On April 24, 2020, Washington announced plans for a $12.1 million economic aid package for Greenland with the intention to strengthen ties and counter Chinese and Russian ambitions in the Arctic. The economic assistance, largely intended for natural resources and education, is unsurprising given Washington’s growing interest in building a military presence in the Arctic. Greenland, which welcomed the idea of an aid package, has become increasingly important for US shipping aspirations, the US military, and its ballistic missile early warning system. Control of new Arctic shipping routes and access to natural resources has also induced competition in the region.
Denmark had previously rejected President Donald Trump’s efforts to purchase the autonomous Danish territory in August 2019. Some in Denmark view the aid package as a political move to gain favor with Greenland, while others view the move as mutually beneficial statesmanship. The United States also plans to open a consulate this year in Greenland’s capital Nuuk for the first time since 1953.
