The High North – Challenges and Opportunities. Perspectives on Norwegian-Russian Cooperation

Honourable rector Panov,
Excellencies,
Ladies and Gentlemen

I am pleased and honoured to be offered the opportunity to speak to you here today at this prestigious Academy, on the topic of the High North and Norwegian-Russian cooperation.

Addressing the Diplomatic Academy in Moscow is a way of engaging in a deeper dialogue on issues of common interest to Norway and Russia.

Such issues are many and they are of significance. Sometimes there are only losers - or potential winners. The opportunity offered to us in these times of growing interdependence is exactly the potential of maximising common interests – for Norway and Russia to explore win-win situations. The alternative is for both of us to loose out.

A prime arena for such opportunities is the High North where Norway and Russia meet as neighbours and potential partners.

Let me first set the scene from a Norwegian perspective: The High North has been defined as a strategic priority for the Norwegian Government. Here is why:

The High North – which covers the northern part of Norway and stretches into the Norwegian Sea, the Barents Sea and further into the Arctic - is a region undergoing a significant process of change:

First, this region is experiencing dramatic effects of climate change. The ice is melting – the sea ice, the Greenland ice cap and the main land ice are all shrinking at an alarming pace.

The High North offers a front row seat to global climate change now taking place. Our scientists agree that emissions of green-house gases are the main culprit. The long-term effects of global warming will be most disastrous in other areas of the world. But it is in the High North that the changes are visible first. The Arctic offers a unique platform for research to better understand the dynamics of climate change.

Then the coin has another side: As the ice is melting new sea routes open up.

Prospects are that commercial shipping straight through the Arctic Ocean may become a reality – not in fifty years but perhaps in five. This could reduce the distance from European to Asian ports by as much as 40 percent.

Our preparedness against oil spill, our surveillance capacity and our capabilities in the field of search and rescue are not adequate to meet this development, and will have to be up-graded. Norway and Russia are in this together.

Second, this region is emerging as a new oil and gas region, a complex but potentially prospective region for new industrial activity within a fragile Arctic environment. We still need to develop new technology to enable operations under Arctic conditions. The investment costs will be considerable. With the global financial crisis and low oil prices, there is uncertainty as to when the development of well-explored fields will start in earnest.

But we know the direction. Our responsibility will be to approach these opportunities step by step – built on solid knowledge of what it takes to safeguard the fragile environment – and not least - to preserve and conserve the valuable renewable fish resources of the Barents Sea.

Third and finally – Norway lives next to Russia – with whom my country has lived in peace for a thousand years. Norwegians follow Russia’s development and transformation closely – because as neighbours your development is of direct concern to us. We see a broad process of a changing society. We see an evolving market economy.

But we also struggle to fully understand where this process of societal change is actually heading, whether Russia’s new democracy will stand the test of modernity, whether transparency, accountability and the rule of law will take root. We follow how new individual freedoms – fundamental freedoms such as the freedom of speech – are being offered sometimes harsh conditions. News about Russian journalists being killed because of their reporting is shocking.

In short – addressing the developments of the High North is at the same time an opportunity, responsibility and a challenge. And it is an opportunity to deepen relations between two northern neighbours.
We need broader exchange. That is why I am pleased to share some perspectives on these issues here in Moscow.

As the High North emerges as a region of attraction, both Norway and Russia sharpen and focus our policies. And we see how others follow suit.

In a month’s time the biannual Ministerial Meeting of the Arctic Council will be held in Tromsø – addressing a whole range of policy issues relating to the sustainable management of the Arctic. Just observe how the agenda of the Arctic Council has evolved over the years. The Council remains a key body for initiating important studies and research. But it is also an important decision shaping institution laying the foundation for how we follow up on Arctic issues and regulations in other relevant bodies.

The Norwegian Government formulated its High North strategy in December 2006. Two weeks ago we presented the building blocks for our High North policies for the next 10 to 15 years – laying out concrete initiatives developed to match the opportunities of the High North.

