Press release | Date: 09/05/2022 | Ministry of Foreign Affairs
Norway has decided to increase its budget support to Ukraine to NOK 300 million. Minister of Foreign Affairs Anniken Huitfeldt announced the additional support during her visit to Ukraine on 8 May.
‘I was in Kyiv today and saw for myself the impacts of the hostilities and the widespread need this has caused. The Ukrainian people are fighting a heroic battle for their freedom and for their country. Norway has decided to increase its support to the Ukrainian government administration to NOK 300 million,’ said Ms Huitfeldt.
According to April forecasts by the World Bank, Ukraine’s economy is expected to shrink by an estimated 45 % as a result of the war.
Norway will now provide an additional NOK 100 million of the overall allocation set aside to assist Ukraine and its neighbouring countries to the Ukrainian authorities directly. The funds will be channelled through the World Bank multi-donor trust fund for Ukraine.
The support channelled through the multi-donor trust fund will be used to pay pensions, social benefits (cash benefits) and salaries for health care personnel, teachers and public sector employees. These payments are widely needed and the Ukrainian authorities will disburse the funds immediately.
‘We know that the scale of need is enormous, and that this funding will help to make a difference. The World Bank has rapidly mobilised financing packages to help Ukraine, working with donor countries in a collaborative funding effort. This type of essential budget support will help to alleviate the situation for a hard-hit population coping with deprivation and rising poverty in the wake of the destruction taking place,’ said Ms Huitfeldt.
‘During my visit today, I have given reassurances that Norway will continue to support Ukraine in getting through this crisis, and in the efforts to rebuild the country,’ the Foreign Minister said.
Norway is the third largest contributor to the World Bank multi-donor trust fund, after the US and the UK.
Norway has set aside NOK 2 billion to humanitarian efforts and assistance to refugees in connection with the crisis in Ukraine. Approximately NOK 1.9 billion has already been distributed.