Norway providing funding to secure energy supplies in Ukraine
Press release | Date: 26/03/2025 | Ministry of Foreign Affairs
Three years of full-scale war and Russian attacks have severely damaged Ukraine’s gas infrastructure. Norway is providing an additional NOK 1 billion in funding for gas imports to Ukraine to ensure an adequate gas supply for the general population, businesses and industry in the country.
‘A more secure energy supply is essential to Ukraine’s resilience. This was one of the topics discussed during President Zelensky’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,’ said Prime Minster Jonas Gahr Støre.
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,’ said Minister of Foreign Affairs Espen Barth Eide, who is visiting Ukraine this week.
The extra allocation brings Norway’s overall contribution to the purchase of gas for Ukraine since 2022 up to NOK 3.6 billion. Norway has thus provided funding to meet a significant proportion of Ukraine’s gas import needs since the start of the full-scale war. In 2023, NOK 635 million was disbursed for gas purchases as a guarantee. The funds have now been released and can be used to increase the overall contribution. The agreement therefore now totals NOK 1.635 billion.
‘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,’ said Mr Eide.
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.