(A European 'Klondike') Positive outlook for Swedish companies in the Barents region

The Barents region is probably one of the most exciting places around the world to invest in today. More and more people and companies are getting aware of this. In fact, even Swedish politicians are beginning to realize it.

Like so many times before in European history, the light comes from the North. Today however, it's not about securing the position of Protestantism or rebuilding a European continent struck by a world war with the resources of Swedish industry. In our time, it's about making ALL of Europe aware of what treasures lay in Capitalism and traditional work ethics. ALL of Europe could prosper, not only Switzerland, Scandinavia and Ireland!

"Sweden wants to strengthen cooperation with Norway and other countries in the Barents region. The potential of the region can only be understood when viewed as a whole. Increased cooperation can contribute to growth and opportunities for new jobs." These comments were made by Minister for Foreign Trade Sten Tolgfors during a visit in Oslo today.

To Sweden, developments in what the Norwegians term as 'the High North' are of major interest since the region has considerable energy resources, and major investments are being made throughout the entire region. "There is the potential for major development in the entire region - northern Norway, Sweden, Finland and north-western Russia," Mr Tolgfors said.

"In Sweden, basic industries are experiencing powerful expansion and investment due to global demand. In addition, new industries are being developed, such as the space industry, tourism and the experience industry. The great potential and growth lead to companies such as IKEA investing and, through new start-ups, serving the entire northern part of the Nordic countries in a new way." _ _ _ _ _ _ _ _ _ __ _ __

Minister for Foreign Trade Sten Tolgfors spoke at the Oil and Gas Seminar 2007 at Voksenåsen in Oslo on the theme of 'The Barents Region and the Swedish Opportunities'."

Minister for Foreign Trade Sten Tolgfors at 'The Oil and Gas Seminar 2007' at Voksenåsen, Oslo;

"The Barents Region and Swedish opportunities

Having grown up close to the Norwegian border, in Värmland, Dalsland, Karlstad and Åmal, I am particularly pleased to speak for the first time here at Voksenåsen - this lovely spot that for almost 50 years has meant so much to increasing knowledge of our countries and promoting close and intensive personal contacts between the people of Sweden and Norway.

Today's seminar will highlight the opportunities that follow from the extraction potential of the Norwegian petroleum industry and the investments needed there.

According to many experts, petroleum operations in the Barents Sea will lead to increased economic activity, with new opportunities for Swedish companies and others to take part in both offshore projects and development on land.

I believe that we should also see developments in the perspective of what is happening in Sweden, where mineral exploration and the mining industry are rapidly expanding. Among other things, LKAB is investing some SEK 20 billion in Kiruna and Malmberget. One billion is being spent on a new iron ore shipping port in Narvik. Tourism is also expanding, with highly interesting initiatives like the Ice Hotel. In Haparanda, IKEA is trying to service the entire northern Nordic region all at once, including close by Russian areas. All in all, this makes the High North very interesting.

We have just heard Minister of Petroleum and Energy Odd Roger Enoksen's interesting status report concerning the huge oil and gas reserves thought to exist in the Norwegian sector of the Barents Sea. His presentation points out the needs that exist for new investments in such areas as infrastructure, housing and power generation - areas in which Swedish companies are strong and can hopefully offer competitive expertise.

On Sweden's part, we naturally want our small and medium-sized Swedish companies in particular to understand that they can make use of the business opportunities that may now arise as a result of the expansion of the Norwegian offshore sector.

According to many experts, they will provide important knock-on effects for the mainland economy and will therefore also be of major interest to companies in other industries and even other regions. This applies to areas such as infrastructure and power supply. The geographic proximity and the fact that Sweden and Norway are part of a common Nordic electricity market make it obvious that cooperation is vital in these areas.

Norway's Minister of Foreign Affairs Jonas Gahr Störe, in a recent speech in Bodö on interest for the High North, said that there was "vigorous development on the part of Sweden and Finland as well". I am pleased over the signal that sends. At least the large number of Swedish and Finnish companies participating here today testifies to an interest of this kind.

