- Norway providing additional financing to Ukrainian gas company Naftogaz via the EBRD
- Total of €139 million in grants from the country this year to facilitate EBRD loans
- Norway has contributed €445 million to reinforce Ukraine’s energy security since war began
The European Bank for Reconstruction and Development (EBRD) and the government of Norway are deepening their cooperation to help Ukraine maintain its energy supply, with an injection of new funding.
Norway, a founding member of the EBRD and a strong strategic partner, will provide NOK 1 billion (€85 million) of funds to help Ukrainian state-owned energy utility Naftogaz buy critical gas to secure heating and electricity for households, businesses and industry, the State Secretary for the Norwegian Minister of Foreign Affairs, Eivind Vad Petersson, announced on 26 March.
Norway will also provide a grant of €53.6 million to the company, after agreeing to repurpose the first-loss risk cover provided to Naftogaz under a recently repaid €200 million EBRD loan. This will bring total Norwegian grant support for Naftogaz’s gas imports in 2025 to €138.6 million.
The funding will be channelled through the EBRD Crisis Response Special Fund (CRSF) to support the Bank’s operations in reinforcing energy security in Ukraine and will accompany a deal with Naftogaz that is expected to be signed at the beginning of April.
It will raise the total grant support from Norway via the CRSF to Naftogaz to over NOK 3.6 billion (€330 million).
Since Russia’s full-scale invasion of Ukraine started in February 2022, Norway has contributed close to NOK 5.2 billion (€462 million) in support for Ukraine via the EBRD, with much of this focused on the energy sector.
The EBRD has been working with Naftogaz since before the war began and continues to offer strong support to the company.
EBRD President Odile Renaud-Basso met Ukrainian President Volodymyr Zelensky in Kyiv in February to underline the Bank’s determination to support Ukraine and its people. As well as swiftly delivering critical high-quality energy and infrastructure projects, the Bank will work to boost private-sector investment, including by developing human capital, she said, noting that all of these projects will contribute to Ukraine’s economic recovery and reconstruction.
The EBRD has significantly stepped up its investment in Ukraine since the onset of Russia’s full-scale invasion, deploying more than €6.4 billion to the country since 2022, including a record €2.4 billion last year.
The Bank is a committed and steadfast partner of Ukraine. Over the past 30 years, it has been the largest institutional investor in the country, with cumulative investment of over €22 billion through more than 625 projects. The EBRD’s wartime investment has focused on five priority areas: energy security, vital infrastructure, food security, trade and support for the private sector.