Minister of Foreign Affairs Mr Jonas Gahr Støre

Norway – A Cooperation Partner in the High North

MGU (Moscow State University), Moscow, 17 February 2006

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Rector Sadovnichy,
Ladies and gentlemen,

I would first of all like to thank Rector Sadovnichy for giving me the opportunity to speak to you today on Norwegian perspectives on the High North. It is an honour to come to this distinguished university, which has celebrated its 250 ^th> anniversary.

I am pleased to visit one of Russia’s oldest, most respected and advanced academic institutions. Outstanding mathematicians like yourself, Rector Sadovnichy, are working together with a number of internationally acclaimed experts from various academic disciplines.

I have noted with particular interest that this is Russia’s foremost university offering Scandinavian studies. Here we find a visiting lecturer in Norwegian, and I gather there is a growing interest in the Norwegian language – and in Norwegian society.

This is my first visit as Foreign Minister to Russia. I decided to take the northern route to Moscow – passing through Murmansk and St Petersburg – thus illustrating the emphasis that the Norwegian government puts on the opportunities of the High North. These are opportunities for Norway and for Russia – individually and together.

On my way to Moscow I have had the opportunity to meet a number of representatives of the Russian society; representatives of the local authorities and the governors of Murmansk and St Petersburg, the government representatives here in Moscow, representatives of the business community, the fishing industry, the cultural community and a range of non-governmental organisations engaged in issues such as the environment and human rights.

This reflects the broad range of our cooperation. It stretches across many sectors and it allows us to discuss many issues of common interests – and issues where our interests may differ.

The most dynamic field of this cooperation today is the field of energy, which is the main focus of my address today. Norway and Russia are building an energy partnership based on nothing less than one thousand years of peaceful neighbourly relations and a century of diplomatic relations. President Putin has called for a strategic partnership. We have accepted his invitation.

There is, in other words, a solid platform for cooperation between Norway and Russia, however different we may seem in size, population and history.

As we develop this partnership we are rediscovering our common history, reconnecting ties that existed before World War One and the Russian Revolution. Both our countries extend into the High North, and both our countries are responsible for harvesting and managing its resources – both fish and energy – in such a way that they will also benefit future generations. This is our common future.

A main track of Norwegian foreign policy involves maintaining and further developing our relations with our friends and allies. Norway is part of a Nordic family, we have close ties to Europe and the European Union and our membership of NATO and historic ties to the United States. These represent important pillars of our foreign and security policy. Russia is our neighbour, partner and close friend.

All countries in today’s interdependent world seek to promote their own interests by engaging with countries where they have opportunities to explore and differences to manage. Engaging is the key word here – and engaging is our ambition with Russia after so many years of separation and distance.

Friendship involves knowing one another. It involves trust, agreed rules of engagement, the freedom to agree and freedom to say so. We depend on our friends honouring their commitments to Norway, confident that we will honour our commitments to them.

The centre of our partnership will be the High North and what you, perhaps, call “zapoljarnye i arktycheskye regiony”.

It is particularly appropriate to address these issues here at this famous university, which was founded by and named after the eminent scientist, Arctic explorer and poet, Mikhail Vasilevich Lomonosov, 251 years ago.

Since then, students and researchers from this university have followed in his footsteps, delivering invaluable contributions to most disciplines of science. Lomonosov organised polar explorations, mapped the currents in the Arctic Ocean and presented the first scientific explanation of the Northern Lights, among other things.

Lomonosov’s research efforts are well known in Norway, as are his interest for the northern areas, his expeditions and his poetry.

On my way from Murmansk to Moscow I enjoyed reading a translation of his great poem on the Northern Lights. I am also aware that the annual Lomonosov Award is given to oil companies that demonstrate that good environmental performance also makes good business sense – which is an issue I will return to.

Lomonosov was born in 1711 outside Arkhangelsk. At one time the land areas in the High North between Norway and Russia were a kind of grey zone. There were no clear borders in the northernmost part of Norway and the Kola Peninsula until 1826. Trade between the Norwegians and Russians – the Pomor trade – was of vital importance for people in this area. To communicate, the traders developed their own language – called Russo-Norwegian – which was a fascinating mixture of words and expressions from both languages.

The Russian Revolution brought these cross-border contacts to an end. After World War Two the border was virtually closed. Despite the cold international political climate during the Cold War, Norway and the Soviet Union managed to develop pragmatic cooperation in various areas.

One of these was – and still is – our cooperation on the fish resources in the Barents Sea. Norway and Russia share cod, haddock and capelin stocks in these waters. Cooperation on the management of these stocks is thus very important, and has so far been successful. We cannot afford anything less.

