12:38 04.10.2024

Norwegian govt plans to allocate NOK 250 mln for Norfund investments in Ukraine

2 min read
Norwegian govt plans to allocate NOK 250 mln for Norfund investments in Ukraine

The Norwegian government plans to allocate NOK 250 million for Norfund investments in Ukraine as part of the Nansen Support Program, First Deputy Prime Minister - Minister of Economy Yulia Svyrydenko said.

"These funds will help reduce risks for companies investing in Ukraine, including Norwegian businesses. Private capital is crucial for rebuilding efforts, grateful to partners for this decision," she wrote on the X social network on Friday.

According to Svyrydenko, this decision also supports the efforts of the Ministry of Economy in implementing a common strategy to attract public and private investment in the amount of up to EUR 40 billion in cooperation with international financial organizations and development agencies.

According to information on the website of the Ministry of Economy, the government also plans to extend this initiative in the coming years.

As specified by the department, Norfund provides equity investments, which are associated with higher risks than loans and guarantees offered by development agencies and multilateral banks. Norfund, as an investment fund, also works to create jobs and support the "green" transition by investing in companies that promote sustainable development.

According to Minister of International Development of Norway Anne Beathe Tvinnereim, Norfund has experience in high-risk markets, so it will become an important tool for attracting private sector investment in recovery projects. In particular, it will also help reduce the gap between Ukraine's urgent recovery needs and the amount of available financing.

The Nansen Support Program for Ukraine is a Norwegian civil and military support program worth NOK 75 billion for the period 2023-2027. The distribution between civil and military support is determined annually in accordance with Ukraine's needs.

In 2023, about NOK 19.9 billion was distributed from the Nansen Support Program: NOK 8.9 billion for civilian and humanitarian support, NOK 11 billion for military support.

AD
AD
AD
AD
AD