September 27, 2024
Ukraine needs more private investment to meet the enormous needs created by Russia’s warfare. The Norwegian government is now providing funding from the Nansen Programme for Ukraine for Norfund to invest in the country.
Russia’s war against Ukraine has caused enormous material damage to homes, schools, roads and energy infrastructure. Ukraine therefore needs investments to rebuild what Russian attacks have destroyed, and to build a sustainable economy in a free and independent Ukraine.
Much of this must be financed with private capital, as public funds will not suffice and because much of the reconstruction will take place in areas with commercial potential.
– For many years, Norfund has succeeded in investing where many others do not dare, and where they can really make a difference. In Ukraine and in other developing countries, the gap between needs and available financing is growing. It is not possible to reduce the gap without having the private sector on board. Norfund’s investments make this possible,” says Anne Beathe Kristiansen Tvinnereim, Minister of Development Cooperation.
For 2024, the government proposes to set aside NOK 250 million for Norfund investments in Ukraine. The money comes from the Nansen Support Programme for Ukraine. The government aims to continue this effort in the coming years.
The private sector accounted for 70% of Ukrainian GDP before the full-scale invasion, and it has a key role in maintaining economic activity. Norfund prioritizes equity investments, which is key to be able to operate and develop vital and sustainable projects.
– We appreciate the confidence in Norfund’s ability to invest and deliver results in demanding markets. We look forward to getting started and contributing to help Ukraine in the difficult situation the country is facing,” says Tellef Thorleifsson, CEO of Norfund.