However, illegal, unreported and unregulated fishing is a serious problem. It could lead to fish stocks being overexploited and severely depleted, with the result that legal fishing may have to be reduced or even stopped. This is looming on the Barents Sea. Estimates indicate that 100 000 tonnes of fish at a first hand value of approximately EUR 200 million are illegally caught per year. That is in fact one fourth of the total allowable catch.

We have a common interest in putting an end to this criminal activity which is undermining the future development of our joint fish stocks. Finding ways of combating illegal fishing is therefore at the forefront of the Norwegian-Russian cooperation on managing the common fish stocks in these waters.

Our recent cooperation in the High North dates back to the end of the 1980s. In 1993, on the initiative of my predecessor Thorvald Stoltenberg, foreign ministers from Norway, Russia, Sweden and Finland agreed to establish a new scheme for regional cooperation in the north – the Barents Cooperation – encompassing the north-western regions of Russia, and the Nordic countries. The unique feature of this international cooperation is the way in which the local communities take such an active part. As far as I know, this is the only regional cooperation where Russian oblasts have regular meetings with counties on the other side of the border.

The Norwegian-Russian border was reopened after the establishment of the Barents Cooperation, and the number of yearly border crossings has surged from a couple of thousand in 1990 to more than a 100 000 today. The people crossing the border have brought with them new ideas, projects, networks, and new friends. More than one thousand Russian students have crossed the border to study in Norway, most of them from the northern parts of Russia.

The border is therefore no longer a gap. It has become a bridge, to all areas of cooperation. Close ties have been developed between several Norwegian and Russian academic institutions. For example, the University College of Bodø has signed a cooperation agreement with the Moscow State University for International Relations [MGIMO]. There is scope for further cooperation at this level.

Two days ago I learned how student exchanges between Norwegian institutions and St Petersburg are becoming more an more common. Such cooperation is key. As Tolstoy once said; ”It is a thought or an idea that forms the start of everything.”

A high level of “thoughts and ideas”, networks and exchanges between nations is often measured in numbers. But these numbers represent people, individual human beings, and a great many of the 10 000 Russians currently living in Norway make an important contribution in many of our communities: as interpreters, business consultants, doctors, tourist guides, sailors, artists and in many other professions. Many of them have settled in Northern Norway, but also Oslo and a number of other cities in the south are home to growing numbers of people from Russia.

The number of Russian tourists visiting Norway is also increasing: last year some 30 000 came to Norway, accounting for a total of approximately 180 000 hotel nights.

We want to promote more tourism and trade through a new agreement on visa facilitation. Our three diplomatic missions in Russia account for two thirds of all visas issued by the Norwegian foreign service. At a time when Norwegians can travel to most countries without a visa, it is a paradox that we need a visa to cross our own border in the north, as you do to cross your border to us. Our long-term goal is to abolish visas altogether. In the meantime we should make every effort – both on the Norwegian and on the Russian side – to make the procedures as smooth and simple as possible.

Exchanges lead to changes.

Networks lead to new workplaces.

There have been enormous changes in the High North during the last decades. An area of confrontation has been turned into an area of cooperation. The border that previously kept the west from the east could become a border that unites us. The security dimension that pushed all other dimensions aside is no longer dominating everything else. Trade between our countries is growing fast, with fish and seafood as the main commodity, accounting for nearly three quarters of our exports to Russia.

But the real driving force of change is energy. The energy potential of the High North is redefining the potential – and the stakes – involved.

Oil and gas – production, processing and transportation – is pushing its way to the top of most political agendas. The global energy demand may increase by 50 per cent by 2030. A growing part of the supply will come from our northern regions, as much as a quarter of the world’s undiscovered energy resources may be located in the Arctic.

Thus, the Barents Sea may become Europe’s most important energy province in the foreseeable future. Whereas many of the world’s other energy provinces are located in areas of conflict and instability, the Barents Sea remains politically calm and peaceful. It is also close to the prime markets for petroleum products in Europe and North America.

Offshore development activities are starting both in the Norwegian part of the Barents Sea and in the Pechora Sea on the Russian side. Next year, the first deliveries of frozen liquid gas from the Norwegian part of the Barents sea will be transported by ship to the eastern coast of the United States. New resources are being discovered, although more exploration is needed. Perspectives are promising on the Russian side. It is here that one of the world’s largest known offshore gas fields has been discovered: the gigantic Shtokman Field, some 500 kilometres north of Murmansk.

It is my vision that the Barents Sea will develop into a “sea of cooperation”. The two coastal states Norway and Russia should be the main pillars of this cooperation. We should build on the experience we have gained from the management of our joint fish stocks, on the trust and confidence we have established, and on the structures, networks and friendships that have developed since the start of the Barents Cooperation 15 years ago – between governments, between companies, between scientific communities and between people.

