Norway’s state investment fund, Norfund, has begun operations in Ukraine and is preparing to deploy capital into sectors critical to the country’s economic recovery, the Ukrainian Ministry of Finance reported Tuesday, May 6.
Norfund is now reportedly building its team and exploring potential investment opportunities.
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The Norwegian Government has allocated around 250 million Norwegian Krone ($24.3 million) for the Fund to invest in Ukraine through the Nansen Support Programme, which helps reduce risks for companies, including Norwegian businesses, investing in the country.
Norfund aims to support private sector growth in Ukraine, with a focus on renewable energy, manufacturing for export, agriculture, and banking. It is also looking at investments in rebuilding infrastructure and creating jobs, including in regions impacted by Russia’s full-scale invasion, the Ministry reported.
Priority areas for fast recovery in Ukraine include housing, energy, social and critical infrastructure, transport, social protection, and demining, Deputy Minister of Ukrainian Ministry of Finance Olga Zykova said.
Russia’s full-scale war is estimated to have caused $170 billion in direct damage to Ukraine’s infrastructure. In 2024, this amount increased by $12.6 billion due to new missile attacks and ongoing fighting.
As of Dec. 31, 2024, Ukraine’s ten-year recovery and reconstruction needs are estimated at nearly $524 billion. In 2025 alone, the need for priority recovery is $17.3 billion, of which $7.4 billion has already been secured through the state budget and donor support, Zykova said.
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“…As long as the full-scale war continues, all of Ukraine’s internal resources are directed toward financing the security and defense sector. That’s why the Ukrainian Government is cooperating with investment funds to secure the necessary tools to implement recovery and reconstruction projects,” she said.
Ukraine’s state budget has allocated $660 million to support private sector growth, but the government needs an additional $7 billion, the Ministry reported. Support programs include grants for small and medium enterprises and interest rate subsidies under the “5-7-9” initiative, the Ministry reported.
Some insurance products have already been launched with the support of the European Bank for Reconstruction and Development (EBRD) and the US International Development Finance Corporation (DFC).
How Norway helps Ukraine
Since the start of the full-scale invasion, Norway has given Ukraine over $500 million in grants. It is also the largest donor to the World Bank’s Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF), contributing over $633 million. The fund supports projects in energy, healthcare, agriculture, and overall recovery, the Ukrainian Ministry of Finance reported.
The Norwegian government will also provide €138.6 million ($149.6 million) in grants for Ukraine’s state-owned gas production company, Naftogaz, to import gas to secure heating and electricity for households, businesses, and industry.
