Norway is considering using its sovereign wealth fund as a guarantee for a military loan to Ukraine worth more than 100 billion euros. The initiative has already received support from some political forces in the country’s parliament.
This is reported by The Times .
Norway’s national welfare fund, accumulated through oil and gas revenues, is estimated at more than one trillion seven hundred billion euros. It is proposed to use it as the financial basis for creating a stable European mechanism for long-term support for Ukraine.
The idea was put forward by Norwegian economists Howard Holland and Knut Anton Mork. They proposed forming a common European credit line, based on Norwegian guarantees. This approach would allow European Union countries to raise funds on more favorable terms than in the case of conventional interstate borrowing.
The initiative has already received the approval of four of the nine political parties in Norway’s parliament, making it almost certain to be considered by the government. Prime Minister Jonas Gahr Støre said the proposal deserved detailed analysis and ordered calculations to be prepared regarding its legal and economic sustainability.
The discussion of this project is taking place against the backdrop of difficulties in the European Union with the implementation of another initiative – attracting approximately one hundred and forty billion euros from the proceeds of frozen Russian assets.
According to the Belga agency, the European Commission has failed to convince Belgium to agree to the use of these assets. The country’s Prime Minister Bart De Wever, at a meeting on November 7, again expressed his objections to the plan of European Commission President Ursula von der Leyen, explaining that the Belgian side does not have sufficient guarantees of legal and financial protection in the event of the implementation of this scheme.
The European Commission, in turn, states that Belgium’s fears are exaggerated, and emphasizes that it is not about confiscating Russian assets, but only about using the income they generate.
Fear of Russian retaliation: Belgium blocks the use of Russian assets
Recall that the European Union may find itself faced with the need to raise tens of billions of euros in joint debt if Belgium does not agree to unblock the mechanism of the so-called “reparation loan” for Ukraine.
As reported, Belgian Prime Minister Bart de Wever expressed support for the idea of creating a reparations loan for Ukraine, but warned that this is only possible if three key legal requirements are met.
By the way, Hungary seeks to join forces with the Czech Republic and Slovakia to form an alliance within the European Union, which will have a skeptical position regarding support for Ukraine.
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