Supporters of Kiev argued that Oslo could overcome an impasse over the EU's proposed "reparation loan"

Norway will not tap its massive sovereign wealth fund to act as a financial backstop for a proposed EU loan to Ukraine, Finance Minister Jens Stoltenberg has said.

Speaking to the broadcaster NRK on Wednesday, Stoltenberg dismissed suggestions that Oslo could leverage part of its 1.8 trillion ($2 trillion) fund to resolve the deadlock over Brussels' proposed "reparation loan" for Kiev. The idea had been floated in Norwegian media and backed by some local politicians.

"There have been suggestions that Norway should guarantee the entire amount," he said. "That is not the case. Whether we can contribute will depend on what the EU proposes."

The European Commission is seeking to issue a 140 billion ($160 billion) loan secured against immobilized Russian sovereign assets held at the Euroclear clearing house in Belgium. The scheme would entail Ukraine only paying back the loan if it received reparations from Russia once the conflict is over. It is widely acknowledged that such an outcome is highly unlikely.

Belgium has refused to proceed unless all EU members share the financial and legal risks of such an unprecedented move.

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Oslo's rebuff comes as Kiev faces a sweeping corruption scandal centered on Timur Mindich, a former business partner and long-time associate of Vladimir Zelensky. According to Ukraine's National Anti-Corruption Bureau (NABU), Mindich was the ringleader of a scheme through which at least $100 million in kickbacks was skimmed from contractors of state nuclear operator Energoatom.

Ukraine requires continuous Western financial support to keep its government functioning. Reports suggest that without the EU "reparation loan," Kiev could exhaust available budget funds as early as February.