The newly released Arctic Business Forum Yearbook sums the investment potential of the European High North up to 144 billion euro by the year 2020. However, the global financial crisis has slowed down the investment projects in this area that includes the northern regions of Finland, Sweden, Norway and Murmansk and Arkhangelsk regions in Russia.
Some investment projects in the European High North are postponed and some are totally turned down.The energy sector is facing new challenges and changes. The role of US shale oil and gas is still unclear in global business. Decreasing industrial production due to financial crisis has decreased the demand of energy.
“These two factors have influenced the giant Shtokmanovskoje gas field project in the Barents Sea. The project seems to be postponed for decades. Due to the same situation Norwegian investments seem not to be proceeding either” says CEO Timo Rautajoki from Lapland Chamber of Commerce.
Politics have also started to disturb the business in the area. Crisis in Ukraine and Crimea have increased tension between Russian Federation and the EU and most of all with the USA. Sanctions against Russia, in case that the problems are not solved, will directly reflect on the investment plans. At the same time media is telling that military actions and bases in Arctic Regions are about to increase.
“The investments projects and the investors expect predictability in business. Right now the future on investments looks fuzzy as predictability has been shortened by both financial and political crises” Rautajoki states.
The Arctic Business Forum Yearbook introduces the high investment potential in the European High North. This year the Yearbook names the key investment projects in the regions, which could also give a boost to some other projects. Also the projects expected to start first and the projects that has been postponed to wait for the better times are identified. The 6th overview on the European High North investments and business development was published today by Lapland Chamber of Commerce in association with the Arctic Business Forum at Rovaniemi, Finland.
For further information
CEO Timo Rautajoki, Lapland Chamber of Commerce, tel. +358 40 5511 289, firstname.lastname@example.org
CEO Timo Rautajoki | Lapland Chamber of Commerce
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