Norway £44bn boost to defence spending to fight Moscow threat

NORWAY will dip into its huge rainy day sovereign wealth fund to deliver a “historic” defence spending boost of £44.5 billion over the next 12 years to face down Russian aggression.

Overall military spending until 2036 is expected to total £119.5 billion, Norway, which borders Russia in the Arctic and is a Nato member, said yesterday.

It comes as Nato allies have ramped up defence spending but remain divided over funding to Ukraine, with a major spending package blocked by US Congress.

The alliance is also facing pressure to meet Nato demands over minimum domestic defence budgets, with Donald Trump threatening to abandon members who don’t pay their fair share if he is re-elected.

Norway’s planned annual defence spending in 2036 will, on a comparable, inflation adjusted basis, be about 83 per cent higher than the current level, according to Oslo.

The invasion of Ukraine has shifted Norway’s discussion on military spending, despite the Nordic nation never having been at war with Russia.

“This plan represents a historic boost in defence spending, and involves a significant strengthening of all branches of the armed forces,” Jonas Gahr Stoere, the prime minister, said.

Norway’s sovereign wealth is the world’s largest and has assets of £1.25 trillion. This meant it could fund the military spending without slashing cash for hospitals or schools, Mr Stoere said.

Annual government spending from the fund will remain restricted, as before, to 3 per cent of overall assets.

“We must expect that Norway will live with a more dangerous and unpredictable Russia for many years,” the government told parliament yesterday.

“The relationship with Russia will for a long time be demanding for Norwegian defence policy,” it added in a paper.