- It is important for the country to be able to maintain agricultural production. Ukraine is a key country for the world's food supply and it is important that agriculture continues where possible, says Development Aid Minister Anne Beathe Tvinnereim.

Ukraine, with 44 million inhabitants, produces food for around 400 million people. The country produces, among others half of all sunflower oil in the world and is the third largest exporter of wheat in the world. In addition, Ukraine exports one-sixth of all maize in the world. Now the war in the country has hit food production hard.

The seeds should soon go into the soil

- Spring in Ukraine will end soon. There is still a small window for the seeds to end up in the soil. Then you need both fertilizer and seeds, and fast, says Tvinnereim.

Food prices are at record highs

Forty-five developing countries import at least a third of their wheat from Ukraine and Russia, and eighteen of them import more than fifty percent. In addition, food prices are now a major problem for many countries. World food prices were already at an all-time high in February 2022, partly due to high energy prices. As a result of the war in Ukraine, a further increase in world food prices is predicted in the future.

The Minister of Development Assistance has therefore decided to donate NOK 50 million to the European Bank for Reconstruction and Development (EBRD) to ensure that important inputs reach farmers on time.

Huge humanitarian needs

Support is an add-on up to two billion crowns which will be spent on humanitarian activities in Ukraine and aid for refugees in neighboring countries.

- Ukraine has enormous humanitarian needs, and Norway has made its contribution through aid organizations, including in the form of food and money aid. Now it's about saving lives, says Foreign Minister Anniken Huitfeldt.

Agricultural production is important to global food security

"Maintaining agricultural production is important to global food security in the short and long term," says Tvinnereim.

The European Bank for Reconstruction and Development has been involved in Ukraine for many years and still has staff despite the hostilities. The bank has already taken a number of steps to support Ukraine. An important contribution is that the bank will raise funds from donors. The Norwegian support therefore entails a similar contribution from the bank itself.

- It is important that Norwegian development aid contributes to mobilizing funding from other donors and multilateral institutions. It is thanks to such cooperation that we can contribute to the achievement of significant results. We must use Norway's development aid funds wisely and provide as much aid as possible for each crown, says Tvinnereim.

Facts about the European Bank for Reconstruction and Development

European Bank for Reconstruction and Development (EBRD) was created in 1991 to promote the development of a market economy in Central and Eastern Europe after the fall of the Wall. Later, Mongolia, Turkey, Jordan, Morocco, Kosovo, Cyprus, Egypt, Greece and Lebanon enter the business area.

The bank belongs to 69 countries, as well as the EIB (European Investment Bank) and the EU, and operates in 38 countries on three continents that make up the bank's geographic reach.

The bank offers loans, guarantees and equity, and advises authorities on the framework conditions for business.

After the invasion of Crimea in 2014, new projects in Russia were suspended. The bank then lost its largest client. As another measure in connection with the war with Ukraine, absolutely all EIB activity in Russia is now frozen.