Norway provides a glint of hope for Ukraine as it mulls over using €1.7 trillion sovereign fund
Norway is contemplating a significant policy shift to increase its support for Ukraine by tapping into its €1.7 trillion sovereign wealth fund, the world's largest. This move comes amid mounting domestic and international pressure for Oslo to enhance its contributions to Ukraine's defence and reconstruction efforts.
As of now, Norway has allocated approximately €3.35 billion in aid to Ukraine, a figure that pales in comparison to the contributions of its Nordic neighbours, Denmark and Sweden. This disparity has led to criticism, with some accusing Norway of profiting from the war due to increased revenues from natural gas exports to Europe.
In response to these critiques, Prime Minister Jonas Gahr Støre has announced plans to request an increase in financial support for Ukraine from the parliament. This proposal includes a substantial boost in both military and civilian aid, reflecting a growing acknowledgment of Norway's capacity and responsibility to contribute more significantly.
A collective of 47 prominent Norwegian economists and analysts has publicly advocated for increased aid to Ukraine, suggesting that the sovereign wealth fund's spending limits should not hinder this initiative. They argue that Norway's economic strength positions it uniquely to support Ukraine during this critical period.
Norway's potential policy shift is particularly significant as signs emerge of waning U.S. military support for Ukraine. By leveraging its substantial sovereign wealth fund, Norway could play a pivotal role in sustaining Ukraine's defence capabilities and reconstruction efforts, thereby reinforcing European security.
The USA on Tuesday, March 4 suspended all forms of defence aid to warring Ukraine after a clash at the Oval Office on Friday, February 28.
U.S. support for Ukraine comprises military aid, budgetary assistance—primarily channeled through a World Bank trust fund—and additional funding previously managed by the U.S. Agency for International Development, now restricted by the Trump administration.
The leaders of the two countries, Volodymyr Zelenskyy and Donald Trump, met to finalise a minerals deal which was going to hand over a chunk of Ukraine's mineral resources to the USA. However, tempers rose and voices flared up; it was disaster.
Reacting to the aid suspension, Zelenskyy shared on X his regret about the outcome of the White House meeting and urged Trump and the US to seek a more constructive one in the future.
"None of us wants an endless war. Ukraine is ready to come to the negotiating table as soon as possible to bring lasting peace closer. Nobody wants peace more than Ukrainians," Zelenskiy said in his statement on X.
