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Norway to provide NOK 2 billion to support Ukrainian government administration

‘The Ukrainian authorities need our help to be able to maintain critical services such as education, health care and payment of pensions. We will make sure that this funding reaches them quickly,’ said Prime Minister Jonas Gahr Støre.

Norway is providing NOK 2 billion in budget support to Ukraine to be channelled through the World Bank. The funding is vital to enable the Ukrainian government administration to maintain critical functions. The funds are being allocated under the Nansen Support Programme for Ukraine.

‘We know that Ukraine is in urgent need of funding. This type of support will help Ukraine to keep its schools and hospitals running and ensure that pensions are paid. The funding will also contribute to the reform process needed to promote economic growth moving forward, as well as reconstruction and European integration after the war,’ said Minister of Foreign Affairs Anniken Huitfeldt.

The provision of budget support to the Ukrainian government administration means that basic services can be delivered to the Ukrainian population effectively using the existing, fully functioning administrative systems. Ukraine’s advanced digital banking services will facilitate monitoring to ensure that funding is used for clearly defined purposes.

At the same time, Ukraine needs to cover its financing deficit in order to conclude an agreement on a new comprehensive support programme with the International Monetary Fund (IMF). The IMF-supported programme is vital to achieve progress in reforms that will contribute to macroeconomic stability.

‘Effective coordination with the EU and other countries that are supporting Ukraine’s fight for freedom is essential to provide the best support to Ukraine. The close contact we have had with the EU, NATO, the World Bank and other actors throughout this extraordinary year has been invaluable, and we will be continuing to coordinate our efforts in the time ahead. Ukraine will need support for a long time to come,’ said Ms Huitfeldt.

The funding is being channelled through the World Bank multi-donor trust fund for Ukraine. Norway has previously provided NOK 300 million in budget support via the World Bank, in addition to NOK 1 billion in funding for repairs of critical infrastructure such as the power grid, roads and railways.

The World Bank was quick to provide substantial support to the Ukrainian authorities following Russia’s attack on Ukraine. So far, the World Bank has mobilised USD 20.6 billion in funding for Ukraine, of which USD 18 billion has already been disbursed.

The Nansen Support Programme for Ukraine was approved by the Storting on Tuesday 14 March. The multi-year support programme will provide a total of NOK 75 billion over a period of five years (2023–2027). The NOK 2 billion in budget support announced today is part of this.