Why are tensions so high in the Arctic?

• The Arctic holds 13% of the world’s undiscovered oil and 30% of its untapped natural gas reserves.

• Untapped resources include fossil fuels, rare earth elements, phosphates, copper, and lucrative fishing grounds.

• The region is governed by the UN Convention on the Law of the Sea (UNCLOS), allowing nations to claim territories and deploy military infrastructure.

The Arctic Council

• The Arctic Council, an international body, is tasked with protecting the environment, conducting scientific research, and safeguarding the interests of indigenous peoples.

• Despite territorial declarations, infrastructure in the Arctic remains underdeveloped.

Tensions Arise

• U.S. President Donald Trump’s renewed interest in acquiring Greenland from Denmark has sparked tensions.

• Tensions have risen between the U.S. and Canada over the Northwest Passage, a potential Arctic shipping route.

• Concerns extend to Russia and the remaining Arctic Council members, all of whom belong to NATO.

The Arctic’s Importance

• The region holds 13% of the world’s undiscovered oil reserves and 30% of its untapped natural gas reserves.

• Greenland harbors some of the world’s richest deposits of rare earth elements, attracting significant investment interest from Chinese companies.

• The melting of Arctic sea ice has prompted interest in the opening of new commercial trade routes.

What lies ahead?

• Some nations have taken concrete steps to assert their Arctic ambitions, such as Russia planting a Russian flag on the seabed beneath the Arctic ice cap in 2007.

• China has also become more vocal about its Arctic interests, declaring itself a ‘Near-Arctic State’ in 2018 and planning the construction of its first nuclear-powered icebreaker.

• NATO’s limited operational capabilities in the Arctic have raised concerns about strategic imbalances.