Norway to allocate NOK 250M for Norfund's investments in Ukraine
That's according to the Ukrainian Economy Ministry, Ukrinform reports.
"The Norwegian government has authorized Norfund, the Norwegian investment fund for developing countries, to invest in Ukraine. The capital provided by Norfund will help reduce risks for companies investing in Ukraine, including Norwegian companies," the statement reads.
In 2024, the Government of Norway intends to allocate about NOK 250 million for Norfund's investments in Ukraine. The funding will be allocated under the Nansen Support Program for Ukraine. The Government also plans to continue this initiative in the coming years.
"Attracting private capital is essential to support reconstruction and recovery projects. I am grateful to the Government of Norway for this decision, which not only paves the way for Norfund's investment, but also supports the efforts of the Ministry of Economy in implementing the overall strategy to attract public and private investment of up to EUR 40 billion in cooperation with international financial organizations and development agencies," said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.
Norfund provides equity investments, which involve higher risks than loans and guarantees offered by development agencies and multilateral banks. As an investment fund, Norfund also works to create jobs and support the green transition by investing in companies contributing to sustainable growth.
According to Norway's Minister of International Development, Anne Beathe Kristiansen Tvinnereim, Norfund has experience in high-risk markets, so it will be an important tool for attracting private sector investment in recovery projects. In particular, it will also help to reduce the gap between Ukraine's urgent reconstruction needs and the amount of available funding.
