Using a trillion-dollar sovereign wealth fund, Norway is planning to provide aid to Ukraine.
- Norway’s Prime Minister Jonas Gahr Støre announced that the Scandinavian country will use its $1.3 trillion sovereign wealth fund to provide aid to Ukraine.
- Since Russia invaded Ukraine, Norway has benefited from increased demand for its oil and gas supply.
- Støre explained that his country will provide both military and civilian assistance to Ukraine. The plan’s full details will be decided next week by Norway’s minority government.
- “We believe that this is justifiable in a heightened security policy situation,” Støre says. “It is in our national interest that Ukraine does not lose this war, and we are in a situation where we have room for action due to extraordinary income from the petroleum sector.”
Why it’s news
Norway’s government has been working on cutting oil fund spending to reduce fuel prices in the country. Fuel prices are near a 30-year high. Støre says that adding the fossil-fuel revenue to the Ukrainian aid package will not result in higher inflation in the country.
Norwegian officials have not shared how much the contribution to Ukraine will be, but Støre expects the government to make that decision soon. The use of oil profits in the aid package will be temporary.
Since Russia invaded Ukraine last year, Norway has fought off accusations that the Nordic country is profiting from the war. Last year, Norway contributed more than $1 billion in aid to Ukraine.