OSLO, February 3, 2026 — Norway is sending substantial financial aid to Ukraine, and a significant portion—NOK 11.45 billion in 2025 alone—is channeled through the Directorate for Development Cooperation, known as Norad. But ensuring that money reaches its intended recipients, and isn’t diverted by corruption, is a major concern, particularly within Ukraine’s battered energy sector.
Corruption Risks Loom Large in Ukraine Aid
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The energy sector, already weakened by war, presents a high risk for corruption due to massive reconstruction needs and historical vulnerabilities.
What are the biggest corruption concerns in Ukraine right now? Purchasing, especially in the energy sector, is considered particularly vulnerable due to the scale of destruction, the urgency of repairs, and a history of oligarchic influence.
Norad officials discussed their anti-corruption efforts during a meeting with the Norwegian press this week. While Ukraine has made strides in tackling corruption, challenges remain, especially when it comes to procurement. “And there is purchasing, perhaps especially within the energy sector,” explained Mark Taylor, a senior advisor and corruption expert at Norad. “We know this from history, and from Ukrainian analysts.”
The urgency of the situation—enormous destruction and the need for rapid repairs—creates inherent risks. Large, expensive purchases of equipment are particularly susceptible to abuse, especially within a sector historically influenced by powerful oligarchs. “This is happening within a sector that has historically been influenced by oligarchs. We know that corruption has been a problem in that sector,” Taylor added, noting the issue stems, in part, from the legacy of the Soviet era.
Bribery and Inflated Prices
The concerns aren’t merely theoretical. Taylor revealed that there have been instances of alleged bribery to secure contracts. “There have been cases where there are allegations that bribes have been paid to qualify to bid for contracts,” he stated. Corruption can also manifest as money changing hands “under the table” or through artificially inflated prices.
“It is during purchases that money changes hands, so traditionally there is the greatest risk of corruption there,” explained Marcus Danbolt, a senior advisor at Norad. “We are extra observant when it comes to this, and like to go through the entire purchase chain, from the first requisition to confirmation that you have actually received what you have bought.”
Stopping the Flow of Funds
Norad isn’t simply standing by. When irregularities are detected, the Directorate takes action, including halting payments and demanding the return of funds. “We have terminated further cooperation with one partner. In other cases, we require more frequent reports, in order to follow them more closely. This happens after risk assessments we do,” Danbolt said.
Jorun Nossum, department director for the Nansen program at Norad, emphasized the importance of ensuring aid reaches its intended purpose. “There is a huge need in Ukraine, so it is important to us that the money is used for the purpose. It is not only about them not going astray, but also that they are not just left untouched in an account,” she explained.
A Multi-Layered Approach to Oversight
Norad’s oversight extends beyond its direct partners. The Directorate also scrutinizes those who receive funds from those partners. Strict reporting requirements and random audits, often triggered by risk assessments, are key components of their strategy.
When asked about the potential financial losses due to corruption, Nossum acknowledged the risk but stated, “No. We do not know, but with the control mechanisms we have and the reporting systems we have, we do not currently have any cases where larger Norwegian funds are directly involved. But we know that it is a high-risk context. We talk a lot about this, and have a realistic relationship with it, when it comes to such large funds. A number of choices have been made that minimize the risk, but it is still there.”
Ukraine’s Own Fight Against Corruption
Despite the challenges, there’s reason for optimism. Surveys indicate that Ukrainians are as concerned about fighting corruption as they are about resisting Russia’s invasion. “Ukraine has a vibrant and free civil society. Organizations have the opportunity to operate freely, in contrast to, for example, Russia, where they are labeled as foreign agents,” Danbolt noted. “A free press, together with civil society, is incredibly important in the fight against corruption. They can work freely and unhindered.”
Ukraine has already made significant progress in eliminating petty corruption, such as bribery in education. “You will be hanged in the newspaper if you are corrupt,” Danbolt said. Norad actively supports these independent organizations and plans to increase its financial assistance.
“No, I don’t want to say that [we’re handing over responsibility],” Danbolt clarified. “I would rather say that they complement each other. Control is triangulated.”
