Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Evaluation of the Arctic Shipping Season 2013




MV Yong Sheng
Courtesy of Oyoyoy on Wikipedia
By Kathrin Keil The 2013 shipping season along the Northern Sea Route (NSR) concluded in late November when the Russian-flagged „Indiga“ reached its port of destination on 27 November 2013. The expectations as to the increases in Arctic transit shipping along the NSR are indeed huge – volumes shipped along the NSR are predicted to grow to 4 million per year in 2015, 65 million tons in 2020 and even 120 million tons in 2030, predominantly due to the rapid growth of oil and gas development in Russia [1]. Against this background it is necessary to give a thorough analysis of this year’s shipping season in order to get an idea about the accurateness of such predictions.[2]

This year’s shipping season indeed started five days later than the 2012 season. The first ship to use the NSR set sail on 25 June 2013 in comparison to 20 June in 2012. In contrast, the season in 2013 lasted a few days longer – the last ship to take the NSR in 2013 departed from its homeport on 17 November 2013, while the last ship in 2012 departed five days earlier on 12 November 2012. So in total, both shipping seasons were of exactly the same length with 146 days.

In terms of actual transits, 2012 saw 46 vessels using the route while in 2013 71 ships took the NSR, an increase of 54%. While this percentage looks impressive, we have to keep in mind that we still deal with quite small absolute numbers. In contrast, the Suez Canal has around 18,000 transits per year and the Panama Canal about 13,000.

Furthermore, it is enlightening to take a closer look at some of the routes that the vessels took. In fact, 17 “transits” only started or ended in Pevek in Chukotka, and did not come from or go down to the Bering Strait. This is remarkable given that the NSR is defined in Russian law as a set of marine routes from Kara Gate, south of Novaya Zemlaya, in the west to the Bering Strait in the east.[3] Also Khatanga Bay and Anabar Bay in the Laptev Sea are mentioned once and twice, respectively as a port of destination, which is not anywhere close to the end points of the NSR definition.

The volume of cargo has hardly increased between 2012 and 2013, from 1.26 million tons of cargo to 1.36 million tons, i.e. only an increase of 7.5%. Given the expected volume increases as stated above, this is a rather surprising result.

Concerning the type of cargo, 2013 saw an increase in liquid cargo (in both years the predominant cargo - 57% in 2012 and 44% in 2013 of all cargo type vessels) and ballasting. Also general cargo has become stronger in 2013 and one LNG tanker used the route. Repositioning remained the same as well as fishing vessel usage (only 1 in both years).

While more foreign countries used the route as flag states – 7 states in 2012 and 11 in 2013 – the number of foreign flagged vessels actually decreased from 2012 to 2013 (28 in 2012 and 25 in 2013). In other words, the increase in vessel number is completely due to increased Russian usage of the route. So there is currently an increasing Russian usage of the route, while international interest in using the NSR is rather humble (in 2012 39% of the vessels using the route were under a Russian flag, increasing to 65% in 2013).

[1] For example, Nadia Rodova, “Cargo Turnover via Russian Northern Sea Route Climbs 19% Past 2012 Levels,” Platts, September 26, 2013, http://www.platts.com/latest-news/shipping/moscow/cargo-turnover-via-russian-northern-sea-route-26311774; Anton Vasiliev, “Russia’s Approaches to International Cooperation in the Arctic,” The Arctic Herald 1 (2012): 12–23, http://issuu.com/arctic-herald/docs/arctic-herald-1-full; Arctic info, “Cargo Turnover at Arctic Ports to Increase 2.8-Fold by 2030,” August 29, 2012, http://www.arctic-info.com/News/Page/cargo-turnover-at-arctic-ports-to-increase-2-8-fold-by-2030; Alexei Bambulyak and Bjørn Frantzen, Oil Transport from the Russian Part of the Barents Region - Status Per January 2011 (Tromsø: Akvaplan-niva, The Norwegian Barents Secretariat, Bioforsk, 2011), http://www.barentswatch.com/innhold/oil_gas/repport_oiltransp/OilTransport2011eng_Internet.pdf; Jonas Karlsbakk, “Oil Traffic Capacity of 100 Million Tons,” BarentsObserver, April 07, 2011, http://www.barentsobserver.com/oil-traffic-capacity-of-100-million-tons.html.
[2] Due to data availability, the current year 2013 is compared with the 2012 shipping season. All numbers are drawn from Northern Sea Route Information Office documents “Transists in 2012” and “Transists in 2013”. This analysis only looks at transit shipping along the NSR, and not at destinational or inner-Arctic shipping.
[3] Arctic Council, Arctic Marine Shipping Assessment 2009 Report (Tromsø, 2009), 20, 23, 34, http://arcticportal.org/uploads/4v/cb/4vcbFSnnKFT8AB5lXZ9_TQ/AMSA2009Report.pdf; Leonid Tymchenko, “The Northern Sea Route: Russian Management and Jurisdiction over Navigation in Arctic Sea,” in The Law of the Sea and Polar Maritime Delimitation and Jurisdiction, ed. Alex G. Oude Elferink and Donald R. Rothwell (The Hague: Martinus Nijhoff Publishers, 2001), 269–71).



Report: The Future of Arctic Shipping - A New Silk Road for China?





By Malte Humpert Every time Arctic sea ice extent reaches a new record low a host of new reports and studies predict a rapid increase in shipping activities in the Arctic. Expectations are high that Arctic shipping routes, particularly the Northern Sea Route, will rival traditional shipping routes and complement the Suez Canal route as a key waterway for trade to and from Asia by the middle of this century. 

One of the drivers of Arctic shipping, as the logic goes, is China’s rapidly growing international trade. As China aims to diversify its trade routes and reduce its dependence on trade passing through the Strait of Malacca, the Arctic offers an alternative and shorter route to conduct part of its trade. How realistic are such scenarios? 

Read the report here.
Download PDF version (11MB) of the report here.


The Myth of Arctic Shipping - Why the Northern Sea Route is Still of Limited Geo-Economic Importance




Courtesy of Oyoyoy on Wikimedia
By Kathrin Keil and Andreas Raspotnik With the Chinese Yong Sheng[1] currently transiting the Northern Sea Route (NSR), the potential of Arctic shipping is being discussed by the world’s media.[2] The Yong Sheng is the first Chinese cargo vessel to transport container goods (steel and heavy equipment) from Dalian, China to Rotterdam, Europe.

Researchers and public media have often cited the development of Arctic shipping routes as the driving factor of China’s regional interests, and, vice versa, China’s interest in Arctic shipping is taken as an important factor in the development of the NSR. Consequently, the NSR is identified as the most promising Arctic seaway with a considerable potential to shorten sailing distances from Europe to Asia (and, to a lesser extent, vice versa). A closer look at the actual NSR statistics tells a more differentiated story about the future outlook of the route.

Shipping Statistics and Omitted Questions

As of September 5, 2013 the NSR Administration has issued 495 permits to navigate and operate on the NSR so far this year.[3] However, most of these permits are for only parts of the route, predominantly the western part of Russian waters, i.e. the southwestern Kara Sea. As of 31 July 2013, of the 296 permits granted only 18% (58 permits) are for actual transits and 45% (133 permits) are approved for voyages only in the southwestern Kara Sea, primarily shipping goods within the region or bringing them south-westwards to Europe.[4]

This is just one example of how current discussions on the NSR generally remain superficial, drawing an undifferentiated picture of current and future Arctic shipping. Discussions tend to ignore the complexity of global shipping and its immediate repercussions on the potential of Arctic shipping. Relevant questions such as for which goods the northern routes will be relevant and which markets can be sensibly served need to be asked. Shipping types of many kinds, including fishing, tourism, cargo, container, destinational, transit, and intra trade and supply, are lumped together, despite the tremendous differences in the economics, conditions and potential of different types of ship traffic.

Reliability and viability are key factors in global shipping operations that are often not taken into account when discussing the economic feasibility of Arctic shipping.[5] That these factors are usually ignored is a major issue given that predictability, punctuality, and economy-of-scale of Arctic shipping are currently afflicted with many challenges and uncertainties, and will continue to be for some time to come.

Thus, public discussions regarding the future of Arctic shipping must begin to include the economic considerations given to global shipping in general. Additionally, going into more detail concerning the many particularities and subtleties that are decisive when aiming to evaluate the potential of Arctic maritime routes, would be equally important. In this regard, several essential questions arise:

  1. Which kinds of shipping are relevant for northern routes? Will intra- and destination shipping remain the predominant shipping activity or will transit take over the leading role?
  2. What are relevant goods for northern maritime transport?
  3. What are the relevant import and export markets for these goods and what are their respective routes?
  4. What do the major, global trading routes currently look like? How will they develop in the years ahead and how do northern routes fit into the general maritime trade picture? 
From a less economic perspective, debates about the future of Arctic shipping also need to include the evaluation and acceptance of risks, including environmental and human risks, linked to navigation in Arctic areas. Important questions include: How safe is safe enough? What kind of risks can be accepted?[6]

To shed some light on these questions, the following maps illustrate the regional distribution of China’s imports and exports. China is often highlighted as the driving force of potential Arctic shipping developments. However, the analysis of global trade patterns exemplified by China’s current imports and exports and its future outlook show a different picture. China conducts half of its trade with its neighbors in the Pacific region. Europe’s share - which would be relevant for Arctic shipping - is substantially smaller. Less than 20% of China’s trade is bound for or originates in Europe.

Further, the majority of trade between China and Europe is of a containerized nature, which, most experts agree, will not be routed through the Arctic Ocean, due to the seasonality of Arctic transit routes, limited reliability and predictability, and the lack of infrastructure.

National Incentives and New Administration

In addition to these geo-economic considerations, national deliberations and interests have to be kept in mind. With regard to the NSR, it is essential to discuss the immediate relevance of this seaway for the Russian Federation: What is Russia’s incentive to develop the NSR? Is it intended to be a national waterway or an internationally used sea route? Is it meant to transport regional goods, i.e. energy resources to Asian and/or European markets, or considered as a transiting route transporting goods from markets outside the Russian Federation navigating through Russian water? What is the strategic value of the NSR for Russia?

Several on-going developments in regard to the administration of the NSR currently influence the deliberation of these questions, with the “icebreaker paradox” as the most prominent. With the recently implemented Rules of navigation on the water area of the NSR[7], icebreaker assistance is no longer compulsory for each voyage through NSR straits, but now it depends on the ice class of the vessel and the ice conditions in the area in which the vessel will be traveling. Icebreaker fees will depend on the capacity of the respective ship, its ice class, the distance of the escort and the time of navigation.[8]

However, while the legal framework is now established, a detailed mechanism for the calculation of the fees still needs to be developed. Until this mechanism is in place, shipping fees for using the NSR will continue to be determined by the old rules from 1990, meaning fee determination through individual negotiations.

According to the rules, the Russian authorities only demand fees for icebreaker assistance (not only for breaking ice but also for search and rescue and other functions) and pilotage for using the NSR, which constitute the only revenue sources from the NSR. As these sources are not enough to maintain and develop the necessary infrastructure assets for safe navigation on the NSR, the Russian government has to provide significant subsidies.

One begins to question the economic viability of the NSR for the Russian Federation. And also the question remains about who will bring about the vast investments needed to modernise, maintain, and (potentially) expand the existing icebreaker fleet. The potential lack of sufficient icebreaker capabilities in the NSR will likely lead to a delay in shipping traffic and has immediate negative effects on the development of the NSR as a transit route used for international navigation. For several maritime trading sectors, time savings are crucial for any economic feasibility considerations of transiting the NSR, especially in the case of seismic and liquefied natural gas (LNG) vessels, which have very high time-charter costs per day. Waiting times of a few days due to icebreaker delays may destroy any pre-calculated cost benefits in comparison to southern routes.

Based on these considerations, it may be possible that an agreement between the Russian Federation and user states of the NSR increasing the latter’s financial contribution to the maintenance of the NSR is a reasonable option to improve and safeguard NSR usage. This is especially relevant if Russia is seriously interested in the NSR not only being a national waterway, but also a route for international transits.

Conclusion

Development in the Arctic is happening and shipping numbers are indeed increasing. But both scientific and public debates and reporting need to be directed into a more nuanced and differentiated discussion about the region’s general future and the potential of shipping along northern routes.

A realistic perspective suggests that currently the NSR is intended as a Russian sea route. International shipping and potential revenues derived from the NSR are generally welcome but most likely Arctic shipping will not change major global trading routes. Consequently, while it is of regional relevance and potential importance as a niche route for a number of goods, the NSR’s geopolitical and geo-economic relevance, especially in the sense of global trade patterns, is rather limited.

This article is part of a larger study which takes a look at China’s geo-economic interests in Arctic shipping and the future of Arctic shipping generally. The study will be released by The Arctic Institute later this year.


[1] The ship is Hong Kong-flagged but owned by Chinese state-owned company Cosco Group.
[2] See for example: The Guardian, “China's voyage of discovery to cross the less frozen north”, http://www.theguardian.com/world/2013/aug/18/china-northeastern-sea-route-trial-voyage, accessed 4 September 2013; The Wall Street Journal, “Ship Travels Arctic From China to Europe. Northern Passage Shaves Two Weeks of Travel Time Off Journey”, http://online.wsj.com/article/SB10001424127887323423804579022982364681464.html#, accessed 4 September 2013.
[3] The Northern Sea Route Administration, “Permissions for navigation on the water area of the Northern sea route”, http://asmp.morflot.ru/en/razresheniya/, accessed 2 September 2013.
[4] Northern Sea Route Information Office, “Brief statistical analysis on the Permissions issued by the NSR Administration as of 31 July 2013”, http://www.arctic-lio.com/node/190, accessed 4 September 2013.
[5] For a current assessment about the potential of the Transpolar Sea Route (TSR) see Humpert & Raspotnik 2012: http://www.thearcticinstitute.org/2012/11/the-future-of-arctic-shipping-along.html. The four outlined variables influencing shipping considerations along the TSR can also be used for future shipping scenarios along the NSR and the NWP (Northwest Passage).
[6] The Norwegian classification society Det Norske Veritas (DNV) identifies risks related to Arctic navigation by contrasting probability with consequences and concludes several main risks elements: design, emergency, evacuation and rescue, the environment, regularity/logistics, long term commitment and estimation of costs; see presentation by Morten Mejlænder-Larsen, Discipline Leader Arctic Operation and Technology, DNV; presentation at Nansen-NVP Summer School, 19 August 2013, Longyearbyen, Svalbard.
[7] Rules of navigation on the water area of the Northern Sea Route, unofficial English translation taken from Northern Sea Route Information Office, accessible at http://www.arctic-lio.com/docs/nsr/legislation/20130425185806en-Rules_unof.pdf.
[8] Ibid., p. 5 f.





The Arctic Institute's reaction to the arrival of the Yong Sheng in Rotterdam




Berlin, September 8, 2013 - In response to the arrival of the Yong Sheng in Rotterdam, the first Chinese cargo vessel traveling along the Northern Sea Route, Malte Humpert, Executive Director of The Arctic Institute, said: 

“In contrast to recent reports, Arctic shipping will remain of limited importance to China. The geographic distribution of China’s main trade partners and its substantial and ongoing investments in port infrastructure along existing trade routes speak counter to the idea of large-scale Chinese trans-Arctic shipping.”

With regard to widespread reports of an exponential increase of shipping along the NSR Kathrin Keil, The Arctic Institute’s Europe Director, stated:

“In 2013 the Russian authorities for the first time made available a list of all granted permits for the NSR. The vast majority of permits are not for full transits, but are for regional traffic, primarily in the Kara Sea in the western part of the NSR. The number of Arctic transitsvessels traveling from the Pacific to the Atlantic or vice versais expected to be on par or slightly below 2012 figures when 46 ships made the journey.” 

On the overall importance of Arctic shipping, Andreas Raspotnik, Analyst at the Institute said:

“With the melting of Arctic sea ice, Arctic shipping has become part of today’s maritime landscape. Large-scale trans-Arctic shipping and a shift in global trade patterns towards the Arctic, however, are far from becoming a reality. Traffic along the NSR will continue to be dominated by regional – primarily Russian – traffic and remain a seasonal and niche trade route.”

For the full analysis please click here.

Contacts:




The Arctic Institute's Reaction to the Arctic Council's Decisions on Permanent Observers




In response to the Arctic Council decision to grant permanent observer status to six applicants, including China, Malte Humpert, Executive Director of The Arctic Institute, said:

"During the ministerial meeting in Kiruna, the eight Arctic Council members decided to grant China, India, Japan, South Korea, Singapore and Italy permanent observer status. The European Union's application was also officially accepted, although the EU will not become a permanent observer until it has resolved some final disagreements with Canada, primarily concerning the EU's ban on the import of seal products."

