price“ for him, the deal risks being challenged by Norwegian law, Mirset said. The Norwegian government previously offered to buy the site for NOK 20 million (€1.8 million).
The property owners' lawyer, Per Küllingstad, pointed to China as a potential buyer. “China has long shown great interest in the Arctic. If they manage to gain a foothold there, it will be of great strategic importance for China”, he stressed.
According to Norwegian media, one of the main owners of AS Kulspids, the company that owns Søre Fagerfjord, is a Russian woman who received Norwegian citizenship in the 1990s. The regulation prohibiting sales without permission from the Norwegian government applies to both AS Kulspids and the company's owners.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE