SEK 750 million in additional budget support to Ukraine

“Sweden continues to increase its support to Ukraine. Through this new agreement, Sweden becomes the first country in the EU that intends to allocate additional funds via the Ukraine Facility to strengthen Ukraine’s national budget. Economic stability is a prerequisite for Ukraine’s ability to continue paying salaries and pensions and keep health care, schools and social care running. This is essential for Ukraine’s resilience and to ability to continue defending itself against Russia’s aggression. I’m very proud that Sweden, as the first country to do this, is now paving the way for other countries both within and beyond the EU to assist Ukraine through additional budget support via the EU’s Ukraine Facility, says Minister for International Development Cooperation and Foreign Trade Benjamin Dousa.

“The Sweden Democrats have long been a driving force in support to Ukraine and reforming development assistance to allocate a greater proportion to the country. Support to Ukraine is crucial for Europe’s and Sweden’s security. Through this budget support, we’re ensuring that Sweden emanates security and stability in this regard,” says Aron Emilsson, Chair of the Committee on Foreign Affairs for the Sweden Democrats.

“We must support Ukraine in every way we can. A large part of the country’s economy is currently being consumed by war expenses, but schools and health care must also function. Through the Swedish Government’s additional contribution to the Ukraine Facility, we can help maintain Ukraine’s economy, which is crucial in its battle against Russia. This contribution is crucial and well-targeted,” says Gudrun Brunegård, development assistance policy spokesperson for the Christian Democrats.

“We stand unwaveringly with Ukraine. They must win the war and Russia must lose. We’re now continuing to increase our support. Budget support is crucial to enable Ukraine to resist Russia’s aggression, while the country is taking important steps towards EU membership. Ukraine’s future is in Europe,” says Joar Forssell, foreign policy spokesperson for the Liberal Party.

Macroeconomic stability is essential for Ukraine’s resilience and one of the greatest challenges that the country is facing ahead of next year. A stable national budget is a prerequisite for Ukraine’s ability to pay salaries and pensions and keep essential public services such as health care, schools and social care running. Funding Ukraine’s budget for 2026 requires robust support measures. If Russia’s aggression continues, Ukraine is expected to need up to USD 40 billion in external support to cover the funding gap.

Funding for this additional support will come from within the development assistance budget and be channelled via Pillar I of the Ukraine Facility, which concerns budget support. The budget support supplements the Government’s decision in June (which was announced in March) to provide SEK 1 billion in support to Pillar III.