"China's successful bid comes on the heels of a flurry of political and economic efforts in the region over the past two years. The country’s growing partnerships with some of the smaller Arctic states, especially Iceland, appear to have paid off. While the decision to grant China permanent observer status changes little in terms of decision-making power, the symbolic importance for China should not be understated. China has identified the Arctic as a strategically and geopolitically valuable region and aims to project its influence through regional political and economic partnerships. Having a seat at the table, albeit only as a permanent observer, has long been an essential part of the country’s regional strategy," concluded Humpert.

With regards to the EU's application Andreas Østhagen, a Senior Fellow at The Arctic Institute elaborated:

"During the run up to the Council meeting, it appeared possible that Canada might block the EU’s application, citing its lack of respect for traditions of indigenous communities, as demonstrated by the Union’s ban on seal products. The EU has worked vigorously over the last few years to legitimize its role as an Arctic actor, but its import ban on seal products has been a constant blemish on its aspirations to a permanent observer seat at the Arctic Council. However, given the EU's impact on the Arctic at large, and in particular the European part of the Arctic, one could ask if it would not be better to include the Union sooner rather than later. It will be interesting to see how long Canada chooses to delay giving the EU the rights of a permanent observer and what this means for Brussels-based interest in Arctic affairs."

"The EU's interest in the Arctic is not a reliable constant, and Canada, as well as the other Arctic states, would probably benefit more from its inclusion, rather than its exclusion," concluded Østhagen.

Mihaela David, Fellow at the Arctic Institute, added:

"Granting these countries permanent observer status was a way to appease critics and signal that the Arctic Council is an inclusive forum that gives voice to interested parties. The move was probably seen as politically shrewd, perhaps to obviate the creation of alternative forums for discussing Arctic issues."

"There were, however, hidden costs to the debate over permanent observers. Much effort was devoted to this comparatively symbolic matter, when that time could have been better spent addressing the many pressing challenges the region is facing. While the Arctic Council completed the work of finalizing a binding oil spill preparedness and response agreement, the negotiations over admitting permanent observers distracted media attention from the actual work of the Council. Rather than highlighting the cooperative atmosphere the Arctic Council has been operating in for many years, this debate was often used to paint a picture of potential conflict in the Arctic."

"Moving forward, the Arctic Council needs to focus its time and energy on a host of challenges that lie ahead, such as fisheries management and protection and maritime navigation safety. It also needs to focus on the implementation of the two agreements – to test, evaluate and improve the capabilities and coordination mechanisms for both search and rescue and oil spill preparedness and response."

"The Arctic Council should also be aware of possible pitfalls of the more “internationalized” forum. Now that more parties are given a seat at the table, Arctic states should make a concerted effort to take into account the interests and concerns of indigenous groups, who fear their voices will be diminished within the Council."

"Successful Arctic governance will reconcile competing interests in a way that benefits the people living in the Arctic, Arctic states, and non-Arctic actors with legitimate interests," concluded David.


Contacts:
Mihaela David, Washington, D.C., mihaela.david@thearcticinstitute.org, +1 518.491.8398
Malte Humpert, Washington, D.C., malte.humpert@thearcticinstitute.org, +1 202.656.6258
Andreas Østhagen, Brussels, andreas.osthagen@thearcticinstitute.org, +32 485.414.367


The Arctic Council: Underpinning Stability in the Arctic




By Matthew Willis At first glance, it may seem odd that a once-obscure organisation devoted to environmental preservation and sustainable development should now be among the Arctic’s most prominent actors. To experienced observers, however, the Arctic Council’s growing stature is no more surprising than the fact that the regional ‘meltdown’ many political scientists forecast has never occurred. Today, the council is effectively presiding over an emerging ‘stability architecture’ based not on military strength, but on the multilateral pursuit of common interests. This does not imply the exclusion of the military, simply its deployment in novel and unconventional ways. This article looks back briefly on the crisis that never was, before scanning the current Arctic security horizon and evaluating the developing role of the Arctic Council. 

Except in the minds of a few headline writers perhaps, none of the semi-apocalyptic conflict scenarios envisaged for the Arctic has developed. Instead, the eight Arctic states – Canada, Russia, Norway, Sweden, Finland, Denmark, Iceland and the US – have established ever-closer relations. Certainly, Norway and Denmark have modernised their surface fleets and Russia has bolstered its shrunken postCold War capabilities, but the region has not been militarised. Boundary tiffs have never flared into open conflict: they have either been settled, in the case of the Russo-Norwegian Barents Sea dispute, or allowed to fall dormant once again, as in the case of Hans Island. The rush for energy resources never occurred either: companies have secured licences and, in some cases, drilled exploratory wells, but their behaviour has been cautious. 

The one thing the alarmists were correct about was the magnitude of the changes the Arctic environment would experience. In fact, they underestimated it. The average annual temperature in the Arctic is rising faster than predicted and the rate of ice-melt is accelerating similarly, with global sea levels projected to rise by a metre by 2100. Unusual weather patterns across Europe are lending weight to warnings that these and other developments could contribute, by altering the path of the jet stream, to more frequent extreme weather across the hemisphere. 

The wrong conclusion to draw would be that if the current effects of climate change have not yet triggered a resource ‘scramble’ or drawn countries into confrontation, the Arctic can be written off as a key strategic theatre. On the contrary, foreign and defence ministries across the region – and beyond – are more focused on it than ever.

The trends they are watching – drifting fish stocks, increasing shipping and expanding hydrocarbon exploration – are not conventional military concerns. Indeed, they are overwhelmingly civilian, but their unifying theme is growing human activity, and thus unpredictability. The armed forces, beyond their responsibility for handling all contingencies, are also the only agencies with both the requisite monitoring instruments and the physical capabilities to operate in such a vast and inhospitable region. Canada, for instance, must treat potential search and rescue (SAR) missions as expeditionary: its armed forces are experimenting with a ‘hub’ concept that involves prepositioning equipment in depots across the north to lengthen their reach and shorten their reaction time.

