The Arctic Debrief: Russia offers U.S. access to Russia's Arctic region and natural resources

In this edition:

• Russia offers U.S. access to Russia's Arctic region and natural resources
• Norway and U.K. look to increase defence cooperation
• Russian LNG targeted in new round of EU sanctions

Latest Developments

Russia offers U.S. access to Russia's Arctic region and natural resources

In a drastic reversal in policy, U.S. President Donald Trump's administration met with Russian officials to discuss Russia's invasion of Ukraine, without officials representing the EU or Ukraine. Allegedly, part of the conversation focused on potential collaboration between Russia and America on energy projects in Russia's Arctic.

Following the US-Russia meeting in Riyadh, a senior Russian diplomat said that the two countries are discussing the possibility of cooperating on hydrocarbon projects, which include coal, oil, and natural gas. However, no additional details have been confirmed.

Since the annexation of Crimea in 2014 and its full-scale invasion in 2022, the US has implemented a wide array of sanctions against Russia's Arctic energy projects. These sanctions led to American companies terminating multiple joint ventures with Russian counterparts.

The change could be a significant win for the Kremlin as it heavily relies on the export of natural resources to sustain its war economy.

This development may point to Russia not receiving sufficient investments from China. While the two countries have significantly increased cooperation across their militaries and economies, this news may suggest that Russia and China do not have a concrete alliance and may indicate that China is unwilling to develop Russia's Arctic resources at this moment.

Russia's increased reliance on China has heavily shifted the balance of power in the two nations' relationship, and this may be a move from Russia to regain some leverage.

Norway and U.K. look to increase defence cooperation

Norwegian Defence Minister Tore O. Sandvik and UK Defence Minister John Healey met in Norway to discuss increased defence cooperation and announced that the two countries are working on a new defence agreement.

Norway and the UK are looking to collaborate on improving undersea infrastructure security, expanding intelligence sharing, increasing joint exercises, and cooperating on the development of their defence capabilities.

Sandvik and Healey noted that these steps are necessary in the face of Russia's growing hostility towards the West and highlighted Russian capabilities to target and damage important undersea infrastructure, such as pipelines and communication cables, as a significant threat to both nations.

They are looking to combine forces to protect these assets against any threats. During their meeting, the ministers toured the Norwegian Coast Guard vessel KV Bison and the British surveillance ship RFA Proteus, which would work closely to monitor both countries' infrastructure. Both of these ships contain technology that allows them to monitor potentially harmful activity on the seabed.

The UK and Norway plan to further enhance their surveillance and security capabilities by working closely on future projects. Additionally, the two countries are looking to conduct more joint military training to improve their interoperability.

"Norway remains one of the UK’s most important allies," said Minister Healey, according to a government press release. "We will create a new era of defence partnership to bring us closer than ever before as we tackle increasing threats, strengthen NATO, and boost our security in the High North."

Russian LNG targeted in new round of EU sanctions

The European Union has announced its 16th sanctions package targeting Russia, which aims to further cripple its war economy. The new sanctions directly target 74 new vessels that are helping Russia export liquefied natural gas.

The added ships have either been linked to Russia's "shadow fleet" or are otherwise involved in Russia’s energy industry. The new sanctions impose a port ban and a ban on the provision of services on those vessels.

Additionally, the package targets 53 Russian companies and 34 foreign entities for helping Russia circumvent sanctions. Lastly, 13 small Russian banks were hit with severe restrictions, as the Kremlin turned to them for financial services after larger banks were included in previous sanction packages.

While the EU is attempting to increase the financial strain on Russia's economy, there are significant concerns that America may lift or ease its sanctions as US President Trump aligns with the Kremlin.