The Arctic Debrief: Denmark allocates $2 billion to Arctic defence amid growing tensions

In this edition:

• Denmark allocates $2 billion to Arctic defence amid growing tensions
• Sweden detains vessel suspected of cutting undersea cables
• Trump signs executive order to boost resource extraction in Alaska

Latest Developments

Denmark invests over $2.05 billion in Arctic defence amid tensions with Trump

Denmark reached an agreement with the governments of Greenland and the Faroe Islands to invest in Arctic security, focusing on improving ship, satellite, and drone surveillance capabilities. Some of the new purchases will include three new ships, long-range drones, and satellites.

Danish Defence Minister Troels Lund Poulsen stated that additional funding and measures related to the Arctic would be announced later this spring. Years of cutting defense spending have left Greenland and the Danish government unable to properly defend the autonomous territory, which is part of the Kingdom of Denmark.

In 2024, Denmark allocated $26 billion to its defence budget as the looming threat of Russia and China increases in the Arctic. Most of the funds will go towards upgrading and maintaining existing equipment and infrastructure. However, some money will be used for acquiring unmanned drones and other military technology.

Sweden detains vessel suspected of cutting undersea cables

Swedish authorities detained bulk carrier ship Vezhen, under suspicions that the vessel intentionally damaged undersea communication cables between Latvia and the Swedish island of Gotland. Latvian authorities discovered the damage, which severely impacted the region's communication networks.

Swedish authorities are holding the Malta-flagged Vezhen near the port of Karlskrona, suspecting its involvement in the incident. A preliminary investigation into suspected aggravated sabotage has been launched.

A similar incident took place late last year when Finnish police boarded the Eagle S oil tanker which used its anchor to cut cables between Finland and Estonia. These events have highlighted the vulnerability of Europe's critical infrastructure and the willingness of foreign actors to enact sabotage using plausible deniability.

Just a few weeks ago, a British submarine surfaced near a Russian vessel to acknowledge that was it is aware of its attempts to covertly map underwater infrastructure between mainland Europe and England. Similarly, Chinese and Russian vessels have been spotted around oil fields in the Norwegian Sea, also suspected of scoping out the infrastructure.

NATO allies are now contemplating the broader implications of such incidents and the need for increased security and surveillance.

Trump signs executive order to boost resources extraction in Alaska

President Donald Trump signed an executive order aimed at unlocking Alaska's vast natural resources. The order, titled "Unleashing Alaska's Extraordinary Resource Potential," seeks to reverse previous restrictions on resource development on both state and federal lands in Alaska. The goal is to boost economic growth, create jobs, and enhance national security by maximizing the development and production of Alaska's natural resources.

The executive order calls for the prioritization of Alaska's liquified natural gas (LNG) potential, including the permitting of necessary pipeline and export infrastructure. This move is expected to provide significant economic and national security benefits by ensuring a stable supply of energy.

Additionally, the order aims to expedite the permitting and leasing of energy and natural resource projects in Alaska. By streamlining the resource development process, the administration hopes to attract new investments and foster economic prosperity in the state.

The executive order also emphasizes the importance of developing Alaska's energy, mineral, timber, and seafood resources. The Trump administration believes that unlocking these resources is seen as a way to deliver price relief for Americans, create high-quality jobs, and reduce trade imbalances.

However, the executive order disregards to environmental consideration. The projects that will be enabled by the order are likely to lead to environmental degradation and harm wildlife habitats. Legal challenges are expected from environmental groups who will seek to overturn the order on grounds that it defies existing laws and regulations.

Despite the controversy, the executive order is a significant shift in America's policy towards resource development in Alaska.