Ambassador: Norway rakes in $115 billion as EU shuns Russian gas

Amid the European Union’s decision to stop purchasing Russian gas, Norway has capitalized on the situation, earning more than $115 billion in revenues, according to Russian Ambassador to Norway Nikolai Korchunov.

Korchunov pointed out that although Norway joined all EU sanctions against Russia, the kingdom managed to profit from the displacement of Russian gas supplies, Caliber.Az reports referencing Russian media sources.

However, this financial windfall came at the cost of destroying trade and economic relations with Russia.

"Norway joined all the EU sanctions packages," Korchunov explained, noting the mixed impact on Norway’s economy. "On one hand, Norway made a decent profit by replacing Russian gas, but on the other hand, Oslo chose to sever trade ties with Moscow."

He went on to highlight that Norwegian companies completely ceased operations in Russia, with the Norwegian state pension fund Global reducing its investments in Russian companies from $3.1 billion in 2021 to just $140.13 million by January 2024.

Korchunov also remarked that trade between the two countries has now been reduced to a small list of goods that are not subject to sanctions. He pointed out that Norwegian ship repair companies in northern Norway have suffered significant losses, particularly after being forced to cancel contracts for the maintenance of Russian fishing vessels and lay off large numbers of workers.

"Norwegian ship repair companies, like Kimek in Kirkenes, had to cancel contracts for the repair and maintenance of Russian fishing vessels," he said, adding that these businesses faced mass layoffs due to the disruption.

In 2023, the Norwegian School of Economics (NHH) calculated that Norway’s revenues from gas exports, driven by the EU's gas shortage due to the war in Ukraine, amounted to NOK 334 billion.

Norway has emerged as the leading gas supplier to Europe, especially to Germany, which currently receives more than 40% of its natural gas supply from Norway through three undersea pipelines. Despite being a signatory to the Paris Climate Agreement and pledging to reduce greenhouse gas emissions by 40% by 2030, Norway has continued to ramp up its gas production and exports.

By Tamilla Hasanova