This winter the United States and the European Commission also presented policy papers with plans for an increased involvement in Arctic affairs. And these days, I understand that Russia is planning to release its own new strategy for the Arctic.

A key message I would like to highlight is the potential for closer cooperation between Norway and Russia. Our countries share a border of 196 kilometres. For 70 years – until 20 years ago – this border was practically closed.

In 1990 there were only 3000 border crossings. Today more than 100 000 people cross that border annually. We have come a long way in making the border more of a bridge than a barrier between our peoples.

However, we share much more than just a border. We share a Northern identity. We are Northerners, “Severyane”. Although Russia stretches as far south as the latitude of Rome, your country – like mine - is first of all associated with the North, with long and cold winters and the whole northern periphery facing the Polar basin.

There is a real opportunity for closer dialogue, common answers, and joint action. Increased cooperation between Norway and Russia – two key Arctic states will offer benefits for all.

We must prepare ourselves for the future on several levels – national, bilateral, regional and global.

Norway’s national strategy has two main aspects, initiated in our strategic plan from 2006 and further elaborated in the building blocks presented two weeks ago:

The first aspect is the guiding principles, of which there are three: presence, activity and knowledge. We will be present on the land and in the waters under our jurisdiction. We will engage in the leading economic activities characteristic for the region – from fish to oil and gas, from mining to modern sea farming. And we will continue to develop solid and modern knowledge bases – universities, research centres and joint ventures with international centres of excellence.

We are focusing on various sectors – science, research and education, the environment, resource management, surveillance, infrastructure, development of new industries such as aquaculture and marine bio-prospecting, the interests of the indigenous Sámi people and so on.

The second aspect of our strategy is about partnerships. Our intention is to forge productive partnerships – public private partnerships, partnerships between central and local government and partnerships across borders with neighbours and allies.

In all of these engagements we seek to develop cooperation with Russia.

Foreign Minister Lavrov and I meet frequently, and on every occasion our bilateral cooperation in the North figures prominently on our agenda. Lately, we have been focussing on how to promote even closer ties between the areas closest to the border.

My vision is the day where none of us would need a visa to travel across the Norwegian/Russian border. This border used to be a firm dividing line, the border fence where east met west. Now we seek to develop the Norwegian Russian border into a normal European border – in line with the border relations we enjoy with our Nordic neighbours. It will not happen over night. But we need to set the direction.

Recently we have made it easier to obtain multiple visas. We are discussing different ways to facilitate greater mobility across the border of experts and workers from both countries. People who live in the border areas should not have to go through all the formal procedures every time.

Education and student exchange is very valuable. At any given time there are around 700 Russian students in Norway. They are excellent ambassadors for your country. And we have Norwegian students in Russia. Our long-term ambition is to create a pool of young Russian and Norwegian specialists with professional skills and language skills, who can work just as easily on projects in both countries and promote joint economic development. 

In the North, Norwegians and Russians are close partners. But they are also friends. We would like to envisage a zone of cooperation encompassing territory on both sides, with favourable conditions for establishing businesses. This is close to the reality a century ago when the Pomor trade and exchange took place in this vast region. Today we discover the opportunities of such times and we approach such opportunities with a new point of departure.

We should also improve our physical infrastructure on both sides. Today, if we study the map, the coastline bordering the Barents Sea offers many opportunities to serve and support future off shore activities. But the land border represents more than a physical barrier – it is also a barrier between very different administrative and political systems and traditions.

We need to respect such differences. But we also need to consider them pragmatically. Are they restricting cooperation?

Developing the resources in the Barents Sea is a complex task. We know that from our own experience at the Snow White field 150 kilometres off Hammerfest. Now you are moving ahead on the Stockman field, 500 kilometres north of Murmansk. As you know, the Norwegian company StatoilHydro is part of the joint venture with Gazprom and Total.
The companies are making progress. But we also need to prepare our bureaucratic structures for what it takes to make joint endeavours a truly common task.

