Requests Norway to spend more of the Oil Fund on Ukraine: “Norway must take a leadership role”

In a petition in VG, signed by a number of prominent social debaters, the Storting and the government are urged to take a clearer leadership role to help Ukraine to victory over the Russian occupiers.

“We live in a time of destiny. Russian forces are advancing and Ukraine needs more weapons – now. We ask the Storting to follow Denmark’s example and drastically increase Norwegian military aid to Ukraine. Norway must again take a leadership role, and this time the goal must be clear: Give Ukraine the help they need, in line with our great ability to contribute,” the petition says.

“Difficult to understand how this can be defended”

Among those who have signed are:

• Managing Director i Civita, Kristin Clemet

• County man Øystein Djupedal

• Aage Borchgrevink in the Norwegian Helsinki Committee

• Researcher at the Department of Defense Studies, Karen-Anna Eggen
• Author Torgrim Eggen

• Former Nordlys editor Skjalg Fjellheim

• Senior researcher at Nupi, Karsten Friis

• Nupi researcher Jakub M. Godzimirski
• Author Erik Fosnes Hansen

• Former Minister of Development Heikki Holmås

• Former Minister of Finance Sigbjørn Johnsen

• Researcher at the Naval Academy, Ina Holst-Pedersen Kvam

• Professor of Middle Eastern Studies, Brynjar Lia

• Civita advisor Eirik Løkke

• Head of the Center for International Security at the Norwegian Defense Academy, Anders Romarheim

• Head teacher in intelligence at the Norwegian Defense Academy, Tom Røseth

• Editor Vebjørn Selbekk

• Former Minister for Children and Families, Inga Marte Thorkildsen

• Economics professor Øystein Tunsjø

• Former Minister of Foreign Affairs Knut Vollebaek

“Everyone must give according to their ability. None of the other donor countries has an Oil Fund of NOK 17,500 billion. Denmark has canceled a public holiday, while several countries will probably have to take out loans. Conversely, Norway has so far had more than NOK 1,500 billion in additional income as a direct result of Putin’s gas war, of which we gave around 2 – 2 – percent to Ukraine. It is difficult to see how this can be defended against European partners,” the petition states.

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– As of now, we give less than Denmark

Senior researcher at Nupi, Karsten Friis, is among the signatories:

– I think Norway should spend far more on helping Ukraine than today. As of now, we give less than Denmark, even though they don’t have an oil fund to draw from.

Friis believes that Norway now has a unique chance to take the driver’s seat and show the way internationally.

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– Here it is also possible to win an international political victory by properly taking the lead in a project, as, for example, the Czechs have done with the ammunition initiative. Why isn’t Norway doing something similar instead of just following along, says Friis to ABC Nyheter.

Proposes new “Marshall Plan”

Senior researcher at Nupi, Karsten Friis. (Photo: Mats Bakken // www.matsbakken.co)

He believes there may be a need to create a fund, rather than just donating weapons and money.

– We could create a separate defense fund for Ukraine, for example, which they can use to buy what they need in both the short and long term. They cannot rely on donations forever. Or an investment fund for civil investment and reconstruction. A “Nansen Plan” or “Nansen Fund” ala the “Marshall Plan”. The possibilities are many, says Karsten Friis.

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He will not answer whether the rule of action should be broken when big, existential questions, such as states’ sovereignty and survival, are at stake. He is nevertheless clear that the West must not let Ukraine down in what could be a fateful time for Europe.

– We must assist Ukraine in winning the war, that is, in taking control of its own future, both in terms of security, politics and society, emphasizes Friis.

– This affects our security

Professor of economics in international relations, and head of security in the Asia program at the Department of Defense Studies, Norwegian Defense College, Øystein Tunsjø, responds as follows to the question of whether it is appropriate and justifiable to use more of the Oil Fund to support Ukraine:

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– It is both appropriate and not inflationary. Norway should support Ukraine because it affects our security.

– Norway has profited massively from the war, partly because of demand for and higher prices for power, especially gas, oil and electricity. Does this commit?