But the High North should not be regarded as an isolated entity. Investments in the High North provide opportunities for a new phase of economic integration between our countries.

Our economies are closely intertwined. Twenty-five thousand Swedes are registered as a residents in Norway. Many more Swedes work in Norway; the figure 50 000 has been given for the Oslo region alone. Some people move to Norway, others commute on a daily or weekly basis from western Sweden. Many Norwegians live, work or spend their holidays in Sweden. In terms of the number of companies, Norway is the most important country of origin for foreign investment in Sweden. The 1 300 Norwegian companies have 43 000 employees in Sweden.

Our countries are already very important to one another when it comes to foreign trade and investments. A number of 'typical' Swedish brands now have Norwegian owners. Orkla owns food companies like Abba, with Kalles Kaviar. Schibsted owns the newspapers Aftonbladet and Svenska Dagbladet. Narvesen owns Pressbyrån. Sweden is Norway's most important export market for traditional goods.

And the dependence is mutual. In 2004, Sweden was the most important country of origin for foreign investment in Norway

It is also well known that cross-border trade plays an important role in strengthening Sweden's current account balance. Last year, the value of purchases by Norwegians of everyday consumer goods on the Swedish side of the border was estimated at between SEK 9 billion and SEK 12 billion.

A strong will exists for further deepening economic cooperation between our two countries, particularly between specially concerned corridors such as Göteborg-Oslo, Oslo-Karlstad-Stockholm, Sundsvall-Östersund-Trondheim and Kiruna-Narvik-the High North.

Removing barriers to trade and economic cooperation between Sweden and Norway so as to facilitate deepened regional integration is a central task of the Swedish and Norwegian governments. Swedish and Norwegian small enterprises should not have to view the border as a barrier. On the contrary, expansion to a neighbouring country should be a natural first step out into the world.

The EU Services Directive will make it easier for service companies to export or start up in the EEA area. For many companies, a natural first step can be setting up or sales in the Nordic countries. The Directive's effectiveness depends on how well it is implemented in the countries concerned. We have therefore taken the initiative for Inter-Nordic consultation on this issue. We hold regular discussions on trade regulations regarding products.

If Norway chooses the Swedish Gripen aircraft, it would have a major impact on developing Swedish-Norwegian cooperation in a number of areas, not least as regards industrial cooperation. The scope and quality of the industrial package offered will probably be of great importance when the decision is taken.

At the end of last year, the Norwegian government presented a Strategy for the High North, stating that an overall goal of the Norwegian government's policy is to create sustainable growth and development.

The opportunities in the Barents Sea concern several policy areas - energy, environment, business development and security policy.

Developments in the High North are of major interest to Sweden from a cooperation perspective, and also in light of the huge energy resources that may exist there.

It is a matter of stable conditions for Europe's and our own supply of energy and reasonable energy prices. Even if Sweden has a very ambitious programme aimed at reducing our dependence on oil, an efficient supply of oil is of course important during the period that oil remains necessary.

To a great extent, the Strategy for the High North concerns strengthening relations between Norway and Russia. One way this is to be accomplished is through intensified border contacts. According to Minister of Foreign Affairs Jonas Gahr Störe, the Norwegian-Russian border will not form a barrier, but rather act as a bridge.

This is an ambition that we in Sweden very much support.

Positive developments in relations between Russia and Norway are important for us in Sweden as well.

Our involvement in the Barents Euro-Arctic Council, together primarily with Norway, Finland and Russia, is about common environmental challenges, and stimulating and facilitating everyday contacts.

It is particularly important to develop commercial and cultural ties with north-western Russia. Economic and political developments in this part of the Russian Federation are crucial to stability and security throughout our corner of the world.

Better knowledge of climate change has given High North issues a new dimension. Even if Sweden does not border on the Barents Sea, we have a strong interest in all the states concerned safeguarding the sensitive Barents Sea environment and administering the natural resources there in a responsible and sustainable manner.

