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Commentary

As war in Ukraine freezes the Arctic Council, how will Asia break the ice?

February 25, 2023

COMMENTARY BY:

Nong Hong
Nong Hong

Executive Director & Senior Fellow
Head, Maritime Affairs Program

Cover Illustration: Craig Stephens (Used with permission, South China Morning Post)

Geopolitics is complicating cooperation in the resource-rich, climate-critical Arctic region.

The five Asian observer states of China, Japan, South Korea, Singapore and India need to examine their engagement in a globalised Arctic in flux.


The Ukraine crisis has changed the world in many ways, one of which is the functionality of the Arctic Council, a forum that Russia currently chairs. The decision by the other seven council members in March last year to stop joining its meetings is a grave impediment to international cooperation in the Arctic.

Concerns have also been raised over the role of the observer states, including China, Japan, South Korea, Singapore and India.

Climate change has made the Arctic and its potential resources more accessible. This has changed the geopolitical landscape, and more countries are now focused on the Arctic, including in distant Asia. For China, Japan, South Korea, Singapore and India, their observer status ensures that they are involved in determining the future of the Arctic, a region they believe will affect their economic interests and the environment.

After these five states were granted observer status in May 2013, South Korea was the first to release an official Arctic policy, updating it five years later in 2018. Japan, whose Arctic initiatives were first documented in its 2013 Basic Plan on Ocean Policy, put out its official Arctic Policy in October 2015.

China issued its Arctic Policy white paper in January 2018, articulating its interest in, among others, Arctic governance and resources, shipping opportunities and polar research. Singapore has released no official policy but its interest in Arctic governance is known, given the Northern Sea Route’s potential challenge to Singapore’s shipping hub status, and the island nation’s concerns about melting sea ice.

Finally, in March last year, India published its long-awaited Arctic policy, showing an understanding of the major tendencies in Arctic geopolitics and business.

For all five Asian states, the Ukraine crisis has not just changed their engagement in the Arctic region but also with Russia. After the 2014 Crimea crisis strained Russia’s relations with the West, Moscow has viewed Beijing as its primary source of capital for Arctic development.

With the Ukraine crisis, Beijing has been trying to maintain a degree of non-alignment. But with China being seen as giving Russia an economic lifeline amid Western sanctions, some Chinese state banks have limited their financing of the purchase of Russian commodities.

A likely scenario is that China will be able to maintain some energy imports but at a lower level. Under the threat of sanctions and amid transport uncertainties, Chinese companies providing modules to Russia’s Arctic LNG 2 project in northern Siberia have had to stop work for eight months.

This commentary was originally released on South China Morning Post on February 25, 2023.