Norway is in talks to help unlock a proposed European war loan worth more than €100 billion for Ukraine by offering its sovereign wealth fund — the largest in the world — as collateral, according to reports and official statements in Oslo. The proposal comes as Kyiv faces mounting financial pressure and dwindling international support to cover its massive wartime deficit.
The European Union has been working on a plan to raise about €140 billion by borrowing against frozen Russian state assets, but the effort has run into resistance from Belgium, where Euroclear — the institution managing the bulk of the Russian funds — is headquartered. Brussels is expected to renew efforts to persuade Belgian officials at a key meeting on Friday, but without collateral, raising the loan will remain difficult given the risks of Ukraine’s inability to repay.
Norway’s potential intervention could provide a breakthrough. The Nordic country, which is a member of NATO but not the EU, has faced growing criticism from several European partners — including Denmark — for “war profiteering” from the Ukraine conflict. As Russia’s invasion has driven up global energy prices, Norway’s oil and gas revenues have surged, prompting calls for it to contribute more to the collective European effort to aid Ukraine.
Two prominent Norwegian economists, Havard Halland and Knut Anton Mork, have publicly argued that the country should offset its wartime windfall by offering a portion of its sovereign wealth fund as a guarantee for Ukraine’s financing. Established in 1990 to invest surplus oil and gas revenues, the fund — known as the Government Pension Fund Global — is now worth about €1.7 trillion, making it the largest state investment vehicle on the planet.
The idea of using the fund as surety has gained traction in Norway’s parliament. Four of the nine political parties represented — including several on the left — have voiced support, increasing pressure on Prime Minister Jonas Gahr Støre’s minority Labour government to act.
“Ukraine is fighting not only for its own freedom but for the freedom of all Europe — and ours,” said Guri Melby, leader of Norway’s Liberal Party, in an interview with the NTB news agency. “Norway must make a contribution where we can. It is both responsible and right to act as a guarantor for a loan to Ukraine.”
Prime Minister Støre confirmed that he is open to the proposal and has ordered a feasibility report on how such an arrangement might be structured. However, he emphasized that any decision would depend on the outcome of the EU’s ongoing negotiations and a clear signal from Brussels that Norwegian backing is needed. “These discussions have not been completed in the EU, so I will not say anything more than that we are in close contact with them,” Støre said last week.
Mette Frederiksen, the Danish prime minister and current holder of the EU Council’s rotating presidency, welcomed Oslo’s potential involvement, saying it would be “wonderful” if Norway were to step in to support the plan.
For Ukraine, which continues to suffer devastating Russian strikes on civilian infrastructure and cities such as Kostiantynivka in the Donetsk region, fresh financing is urgently needed to sustain the economy and the war effort. The EU’s proposed loan — potentially backed by Norway’s immense financial reserves — could provide a critical lifeline for Kyiv at a time when Western political unity is increasingly under strain.
