Geopolitics of Subsea Cables in the Arctic

The clouds begin to thin over the Arctic Ocean Aug. 19, 2009. Photo: Patrick Kelley

Subsea cables are essential parts of infrastructure, in that they serve to transmit all Internet data. For something so critical to our modern life they are well hidden in the depths of oceans and seas. Subsea cables have recently made headlines. The volcanic eruption in Tonga cut the fiber optic cable connecting the archipelago to the rest of the world. Underwater cables are vulnerable to natural disasters and the consequences are felt both locally and globally. However, it is not only natural disasters but also security risks that may affect the functioning of the subsea cables. The Arctic Svalbard archipelago experienced a subsea cable disruption in January 2022 that would require repair, but the underlying reasons for the problem are unclear, with some media quickly suggesting cable sabotage as part of military stance.1)

Connectivity in the Arctic is the cornerstone for sustainable development, promoting commercial development, addressing social concerns, and advancing transportation infrastructure in Arctic regions. Much of the Arctic is remote as a region, with low population density and harsh climatic conditions making it one of the last areas to gain broadband connectivity. Historically, development of connectivity infrastructure in the Arctic has been hampered by difficult terrain, climate, distances, and the need to serve sparsely populated regions. Cold temperatures, snow, and ice can affect the reliability of communications equipment and require special measures to mitigate risks. In addition to these factors, higher costs and staffing challenges affect the deployment of network infrastructure in some Arctic regions. Costs of deploying and maintaining connectivity infrastructure in areas without road access and electrical grids were identified as risk factors in a report by the Arctic Council Task Force on Improved Connectivity in the Arctic.2) Due to the low population density and harsh environment, businesses in the Arctic have historically been unable to make strong cases for connectivity infrastructure investment and have relied on public investment through programs and grants.3) Access to modern subsea cable infrastructure can be considered an essential human right due to the provision of broadband services. Yet many Arctic settlements are still deprived of it.

This article addresses the status of Arctic cables projects that are currently in flux. Bringing security and geopolitical considerations into the analysis, it traces the evolution of recent subsea cables projects in the Arctic, and focuses on the Arctic Connect, a Trans-Arctic subsea cable project that was jointly developed by Finland and Russia and is currently on hold indefinitely. Additionally, it will analyze the role of the Russian-led Polar Express subsea cable project from Murmansk to Vladivostok with landing lines to the largest ports and settlements along the Russian Arctic zone and a new project, Far North Fiber Express Route, that will connect Europe with Japan and Asia via the Northwest Passage in the Arctic.

History of Arctic cables development

Since their origination, subsea cables projects in the Arctic have developed along shipping routes in both the North-East and in North-West directions. Already in 2011 in the North-East direction, Russia initiated the state-owned project ROTACS (Russian Optical Trans-Arctic Submarine Cable System). In April 2012, the Russian owned Polarnet Project Company signed an agreement with the US-based Tyco Electronic Subcom (TES) for the construction of the ROTACS. The project was put on hold and later terminated as a consequence of the Russian annexation of Crimea in 2014. Severe sanctions on Russia, especially on high-tech exports, also contributed to the project termination.4) Later, the Arctic Connect project was initiated on the North-East corridor to cover connectivity needs in the Arctic.

In the North-West direction, the US-based company Quintillion was the first company to launch a Trans-Arctic project through the North-West passage. Due to financial challenges5) this project ended. The newest Trans-Arctic cable project along the North-West route is the Far North Fiber Express Route project that is analyzed further in the article.

International cooperation and Arctic Connect

The Arctic Connect subsea cable was an initiative led by Finland, starting from 2015, that planned to link Europe and Asia through a subsea fiber optic cable on the seabed along the Northern Sea Route (NSR). The initiative was led by the Finnish Ministry of Transport and Communications and was carried out by the Finnish state-owned fiber infrastructure operator Cinia Ltd. In March 2016, Cinia Ltd announced that it would build the Arctic Connect undersea data cable, connecting Europe with Asia.6)The Arctic Connect project mission was partly meant to improve the connectivity in Arctic areas, in line with the objectives of the Arctic Council. Previously, Cinia had already completed the fast and cyber secure C-Lion1 submarine cable connection between Finland and Germany. The Arctic Connect cable aimed to meet the current availability of and additional needs for fiber-optic connectivity that was planned from Southern Finland to Kirkenes, Norway to Murmansk, Russia.

The total length of the Arctic Connect subsea cable was estimated to be 13,800 km, using the shortest path between Asia and Europe, compared to the numerous existing subsea cable systems that are currently connecting Asia and Europe via the Arabian/Red Sea and the Mediterranean Sea. The Arctic Connect subsea cable project was planned to be finished between 2022-2023 with an estimated cost of 0.8 to 1.2 billion USD.7)

Arctic Connect would link Europe with Russia and Asia and provide a better internet connection with lower latency, thanks to the shorter distance. Additionally, the lower shipping traffic along the NSR as compared to the south shipping corridors was anticipated to make Arctic Connect cable less prone to disruptions caused by human activities.

A preliminary study for Arctic Connect was launched in 2015, followed by a political feasibility study conducted the next year. In order to operate in the Russian controlled Arctic waters, Cinia needed a Russian partner. In June 2019, Cinia and one of the largest Russian telecom operators, MegaFon, signed a memorandum of understanding (MoU) on the Arctic Connect subsea cable project.8)

In December 2019, MegaFon agreed to create the split-ownership joint venture Arctic Link Development Oy with Cinia for the construction of the Arctic Connect submarine cable. The first marine survey work for the project was started in August 2020 and was finished in November 2020. In 2020, the Arctic Connect project became even more international with new partners from Japan, Norway and Finland.9) At the same time the project was clouded by non-transparent financial and cost structures, the uncertainty of foreign investor engagement, and evolving geopolitical threats.10) Finally, in May 2021, MegaFon announced that the structure and economy of the project was to be reconsidered, and subsequently the project was halted.11) Taking into consideration the current geopolitical context with growing economic isolation of Russia from the West, it appears to be unlikely that the cooperation between Cinia and MegaFon would ever resume. Moreover, Cinia is now committed to the Arctic Express cable through a MoU.

Russian-led Polar Express cable

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