Norway has allocated $95 million to purchase gas for Ukraine – government

Norway is providing an additional 1 billion Norwegian crowns ($95 million) to finance gas imports to Ukraine to ensure stable supplies for households, businesses and industry, the Norwegian government said on its website on Wednesday.

“A more reliable energy supply is vital for Ukraine's resilience. This was one of the topics raised during President Zelenskyy's visit to Norway last week. There is an urgent need to increase financing for gas imports to provide electricity and heating to homes, businesses and public institutions. Norway is committed to helping address this challenge,” said Prime Minister Jonas Gahr Støre.

The new financing will be provided through the European Bank for Reconstruction and Development (EBRD) and will be used to purchase gas from Western sources. The Ukrainian state-owned company Naftogaz will receive the gas. The imported gas will be used to meet consumption needs and to increase gas reserves in case of further attacks on the gas infrastructure. The financing is provided under the Nansen Support Programme for Ukraine, and NOK 1 billion has been allocated from the 2025 budget for the Ukrainian energy sector.

“Access to electricity is essential to ensure the security of the Ukrainian people and to enable society to continue to function. Attacks on Ukraine's energy systems are attacks on the very fabric of Ukrainian society. They are part of an attempt to weaken the Ukrainian economy and undermine citizens' trust in their government. It is therefore of utmost importance and strategic importance to maintain access to gas,” said Foreign Minister Espen Barth Eide, 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 (USD 342 million). In 2023, NOK 635 million was allocated for gas purchases. These funds are already available and can be used to increase the total contribution. The total amount of the agreement will therefore be NOK 1.635 billion (USD 155 million).

“We don't yet know how much gas Ukraine will need to import this year, but Norway's contribution will help Ukraine better cope with the consequences of renewed attacks from Russia and prepare for next winter,” Mr Eide said.

The EBRD has been working with Naftogaz for several years, including on corporate governance issues. Channelling funds through the EBRD helps reduce risks such as corruption and financial irregularities, the report says.

As reported, Ukrainian Prime Minister Denys Shmyhal discussed joint humanitarian initiatives and sanctions against Russia with Norwegian Foreign Minister Eide and Norwegian Minister of Labor and Social Integration Brenna on Wednesday. The Prime Minister also expressed gratitude to Norway for its support in the energy sector, in particular for its willingness to allocate 140 million euros through the EBRD to purchase gas for Ukrainian gas storage facilities.