Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

‘Selfish’ Norway accused of Ukraine war-profiteering

‘Selfish’ Norway accused of Ukraine war-profiteering

The Nordic state is earning billions of extra euros on higher gas prices.

Norwegian opposition party lawmaker Rasmus Hansson has a harsh message for his country’s government: The war in Ukraine isn’t a fair reason to demand higher gas prices.

Sanctions-hit Russia is weaponizing gas deliveries, hoping to hurt Ukraine's EU allies now scrambling to cut their reliance on Russian energy exports. That's sending the price of natural gas soaring — up sevenfold over the last year.

Now Norway has supplanted Russia as the EU's largest source of gas, and torrents of cash are pouring into the country.

Oslo expects around €94 billion in net income from its petroleum industry this year, a rise of around €65 billion from last year. Norway’s sovereign wealth fund, which manages the country's petroleum earnings, has a current value of around €1.2 trillion, or around €250,000 per citizen.

That flood of money is turning into both a domestic and a foreign political problem.

The Nordic state’s center-left government — made up of the Social Democrats and Center Party — says it has shown solidarity with a 1.4 billion cubic meter production hike at three key fields in March, which is sending more gas to the EU. It argues Norway shouldn’t be blamed for market forces beyond its control.

But Hansson, a former leader of the Norwegian Green Party, isn’t buying the government’s argument.

He called it “morally wrong” to profit from price rises driven primarily by war and argued that Norway also risks damaging relations with key European trading partners by forcing them to pay such high gas prices.

Too much money?


“We think Norway is being short-sighted and too selfish,” Hansson said in an interview in his office overlooking the parliament in the capital Oslo. “We are getting a windfall profit which is very big, but the question is does that money belong to us as long as the most obvious reason for that price increase and that extra income is the disaster that has befallen the Ukrainian people?”

Hansson wants to see the extra money go into a solidarity fund that would be used to rebuild Ukraine after the war. He said experts should set what should be considered a “normal” gas price and everything above that should be seen as war profits and given away.

Brussels has a similar idea. During an emergency summit of EU energy ministers last week, several countries called for setting a price cap on all gas coming into the EU; the European Commission wants such a measure directed only against Russia.

On Wednesday, Commission President Ursula Von der Leyen said she was discussing a “task force” with Norway to look at “how are we able to lower, in a reasonable manner, the price of gas.”

So far Norway isn't biting. Norwegian Prime Minister Jonas Gahr Støre has repeatedly said he would not back a price cap on gas exports.

Hansson is also finding it difficult to get much traction for his idea in the Norwegian parliament, where his party, which only holds three of 169 seats, has met resistance from both the government and other opposition parties.

Commission President Ursula Von der Leyen said she was discussing a “task force” with Norway to look at “how are we able to lower, in a reasonable manner, the price of gas.”


But in other corners of Europe his argument is beginning to resonate.

Norway should share the “gigantic” profits it has made as a result of higher oil and gas prices, especially with Ukraine, Polish Prime Minister Mateusz Morawiecki said earlier this year.

Teresa Ribera, Spain’s minister for ecological transition, recently called the prices being paid to Norway for gas “disturbing.”

In written comments to POLITICO, Norwegian Foreign Minister Anniken Huitfeldt

said Europe is facing a supply crisis, and Norway’s primary duty is to pump more gas.

“Norway has been asked by the EU and our European partners to step up its production to cover as much of the shortfall from Russia as we can and we have done our utmost to do so,” Huidfeldt said.

She said Russia has deliberately distorted gas prices by shutting off supplies to Europe and was seeking to harm European consumers as part of its war against Ukraine. Norway and its European customers have a shared interest in “normalizing the prices and ending the distortion of the energy market,” she said.

Huidfeldt said there were “many suggestions under discussion” but declined to say what those ideas were or which she favored.

“I’m hesitant to go into specific proposals at this time,” Huidfeldt said. “One should carefully evaluate the implications of different measures so that the result is not a reduction of supply or less focus on energy savings.”

Merry Norwegians


So far neither the cash influx nor the increase in gas prices seems to be worrying many Norwegians.

The government will allocate about €1 billion for a scheme that pays 90 percent of household electricity bills when wholesale prices rise above prescribed levels.

Meanwhile, the wider economic outlook also appears comparatively benign, with unemployment around 3 percent and house prices still ticking up despite higher interest rates.

On the streets of Oslo, war and Europe’s energy crisis seem a long way away.

Last week, near the city’s new €225 million museum housing the works of Edvard Munch, bathers enjoyed the last of the summer heat on an artificial beach.

In a nearby park close to parliament, Penny Heymans, a 76-year-old pensioner, handed out anti-war leaflets for a group called Grandmothers for Peace.

She said she was struggling to get much attention from passersby and she noted that Norwegians seemed happy to accept the gas price windfall and not question the deteriorating regional security picture behind it.

“People are not really that engaged in what’s going on,” she said. “They feel like they are doing fine so why bother rocking the boat.”

Hansson, for one, is bothered that Norwegians seem unwilling to question their own good fortune.

“It’s probably not good for people to be too rich,” he said. “They start to think they have a God-given right to stay that way.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×