Good afternoon, ladies and gentlemen.
First, I would like to thank Arion Bank and BBA/Fjeldco for organizing this event to discuss opportunities in the Arctic.
Let me start on a personal note.
As many of you are aware, election have been called in Iceland. It will take place on the 30th of November.
This means a time of uncertainty and unpredictability for all of us in Iceland who have chosen politics as our occupation. Nobody knows what the results will be, and even when we know the results, there will remain many unresolved issues before a new coalition government takes power.
Thankfully, there is no need to worry about the democratic health of Iceland. No matter what the result will be, Iceland will remain committed to the basic principles of the rule of law, it will not make major changes in its foreign policy, and no matter who inherits the current state of Iceland; they will be taking control in a society that is extremely well placed to continue to secure world-class standards of living for our small population and participate fruitfully in international business and innovation.
For me the next few weeks, or maybe some months, are likely my last as Foreign Minister of Iceland, at least for the time being.
And, in many ways, when I look at the time that I have been entrusted with this role, the Arctic has been a constant point of focus.
I took office during the last months of the pandemic crisis. There were still limitations on travel at the end of 2021 and the first weeks of 2022.
Like many of you, I was frustrated with the situation, especially as it dragged on. My desire and need for personal freedom, privacy, and a sense of control over my own destiny are among the deepest convictions I hold as an individual and as a politician.
I am sure that many of you in this room hold similar core convictions.
Little did I know, that one day after the last pandemic restrictions were lifted for us in Iceland – a brutal war of conquest and subjugation was started by Russia in Europe. The temporary restrictions on our freedoms are miniscule in comparison.
The people of Ukraine have since been faced with the unthinkable prospect of having their property destroyed, their heritage erased, their children stolen, their families beaten, imprisoned, raped, and killed – all for the bottomless greed of the leader of a neighbouring country.
The threats to our freedom and peace are real.
***
Well, one of the first trips I took in the year 2022 was in the beginning of February. I was the first Icelandic foreign minister to take part in the Munich Security Conference.
For those of you who don’t know. The Munich Security Conference has been described as the Davos of global security.
It is a venue where politicians, military leaders, think tanks and academics gather to address the key global challenges facing the world, or—more specifically, the democratic world.
If you are a political nerd, like me, it is like being at the Oscars.
The Munich Security Conference is also the venue where Vladimir Putin made the speech – in 2007 – that convinced many in the world of geopolitics and security that Russia did not intend to become a bonafide participant in a free global market, but was preparing itself to isolate from the West and use its resources, not to integrate with the global economy, but to build up a position as a military power with the intention of reclaiming its place as a world power in the old fashioned way. A power that demands influence over the internal matters of its neighbours and threatens to use force to extend its influence and empire wherever it can.
For many – the warning bells were ringing resoundingly, and then Russia invaded Georgia in 2008, beginning its current phase of colonial expansion.
Sadly, many others – and probably many more – decided to ignore these warnings and continued to believe that the best way to deal with Russia was to increase trade and stay open to the influence of state-controlled companies and oligarchs in the West. These ongoing entanglements created unfortunate common interests between powerful people and companies in the West, and a Russian state, masquerading as capitalist and democratic, but in reality, already engaged in an elaborate preparation for destroying the peace in Europe and across the globe.
In February 2022, when I went to the Munich Security Conference, the Russians had amassed a force of more than 300 thousand troops on the border with Ukraine and reports had emerged that trucks with blood supplies had also been sent to the border – a clear indication that Russian stories claiming that these troops were on exercise were total fabrications. Things could not be more serious.
There was tension in the air, although I think most people still held on to the hope that Vladimir Putin was only trying to project strength in order to demand concessions from Ukraine.
That was not the case. On February 24th his invasion started.
The scale and brutality of what he unleashed came as a surprise to many, as did the heroic resistance of the Ukrainian people, who managed to destroy his plans for an easy victory, and are to this day still clearly the winners in the face of overwhelming force
How does that connect with the Arctic?
At the conference I was invited to participate in a closed round table discussion. It took place on 19 February – five days before the invasion.
It’s title was: On thinning Ice: Regional Security in the Arctic.
At that time, the countries around the Arctic still held on to the hope that longstanding efforts to keep the Arctic a region of low tension. High north – low tension, was the slogan.
But during the discussion, and in the context of the events that unfolded in the next days, it became clear to me that this view had become dangerously outdated and naive.
We were not dealing with an adversary, but a potential enemy.
The Arctic has great geopolitical significance that is not likely to diminish in the coming years and decades. Therefore, the decisions we make about co-operation in the region must be viewed in the light of the fact that some of those who show interest in participating are not doing so out of genuine market motives.
And this is not something that business people can allow themselves to disregard.
In times of uncertainty and crises, it is not only politicians who must increase their vigilance; all people of power, influence and success have a responsibility to educate themselves about the larger forces at play.
When it comes to maintaining peace, we are all in the same boat, no matter our material success or position in life. Just ask those who are risking their lives on the front lines of Ukraine.
