Norway is providing an additional NOK 1 billion ($95 million) to finance gas imports to Ukraine to ensure its adequate supply to the population, enterprises and industry in the country, the Norwegian government said on its website on Wednesday.

"A more secure energy supply is essential to Ukraine's resilience. This was one of the topics discussed during President Zelenskyy's visit to Norway last week. There is an urgent need for increased funding for gas imports to provide power and heating for homes, businesses and public institutions. Norway is doing its part to meet this need," Prime Minster Jonas Gahr Støre said.

The new funding will be channelled through the European Bank for Reconstruction and Development (EBRD) and will be used for procurement of gas from Western sources. The Ukrainian state-owned company Naftogaz will be the recipient of the gas. The imported gas will be used to meet consumption needs and to increase gas reserves in the event of further attacks on the gas infrastructure. The funding is being provided under the Nansen Support Programme for Ukraine and the NOK 1 billion is being taken from the 2025 allocation for Ukraine’s energy sector.

"Access to electricity is essential to safeguard the security of the Ukrainian people and ensure that society can continue to function. Attacks on the Ukrainian power supply are, and have been, an attack on the very core of Ukrainian society. They are part of an attempt to weaken the Ukrainian economy and undermine the Ukrainian people’s trust in their Government. This is why it is both crucial and of strategic importance to help to maintain access to gas," Minister of Foreign Affairs Espen Barth Eide said, who is visiting Ukraine this week.

The additional allocation will increase Norway's total contribution to gas purchases for Ukraine from 2022 to NOK 3.6 billion ($342 million). In 2023, NOK 635 million was allocated for gas purchases. The funds have already been released and can be used to increase the total contribution. Thus, the total amount of the agreement is NOK 1.635 billion ($155 million).

"We do not yet know how much gas Ukraine will need to import this year, but Norway’s contribution will put Ukraine in a better position to tackle the impacts of renewed attacks from Russia and make the necessary preparations for the next winter," Mr Eide said.

The EBRD has been working with Naftogaz for a number of years, among other things on corporate governance. Channeling of funds through the EBRD helps to reduce risks, such as the risk of corruption and financial irregularities, the report reads.

As reported, Prime Minister of Ukraine Denys Shmyhal on Wednesday discussed with Norwegian Foreign Minister Eide and Norwegian Minister of Labor and Social Integration Brenna joint humanitarian programs and sanctions against Russia. The Prime Minister also thanked Norway for its assistance in the energy sector, in particular for its readiness to contribute EUR 140 million through the EBRD for the purchase of gas for Ukrainian gas storage facilities.