The Russian mining company Trust Arktikugol plans to invest ten billion rubles (approximately NOK 1.25 billion or EUR 107 million) to develop the autonomous Russian areas of Barentsburg and Pyramiden in the Norwegian Svalbard archipelago.
In an interview with Ria Novosti, the company’s director, Ildar Neverov, discussed the investment, which includes infrastructure development such as hotels, restaurants, museums, and a new research centre. The goal is to attract around 5,000 tourists annually and employ 600 workers. The investment is seen as part of Russia’s desire for a presence in Svalbard amid the increasing importance of the region in security policies involving major powers like the USA, NATO, and China.
Trust Arktikugol also plans to establish an international research station on Svalbard in collaboration with the BRICS countries (Brazil, Russia, India, China, and South Africa). However, there are challenges, as Russians are currently not permitted to fly over Norwegian airspace due to sanctions regulations.
The Norwegian authorities are closely monitoring the situation, and the investment in Svalbard would put pressure on enforcement of rules and raise concerns about espionage and conflict escalation with Russia.
Last year, Neverov asked in a letter to the governor of Svalbard and the Foreign Ministry for a dispensation from the sanctions regulations. At the time, the rationale was the need to rotate the employees in the Russian mines, who were suffering from a lot of attrition. At the end of the day, Russia has received dispensations for helicopter flights in connection with mining on Svalbard. Dispensation for flights to Russia has not been granted.
