Norway may unblock 140 billion euros for Ukraine: what is being proposed.

According to inkorr.com: In Norway, there are growing calls for the government to use part of the sovereign fund, which amounts to 1.8 trillion euros, to help unlock the European loan for Ukraine of 140 billion euros. This initiative was put forward by five Norwegian political parties. Euractiv reports on this .

Proposals from Norway

At the European leaders' summit on October 23, no consensus was reached regarding the funding mechanism for the loan. Belgium insists on sharing legal and financial risks among EU countries before agreeing to use frozen Russian assets to support Ukraine. Norwegian parties are calling on Oslo to intervene to expedite this process.

Prime Minister Jonas Gahr Støre has ordered a "full review" of . Norway has the world's largest sovereign fund, mainly formed by revenues from oil and gas extraction, notably due to rising energy prices since Russia's invasion of Ukraine.

Finance Ministerial Secretary Ellen Reitan noted:

"We are closely monitoring the situation and continue dialogue with the EU."

The opposition has also expressed its views. Former Foreign Minister Ine Eriksen Søreide emphasized:

"Norwegian conservatives are positively inclined, but only on the condition of joint participation with the EU."

Context of the decision

The EU is expected to intend to allocate frozen Russian assets for the reconstruction of Ukraine and to finance its needs. According to the IMF estimates, Ukraine needs around 55 billion euros over the next two years. Among the options being considered is the use of profits from Russian assets or the implementation of a loan mechanism under guarantees.

Key points of Belgium's position, which is delaying the decision:

• requires legal guarantees in case of the return of Russian assets;
• seeks distribution of financial risks among EU countries;
• expects all countries holding Russian assets to join the scheme.

So far, there are no signs that Norway may lead the credit support mechanism, but the country has every chance of becoming one of the sponsors.

Most of the frozen Russian assets are held in the Belgian depository Euroclear. to use these funds for Ukraine's needs. The idea of a "reparations loan" is part of a broader discussion on engaging international partners in financing Ukraine's recovery.

The Norwegian sovereign fund, established to ensure the welfare of its citizens, may become an important tool in Europe’s joint efforts to support Ukraine. Unblocking the loan will help Ukraine overcome economic difficulties and recover after the war. However, the speed of decision-making and agreement among EU countries will be crucial for further advancement of this process.