The Kingdom of Norway – strong support for Ukraine and growing economic relations with Dnipropetrovsk region

It has been the third year in a row that the Kingdom of Norway has provided extensive military and civilian support and humanitarian assistance to Ukraine. The country also supports the formula of peace, sanctions, reparations, bringing the aggressor to justice, as well as assistance in economic recovery, humanitarian demining, protection of critical infrastructure and countering russian propaganda. Norwegian hospitals will continue to provide assistance to Ukrainians.

Norway was one of the first of the allies of Ukraine to adopt a multi-year strategy under the Nansen Support Program for 2023-2027. In total, by 2027, military and humanitarian aid from Oslo will amount to almost $8.2 billion, making the Nordic country one of the top five largest donors to Ukraine. This is the largest aid program in the history of Norway to a country at war and includes the following areas: extensive military assistance (air defense, artillery ammunition, development of the Ukrainian Navy together with the United Kingdom); civilian support for the state and critical areas such as energy, nuclear safety, healthcare, and humanitarian aid.

The Kingdom of Norway has joined the Ukraine Multi-Stakeholder Donor Coordination Platform during the eighth Steering Committee meeting. Norway became one of four new member countries of the Platform that have pledged a total of more than $5.5 billion for the recovery and development of the Ukrainian economy.

The Norwegian government has provided more than $500 million in direct budget support to Ukraine during the wartime. In particular, a grant of about $485 million was allocated under the World Bank’s Public Expenditure Support for Enhanced Accountability and Responsiveness in Ukraine (PEACE in Ukraine) project. The funding was aimed at compensating for state budget expenditures on priority social and humanitarian needs, namely pensions, salaries for employees of the education and health sectors, social protection, and humanitarian support.

On April 30, the Norwegian government increased its support for Ukraine by $629 million this year, of which $539 million is earmarked for air defense and $90 million for civilian needs. In total, in 2024, the Norwegian government will spend 22 billion kroner (almost $2 billion) on direct support for Ukraine. In addition, Ukraine and Norway have recently signed a security agreement. According to the agreement, Oslo will provide at least $1.3 billion in military aid this year.

Since the beginning of the full-scale aggressive war with russia, Norway has made significant military contributions to Ukraine, including main battle tanks, armored vehicles, artillery, rocket artillery, artillery radars, ammunition, air defense systems, demining equipment, anti-tank weapons, drones, and winter gear.

Norway, for its part, is also involved in three important coalitions: the maritime coalition, which it leads together with the United Kingdom; the F-16 coalition (donating its aircraft and training Ukrainian personnel); and the air defense coalition (NASAMS systems successfully protecting Ukrainian skies). At the same time, the Government of Norway has agreed to transfer additional NASAMS air defense systems to Ukraine for $30 million. The Government did not disclose the total number of systems, including those in its own warehouses, but noted that Norway has ordered the production of eight launchers and four control centers.

Germany, Norway, Denmark and the Netherlands will jointly supply Ukraine with 100 Patriot missiles. Norway has contributed more than $125 million to this initiative. The country has also provided Ukraine with a batch of mortar ammunition worth NOK 480 (almost $42 million). Recently, the Kingdom of Norway handed over hand grenades and sniper ammunition to Ukraine. The total value of this assistance amounted to NOK 53 million. The country is also allocating up to $13.7 million for the maintenance of Leopard tanks in Poland.

The Norwegian government has also authorized direct sales of weapons and defense products from its defense industry to Ukraine. The relevant changes came into force on January 1, 2024.

The official Oslo will provide Ukraine with $103 million to restore its energy system and ensure electricity supply before the onset of winter. At the same time, $11.2 million will be used to repair the energy sector in Kharkiv region. As a result, solar panels will be installed in seven maternity wards and operating rooms in the Kharkiv region.

The country will continue to facilitate the return of Ukrainian children illegally taken to Russia. The Norwegian government will also allocate 200 million Norwegian kroner ($18.5 million) for the demining of agricultural land and the clearing of critical infrastructure.

In 2024, the Norwegian Refugee Council announced a new call for applications for financial assistance to Ukrainians affected by the war. The amount of payment will be UAH 3,600 per person. The Norwegian Council has also launched a program to support Ukrainian businesses that have suffered from the war and moved from the area of active hostilities to Volyn or Khmelnytskyi. This is an opportunity for entrepreneurs to receive grants of up to $5,000 and advice to facilitate business reintegration.

The State Emergency Service of Ukraine in Dnipropetrovsk region received humanitarian aid from the Norwegian Ukrainian Fire and Ambulance Service, which included 30 units of special vehicles, 7 sapper suits to protect pyrotechnics, and 2 tents to accommodate personnel.

The development of mutually beneficial trade and economic cooperation also remains an important priority for the two countries. An analysis of export and import operations of the Dnipropetrovsk region with Norway demonstrates a high level of partnership, as the country is an important trading partner of the region.

According to the results of 2023, the volume of exports of goods from the Dnipropetrovsk region amounted to $1.6 million and increased by 42% compared to the previous year. Among the goods in demand among Norwegian consumers are parts for railway locomotives, ships, ferrous metals and products made of them, agricultural products, etc.

Export operations were carried out by 13 companies from Dnipropetrovsk region. The main exporting companies are metallurgical enterprises, machine-building, processing, and agricultural enterprises.

Top 5 exporting companies (ranked by volume of exported products):

Imports of goods from Norway to Dnipropetrovsk region amounted to $16.0 million and increased by 92% compared to 2022. Traditionally, Dnipropetrovsk region purchased fish and products from fish, machinery and equipment, paper and cardboard, oil and oil products, fertilizers, and other goods.

Import operations were carried out by 49 companies.
TOP-5 importing companies (ranked by volume of imported products):

Imports were mainly carried out by trade, processing, and agricultural enterprises.

Source: information for the article was taken from open online sources