Aid to Ukraine is very different from other humanitarian projects and should largely be aimed at helping to develop private businesses and stimulating investment, Norwegian Foreign Minister Anniken Huitfeldt said at Ukraine Recovery Conference in London on Wednesday.
“When providing the assistance to Ukraine, we must make sure that local businesses will benefit. Therefore, we announced a donation of EUR 25 million to provide more insurances and guarantee mechanisms so that companies are willing to invest,” she said.
Huitfeldt said this is part of the Norwegian program worth EUR 7 billion for Ukraine.
She also noted the importance of a sound legal system, commitment to fighting corruption and burden-sharing when it comes to investment risk, and cited the decentralization reform as positive.
Earlier at the conference, Vice-President of the European Commission Valdis Dombrovskis announced the signing on that day of an agreement to launch an experimental military insurance scheme. He said the EU is also working on a pilot project for export credit guarantee schemes to Ukraine.
Norwegian Defense Minister Bjorn Arild Gram has announced the decision to allocate $7.5 billion for assistance to Ukraine over the next five years.
According to the website of the Ukrainian defense ministry on Saturday, the head of the Norwegian defense ministry said this during a meeting on Friday with Ukrainian Defense Minister Alexei Reznikov during his visit to Kiev.
A corresponding program has been submitted to the Norwegian parliament for approval. Gram announced that Norway plans to transfer launchers, fire control points and missiles to NASAMS anti-aircraft missile systems to Ukraine.
Reznikov discussed with Gram further consolidation of efforts in countering armed aggression by the Russian Federation and the implementation of bilateral projects to strengthen the capabilities of the Ukrainian Defense Forces.
“The high-tech assistance provided by Norway is already successfully working to protect the civilian population of Ukraine. In particular, in repulsing the last mass rocket attack on critical infrastructure facilities on March 9. Our air defense soldiers successfully used it,” Reznikov noted.
The Norwegian authorities have decided to allocate 12 tanks of various types to Ukraine, the head of the Norwegian Ministry of Defense, Bjorn Arild Gram, has said.
“Norway will donate eight tanks and up to four special purpose tanks to Ukraine. The authorities will also allocate funds for the purchase of ammunition and spare parts, said Defense Minister Bjorn Arild Gram,” the Norwegian government said in a statement.
The statement did not specify which tanks Oslo will transfer to Kiev. However, according to the document, Norway will send about $24.7 million to the European Peace Foundation for the purchase of ammunition and spare parts for Leopard 2 tanks.
In early February, Prime Minister of Norway Jonas Gahr Støre proposed to allocate annually 15 billion NOK (about $1.5 billion) for the provision of humanitarian and military aid to Ukraine over the next five years.
Earlier German authorities announced their decision to transfer to Ukraine the first batch of 14 Leopard 2 tanks and 178 Leopard 1 tanks. At the same time, German authorities give their allies permission to deliver Leopard 2 tanks to Ukraine as well.
Leopard 2 is the main battle tank of the Bundeswehr. It is also in service with Austria, Hungary, Poland, Turkey, Norway, Sweden, Switzerland, Spain, Denmark, Greece, Finland and the Netherlands. It has been in service since 1979 and has many modifications; over 3.6 thousand of these tanks were manufactured.
Norwegian Defense Minister Bjørn Arild Gram on Wednesday announced Oslo’s intention to send German-made tanks to Ukraine, Norwegian broadcaster NRK reported.
“Norway will send German tanks to Ukraine as part of the Western countries’ decision to supply weapons,” NRK quoted the minister as saying.
The head of the Defense Ministry did not specify how many tanks he was talking about.
Earlier on Wednesday, US President Joe Biden announced the decision to send Ukraine 31 M1 Abrams tanks.
It also became known that the German authorities decided to transfer the first batch of 14 Leopard 2 tanks to Ukraine. At the same time, German authorities will give their allies permission to supply Leopard 2 tanks to Ukraine.
The Norwegian government has signed an agreement with the World Bank’s Eastern Europe Regional Office to allocate NOK 1 billion to the World Bank’s Trust Fund for the Revival, Rehabilitation, Reconstruction and Reform of Ukraine, the Norwegian government press office said.
“There is an urgent need to repair the electricity system and other infrastructure in Ukraine after the Russian bombing of civilian facilities. I am glad that today we have signed an agreement to allocate 1 billion Norwegian kroner to carry out repairs quickly,” Foreign Minister Anniken Huitfeldt said.
It is noted that the World Bank is using the fund to further mobilize crisis support to the Ukrainian authorities along with support for critical infrastructure repairs and longer-term reconstruction.
“The World Bank is an organization that has proven to be effective and has quickly mobilized significant funds to help Ukraine. Channeling funding through the World Bank ensures that it will be used effectively and for the agreed purposes. It also guarantees that our efforts will be coordinated with those of other donors and the support we provide will have maximum impact,” said the Minister.
Norwegian funding will be used to provide grants from the World Bank offering flexible support for repair, rehabilitation and preparation for reconstruction of critical infrastructure facilities.
Earlier, Norway provided the government of Ukraine through the World Bank with a budget support of NOK 300 million. These funds were used to pay the salaries of medical personnel, teachers and public sector employees, as well as pensions and social benefits.
The Norwegian government is preparing to invest about NOK 1.5 billion in the UK-led International Fund for Ukraine.
According to the Norwegian government’s website, the investment comes in addition to the NOK 400 million that Norway previously donated to the fund. The funding was used to purchase drones, drone suppression equipment and artillery shells.
The new donation is part of the NOK 3 billion that the Norwegian government will provide for military support to Ukraine in 2022.
