Faroe Islands’ struggles over Russia show the danger of being a small nation

The Faroes’ economy depends heavily on its fishing fleet’s access to Russian waters. Hence why, despite Putin’s invasion of Ukraine, Russian trawlers are still allowed to dock at its ports

Our neighbours in the Faroe Islands show what can be done for island communities given the autonomy and resources to do things for themselves. I have written before about their achievements in broadband rollout, tunnel construction and population growth.

Is this then the way for us all to go? Is the break-up of big nation states our route for the future? It is a beguiling idea, fed in many communities by frustration with the dead hand of centralising control from ministers and officials in Edinburgh and in Westminster. It certainly proves the case that empowering communities to do things for themselves is the most powerful driver for growth and change.

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An economy reliant on fish

The problem is that for many of those who advance the argument, autonomy is a form of opting out and leaving the problems of a modern globalised economy to others to fix. The Faroese economy continues to be dominated by one commodity – fish. Whether it is farmed or caught, their economic prosperity relies on the marine environment.

The aquaculture companies that operate and make good money for the Faroese may be managed locally but they remain big corporates with the ownership and control resting elsewhere. The situation facing the catching sector is even more fragile.

The capital of the Faroe Islands, Torshavn, where Russian fishing vessels are still allowed to dock despite Putin's invasion of Ukraine (Picture: Maja Hitij)The capital of the Faroe Islands, Torshavn, where Russian fishing vessels are still allowed to dock despite Putin's invasion of Ukraine (Picture: Maja Hitij)
The capital of the Faroe Islands, Torshavn, where Russian fishing vessels are still allowed to dock despite Putin's invasion of Ukraine (Picture: Maja Hitij) | Getty Images

The Faroese economy may be riding high today but many of their people remain haunted by the memory of the collapse during the 1990s. Then, the fall in the islands’ population levels was as dramatic as the growth we have seen in recent years.

A collapse in fish stocks around the islands cut the legs out for under the economy and for a time things looked dire. Fast forward to today and white fish stocks in Faroese waters are again under pressure.

Russian waters

So why no economic collapse? The answer is simple. The Faroese whitefish fleet is able to compensate by fishing cod in the Barents Sea, courtesy of Russia. It is an arrangement that has allowed the Faroese economy to avoid a repeat of the 1990s collapse but which has thrown up no end of diplomatic challenges for the government.

Shortly after Putin’s invasion of Ukraine, they attracted massive criticism for allowing Russian trawlers to have continued access to the “special area” administered jointly by the UK and the Faroes. The criticism was valid but they had no option other than to resist it.

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More tolerated than welcomed

There is no doubt about where the Faroese stand on Putin’s war but at a time where ports in every other Western country are closed to Russian trawlers, the Faroese ports remain open to them.

Access is restricted to a defined list of Russian trawlers, which are more tolerated than welcomed but, nonetheless, still they come. The alternative would be to risk losing the access to cod fishery in the Barents and the economic ruin that this might bring.

“Stop the world I want to get off!” is a message that will always find an audience. The Faroese experience shows that it is easier said than done.

Alistair Carmichael is the Liberal Democrat MP for Orkney and Shetland

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