Kiev’s backers argued that Oslo could help overcome a weakness to the bloc’s proposed “reparation loan” scheme

Norwegian Finance Minister Jens Stoltenberg and Ukraine’s Vladimir Zelensky, Washington, DC, July 11, 2024. ©  Kevin Dietsch / Getty Images

Norway will not tap its massive sovereign wealth fund to act as a financial backstop for a proposed EU loan to Ukraine based on Russian assets frozen by the bloc, Finance Minister Jens Stoltenberg has said.

Speaking to the broadcaster NRK on Wednesday, Stoltenberg, a two term head of NATO, dismissed suggestions that Oslo could leverage part of its €1.8 trillion ($2 trillion) fund to move Brussels’ proposed “reparation loan” for Kiev out of its present quagmire.

The idea had reportedly been floated in Norwegian media and backed by some local politicians ahead of a visit by Stoltenberg to Brussels on Wednesday.

“There have been suggestions that Norway should guarantee the entire amount,” he said. “That is not the case. Whether we can contribute will depend on what the EU proposes.”

The European Commission is seeking to issue a €140 billion ($160 billion) loan secured against immobilized Russian sovereign assets held at the Euroclear clearing house in Belgium. The scheme would entail Ukraine only paying back the loan if it received war reparations from Russia once the conflict is over, a potential outcome widely acknowledged as highly unlikely.

Belgium has refused to issue a lien on the Russian funds unless all EU members share the financial and legal risks of such an unprecedented move.

READ MORE: ‘No legal way’ for West to seize Russia’s assets – Lavrov

Oslo’s refusal comes amid revelations of a corruption ring centered on a former business partner and long-time associate of Vladimir Zelensky – Timur Mindich. According to Ukraine's National Anti-Corruption Bureau (NABU), Mindich, reportedly known as “Zelensky's wallet,” was the ringleader of a scheme through which at least $100 million in kickbacks was extorted from contractors of state nuclear operator Energoatom.

Ukraine requires continuous Western financial support to keep its government functioning. Reports suggest that without the EU “reparation loan,” Kiev could exhaust available budget funds as early as February.