Published by Global Banking and Finance Review
Posted on August 31, 2025
2 min readLast updated: January 22, 2026
Norway selects British frigates in a $13.5 billion deal to enhance maritime defense, supporting 4,000 UK jobs and monitoring Russian submarines.
By Nora Buli and Terje Solsvik
OSLO (Reuters) -Norway said on Sunday it had chosen Britain as its strategic partner for the acquisition of new frigates in its biggest ever military investment, in a deal worth some 10 billion pounds ($13.51 billion) to boost the Nordic country's maritime defence.
Germany, France, Britain and the United States had offered rival frigate designs in competition.
"The frigates are an essential part of our defence because they are key to defend our sovereignty," Prime Minister Jonas Gahr Stoere told a press conference.
Norway is NATO's monitor for the vast 2 million square kilometres (772,000 square miles) area of the North Atlantic used by the Russian northern fleet's nuclear submarines.
A key mission for the frigates will be to monitor Russian submarines, whose base is on the Kola Peninsula, an area in the Arctic bordering Norway.
British Prime Minister Keir Starmer welcomed the deal, which he said was worth 10 billion pounds.
The deal will eventually see a combined fleet of 13 anti-submarine warfare frigates – eight British and at least five Norwegian – operate jointly in northern Europe, he added.
British officials, seeking economies of scale for their own navy and to boost Scotland's shipyard industry, had heavily promoted the BAE Systems' frigates, known as the T-26 City-class.
The deal would support 4,000 jobs across the United Kingdom, including more than 2,000 in Scotland, the British government said.
Norway shares a border with Russia and is ramping up defence spending in light of Moscow's invasion of Ukraine and U.S. President Donald Trump's demand that NATO allies must bolster their own military strength.
The draft agreement with Britain also guarantees industrial cooperation with Norwegian industry equivalent to the total value of the acquisition, the Norwegian government said.
Norway, a nation of 5.6 million people, currently operates four frigates. It previously said it could order five frigates, with an option for an additional one.
"This will be the biggest purchase to date. And we are now entering final contract negotiations," Gahr Stoere said.
($1 = 0.7402 pounds)
(Reporting by Nora Buli and Terje Solsvik in Oslo; additional reporting by Elizabeth Piper in London; editing by Gwladys Fouche and Ros Russell)
Norway's frigate deal is worth approximately 10 billion pounds, which is about $13.5 billion.
Norway will acquire a combined fleet of 13 anti-submarine warfare frigates, including eight British and at least five Norwegian.
The frigates are essential for Norway's defense as they play a key role in monitoring Russian submarines and defending the country's sovereignty.
The deal is expected to support 4,000 jobs across the United Kingdom, including more than 2,000 jobs in Scotland.
Norway's decision to ramp up defense spending is influenced by Russia's invasion of Ukraine and the need to bolster NATO's military presence in the region.
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