This move could unlock funding for Kyiv as the EU seeks ways to secure a loan without the risk of non-repayment.
Norway is considering acting as a guarantor for a European military loan to Ukraine of 100 billion euros, providing funds from its own sovereign wealth fund of 1.7 trillion euros as collateral. This is reported by The Sunday Times, according to UNN.
Details
Norway is discussing a proposal to unblock a European military loan of over 100 billion euros for Ukraine by securing the debt with its national sovereign fund of 1.7 trillion euros
– the publication writes.
The publication emphasizes that as Kyiv is acutely short of money and creditors are ready to continue financing its huge deficit, the EU leadership has developed a plan to lend 140 billion euros against frozen Russian state assets.
This scheme was opposed by Belgium, where the financial institution managing Russian wealth is located.
It will be difficult for the EU to obtain a loan without substantial collateral due to the risk that Ukraine may never be able to repay the funds. Negotiators are expected to try to persuade the Belgians at a meeting on Friday.
However, Oslo may still come to the rescue. Norway's political establishment was outraged by suggestions from Denmark and other European partners that the country, which belongs to NATO but not the EU, was "profiting from the war" on Russia's invasion of Ukraine by selling large volumes of oil and gas to its allies while giving comparatively little in return
– the publication adds.
Recall
Calls are growing for Norway to use its 1.8 trillion euro sovereign wealth fund to facilitate a blocked 140 billion euro EU loan for Ukraine after a Danish newspaper revived the once unrealistic idea at a meeting of EU leaders last month.