Exercise Cold Response
courtesy of soldatnytt on flickr.com
It is no surprise, therefore, that the ‘Arctic militaries’ are increasingly working together. Annual joint exercises help them to develop the necessary skills and co-ordination: Exercise Cold Response 2012 – held in Norway last March and simulating action under NATO leadership – involved over 16,000 personnel from a dozen countries.

New partnership structures are gradually emerging, too. One is the Arctic Security Forces Roundtable (ASFR), a semi-annual gathering of senior military officers from the Arctic Eight and selected allies, which looks at how to improve co-operation, particularly in terms of SAR and domain awareness. Highly informal at present, the ASFR could gradually develop into a more structured forum for international co-ordination.

Nonetheless, reasoning that the regional security architecture needs revamping to accommodate the Arctic’s transformation is probably going too far. For one, attempts to ‘secure’ the region could well achieve the opposite. For example, as Canadian Prime Minister Stephen Harper told Anders Fogh Rasmussen, NATO’s secretary-general, in 2010, a NATO presence would only antagonise Russia.

Moreover, hard power frameworks are not the only way to maintain peace. In the Arctic, the coastal states’ reverence for the existing international legal regime is a crucial part of the region’s stability. Another part is these states’ common belief in the economic benefits that stability brings. With international law as the basic foundation, and economic profit (balanced with environmental custodianship) as the organising principle, therefore, the most effective ‘security’ architecture may develop out of the aggregation of government policies geared towards facilitating and regulating healthy commercial activity. The result would be less a security than a stability architecture. 

It therefore seems fitting that the Arctic Council, whose key characteristic is its sustained refusal to consider matters touching on ‘hard’ security, should now be considered the central actor on the region’s political stage. Formed in 1996 to promote co-operation and interaction among its members, predominantly in relation to environmental protection and sustainable development, the council has a number of unique features. One is the status it accords indigenous groups: in their position as ‘Permanent Participants’, these groups are able to work on unusually even terms with governments and shape the council’s research agenda.

Another is the council’s lack of decision-making power: it is a forum, or clearing-house, for Arctic research, not an executive organisation. Its output – like the 2009 Arctic Marine Shipping Assessment – is meant to provide not just its member states, but all relevant stakeholders in the international community, with reliable data and analysis. Nevertheless, because the resulting reports tend to be exhaustive and draw on expertise from around the world, the recommendations produced carry considerable weight. 

This quiet authority, coupled with the 2011 signing of a binding SAR agreement and the current elaboration of an oil-spill prevention protocol, has prompted suggestions that the organisation is changing. But this is only partly right: the SAR agreement, although negotiated ‘under the auspices’ of the Arctic Council, was not in fact a product of the council itself but of its eight permanent members. The same will apply to the oil-spill prevention document. 

What is true is that the ‘dual identity’ of the Arctic Eight as both council members and ‘free-standing’ states gives the council an executive aura, particularly when they – or even just the five states with Arctic coastlines – sign agreements regulating their own behaviour. A good illustration is the Ilulissat Declaration of 2008, in which the ‘Arctic Five’ pledged to resolve any jurisdictional disagreements between them peacefully, and pointedly affirmed that the United Nations Convention on the Law of the Sea (UNCLOS) obviated the need for new regional governance structures. (Admittedly, this announcement also created the impression that the three non-coastal states had been excluded.)

Such statements have both shielded the council from overt politicisation and implied that the political heart of the region beats within it. There could thus be said to be a symbiotic dynamic at work here. On the one hand, the ‘executive’ power of the member states is projected onto the Arctic Council. On the other, the legitimating power of the council, largely derived from the centrality of the Permanent Participants and the presence of observers, imbues the Arctic Eight with additional authority. 

This legitimacy-cum-authority helps explain why fourteen different countries and organisations wish to be admitted as observers this May. Whatever the eventual decision on these applications, the demand is in itself remarkable: at least on paper, the Arctic Council requires more from observers than it offers in return. It is hard to imagine a set-up more contrary to the zero-sum logic of traditional security politics. 

This deluge of applications is a golden opportunity. Openness would be a shrewd move, at a stroke enhancing the council’s legitimacy and the quality of its deliberations, and reducing the risk of being bypassed by countries acting unilaterally. Some of the council’s recent applicants could also represent a financial boon: China, South Korea, India and Japan have the fastest-growing stable of Arctic scientists, while the EU last year proposed devoting €80 billion to Arctic research. 

Meanwhile, the risks of admitting new members, even heavy-hitters like China, are low. First, observers’ powers are limited: they may engage with the forum’s working groups, propose projects and state their views (all with permission), but they have no vote. Secondly, observer status does not alter international law: under UNCLOS, extra-regional actors have no jurisdiction in Arctic waters, and no applicant disputes this. Thirdly, the council is still fundamentally devoted to promoting research and knowledgesharing, and new observers could contribute greatly in this regard. 

Some Permanent Participants also fear being marginalised if new observers are admitted, but the same countries could still engage bilaterally with Arctic states from outside of the council, and there is no difference in power between permanent and ad hoc observer status. The main danger of admitting too many new observers is therefore likely to be confined to a diminished capacity for reaching swift consensus. 

By all accounts, the Arctic states have not yet agreed on how to proceed with these applications. It is inconceivable that they will reject all of the applicants, but unclear how many they will approve – those garnering the most speculation being China and the EU. The Nordic countries have stated their preference for more openness than less, and look set to accept both. The US, having previously rebuked Canada for not being more inclusive, will likely go the same way. 

