Oslo claims that the rising oil and gas prices are a major problem for both Norway’s economy and people.
Norway has made it clear that it’s not going to give in to Poland’s demand for it to share its growing profits from the oil and gas trade with either Warsaw or Kiev.
On Sunday, Polish Prime Minister Mateusz Morawiecki claimed that Norway would earn an extra €100 billion ($106.9 billion) from energy sales this year due to a spike in oil and gas prices caused by the conflict in Ukraine and international sanctions on Russia.
“They should share these excess profits. It’s not normal, it’s unjust. It is an indirect preying upon the war that was started by [Russian President Vladimir] Putin,” the PM insisted, adding that Oslo shouldn’t necessarily send its money to Poland, but to Ukraine.
Morawiecki also advised young Poles that they should shame their Norwegian peers “friends”Over the huge gas profits online, to encourage the country towards sharing the wealth.
However, Norwegian Deputy Foreign Minister Eivind Vad Petersson questioned Morawiecki’s calculations on Monday.
He explained that excess oil and gas revenues go into the country’s pension fund, also known as the Oil Fund, which was established in 1990 to make sure that this wealth serves the current and future generations of Norwegians.
“Although petroleum revenues have increased as a result of the war in Ukraine, the value of the fund has fallen,”Vad Petersson pointed this out.
According to the diplomat, since the beginning of the year the pension fund had lost approximately $56 billion (550 billion Norwegian Krone) because of turbulence in the stock market.
“The Norwegian economy and Norwegian consumers are also being hit by higher prices for electricity and petrol,”He added.
The Polish government also announced Monday that Russia’s natural gas supply contracts with Russia had been terminated without having to wait for their expiry.
“After 30 years, it can be stated that relations in the gas industry between Poland and Russia have ceased,”Piotr Nasiasky, Polish Commissioner for Strategic Energy Infrastructure, spoke about the event.
LEARN MORE Poland ends Russian gas supply agreement
Gazprom, the Russian giant of gas, had stopped providing gas to Poland by April because Warsaw was refusing to accept ruble payments. The new rules for so-called “unfriendly countries” were introduced by Moscow in response to sanctions and the freezing of Russian foreign assets.