Monitoring Desk
ISLAMABAD: Norway is getting richer by the minute as the Ukraine conflict raises its gas revenues, but the country is not profiting from the conflict, its prime minister stated in an interview.
Prime Minister Jonas Gahr Store rejected the unflattering claim made by those who want Oslo to do more for Ukrainians, suggesting that Norway would soon become one of the largest donors to Ukraine with a forthcoming aid package.
After touring an LNG project close to Hammerfest in the Arctic on Tuesday, Store stated, “It’s a notion that I flatly refuse,”
His government is putting the finishing touches on a “multi-year support package” that will be unveiled in the next few days and is intended to assist Ukraine and underdeveloped nations suffering from the war’s aftereffects, such as rising grain prices.
The amount and details will be revealed “early in February,” according to Store.
The Scandinavian country has increased its gas shipments since last year to help mitigate the decline in Russian gas supply to Europe.
The Scandinavian country has increased its gas shipments since last year to help mitigate the decline in Russian gas supply to Europe. It is now the biggest supplier to Europe, helping the continent stay warm this winter.
As a result, its coffers are overflowing, thanks to persistently high gas prices, which reached record levels last year due to the war.
Norway’s sovereign wealth fund
This year, the government expects its largest-ever budget surplus of 1.12 trillion kroner ($113 billion) to be invested in Norway’s sovereign wealth fund, which is currently the world’s largest, with assets worth more than 13.4 trillion kroner ($1.34 trillion).
Calls have mounted in Norway and abroad for the country to redistribute at least some of the windfall to Ukrainians or face being labeled a war profiteer.
Store dismissed the claim, made by Poland’s prime minister, among others, that Oslo was, albeit unintentionally, profiting from the Ukrainian conflict.
He claimed that Norway had been an explorer, at some risk, and seller of energy resources, oil, and gas, for 50 years. Norway does not fix those prices.
He pointed out that the rising gas price has also caused Norwegian families and electricity bills to climb, which is “politically a big challenge for us” in a country that strongly depends on electricity for its industry, heating, and transportation.
Norway’s donations to Kyiv may appear insignificant compared to the dizzyingly enormous income generated indirectly by the Ukrainian war.
Oslo claims to have provided military and civilian help totaling 10.7 billion kroner.
According to a survey by the Kiel Institute for the World Economy, Norway is ranked 15th in terms of its aid as a percentage of GDP.
“I think that league will change quite soon,” he said.
He stated that the assistance package will aid Ukraine in “maintaining their civil infrastructure; ideally, one day rebuilding a free Ukraine; and in the meantime, militarily supporting them.” Despite the climate emergency, Norway is more motivated to maintain oil and gas production as a result of the conflict in Ukraine and the changing energy situation in Europe. Gas shipments from the nation to Europe increased 8–10% last year, preventing electricity blackouts across the continent.
The prime minister acknowledged the impact his country may have. He claimed that Norway is a fortunate country.