That leaves the two Arctic giants. Despite its once-bellicose rhetoric, Canada has lately appeared sanguine. Indeed, it has just signed a free trade agreement with China and is negotiating an equivalent with the EU, so a snub would be counter-intuitive. Russia, meanwhile, is deeply distrustful of China, but China is already an ad hoc observer and security remains Russia’s main concern. Given the council’s purpose and the prescribed limits on observer status, the odds are that the balance will tip in China’s favour, just. 

It can therefore be said that while security remains an important element of the Arctic strategic picture, standard definitions are unhelpful; indeed, the region’s ‘securitisation’ would be counter-productive. Stability – the end goal of security – is already present, underpinned by the heft of the Arctic Council – a forum tight enough to take influential positions but loose enough to protect the agency of its core membership. 

As development intensifies and the interests of the many legitimate stakeholders – both state and nonstate – come into sharper focus, this collegial atmosphere may be challenged. Nonetheless, the Arctic is a vast space, with room enough for everyone. Do not expect great sparks to fly.

This article was originally published in RUSI Newsbrief (Vol. 33, No. 2, March 2013), http://www.rusi.org/publications/newsbrief/ref:A513A129282486/#.UUmZwTfFk6I

Matthew Willis is a research analyst in RUSI’s International Security Studies Department.




From ‘Great Wall’ to ‘Great White North’: Explaining China’s politics in the Arctic





Below you can find a short excerpt of an article on China's Arctic politics which was published by European Geostrategy on August 17, 2012. To read the full article please click here.


By Malte Humpert and Andreas Raspotnik Over the past decade, the Arctic has moved into the focus of world politics. As Arctic sea ice melts at a rapid rate, regional and international actors are strengthening their local involvement thus further focusing international attention on the region. External Arctic actors, primarily the European Union and the People’s Republic of China, but potentially also India and South Korea, aim to profit from the region’s various prospects. 

Geopolitical dynamics in the Arctic include the political consequences of climate change in the region; the subsequent rise of economic opportunities; and the increase of international competition on one hand, and multilateral co-operation on the other. Against prevailing perceptions, geoeconomics only plays a subordinate role in China’s Arctic endeavor. While the Arctic may hold significant economic potential, its riches will not feature prominently in China’s future economic calculations. Instead, the driving force of China’s interest in the region is based on geopolitical considerations, including enhancing its ability to exert influence in the Arctic through regional strategic partnerships. China’s recent political and economic efforts in the region indicate that China regards partnerships with smaller Arctic states as not only key to gaining influence in the Arctic, but also to enhancing its standing and role internationally.


US-Russian Arctic Strategies: Spatializing Governance and Governing Space




Hugo Ahlenius, UNEP/GRID-Arendal
http://www.grida.no/graphicslib/detail/arctic-map-political_365d

By Sebastian Knecht Governing Arctic space peacefully and, in the best case, sustainably is currently at the heart of debates on the High North’s future. More than ever, statements issued in this debate are politically motivated and legally justified through the lens of national sovereignty over maritime territories. Since the turn of the millennium the enormity of Arctic melting processes and, as a consequence thereof, rising economic stakes in increasingly ice-free waters has attracted much attention in adjacent states as well as beyond, e.g. in the European Union and China. The hypothetical question of whether unilateral interests in the region are about to merge and thus pave the way for regional cooperation or whether stakeholders will strive only for their own good, possibly causing anything from political friction to actual conflict, remains a key issue. 

While this is one way to look at politics in the circumpolar North, one has to remember that throughout history relevant actors have perceived Arctic space differently. Such distinct perceptions include the Arctic as open space, a reductionist fragmentation into national sectors, home to indigenous cultures and source of Northern identities or ultimately as a heritage of mankind that should be governed under international authorities and ideally a treaty-based regime. 

From this follows that for today’s treatment of Arctic affairs there is a need to keep in mind that certain framings of geographical space are not set in stone. In fact, it is a promising approach to look at different spatialization moves and geopolitical narratives of the Arctic as the foundation for each littoral state’s foreign policy action, and vice versa. 

Towards a ‘Polar Mediterranean’? [1] Some Theoretical Reflections

The theoretical school of critical geopolitics [2] has contributed much to identifying discursive practices of international geography. It highlights the making and shaping of spatial narratives for executing hegemonic power over temporarily constructed social meanings bound to terrestrial and maritime territories, as is the case with current dynamics of Arctic reordering.

In contrast to that rather gloomy usage of geopolitics, a more ‘positive’ understanding of geopolitical reasoning has so far not been considered. Creating a common Arctic space narrative through discourse is a potentially useful and beneficial tool to trigger an emerging regional community. Successful region-building processes in the High North depend on the notion of a common political destiny of a ‘borderless North’ [3] in national foreign policy strategy. 

State practice usually follows a specific kind of spatialization of international politics: regional governance, political means, as well as national contributions to common challenges such as environmental degradation or joint management strategies for resource production rely on each countries vision of what the Arctic is and how it should be dealt with. The more actors tend to see the Arctic as territorially fragmented subsets, and thus not more than the sum of national entities, the region will remain a source for competition and rising tensions. Wherever, in contrast, the Arctic is intersubjectively narrated as a political idea over which all littoral states are responsible, the image of ‘otherness’ gives way to mutual trust and joint policy efforts. 

If one digs deeper into recently released Arctic strategy papers, individual spatial narratives reveal anything but an alarming picture of Arctic cooperation. Rather, they testify political will to collaborative management initiatives such as the Search and Rescue Agreement adopted by the Arctic Council in May 2011. While countries still show dichotomous interests and policy approaches, the resulting Arctic picture is not necessarily conflictive.

By way of illustration, a closer look at the old Cold War rivals of the US and the Russian Federation, who in the past primarily used the Arctic as an outpost of nuclear deterrence in order to secure their individual sectors, shall account for the principles and possibilities of Arctic spatialization narratives in foreign policy reasoning.

