Sweden allocates EUR 63 million from previous support packages in financial support to Ukraine

Last Thursday, the government decided to authorize the Swedish Defence Materiel Administration (FMV) to negotiate and enter into an agreement with Denmark regarding a donation of 20 million euros for the procurement of defence equipment through the Ukrainian defense industry for donation to Ukraine, as well as to assign the Swedish Armed Forces to transfer the funds to Denmark.

The Danish model, which Sweden intends to support, is designed to assist in procurements that the Ukrainian industry wishes to carry out. The Danish model includes mechanisms to ensure that the donated funds are used efficiently, and that Ukraine provides feedback on the usage of the delivered equipment. Previous Danish support under this model has enabled Ukraine to produce 18 units of a Ukrainian artillery system. 

By increasing production in Ukraine, the overall European defense industrial base is strengthened. A reinforced defense industrial base is necessary to meet the substantial needs resulting from the war in Ukraine and the European countries' efforts to build up their defence capabilities.

Together with the assignment that the Swedish Defence Materiel Administration already has regarding support to Ukraine in the area of procurement, this assistance to Ukraine’s industrial base will open up further opportunities for cooperation between the Ukrainian and European defence industries. This includes being able to jointly develop innovative solutions that have been directly tested on the battlefield, and also increasing Ukraine’s capacity to produce and maintain defence equipment.

The Government also intends to allocate approximately EUR 43 million in financial resources to a number of established multilateral initiatives in order to provide rapid and effective support to the Ukrainian Armed Forces. 

Examples of initiatives that may be supported include some of the capability coalitions established within the framework of the Ukraine Defence Contact Group (UDCG):

• The Air Force Capability Coalition, acquiring air-to-air missiles for Ukraine’s F-16 programme.
• The Maritime Coalition, training Ukrainian marine infantry.
• The Demining Capability Coalition, procuring equipment for demining landmines.
• The IT Coalition, of which Sweden recently became a member, procuring hardware for communication. 

Within the framework of this support, Sweden will also contribute to NATO’s Comprehensive Assistance Package (CAP) for Ukraine, which procures military equipment.