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
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
×