Norway aligns itself with new sanctions against Russia

Press release | Date: 04/07/2024| Ministry of Foreign Affairs

Norway is aligning itself with the EU's 14th package of sanctions against Russia. The work to incorporate the sanctions into Norwegian law is under way. Norway is also aligning itself with the EU legislation that allows for profits generated by frozen Central Bank of Russia assets to be used to support Ukraine.

'Along with civilian, military and political support to Ukraine, the economic sanctions are a key tool in our response to Russia's illegal war of aggression against Ukraine,' said Minister of Foreign Affairs Espen Barth Eide.

The EU's 14th package of sanctions is targeted in particular towards certain sectors of the Russian economy, such as energy, finance and trade. These sectors are vital to Russia's ability to finance its war against Ukraine and are sectors in which it has been possible for Russia to find ways of circumventing international sanctions. The new package also includes restrictive measures on an additional 116 individuals and entities.

The EU has introduced wide-ranging packages of sanctions in response to Russia's illegal war of aggression against Ukraine. Norway has aligned itself with all of the EU's packages of sanctions, with a few national adaptations. These sanctions have been implemented in Norwegian law on an ongoing basis, and Norway is standing together with the EU and other allies to ensure that the sanctions hit hard and make an impact.

Current economic growth in Russia is the result of the country's shift to a war economy. Labour and capital that could have been used in the productive industries have now been directed towards the production of war materials. In 2024, military expenditure accounted for some 40 % of Russia's federal budget. Russia is a huge country with abundant resources, but these are not inexhaustible.

'Russia is not investing in its own future, but is staking everything on a victory on the battlefield. This is having a major impact on Norwegian and European security. Increased Western support for Ukraine is the best way to ensure that Russia is not victorious,' Mr Eide said.

"Frozen" assets

Norway is participating in the international discussions on how to hold Russia accountable for the devastation it has caused in Ukraine. Norway is now aligning itself with the EU legislation that allows for extraordinary revenues generated by immobilised Central Bank of Russia assets to be used to support Ukraine. The Central Bank of Russia has no assets in Norway, but it is important that we support measures introduced by our allies that can help Ukraine in its fight to defend itself, and in due course help to rebuild a free Ukraine.

'From a moral perspective, it is clear that Russia must pay for the devastation it has caused in Ukraine, but as democratic states governed by the rule of law, we need a legal basis to be able to use profits generated by "frozen" Russian assets. The appropriate legislation is now in place, and Norway supports this,' Mr Eide said.

This spring, the EU adopted two decisions (2024/577) and (2024/1470) concerning the use of unexpected and extraordinary revenues (windfall profits) generated by immobilised Central Bank of Russia assets. These are net profits stemming from revenues accruing to central securities depositories (CSDs) in the EU, as a result of the implementation of the EU sanctions. The aim is to use these windfall profits to provide further support to Ukraine.