The Russian Federation
In the case of Russia, in September 2008 President Medvedev approved a detailed Arctic policy strategy outlined in the ‘Guidelines of the Russian Federation’s State Policy in the Arctic Until 2020 and Beyond’ (Osnovy gosudarstvennoi politiki Rossiiskoi Federatsii v Arktike na period do 2020 goda i dalneishuiu perspektivu) [4]. Though emphasizing the economic and military significance of the Arctic to Russian development in the next decade, particularly its status as an international energy superpower, the geopolitical narrative reads quite differently in the paper. Russia’s foreign policy strictly distinguishes between common political challenges in the ‘Arctic environment’, which equally affect other littoral states and hence require coordinated cross-border cooperation, and national interests explicitly referring to the ‘Arctic Zone of the Russian Federation’. 

Among the challenges of governing Arctic commons mentioned are adaptation strategies to efficiently mitigate environmental degradation processes, conservation and sustainable development of maritime ecosystems, and the integration of Arctic science, knowledge, and technologies. Russia is supportive of joint capacity-building projects, such as the establishment of a region-wide search and rescue system and emergency response mechanisms that would be beneficial to all. Moreover, securing the circumpolar North in the traditional sense of Gorbachev’s ‘Arctic Zone of Peace and Cooperation’ narrative [5] even ranked second in the list of national interests, right after stressing the importance of Russian national Arctic waters as ‘a strategic resource base’. 

The United States
The US’ foreign policy reasoning towards the High North follows the same spatial logic of exclusive internal territories and inclusive external common waters. Former President George W. Bush in January 2009 signed the ‘National Security Presidential Directive/NSDP – 66’ that established the US’ Arctic strategy for years to come [6]. Compared to the Russian strategy, the geopolitical reasoning is not that much different, except for maritime shipping. While Russia claims parts of the Northern Sea Route as internal waters, the US views it as an international strait.

Acknowledging that its offshore areas under national jurisdiction are in total rather poor in fossil fuels, the United States seeks to develop resources, maritime shipping and national security issues under uncontested state sovereignty only within its own territories. Still, the US is willing to consult and ‘work closely with other Arctic nations’, all the more with regard to ecological and socioeconomic implications of Arctic raw material production. Particularly when it comes to environmental protection and conservation management strategies, the US refers to the ‘Arctic environment’ and ‘marine ecosystems’ as a whole and emphasizes the need to respond in a coordinated manner to rising common challenges. 

The narrative of an open Arctic space also guides controversial aspects of national defence and military intervention in the circumpolar North, i.e. all issues related to homeland security. The US Department of Defense even downplays US military ambitions in the High North given that all Arctic states have ‘publicly committed to working within a common framework of international law and diplomatic engagement’ [7]. Interestingly, the document makes a fundamental shift in US Arctic policy reasoning. While the 2009 Presidential Directive made clear the possibility of unilateral action in order to maintain national security by operating ‘either independently or in conjunction with other states to safeguard these interests’, two years later this policy has been revised towards a predominantly cooperative approach. The US now wants to act ‘in conjunction with other states when possible, and independently if necessary’.

Geospatial Patterns of Arctic Cooperation: A Different Conflict Dimension

In comparison, the US’ and Russia’s Arctic strategy papers read similarly in terms of their respective Arctic spatialization narratives. This indicates a common ground for joint management efforts and cooperative behaviour in the High North’s vulnerable environment. Seen through a geospatial lens, Arctic governance is thus already well-equipped to progress peacefully and in the spirit of a common Arctic space. National sovereignty and regional stewardship are not in any case contradictory policy patterns, but sometimes two sides of the same coin. 

On the downside, observers of Arctic affairs should be more anxious about third actors like China and the EU narrating the Arctic as a global commons to substantiate their claims for political and economic involvement in the region. As Anthony Speca [8] recently argued, well-meant NGO involvement like Greenpeace’s ‘save the Arctic’ mission could actually be impeding progress to the peaceful cooperation that is likely to dictate Arctic affairs in the near future.

Sebastian Knecht is currently a M.A. student at the University of Bath and Humboldt-Universität Berlin writing his master thesis on post-Cold War US-Russian relations in the Arctic. His main research interests include Arctic affairs, EU external relations as well as international climate and energy governance

References:

[1] Stefansson, V., 1921. The Friendly Arctic: The Story of Five Years in Polar Regions. New York: G.P. Putnam’s Sons.
[2] Ó Tuathail, G., 1996. Critical Geopolitics: The Politics of Writing Global Space. Minneapolis: University of Minnesota Press.
[3] Cf. Heininen, L., ed. The Borderless North: The Fourth Northern Research Forum. Oulu: University of Oulu and Akureyri: Northern Research Forum.
[4] Security Council of the Russian Federation, 2008. Guidelines of the Russian Federation’s State Policy in the Arctic Until 2020 and Beyond, 18 September 2008. The official document is only available in Russian: http://www.scrf.gov.ru/documents/98.html. A reliable English translation can be found here: http://icr.arcticportal.org/index.php?option=com_content&view=article&id=1791%3Afoundations-of-the-russian-federations-state-policy-in-the-arctic-until-2020-and-beyond&catid=45%3Anews-2007&Itemid=111&lang=sa
[5] Gorbachev, M., 1987. Mikhail Gorbachev’s Speech in Murmansk at the Ceremonial Meeting on the Occasion of the Presentation of the Order of Lenin and the Gold Star to the City of Murmansk, Murmansk, 1 October 1987. Moscow: Novosti Press Agency. Available via: http://www.barentsinfo.fi/docs/Gorbachev_speech.pdf
[6] The White House, 2009. National Security Presidential Directive/NSDP – 66, 9 January 2009. Washington, D.C.: The White House, Office of the Press Secretary. Retrieved from: http://www.fas.org/irp/offdocs/nspd/nspd-66.htm.
[7] US Department of Defense, 2011. Report to Congress on Arctic Operations and the Northwest Passage, May 2011. Available online: http://www.defense.gov/pubs/pdfs/Tab_A_Arctic_Report_Public.pdf
[8] Speca, A., 2012. Arctic Saviour Complex. Northern Public Affairs, 07 July 2012.


