Norway PM Støre to Tap Sovereign Wealth Fund to Fund Ukraine War Effort

Posted on 02/03/2023


Norwegian Prime Minister Jonas Gahr Støre informed parliament on January 31, 2023 that the oil-rich Scandinavian country will grow spending from Norway Government Pension Fund Global in the coming years to fund d military and civilian aid to Ukraine. Russia invaded Ukraine in 2022. Norway’s profits from oil will finance the additional aid. Norway has fought off accusations that it’s profiting from the war in Ukraine as the country is one of Europe’s largest fossil-fuel exporters.

“This will lead to a temporary increase in spending from the sovereign wealth fund,” said Jonas Gahr Støre, who leads Norway’s Labor Party.

Norway Government Pension Fund Global is Norway’s sovereign wealth fund, which has experienced a large rise in revenue inflows as the price of Norwegian oil and gas exports skyrocketed. This was due to Russia’s invasion of Ukraine, which pushed up the prices of oil globally.

In 2022, Norway gave Ukraine more than $1 billion in civilian and military aid. According to the Germany-based Kiel Institute for the World Economy, in 2022, the Biden administration and the U.S. Congress have directed around US$ 50 billion in assistance to Ukraine, which includes humanitarian, financial, and military support.

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