According to a report from the Ministry of Economy of Ukraine on October 4th, the Norwegian government has given Norfund, the Norwegian Investment Fund for developing countries, the green light to invest in Ukraine. This decision comes as Ukraine continues to rely on support from Western countries to counter Russia’s aggression, as Russia has greater economic and human resources.
The report states that the Norwegian government plans to allocate 250 million Norwegian kroner (equivalent to $23.6 million) for Norfund investments in Ukraine in 2024. This funding will be provided through the Nansen Support Program for Ukraine, with plans to continue the program in the following years. The Nansen Support Program for Ukraine is a Norwegian aid initiative totaling 75 billion Norwegian kroner (around $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 allows for Norfund investments, but also supports the Ministry of Economy’s efforts to attract up to €40 billion in public and private investments in collaboration with international financial organizations and development agencies.
Norfund specializes in equity investments, which carry higher risks compared to loans and guarantees offered by development agencies and multilateral banks. As an investment fund, Norfund also aims to create jobs and support sustainable development by investing in companies that promote it.
Anne Beathe Tvinnereim, Norway’s Minister of International Development, emphasized Norfund’s experience in high-risk markets and stated that it will be 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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