The Norwegian government has authorized Norfund, the Norwegian Investment Fund for developing countries, to invest in Ukraine, according to a report from the Ministry of Economy of Ukraine on 4 October.
The report states that Norway’s government plans to allocate about 250 million Norwegian kroner or $23.6 million for Norfund investments in Ukraine in 2024. This funding will be provided within the framework of the Nansen Support Program for Ukraine, with plans to continue the initiative in subsequent years.
The Nansen Support Program for Ukraine is a Norwegian aid initiative totaling 75 billion Norwegian kroner (about $7 billion) from 2023 to 2027. In 2023, 19.9 billion kroner was allocated, with 8.9 billion for civil support and 11 billion for military aid.
According to Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, the Norwegian Government’s decision “not only paves the way for Norfund investments but also supports the Ministry of Economy’s efforts in implementing an overall strategy to attract up to €40 billion in public and private investments in cooperation with international financial organizations and development agencies.”
Norfund provides equity investments, which carry higher risks compared to loans and guarantees offered by development agencies and multilateral banks. As an investment fund, Norfund also works to create jobs and support the “green” transition by investing in companies that promote sustainable development.
Anne Beathe Tvinnereim, Norway’s Minister of International Development, highlighted Norfund’s experience in high-risk markets, stating that it will become an important tool for attracting private sector investments in recovery projects. This initiative is expected to help bridge the gap between Ukraine’s urgent reconstruction needs and the available funding.
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