**Norway‘s War Windfall**
Norway has made a lot of money from the high price of natural gas in Europe. The country’s government is defending its decision not to use this windfall to help Ukraine.
When Russia invaded Ukraine, natural gas prices in Europe went up sharply. Norway took advantage of this and earned 108 billion euros ($113 billion) in profits. This is more than the US and Germany have given to Ukraine combined. It’s also one-third of the value of Russian assets frozen in the West.
Despite this, Norway has only provided 3 billion euros ($3.1 billion) in aid to Ukraine. The country’s leaders say they did not make any special profits, but rather followed normal market forces. However, many people think that Norway’s excess profits were due to its captive market for natural gas exports, which was a direct result of the Ukraine war.
**Not Helping Enough**
Norway’s government claims it did Europe a favor by stepping up gas supplies when Russian deliveries ceased. They say they should be thanked for their help. However, many European countries have provided more support to Ukraine than Norway has, despite being strained financially themselves.
The high energy costs were like a “war tax” on Europeans, making it harder for governments to raise taxes and fund aid to Ukraine. Yet, some of these countries still managed to provide more support to Ukraine than Norway did.
**Wrong Decision**
Norway’s leaders say they should put the windfall into the country’s sovereign wealth fund, which is meant to benefit future generations. However, this decision is short-sighted in the current context. By not helping Ukraine now, Norway may be harming democracy and freedom in Europe for years to come.
The rule that prevents transferring more than 3% of the fund’s value to the government budget each year was created to prevent domestic macroeconomic problems. However, it was not meant to justify holding onto wartime rents.
**Norway Should Do Better**
Norway did provide critical energy supplies to Europe in a desperate moment. But in a purely fiscal sense, one can argue that the country did more to support Russia than Ukraine. While Norway enriched itself through oil and gas investments, tax revenues, and dividends from its oil company Equinor, it refused to use this war windfall to support Ukraine’s defense and reconstruction.
It is time for Norway’s government to consider the well-being of all Europe, not just its own interests. As threats to liberal democracy grow, this shift in perspective is more urgent than ever.
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