Minister for International Development Åsmund Aukrust during a roundtable discussion about support for Ukraine.
Minister for International Development Åsmund Aukrust. Credit: MFA

The Norwegian funding will be channeled through the World Bank’s Special Program for Ukraine (SPUR). The World Bank uses contributions to the programme to mobilise approximately three times as much in loans to Ukraine. Norway’s contribution of NOK 750 million could therefore generate more than NOK 2 billion in additional financing.

The funds will be used to keep Ukrainian society functioning. This includes salaries for public-sector employees such as teachers and doctors, social benefits, and the reconstruction of infrastructure. Norway contributed NOK 1 billion to the first phase of the Special Program for Ukraine, which served as the basis for loans to Ukraine amounting to NOK 3 billion.

‘The continued Russian attacks are undermining Ukraine’s ability to finance essential public services on its own. The World Bank is therefore an important partner for Ukraine and a key channel for Norwegian support. If Ukraine is to prevail, it is crucial that basic societal functions are maintained, and that is what Norway and the World Bank are helping to ensure,’ said Minister of Foreign Affairs, Espen Barth Eide.’

The Norwegian contribution was announced today by Minister of International Development, Åsmund Aukrust, at the World Bank Annual Meetings, held in Bangkok. Other donors are also expected to announce contributions during the meetings.

The World Bank’s overall programme in Ukraine amounts to around NOK 900 billion. In addition to helping keep the country functioning, the funds are being used to build strong national institutions in Ukraine, including in the areas of good governance and anti-corruption. This is essential for attracting private investment to the country.

‘Ukraine’s needs are substantial and will continue to grow. Aid and civilian support alone cannot address the enormous challenges the country faces now, nor after a just peace is restored. It is wise to begin the groundwork for private investment today, as such investment contributes to service delivery, job creation and economic activity. This is why Norway’s contribution to the World Bank is smart aid,’ said Minister of International Development, Åsmund Aukrust.  

FACTS

SPUR

  • SPUR 2 is a mechanism under the International Development Association (IDA). IDA is a part of the World Bank that provides highly concessional loans and grants to the world’s poorest countries, and it is a key actor in fragile and conflict-affected situations. 
     
  • The World Bank will use contributions to SPUR 2, together with IDA’s strong international credit rating, to raise funds in capital markets for lending to Ukraine. These funds may be used for budget support or investment programmes. The mechanism also allows for the provision of risk mitigation instruments for private sector investments.