Russia is the world’s largest petroleum producer, and will be the first to realise the potential and challenges related to developing the resources of the Barents Sea. Unlike Norway, Russia has a long history of petroleum production.

However, the resources we are now looking at are at the bottom of a rough, cold sea. Petroleum activities in this kind of environment are relatively new to Russia. You have extensive experience of developing your plentiful resources on land, whereas the resources that have made Norway an energy nation have all been extracted offshore. No one can match the Norwegian experience of petroleum production in rough northern waters under extreme conditions.

This is why it makes such good sense for us to work together with Russian partners in the Barents Sea. The combined experience and know-how of Norwegian and Russian oil companies and authorities will create the best possible conditions for efficient development of the petroleum resources in these northern waters. Besides international partnerships build up national expertise.

When oil was first discovered on the Norwegian continental shelf in 1969, we had no petroleum technology or expertise. Our policy was to allow major international oil companies to develop our resources, but at the same time we ensured that a large share of the income ended up in the Norwegian treasury. We also gave preference to oil companies that were prepared to transfer technology to the newly established Norwegian companies.

This policy, together with our constant emphasis on developing new expertise, means that we have state-of-the-art knowledge and technology within all areas of offshore exploration and production in northern waters. This is probably why two Norwegian companies, Statoil and Hydro, are on Gazprom’s shortlist of possible foreign partners in the Shtokman field. They are in a position to share offshore expertise and technology with Russian partners.

Now Gazprom will make its choice. The Norwegian companies are presenting their case. The Norwegian government support their candidature for three main reasons: because they have such advanced technology and experience, because they are used to complying with the world’s most stringent environmental legislation and because their participation will boost the cooperation between Norway and Russia.

We see that there are a large number of joint challenges that have to be addressed. New solutions have to be found in the field of transport. There has always been a risk of accidents, spills and pollution in offshore petroleum operations. The environmental and safety dimensions must be addressed properly.

It has always been of paramount importance for Norway that our petroleum production does not harm the marine environment. The fish stocks will provide food and value for generation after generation if they are properly taken care of. We cannot allow this outstanding resource to be diminished by pollution from petroleum extraction.

But this is not all. In the modern world, energy markets also pay attention to environmental issues. The energy markets want steady and reliable development of new resources. If the first petroleum projects in the Barents Sea fail to live up to environmental standards, further development will be very difficult, both commercially and politically.

The Norwegian authorities know this, the Russian authorities know this, and the markets know this. Our companies also know this and have included environmental issues in their strategies.

Environmental requirements may at first seem an excessive burden. But in fact, they are a blessing in disguise. They trigger the development of ever safer and more cost-effective technologies that make it possible to develop resources in the best possible way, with due regard to the sensitive marine environment. This approach has been the strategy of Norwegian authorities and companies ever since offshore production first started on the Norwegian continental shelf.

We also share an interest in developing a virtually new market – the US market for Liquefied Natural Gas (LNG). Europe is also a potentially interesting market in the long term. However we will have to develop new transport solutions. Shipping gas in the form of LNG by sea to Europe is one. Transporting the gas through pipelines is another.

Therefore, we need more research and development.

In addition to existing projects, schemes and programmes, the Norwegian government recently launched Barents 2020 to stimulate the development of the new expertise and technology that is needed for petroleum operations so far north. The programme, which is still in its initial planning phase, will mobilise centres of excellence in Norway and reach out to our partners abroad.

A few weeks ago, I took part in a seminar on High North issues in Berlin. In this connection I invited German research institutions and companies to participate in the emerging research and development on the High North by joining the Barents 2020 programme.

Today, I would like to extend the same invitation to you, to Russian research institutions and companies. I am aware of the impressive results achieved by Russian institutions in their research on the High North and I would welcome the opportunity to exchange experiences and research results.

Barents 2020 will also focus on how to reconcile petroleum technology and environmental considerations in the sensitive marine ecosystem of the High North.

With this in mind, the world’s northernmost university, the University of Tromsø, is inviting Russian partners to join them in the development of two academic programmes with a particular northern focus: first, a student scholarship programme for Masters and/or PhD students, and second, a researcher exchange programme. These will focus on topics of particular relevance to the sustainable development of the region: telemedicine, Arctic marine ecology, energy, environment, marine geology and geophysics. There are also other examples of close cooperation between institutions, companies and other partners in this field.

