Norway to allocate 250 mln kroner for Norfund investments in Ukraine

The Norwegian government has authorized Norfund, its investment fund, to invest in Ukraine, specifically through the Nansen Support Program. This decision aims to attract private capital for the country's recovery and development.

The Ministry of Economy of Ukraine reported this, Rubryka writes.

The Norwegian government will allocate approximately NOK 250 million (around EUR 22 million) for Norfund's investments in 2024. These funds will support companies investing in Ukraine, especially by reducing risks for investors. The government also plans to continue backing this initiative in the coming years.

Ukraine's First Deputy Prime Minister, Yuliia Svyrydenko, expressed gratitude for this decision, emphasizing the importance of private capital in Ukraine's recovery.

"Attracting private capital is essential to support reconstruction and recovery projects. I thank the Norwegian government for this decision, which not only enables Norfund's investment but also aligns with the Ministry of Economy's strategy to attract up to EUR 40 billion in public and private investments in cooperation with international financial organizations and development agencies," said Svyrydenko, who is also Ukraine's Minister of Economy.

Norfund specializes in equity investments, which carry higher risks than loans and guarantees typically provided by development agencies and multilateral banks. The fund also aims to create jobs and support the green transition by investing in companies contributing to sustainable development.

Norway's Minister of International Development, Anne Beate Christiansen Tvinnereim, highlighted Norfund's expertise in high-risk markets as a key factor in attracting private capital for Ukraine's reconstruction. This helps bridge the gap between Ukraine's urgent recovery needs and available funding.

Reference

The Nansen Support Program for Ukraine is a NOK 75 billion Norwegian civil and military support initiative for 2023–2027, with annual distributions based on Ukraine's needs.

In 2023, NOK 19.9 billion was allocated: NOK 8.9 billion for civilian and humanitarian aid and NOK 11 billion for military support.

As Rubryka notes, preserving the past is essential to shaping the future. This idea is particularly relevant to restoring cultural heritage sites in Ukraine, which boasts centuries of history and unique architecture that inspire future generations. However, preserving this heritage requires significant resources and innovative solutions.