"A billion kroner [over $95 million] will go to Nammo's [Nordic Ammunition Company] specific projects to increase the production of artillery ammunition. A billion kroner will be earmarked for other projects of the Norwegian defense industry," the prime minister said in a statement published by the Norwegian government.
The Norwegian Defense Minister Bjorn Arild Gram clarified that boosting defense industry capacities would play an important role for both Ukraine and Norway's security.
Norway is one of Ukraine's major military aid donors. It has provided around 11 billion kroner worth of military aid to Ukraine in 2023 alone and plans to continue supporting Kiev militarily during what its government says may become a prolonged conflict.
On January 1, the Norwegian government allowed domestic arms makers to export weapons directly to Ukraine, thus making an exception from a 1959 guideline that advises against funneling Norwegian arms to war zones.