The government requires the owners of disputed Svalbard property to obtain consent before selling

– If there is a buyer who is willing to pay a disproportionately high price for this property, then one must assume that it is because they imagine that it is possible to challenge Norwegian legislation and protection in a way that could disrupt stability in the area and potentially harm national security interests. We cannot allow that, says Industry Minister Cecilie Myrseth (Ap) in a press release on Monday morning.

Søre Fagerfjord is a 61 square kilometer area in the south of Spitsbergen, owned by the Norwegian company Kulspids. It is the last large, privately owned area on Svalbard.

In May, it was put up for sale with an asking price of NOK 3.5 billion, and it has been suggested that other states may be possible buyers.

Mentioned China as a possible buyer

Now the government writes that the King in the Cabinet on Tuesday last week made a decision stating that the sale of the property Søre Fagerfjord on Spitsbergen, or direct or indirect holdings in Kulspids, cannot be negotiated or carried out without the consent of the Ministry of Trade and Fisheries.

Lawyer Per Kyllingstad, who represents the sellers, said in May The daily newspaper that all states that have joined the Svalbard Treaty can buy the property. The treaty recognizes Norway’s sovereignty and prohibits military use for “war-like purposes”.

He also referred to China as “a very close and real buyer”.

He also said TV 2 in May that the Norwegian authorities and other NATO countries have been given the opportunity to buy the property.

Believes that sales could threaten Norwegian interests

– Today’s owners of Søre Fagerfjord have expressed for a long time that they want to sell the property or the company, and that they are open to selling to players who can challenge Norwegian legislation on Svalbard. It could disrupt stability in the area, and potentially threaten Norwegian interests. Therefore, we have seen it as necessary to confirm that a possible sale of the property or shares in the company cannot be carried out without the state’s consent, says Industry Minister Myrseth.

She emphasizes that the property has no value for use purposes.

– It is located in a protected area which is subject to very strict restrictions. There is also a registered lien on the property. Despite the fact that there are clear restrictions on the property, the current owners do not seem to respect this, says Myrseth.