Norway Considers Using World’s Largest Sovereign Wealth Fund to Boost Support for Ukraine

Norwegian authorities are considering a major increase in military aid to Ukraine and defense spending amid concerns over the new U.S. administration’s reluctance to continue supporting European allies, Euractiv reported on March 1.

Norway holds $1.78 trillion in the world’s largest sovereign wealth fund, including approximately $114 billion in profits generated from soaring gas prices in 2022 and 2023 due to the war.

“Norway is one of the few countries that has large amounts of money readily available, and we must therefore multiply our support for Ukraine immediately,” Liberal Party leader Guri Melby said.

Economically, Norway has been replacing Gazprom as the EU’s largest gas supplier since Russia started its invasion of Ukraine in 2022.

Opposition parties in Norway are demanding a significant boost in funding for arms deliveries to Ukraine, along with other measures to encourage domestic and EU-wide defense spending.

A proposal already in Parliament calls for an additional 100 billion Norwegian kroner ($8.9 billion) in military aid for Ukraine this year, Euractiv quoted Sveinung Rotevatn, Deputy Chair of the opposition Liberal Party, as saying.

If approved, this would raise Norway’s total funding for Ukraine to $12 billion, up from $3.1 billion last year.

The Liberals and the Socialist Left Party have called for an emergency parliamentary session and expect the government to present a financial proposal soon.

Prime Minister Jonas Gahr Støre, who attended a Ukraine-focused summit of European leaders in London, has promised that the proposal will be unveiled shortly.

Oslo has already pledged long-term support for Ukraine worth 167 billion kroner ($15.4 billion) through 2030, a Norwegian Foreign Ministry representative reminded Euractiv.

Since 2001, Norway has adhered to a fiscal rule limiting withdrawals from the fund to 3% per year, but a growing number of politicians are advocating for increased defense and Ukraine-related expenditures, Euractiv noted.

According to Euractiv, many Norwegian politicians and experts argue that Oslo should allocate its energy windfall profits to support Ukraine, given the surge in gas prices caused by Russia’s invasion and Europe’s energy shift.

According to European Commission data, Norway’s share of EU gas imports rose from 25% in Q4 2021 to 33% in Q3 2024.

Norway’s Finance Ministry estimates that the country’s additional earnings from this energy shift totaled $113 billion—more than the combined military aid provided to Ukraine by the U.S. and Germany as of October 2024.

Earlier, Norwegian fuel supplier Haltbakk Bunkers announced its decision to cease refueling U.S. Navy ships, citing concerns over recent diplomatic tensions between Washington and Kyiv.

The company, a major player in Norway’s maritime fuel industry, stated that it would no longer provide fuel to American military vessels until there is a shift in the current U.S. administration’s approach.