Perspective Correction: How We Misinterpret Arctic Conflict




By Tom Fries War and conflict sell papers -- the prospect of war, current wars, remembrance of wars past. Accordingly, a growing cottage industry devotes itself to writing about the prospect of conflict among the Arctic nations and between those nations and non-Arctic states, which is mostly code for “China.” As a follower of Arctic news, I see this every day, all the time: eight articles last week, five more already this week from the Moscow Times, Scientific American or what-have-you. Sometimes this future conflict is portrayed as a political battle, sometimes military, but the portrayals of the states involved are cartoonish, Cold-War-ish...it’s all good guys and bad guys.

I’m convinced that this is nonsense, and I feel vindicated when I see the extent to which these countries' militaries collaborate in the high North. From last week's meeting of all eight Arctic nations' military top brass (excepting only the US; we were represented by General Charles Jacoby, head of NORAD and USNORTHCOM) to Russia-Norway collaboration on search & rescue; from US-Canada joint military exercises to US-Russia shared research in the Barents...no matter where you look, the arc of this relationship bends towards cooperation.

But there's a bigger misconception that underlies the predictions of future Arctic conflict that we read every week. This is the (usually) unspoken assumption that the governments of these states are capable of acting quickly, unilaterally and secretly to pursue their interests in the Arctic. False.

This idea that some state might manage a political or military smash-and-grab while the rest of us are busy clipping our fingernails or walking the dog is ridiculous. The overwhelming weight of evidence suggests that the governments of the Arctic states are, like most massive organizations, bureaucratic messes. Infighting between federal agencies is rampant all around, as are political shoving matches between federal and state/provincial/regional governments. Money is still scarce, and chatter about military activism isn’t backed up by much: Canada is engaged in a sad debate over the downgrading of the proposed Nanisivik port; the United States’ icebreaker fleet is barely worth mentioning and shows little sign of new life in the near-term future; US Air Force assets are being moved 300+ miles south from Fairbanks to Anchorage; and Russia’s talk about a greater Arctic presence has been greatly inflated for the sake of the recent elections. In a more general sense, we have viciously polarized governments in the US and, to a lesser extent, Canada, as well as numerous “hotter” wars elsewhere that will take the lion’s share of our blood and treasure before the Arctic gets a drop of either.

The smaller states might be able to act more nimbly, but Norway and Denmark are successful Scandinavian social-market economies with modestly-sized militaries who aren’t likely to put military adventurism in the Arctic at the top of their to-do lists. They’re also patient decision-makers who are making apparently sincere (if not always successful) efforts to incorporate their resident indigenous communities into national politics. This makes fast, unilateral, secret action unlikely.

And then there is Russia. From the outside, it can often seem as though the Russian government rules by fiat. This reasonably leads to the concern that someone might take it into his head to assert Russia’s military might or otherwise extend the country’s sovereignty in the Arctic. But it is fairly clear that Russia’s success is currently, and for the near-term future, dependent on its position within the constellation of global hydrocarbon suppliers. To continue to develop its supply base, Russia needs the assistance of the oil majors of neighboring states, and indeed it is showing signs of warming up to foreign engagement with its Arctic hydrocarbons in significant ways. Its political relationships with its regular customers are also critical to its future success. Russia isn’t likely to wantonly sour those relationships by acting aggressively against all four of its wealthy, well-networked littoral brothers in Europe and North America. 

It’s not only the handcuffs of many colors worn by the Arctic states that will keep them from getting aggressive, it is also the good precedents that exist for cooperation here. Russia and Norway recently resolved a forty year-old dispute over territory in the Barents. There are regular examples of military cooperation among the four littoral NATO states and between Norway and Russia. Even the US and Russia are finding opportunities to work together. Meanwhile, the need to develop search-and-rescue capabilities is making cross-border cooperation a necessity for all Arctic actors. There are numerous international research and private-sector ventures, even in areas other than hydrocarbons. These will only grow in importance with time. In fact, it would seem that for many of these countries, the Arctic is a welcome relief - a site where international collaboration is comparatively amicable.

But there is indeed a competition underway in the Arctic. It isn’t between states; it is the competition between categories of actors to set norms and precedents that, though unwritten, will guide the development of the region. We see this competition in the complicated jockeying between states, indigenous organizations, the Arctic Council itself, academia, military coalitions (e.g. NATO), extractive industries and environmental groups, among others. The central prize is neither oil, nor data, nor pristine wilderness but instead the privilege of deciding which issues enjoy the sunlight of attention and which are dealt with quietly in the shadows. Many venues exist already for debate and conflict resolution, but who will decide which issues make it onto the docket in these venues? Perhaps more importantly, who will get to decide what the public hears and learns to care about? It may be that, for the moment, the hydrocarbon industry is doing a good job of pressing its suit. Its victories set precedents for elsewhere in the Arctic, but they also imply suboptimal outcomes for other classes of actors, who will be adapting and innovating to better press their cases in different venues and through different channels.

There are many Arctic issues already settled by UNCLOS and other legal regimes. But there are also numerous issues yet to be resolved, and the letter of existing law is rarely so iron-clad that there is no room for interpretation. As the North becomes the focus of increasing interest, which category of actor will be writing the rules? Time will tell.