In its Strategy for the High North, the Norwegian government has expressed a desire for cooperation and active dialogue with its neighbours on developments in the Barents region. We in Sweden have been pleased to welcome this appeal.

An important goal of the Swedish Government is to develop Swedish-Norwegian cooperation across the board, including in the High North.

In this context, let me also point out that Norway's Minister of Foreign Affairs Jonas Gahr Störe recently proposed "a broader examination of cooperation architecture in the North".

Within the Barents Euro-Arctic Council and the Arctic Council, a step-by-step, ongoing update of activities is already in progress. The conditions for regional cooperation in our immediate region have partially changed or become less complicated in that Norway as well as Russia and Iceland now take part on equal terms with the EU in the Northern Dimension. The different forms of cooperation in our common vicinity partially overlap and are affected by one another. I would therefore like to point out that Sweden, within the framework of our current Presidency of the Council of the Baltic Sea States and in consultation with other participating countries, has presented ideas about modernising and reforming this cooperation as well and introducing it into the framework of the Northern Dimension. Vigorous and effective Nordic cooperation is also important in this context. Sweden looks forward to taking over the Presidency of the Nordic Council of Ministers in 2008, after the current Finnish Presidency.

Sweden and Norway are more closely united than perhaps ever before - even including the Era of Union. Our relations are as good as relations between two countries can be. Even though we have chosen different solutions when it comes to both membership of the EU and NATO, the conditions for deeper cooperation are very good. This applies politically, economically and industrially.

The extensive number of exchange visits at government level reflects the high ambitions the current Swedish Government has regarding developing cooperation with Norway.

But more can be done in bilateral economic cooperation!

My colleague in the Government, Carl Bildt, has spoken of his ambition to achieve "a qualitative boost" in relations between Sweden and Norway. I feel it very important that this should also apply to cooperation in the areas of business and trade.

So far, economic activities between our countries have only had a limited impact on the High North.

The Swedish Government would like to change this. We want to cooperate with Norway and other countries and help create growth in the Barents region and tackle the challenges that exist there, including in the field of environment.

That is also the reason why a special High Level Representative to promote trade in the High North has been appointed, tasked with following up and pursuing various initiatives.

Through a joint initiative, a Swedish-Norwegian working group, based at each country's foreign ministry, has been appointed to study possible cooperation areas in the High North between different actors in our two countries. A large number of proposals regarding suitable cooperation areas have been discussed and found interesting.

This applies to such things as opportunities for Swedish subcontracting to Norwegian petroleum operations as well as to joint projects in other sectors such as infrastructure, the mining industry and power supply.

Issues concerning expanded cooperation between education and research institutions and potential joint tourist projects have also been discussed.

It is my hope that a report on the group's work can soon be presented with proposals as to areas where Swedish and Norwegian companies should be able to find cooperation niches.

In this context, the opportunities for cross-border projects offered within the framework of EU regional support should be emphasised. These must be used in as coordinated and efficient a manner as possible.

A key issue for increased knowledge and positive development in the field is to promote cooperation between university and research environments in the region.

However, I would like to emphasise that it must be the companies and knowledge environments themselves - not governments or other authorities - that are the drivers and set the priorities in this cooperation process.

The role of the governments and other public sector actors is, of course, important, primarily in dismantling barriers to trade. It is a question of creating basic requirements for business when it comes to such things as energy supply and transport infrastructure, and in general creating a positive climate that encourages such initiatives.

But a crucial condition for success and long-term positive cooperation is that decision-makers in business themselves are convinced of the development possibilities that exist in the north.

It is therefore very positive that in June, a Swedish business delegation will conduct a study trip to northern Norway to learn about some of the most interesting future cooperation areas in business or research on-the-spot.

I hope that the trip - in which some members of the Swedish Government will also take part - can help clear away any misconceptions that may still prevail in Sweden. In the off-shore sector as well as in many other fields in Norway, advanced research and production is conducted that should be of interest to Sweden."

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