Norway may support the European Union's plan to use frozen Russian assets for Ukraine, but the Scandinavian country will not use its sovereign wealth fund as the sole financial support for the scheme, Norwegian Finance Minister Jens Stoltenberg said on Wednesday, UNN reports with reference to Reuters.
Details
EU finance ministers will meet on Thursday to discuss options for providing Ukraine with 130-140 billion euros ($152-163 billion) - either through loans or, more likely, through frozen Russian assets, a senior EU official said.
However, Belgium, where Euroclear, which holds most of the Russian assets, is based, has opposed the idea of using frozen funds, fearing that the country could ultimately be held liable in court.
To break the deadlock, some Norwegian parliamentarians have suggested that the country's sovereign wealth fund, the world's largest with over $2 trillion in assets, provide a guarantee covering potential legal liability.
Stoltenberg, a former NATO Secretary General, said that Norway, which is not an EU member, already makes significant financial contributions to Ukraine and could potentially participate in EU plans, but would not provide guarantees on its own.
"There have been some ideas that Norway should guarantee the entire amount of about 1.6 trillion Norwegian kroner ($159 billion), but that is not an option," Stoltenberg told public broadcaster NRK during a visit to Brussels.
Addition
By investing decades of oil and gas revenues in foreign stocks, bonds, and other assets, the Norwegian Wealth Fund is equivalent to four years of Norway's gross domestic product, making it a prominent player in global financial markets, the publication notes.
The fund has a rule that governments must spend only its expected inflation-adjusted return each year, defined as 3% of total assets.