(MENAFN- Live Mint) US President-elect Donald Trump's interest in acquiring Greenland, an autonomous territory of Denmark, has raised questions about the island's value. According to David Barker, a Real estate developer and former economist at the New York federal Reserve, the potential price for Greenland could range from $12.5 billion to as high as $77 billion.
This estimate, reported by The New York Times, is based on the costs associated with the US Virgin Islands and Alaska, adjusted for inflation and economic growth. Barker, who has experience evaluating large-scale real estate transactions, used these territories as benchmarks to arrive at his valuation.
Strategic and economic appeal
Greenland, which holds vast natural resources and occupies a strategically important position in the North Atlantic, has long been a subject of US interest. With a location vital to US defense infrastructure and a wealth of untapped resources , including minerals and fossil fuels, Greenland is seen as an important asset in the global geopolitical landscape.
Why does Trump want Greenland?
Greenland boasts mineral, oil, and natural gas reserves, though these resources remain underdeveloped due to slow progress in infrastructure development. The island's economy is currently dependent on fishing, which accounts for over 95% of its exports, and annual subsidies from Denmark that cover half of Greenland's public budget. In total, Denmark spends nearly $1 billion annually on Greenland, or roughly $17,500 per resident.
A recent survey revealed that 25 of 34 minerals identified by the European Commission as "critical raw materials" are found in Greenland, including rare earth elements essential for electric vehicles and wind turbines, as well as materials like graphite and lithium used in batteries.
Current US presence in Greenland
The US maintains a permanent military presence in Greenland through the Pituffik air base, located in the northwest. This arrangement stems from a 1951 agreement between the US and Denmark, granting the US the right to move freely and establish military bases in Greenland as long as Denmark and Greenland are notified.
MENAFN14012025007365015876ID1109090747
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.