The proposed sale of a sizable private property in Norway’s Arctic Svalbard archipelago, valued at approximately €300 million ($330 million), has triggered national security worries in Oslo.

The land, known as Søre Fagerfjord, spans roughly 60 square kilometers (23 square miles) and is the last remaining privately held territory in Svalbard. 

While a group of international and Norwegian investors has offered to purchase the land, Norwegian officials are concerned that this could provide foreign powers with a strategic advantage in the sensitive Arctic region.

Located approximately 60 kilometers (37 miles) from Longyearbyen, the main town, the land has been under Norwegian control for over a century. After being listed for sale last year, the government emphasized that any transaction must be pre-approved due to security regulations.

The sellers’ description of the land as a “strategic foothold in the High Arctic” has amplified these concerns. 

Svalbard’s importance is growing as melting sea ice creates new shipping lanes and increases global interest in the area.

The prospective buyers identify themselves as parties interested in preserving the land.

 According to Birgit Liodden, a shareholder and climate activist, “The consortium comprises both Norwegian and international investors with a long-term vision of safeguarding this territory from environmental changes.” 

She also stated that approximately half of the proceeds from the sale would be allocated to environmental projects in Svalbard. The group has not yet discussed the sale with the Norwegian government.

However, Norwegian officials remain wary. In 2024, they blocked a similar sale. Trade Minister Cecilie Myrseth cautioned at the time that such actions could destabilize the region and threaten national interests.

Svalbard is governed by a 1920 treaty that grants equal rights to over 40 countries, including Russia, China, and the U.S., to reside and conduct business there. 

Russia, which maintains a settlement on the islands, has accused Norway of violating the treaty by increasing its military presence, an accusation Norway denies.

The sellers’ lawyer, Per Kyllingstad, stated that the buyers are solely interested in protecting nature and that the sale should not be prevented.

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