Our economic ties have been gradually strengthened over the past decade. Our economic relations used to be characterized mainly by trade. We now also see substantial direct investment.

For this positive trend to continue, we need a steady focus on stable framework. Investors need predictability and transparency and the stability offered by an independent judiciary. Companies need the safety from a level playing field. Deviation from such predictability hampers confidence, trust and cooperation.

It would be wrong to hide the fact that Norwegian businessmen today follow developments in Russia with concern. Individual business cases are attracting wide international attention – and episodes which are exposing seemingly arbitrary rules and lack of level playing field is hurting the process of further global integration of the Russian economy.

When filling our good-neighbourly relations with substance, we have been working not only top-down, but also bottom-up. We have stressed the value of people-to-people contact. We have encouraged the active participation of non-governmental organisations of every kind, environmental organisations and youth organisations.

We frequently hear and read about obstacles for NGOs seeking to engage other NGOs. This gives rise to concern. People to people relations are a key foundation for a deeper bilateral relationship.

Then there are natural resources. Our countries have access to both renewable and non renewable natural resources.

Nowhere in the world have two countries together, so successfully, administered so valuable fish resources. The joint Norwegian-Russian Fisheries Commission serves as an example to the whole world. We have been conducting negotiations every year for more than 30 years. And every year we reach agreement on the sustainable exploitation of fish stocks in the Barents Sea.

The result is that we have the best managed ocean in the world. Licence to conduct research in each other’s economic zones is a crucial element of this cooperation.

We have also been remarkably successful in reducing illegal, unreported and unregistered fishing. Working together, and with partners all around Europe, we have been able to bring them down by as much as 60 percent over the past three years. We will continue these efforts until we have all but eradicated the problem.

I have talked about managing the border on land. I would add to this the common responsibility of establishing a delimitation line at sea. We have worked on this issue for decades. Recently we have made tangible progress. An agreement on the delimitation of the areas closest to the shore – in the Varangerfjord area – has entered into force after ratification by the Duma and by the Storting. This is one concrete positive step forward.

Clarity in matters of jurisdiction in maritime areas is needed in order to realise the full potential for cooperation. As the coastal State, Norway has the right and obligation to exercise authority in the waters around Svalbard. And we do it, in a strictly non-discriminatory way.

In Svalbard, the northernmost part of Norway, we welcome the presence of Russian citizens and companies. Norwegians and Russians have lived and worked under arctic conditions at Svalbard for a long time. Mining has been - and still remains a cornerstone of the economic activities. But gradually we note how Svalbard also emerges into a platform for advanced arctic research. We welcome this, as we welcome the increased activity of Russian scientists and researchers.

So our bilateral relations in the High North are expanding. In addition Norway and Russia work closely together in the emerging new web of regional cooperation in this region.

One international structure deserves particular mention: The Barents Euro-Arctic Region, or the Barents cooperation for short. Norway and Russia have been driving forces in developing this into an innovative and successful regional cooperation. It has developed into a success story that attracts attention from afar.

Through the activities of the Barents Council on the state level, and the Regional Council on the local level, thousands of civil servants and ordinary citizens have been engaged in cross-border cooperation and exchange programmes. Regional authorities are coordinating their priorities in fields such as infrastructure, health care, culture, protection of the environment and so forth, and together they are running a great number of concrete projects.

We have managed to create a common regional identity and promote optimism and confidence. This would not have been possible without the active support, dedication and personal contribution of key regional participants on the Russian side.

We will continue to give the Barents Cooperation our strongest support in the years ahead, and I am happy to note that my Russian colleague is equally committed to the cooperation.

We must build on our valuable experience of cooperation in the wider Arctic context, where research is one of the pivotal activities. The long-standing and mutually beneficial cooperation between our Arctic and Antarctic research institutes is just another of many examples of the highly developed relations between our two countries.

