Norway to Allocate $90 Million to Boost Defense Production for Ukraine

Norway has approved a funding package of $90 million (967 million kroner) for four new projects aimed at boosting production capacities, including rocket engines and explosive components for Ukraine, Bjørn Arild Gram announced on October 10.

Gram pointed on the critical need for defense equipment both for Ukraine, its allies, and at the national level.

“The roadmap is a comprehensive plan that will help expand the production capacity of Norway’s defense industry. With this, we are taking responsibility to help meet the needs of Ukraine, as well as our national and allied requirements,” he stated.

Gram stated that defense production capacities in Norway and Europe had been reduced after decades of peace and declining demand. However, Russia’s invasion of Ukraine necessitates reversing this trend.

He noted that Ukraine is heavily reliant on access to air defense systems, missiles, artillery shells, and other resources to sustain its defense.

“Both industry and the government have made significant efforts to increase production in Norway, but this remains a comprehensive and long-term challenge for all our allies. With this roadmap, we are taking responsibility for enhancing Norway and our allies' ability to support Ukraine in its struggle,” Gram said.

He also announced that Norway will increase support for innovation among Norwegian defense companies developing equipment for Ukraine.

According to the Ministry of Defense, the funds will be directed on small and medium-sized Norwegian companies that can apply for funding to industrially produce technologies useful to Ukraine’s defense forces as well as a feasibility study for a new explosives production plant.

In addition, Norway will fund a new rocket engine production line at the Nammo plant in Raufoss and expanding of Norway’s production of hexamine, a key component for modern explosives.

Earlier, Norway allocated €48 million for drones and air defense for Ukraine in collaboration with the United Kingdom, the Netherlands, and Lithuania.