The Norwegian government has authorized Norfund to make investments in Ukraine. The funds will be allocated under the Nansen Support Programme for Ukraine.
Norfund, Norway's investment fund for developing countries, has been permitted to invest in Ukraine. The capital provided by Norfund will help mitigate risks for companies investing in Ukraine, including Norwegian companies.
In 2024, the Norwegian government intends to allocate approximately 250 million Norwegian krone for Norfund's investments in Ukraine. This funding will be part of the Nansen Support Programme for Ukraine, and the government also plans to continue this initiative in the coming years.
“Mobilizing private capital is essential for supporting reconstruction and recovery projects. I thank the Norwegian government for this decision, which not only paves the way for Norfund's investments but also supports the Ministry of Economy's efforts to implement an overall strategy for attracting up to 40 billion euros in public and private investments in collaboration with international financial organizations and development agencies,” said Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko.
Norfund provides equity investments, which are associated with higher risks compared to loans and guarantees offered by development agencies and multilateral banks. As an investment fund, Norfund also works to create jobs and support the green transition by investing in companies that promote sustainable development.
According to Norway’s Minister of International Development, Anne Beathe Tvinnereim, Norfund has experience operating in high-risk markets, making it an important tool for attracting private sector investment in recovery projects. This will help close the gap between Ukraine's urgent reconstruction needs and the available financing.
Background:
The Nansen Support Programme for Ukraine is a Norwegian civilian and military support program amounting to 75 billion Norwegian krone for the period of 2023–2027. The distribution between civilian and military support is determined annually based on Ukraine's needs. In 2023, approximately 19.9 billion Norwegian krone was allocated from the Nansen support program: 8.9 billion Norwegian krone for civilian and humanitarian support and 11 billion Norwegian krone for military support.