When moving on to the Arctic, let me start with the basic question of jurisdiction, which I have already touched upon. We are in a fortunate position. The world community agrees that jurisdiction in the Arctic Ocean is governed by the United Nations’ Convention on the Law of the Sea.

The reason is simple: The core of the Arctic is not a continent, but an ocean. Under the Law of the Sea we have precise guidance for how to proceed in the matter of delineation of the outer limits of the continental shelf. I register with great satisfaction that all states concerned loyally abide by those prescriptions.

The five states bordering on the Arctic Ocean met in Ilulissat in Greenland in May last year to address our rights and obligations as Arctic coastal states. The declaration adopted at Illulisat sends strong signal of unity among the states concerned, and constitutes the basis for how we proceed from here.  

Only one of the nations concerned has not yet acceded to the Convention on the Law of the Sea – the United States of America. But the US administration has stated very clearly its intention to settle this matter. This is one of two crucial points in the US Arctic policy paper, the other one being the use of existing structures of cooperation to the maximum extent.

The main existing forum for cooperation in the Arctic is, as I have mentioned, the Arctic Council. This is our only circumpolar organisation. The council has demonstrated its relevance convincingly, particularly in the areas of research, climate and the environment.

Findings from studies initiated by the Arctic Council have significantly influenced the conclusions of the United Nations Climate Panel. Deliberations in the Arctic Council will be important when it comes to defining common environmental and safety standards for Arctic shipping, which must subsequently be followed up by the International Maritime Organisation.

Asian countries and others now want to talk with us about the Arctic. We hear more voices than before. Norway welcomes this development. Global interest is legitimate, given the region’s global significance.

Our approach should be to listen, and to give the right answers. As global interests grow, our goal must be to ensure that all the voices participate in the same conversation. It does not serve the interests of Arctic states to exclude others. That would only encourage alternative discussions and alternative approaches to the management of the Arctic.

I repeat this sober fact: Climate change is a dominating feature in the Arctic. Our activities in the Arctic Council, and all other relevant venues, must be used to raise awareness and mobilize action to curb emissions and turn the tide of climate change.

2009 is a critical year. At the climate Summit in Copenhagen in December, we need to reach a new, more comprehensive and effective framework agreement. We know that in the decades to come, we will have to reduce the global emissions of greenhouse gases by 50 percent, and at the same time we have to increase the global energy supply by more than 50 percent.

All political parties in Norway agree that our country shall become carbon neutral by 2030. Carbon capture and storage (CCS) is a vital Norwegian strategy in reaching our goal.  In short this is about extracting CO2 from the gas and re-injecting it into safe geological structures, to avoid emissions into the atmosphere.

Back-to-back with the Ministerial Meeting of the Arctic Council in Tromsø at the end of April, I will host a conference on climate change and challenges of the melting of ice, together with Nobel Laureate Al Gore.

Our ambition is to mobilise attention and help forward new agendas. We wish to see a strong Russian presence. As leading exporters of fossil fuels, Norway and Russia have a special responsibility in this field.

Russia accounts for 25 percent of the European Union’s total gas consumption. Norway accounts for 18 percent. We take our responsibility for the security of supply very seriously. And we want to promote the dialogue and the concept of long term interdependence of producers and consumers, in the mutual interest. For Europe’s long term security of supply, the emerging energy province in the High North may become vital, and Norway and Russia both have a political responsibility in this respect.

Ladies and gentlemen,

When talking about the High North I often make the point that our main challenge is to update our mental maps. The High North used to be a frozen region – politically as well as climatically. Now both the ice and the political climate are thawing.

We need to free ourselves from old stereotype thinking. The tension of the cold war lies behind us. We need to look ahead.

In the past, the dominating Norwegian military scenario was to be prepared to face a major military attack from the east. This explained our NATO membership from the foundation of the Alliance 60 years ago. And it explained the way we structured our military defence.

Today our challenge is less about the prospect of military attacks – but rather how to address and manage a number of risk factors – such as melting ice and climate change, safety of maritime sailing routes, migration, terrorism and international crime, border crossings, nuclear safety.

