Pressure is building in Norway to use its vast sovereign wealth fund to help move forward the European Union’s stalled €140 billion loan for Ukraine - a proposal now gaining traction as part of efforts to overcome Belgium’s objections to using frozen Russian assets.
The EU’s proposed reparations loan would tap into about €190-210 billion in frozen Russian state assets held in Europe to use as collateral to finance Ukraine’s recovery and budget needs. Legal and political disputes, led by Belgium, where most assets are held by the clearing house Euroclear, have delayed the plan.
The idea of Norway stepping in to guarantee part of the loan has revived debate over the country’s wartime windfall. After overtaking Russia as Europe’s main gas supplier, Norway earned roughly €109 billion in extra revenues from surging prices in 2022-2023, prompting accusations it had become a “war profiteer.”
Several Norwegian parties, including those aligned with Prime Minister Jonas Gahr Støre’s governing bloc, have urged Oslo to help “break the impasse.” Opposition politicians argue that Norway’s €1.8 trillion fund gives it the financial strength and moral duty to act.
“Norway has the means to guarantee a loan that would help Ukraine defend itself,” said Guri Melby, leader of the opposition Liberal Party. Greens leader Arild Hermstad added that Norway’s profit from the war made such support “a moral obligation.”
The proposal, first floated by two Norwegian economists in Denmark’s Politiken and endorsed by Danish Prime Minister Mette Frederiksen as “a great idea,” has since entered mainstream discussion in Oslo.
Støre has ordered a “full review” of possible involvement, while Norway’s finance ministry said it is “closely monitoring the situation and continuing dialogue with the EU.”
Norway has already committed 275 billion kroner (€27 billion) in civil and military aid to Ukraine through 2030. While officials stress there are no current plans for Oslo to act as a single guarantor, the debate underscores how Europe’s wealthiest energy producer is being drawn deeper into discussions on how to fund Ukraine’s war effort.
EU leaders are expected to revisit the issue in the coming months as Brussels looks for ways to meet Kyiv’s €55 billion funding needs for the next two years without adding pressure to national budgets.