The Norwegian company Statoil is cooperating with Moscow State University in the field of geology with a view to establishing a good model for exchanging ideas and strengthening cooperation between the leading actors in the future oil and gas industry in Norway and Russia. This collaboration comprises joint projects on the geology and hydrocarbon resource potential of the Barents Sea, together with the University of Tromsø. One of Statoil’s Russian geologists also holds a professorate here at Moscow State University.

The Norwegian company Hydro has signed a cooperation agreement with the authorities in the county of Murmansk on opening a supplier development centre with a view to building competence and preparing potential Russian suppliers for the future development of offshore hydrocarbon resources in the region.

All of this is good news and very promising for the future.

The Norwegian government is now developing an integrated management plan for the Norwegian part of the Barents Sea based on extensive research carried out in Norway, in some cases in close cooperation with Russian researchers. The management plan, which will be presented to the Storting in April, will provide a framework for sustainable petroleum production, fishing and transport that serves our long-term interests.

However, it makes even more sense to have a plan for the whole of the Barents Sea. I have therefore suggested to our Russian friends that our efforts and experiences could form the basis for developing a common framework for the management of the joint ecosystem. The response so far has been very positive and initial contacts have already been established.

We need to discuss key principles for the energy era that is now starting in the Barents Sea. We need to agree on applying the best available technology and on applying the most stringent environmental standards. This will enable us to fulfil the responsibility we have as coastal states in a region with a vulnerable environment.

Experience has shown that applying the highest standards not only protects the environment, it is also brings higher returns on investments, it yields more resources, and it makes the products more acceptable for the increasingly environmentally aware consumers.

In this context the Lomonosov Award is important because it encourages oil companies to demonstrate that environmental excellence makes good business sense.

As I approach the end, I would like to turn briefly to the border between Norway and Russia. This border has always been a peaceful one. In 1326, the King of Norway and the Prince of Novgorod signed a peace treaty, in Novgorod, that states, “We leave it to God and the King of Norway to draw the border between our lands – to his liking and in accordance with his conscience.”

Times change and we do not expect our Russian friends to put it quite the same way today. Still we have an unresolved maritime boundary in the Barents Sea. The Law of the Sea provided for the establishment of 200-mile zones with sovereign rights for coastal states. Russia and Norway have established such zones. But we need to reach agreement on the delimitation of these zones and the continental shelf.

This boundary has been under discussion for more than three decades. The area of overlapping claims has shrunk as we have progressed in our negotiations. But there is still some ground to be covered. After a two-year pause, the negotiations resumed last December, and my Russian colleague and I are both determined to bring them further towards the final stage. A clear boundary is vital, in all circumstances, even between good neighbours, or let me say, especially between good neighbours.

I would also like to emphasise that we have close cooperation with Russia in the field of nuclear safety, in dealing with the legacy from the Cold War, the remnants of which are mainly found on the Kola Peninsula, on our doorstep. One of the main priorities is the dismantling of decommissioned nuclear submarines. Since 1995 we have been actively engaged in such projects and in recent years other countries have also joined us.

This year, we look to Russia for leadership not only of the G8 and the Arctic Council, but also of the Council of Europe, beginning this spring. The Council consists of democratic countries committed to promoting human rights and good governance in the pan-European space. We very much value our cooperation with Russia in the Council of Europe and will actively support its chairmanship. Together, we must promote dialogue and cooperation with civil society and non-governmental organisations, which have a crucial role to play in promoting creativity, openness and freedom in democratic societies.

Democracy in Russia is still in the making. It is the responsibility of the Russian people to continue to develop it.

As friends and neighbours we would like to share our experience: that a pluralistic society based on the rule of law and freedom of expression is vital – not only for building a vibrant democracy, but also for sustaining economic growth and developing human potential. Russian society has been through an impressive and often painful transformation since the Soviet years.

During my visit, however, I have met non-state organisations and representatives of the press who express concerns about their ability to carry out their work without interference. In a friendship such as ours we can raise and discuss even such issues.

Ladies and Gentlemen,

I am confident that Norway and Russia will continue on the path of close friendship – looking out for the opportunities and challenges in the High North. At the heart of our High North policy is our conviction that cooperation and sound and responsible resource management will make it possible both to realise the economic opportunities and to meet the ecological challenges.

We must also make sure that society as a whole is given a share of the wealth that is created.

These are my main messages today to you.

When President Putin visited Norway four years ago, he spoke about how Russia and Norway shared a guiding star – Stella Polaris. This is a fine image, a perfect illustration of how our two countries are facing present and future challenges and opportunities in the High North together, in the sea, on land and in the sky. I would like to add to this by quoting a line from Lomonosov; “The dawn is rising from the northern lands!”[S pal-nåtsj-nykh stran vsta-jått zar-ja!”].

Thank you.