And of course – as is the case for any sovereign state – to maintain an adequate military presence to preserve order and stability. This has been Norway’s approach – and NATO’s approach. There are no pressing issues in the High North that await military answers. Norway keeps NATO, NATO allies, Nordic neighbours and Russia informed about our High North perspectives and the evolving mental maps and what they require of us. As I do here today.

My message on Norway’s vision is this: High North, low tension.

Security threats which we face in the foreseeable future are not of a military nature, and they must be handled by the relevant civilian structures, preferably in close collaboration with other concerned states – such as our Nordic neighbours and not least with Russia. But also with EU partners and NATO allies.

We need to work together to ensure that we have the capabilities in place – for incidents such as this, as you can see here, from last summer – when a Russian vessel (Gregory Mikheyev) - that happened to be in the area- at the request of the governor of Svalbard helped rescue the cruise ship Antarctic Dream.

Let me say a few words on Nordic cooperation. One year ago the Nordic foreign ministers asked one of my predecessors, Mr. Thorvald Stoltenberg, to present a reflection of the potential for closer Nordic cooperation on foreign, defence and security related issues. Here you see a picture of Mr Stoltenberg presenting his report to the Nordic foreign ministers last February.

We now study his 13 proposals – and I have personally handed a copy of the report to Russia’s ambassador to Norway. We invite Russia to reflect on the report, because as I have stated at numerous occasions in this address – to most challenges in the High North we now see Russia as part of the solution rather than part of the problem.

To take but one example – the proposal of joining forces in the area of surveillance and monitoring of activity at sea. We will need it. And we may achieve more by working closely together.

Russia plays a key role in a comprehensive security structure for Europe. We have noted with interest president Medvedev’s initiative last summer to discuss the European security architecture. We would welcome more specific ideas, and are ready to participate in the debate. However, in our view, we should base our discussion on the existing institutions and frameworks on cooperation with the Organisation for Security and Cooperation in Europe and NATO as key elements.

When NATO in two weeks’ time celebrates its 60th Anniversary, the venue is symbolic. Strasbourg in France, and Kehl in Germany. NATO has served the interests of its members well, and has also given a decisive contribution to overall stability.

An important development in NATO is the decision taken by the NATO Foreign Ministers recently to resume the formal dialogue with Russia in the framework of the NATO-Russia Council. Norway has been a strong advocate of resuming this dialogue, which was suspended last August

We have lived with divergent perspectives ever since the Balkan crises in the 90s. And we certainly disagree on fundamental questions relating to the situation in and around Georgia. This is well known. My point is that these differences should not stand in the way of constructive cooperation in the many crucial areas where we have common interest. I have in mind the challenges in Afghanistan and the question of stability in the wider Middle East. Non-proliferation. Disarmament and nuclear safety. Emergency preparedness. Peace-keeping. Combating terrorism. I would also like to see Russia engaged in Allied discussions on High North issues.

We welcome the renewed focus on disarmament in the international dialogue, and by indications from both the US and Russia that the START agreement may be replaced by new obligations. Also, we hope that these two powers, who together hold 95 percent of the world’s nuclear arsenal, will take leadership in order to ensure a successful NPT review conference next year. And we encourage Russia to take a fresh look at how we can revert to the CFE agreement.

To sum up, ladies and gentlemen:

Norway and Russia have a lot of practical matters to discuss. Our cooperation in the north is proving to be a win-win relationship. Our cooperation in the border areas and in the Barents region, in the sustainable management of living resources and in the environmental field clearly reflects this. It is no zero – sum game. There is mutual interdependence between us. Either we strengthen our cooperation in maximising common gains in the north - or - we both stand to loose out. 

When developing our own region, we are not turning our backs to the rest of the world. Because the global impact on our region is strong. Because we both need partners. We need investments, the best science, and the free, globalised economy. We are convinced that we are well positioned to play leading roles in the peaceful development of the Arctic.

Thank you for your attention