Government intends to propose Swedish loan guarantee to World Bank to enable SEK 2.5 billion in new budget support to Ukraine

Ukraine has substantial external financing needs in the short, medium and long term as a result of Russia’s full-scale invasion. To meet Ukraine’s financing challenges, additional support is needed from the international community. To help cover Ukraine’s acute financing needs by the end of the first quarter of 2026, the Government intends to propose a guarantee to the World Bank Group that will enable a loan of approximately SEK 2.5 billion (EUR 236 million) to Ukraine.

“Four years have passed since Russia launched its full-scale war, and Ukraine needs all our support – military, humanitarian, economic and energy. I am proud that Sweden can contribute to Ukraine’s economic stability in this way. It is an important investment in the country’s resilience and security, as well as Europe’s and Sweden’s security,” says Minister for International Development Cooperation and Foreign Trade Benjamin Dousa.

“A loan to stabilise Ukraine’s economy will strengthen the country’s resilience and our collective security against Russia’s war machine,” says Aron Emilsson, Chair of the Committee on Foreign Affairs (Sweden Democrats). 

“In a situation where essentially all of Ukraine’s finances go towards defending its freedom, democracy and independence, its schools, health care and infrastructure must also function for the civilian population. For this reason, we now intend to proceed with a new loan guarantee,” says Gudrun Brunegård, development assistance policy spokesperson (Christian Democrats). 

“Ukraine is fighting a war of defence not only for its own existence and future, but for the peace and security of all of Europe. Sweden’s support to Ukraine is both a moral duty and an investment in our own security. Ukraine must know that we stand behind them in their struggle,” says Fredrik Malm, foreign policy spokesperson (Liberal Party).

The Swedish guarantee will enable a loan within the framework of the World Bank Group’s PEACE support programme, which reimburses Ukraine for social and humanitarian expenditures in its national budget, including pensions, wages to public employees and support to low-income families, people with disabilities and internally displaced persons.

With a loan guarantee decision, Sweden is helping the World Bank, a key actor for support to Ukraine, be able to continue supporting the country.