Norway Commits EUR 205 Million to Fund Natural Gas Supply to Ukraine
Russia’s war on Ukraine is having a dramatic impact on energy security and the economic situation in Ukraine. The Norwegian Government is committing NOK 2 billion approximately EUR 205 million to help ensure that Ukrainians have access to natural gas in the coming winter.
‘Ukraine is in urgent need of external support as a result of the war. Ukraine has asked Norway to take a leading role in helping to ensure that it has access to energy. We are now following this up, and plan to provide NOK 2 billion to enable Ukrainians to purchase natural gas this autumn and winter,’ said Prime Minister Jonas Gahr Støre.
When Prime Minister Støre was in Kyiv in July, he announced that Norway would increase its support to Ukraine by NOK 10 billion in 2022 and 2023.
Today, Mr Støre was in Stavanger for the Offshore Northern Seas (ONS) 2022 conference, where Ukrainian President Volodymyr Zelensky participated digitally. Mr Støre announced there that NOK 2 billion of Norway’s commitment would go towards purchasing natural gas for Ukraine in 2022.
‘Norway’s support for the procurement of natural gas will help in many ways, for example to keep Ukraine’s hospitals and schools warm this winter, and to make it possible to cook warm meals,’ said Mr Støre.
It is now a matter of urgency to help Ukraine increase its store of natural gas before winter arrives. The gas will help to alleviate the country’s grave humanitarian situation.
Norway will channel its support for Ukraine’s gas procurement through the European Bank for Reconstruction and Development (EBRD). Norway has also called on other countries to provide support for gas procurement through the EBRD.
‘Back in March, Ukraine asked the bank for support to purchase gas to compensate for the loss of its own natural and imported gas in the wake of Russia’s invasion. Norway and other donors will help Ukraine to purchase and store gas,’ said Minister of Foreign Affairs Anniken Huitfeldt.
According to the World Bank, Ukraine’s GDP is expected to fall by 30–50 % in 2022, with tax revenues declining by 50–80 %. This has created an enormous need for financial support. Norway has been a major donor since the start of the war.