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– Although Norway has benefited from higher petroleum prices, this in itself does not oblige. The argument for supporting Ukraine is that Russia has attacked a neighboring country. Norway is that neighboring country of Russia. This affects our security, replies Tunsjø.

– Norway should invest more long-term

– Is there a risk that the fund will become worthless in the future if the security policy situation changes radically, and Norway should eventually lose control over its own finances?

– This is speculative, but in general I think Norway should invest more long-term in the industries where Norway has comparative advantages and take more responsibility for defense and security. Yes, you can invest more of the Oil Fund in such larger long-term ventures, believes the economics professor.

When Prime Minister Jonas Gahr Støre was confronted in the NRK program Politisk kvarter with Jens Stoltenberg’s criticism of NATO countries for failing to deliver promised weapons to Ukraine, he did not feel offended.

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– We have come up with the program that perhaps set a pattern for other countries, that is, support over five years with significant amounts, said Støre.

“We are a small military power, but among the world’s richest”

In an article in Dagens Næringsliv, Steinar Juel, Erling Holmøy and Kjetil Storesletten write that the Oil Fund should be used to invest in Norway’s security:

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“We should use some of the oil fund to buy weapons for the Ukrainians. It will also contribute to our own safety. We are a small military power, but we are among the world’s richest and have great financial power. Norway’s financial situation is unique. We have a large fund, the Statens pensionsfond utland (Oljefondet), while all other western countries have large and growing government debt. The fund is the result of wise, political decisions over more than 50 years.”

They compare today’s situation to when England, before the US joined World War II, desperately needed more military supplies. Then President Roosevelt established a lend-lease scheme for military equipment.

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“Marshall aid was important so that Western Europe could be rebuilt without the devastating crises of the interwar period. (…) We shouldn’t hesitate so much now that we will regret it in five to ten years’ time,” the chronicle says.

“We have money to spare, but do we dare to use it?

In this photo, taken from video released by the press service of the Russian Defense Ministry on Monday, January 22, 2024, a Su-25 warplane is seen from the cockpit of another such plane as they fire missiles on a mission over Ukraine. (Russian Defense Ministry press service via AP, file)

In an article in Stavanger Aftenblad, writes Hjalmar Inge Sunde, Njål Kolbeinstveit, Jostein Soland, Kjell Traa, Gunnar Berge and Egil Harald Grude from the Senior Tank that “Norway can support Ukraine with NOK 1,000 billion from the Oil Fund”. They remind that the Oil Fund today has a value of several thousand billion.

“Can Norway do something? We absolutely mean it. We can easily withdraw NOK 1,000 billion from the Oil Fund as support for Ukraine. Such help will not reduce the amount of money we can use in Norway now. Few countries, if any, have similar opportunities to help Ukraine,” they write.

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The article’s authors warn against the consequences of a possible Russian victory.

“Preventing Ukraine from losing the war is a very cheap investment compared to the risk and costs that a lack of support will lead to. This opinion can justify a completely different support to Ukraine than we have been willing to give up until now. We don’t have the equipment and ammunition we need. But as much money as it takes, we have that. Dare we use them?”, asks the Senior Tank.

“The oil fund can lose a sudden Nansen fund overnight”

The MDG profiles, Storting representative Rasmus Hansson, and Lan Marie Nguyen Berg, parliamentary chair of the finance committee, have also engaged in the issue of a more aggressive use of the Oil Fund.

“If the Russians break through in Ukraine, and if the United States is taken over by Donald Trump, it means an upheaval of our world order. A side effect could be that the world economy falls like a stone and the Oil Fund suddenly loses a Nansen fund overnight. Perhaps better to use the money while we have it, to avoid this”, urge the MDG profiles in an article in Dagens Næringsliv.

ABC Nyheter has requested a comment from the Oljefondet’s management.

“We have no comment on this. We manage the fund in line with the mandate set by the Ministry of Finance”, writes Head of Communications at Norges Bank Investment Management, Line Aaltvedt.