Nevertheless, it is crucial to exploit opportunities in the Arctic and to do so in a responsible and sustainable way. Most importantly, we need to choose our partners carefully.
Having these discussions here in the UK is very appropriate, as it is one of the strongest and most reliable partners for the rule of law and peace in the world.
In business, as in life, it matters to choose your friends and partners carefully.
***
Ladies and gentlemen.
In my role as Foreign Minister of Iceland, I do a job that in most larger countries is split into four. Not only am I the head of Iceland’s diplomacy, I am the counterpart of Ministers of Defense of other states, I am the Minister for international trade, and I am the Minister for development co-operation.
It has allowed me to participate in many different types of discussions that focus on various aspects of international co-operation.
And I have noticed that the focus of each group of ministers is different. This is always the case.
We are all limited by the peer group that we associate with. In all peer groups there are common beliefs, unique influencers, echo chambers and specific ways of viewing the world.
The reason why I focus on the geopolitical aspect of the Arctic here today, is to give you – a group of investors and businesspeople – a glimpse into the extremely serious situation of the world.
We all need to understand and appreciate that we have entered into times where things have become much, much more serious than they have been for a very long time.
***
Having said all that. Economic co-operation among people and companies from like-minded nations has also become more important than ever before.
We have been investing in developing the relationships required to build trust, learn from each other’s unique experience and local knowledge, and then identify opportunities for investment and trade that can benefit our respective economies and peoples.
I have had the opportunity to do so myself.
Businesses in the Arctic are changing the way they look for business and increasingly realizing the opportunity looking across the North.
First, we can speak to decarbonization. Canada’s northern territories, as well as arctic communities, rely heavily on mining – a heavy emitter – as a significant source of revenue. However, tides are beginning to shift as federal and territorial authorities put firm targets in place to reduce their carbon footprint.
And while geothermal energy currently has limited application for baseload power across Canada’s North, expertise exists in our countries that can make this energy accessible for direct use. Companies, such as Landsvirkjun, the national power company of Iceland, are assisting with the energy transformation in the Canadian North.
Furthermore, through projects like Iceland’s Krafla Magma Testbed, the potential exists to make the earth’s energy a realistic source of baseload energy for communities across the north in the future.
Second, we are all aware of the Arctic’s potential as a source of critical minerals. But accessing these minerals requires investment from trusted allies – and here it is critical to choose partners very carefully.
Extraction must also be done as cleanly as possible, utilizing carbon capture and energy optimization technologies such as those being pioneered in Iceland.
Some of the power required for these mines to operate will come from purpose-built renewable energy facilities. Similar solutions have been key to the growth of Iceland’s industrial economy over the last half-century. And all of this requires investment.
Third, we can speak about shipping and logistics where Icelandic companies, such as Eimskip and Icelandair are crucial service providers connecting the North to Europe and North America.
Fourth, we can speak about fisheries, a mainstay if Iceland’s economy and an important source of our prosperity. In the Arctic while in-shore fisheries are critical for community livelihoods, export potential remains limited due to infrastructure constraints.
Additionally, while many Indigenous-owned companies have secure access to quotas they do not always own their own vessels, through which they can best leverage local resources for the benefit of their people. Arion Bank has been a Partner in this regard for a long while and understands better than most the ins and outs of the fishing industry and is actively working in the Arctic supporting the communities from Labrador to Northern Quebec.
And while a wide variety of species are harvested in healthy numbers from Arctic waters – from seals to Arctic char to shrimp – there is much potential to introduce modern technologies and approaches that will help northern communities derive more value from every ounce while creating more jobs and higher incomes for northern residents. In Iceland, as you may already know, we call this the 100% Fish Model. We believe that international investment and commercial partnerships with fellow Arctic nations are critical to instilling this approach into industries across the Arctic.
Finally, to tourism. Here we eye a potential for greater cooperation around North-to-North adventure tourism. New airline partnerships – and the expansion of Greenland’s airport infrastructure – will provide a great boost in this regard.
Underlying all of this is growing demand for financial services that can enable the growth of northern enterprises across our Arctic nations. Here we all need to play a role in making the many and diverse opportunities in the Arctic known and tangible and through active promotions attract sustainable investments and responsible companies from trusted partner countries.
***
Ladies and gentlemen.
All the opportunities I mention rest on the premise of peace. As President Zelensky pointed out in his recent visit to Reykjavík – the people of Ukraine would much rather be occupied with building a prosperous future than defending their liberty – to the death if needed.
All free enterprise also relies on the rule of law – the functioning and fairness of courts.
All innovation relies on the freedom of expression and healthy competition.
The values that are being threatened by autocrats of this world are not only political issues, they are also fundamental to the ability of ambitious business people to make our lives better through their hard-work, innovations, risk-taking and collaboration.
We all have a role to play in order to safeguard our societies against the threats that are already attempting to corrupt and destroy the foundations of Western liberal democracy.
With that, I end my statement and look forward to taking part in today’s discussions.
Thank you.