Key Highlights
Norfund Authorized to Invest in Ukraine: The Norwegian government has permitted Norfund, the Norwegian Investment Fund for developing countries, to make investments in Ukraine. This move is part of the efforts to support Ukraine's reconstruction and rehabilitation projects.
Allocation of NOK 250 Million in 2024: In 2024, the government intends to direct approximately 250 million Norwegian kroner to Norfund's investments in Ukraine. Funding will be allocated within the framework of the Nansen Support Program for Ukraine.
Long-term Commitment: The Norwegian government plans to continue this initiative in the coming years, signaling a sustained commitment to Ukraine's economic development.
Statements from Officials
Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, expressed gratitude for Norway's support:
"Attracting private capital is absolutely necessary to support reconstruction and rehabilitation projects. I thank the Government of Norway for this decision, which not only paves the way for Norfund's investments but also supports the Ministry of Economy's efforts to implement a general strategy to attract public and private investments of up to 40 billion euros in cooperation with international financial organizations and development agencies."
Anne Beathe Tvinnereim, Norway's Minister of International Development, highlighted Norfund's role:
"Norfund has experience in high-risk markets, so it will be an important tool for attracting private sector investments in reconstruction projects. It will help reduce the gap between Ukraine's urgent reconstruction needs and available funding."
About Norfund
Investment Focus: Norfund provides equity investments, which involve higher risks than loans and guarantees typically offered by development agencies and multilateral banks.
Mission: The fund aims to create jobs and support the green transition by investing in companies that contribute to sustainable development.
Experience in High-Risk Markets: Norfund's expertise in operating within challenging environments positions it as a valuable partner in Ukraine's reconstruction efforts.
The Nansen Support Program for Ukraine
Total Funding: The Nansen Support Program is a Norwegian civil and military support initiative worth NOK 75 billion (approximately $7.2 billion USD) for the period 2023–2027.
2023 Allocation: In 2023, approximately NOK 19.9 billion was distributed:
- NOK 8.9 billion for civilian and humanitarian support.
- NOK 11 billion for military support.
Annual Distribution: The allocation between civil and military support is determined annually based on Ukraine's needs.
Impact and Future Plans
Reducing Investment Risks: The capital provided by Norfund will help mitigate risks for companies investing in Ukraine, including Norwegian businesses, encouraging private sector participation.
Attracting Significant Investments: Ukraine aims to attract up to 40 billion euros in public and private investments, working closely with international financial organizations and development agencies.
Supporting Reconstruction: The investments will focus on reconstruction and rehabilitation projects, addressing the urgent needs arising from the ongoing conflict.
Conclusion
The Norwegian government's decision to authorize Norfund's investments in Ukraine marks a significant step in international support for Ukraine's reconstruction. By facilitating private sector involvement and focusing on sustainable development, this initiative aims to bolster Ukraine's economy and aid in its recovery.
