Business news from Ukraine

Sweden to create EUR6.5 bln military support program for Ukraine

The Swedish government intends to provide long-term support to Ukraine through a three-year military support program (2024-2026) totaling SEK 75 billion (EUR 6.5 billion), the Swedish government website reports.

“In order to strengthen Swedish support for Ukraine, as well as to strengthen the long-term perspective, the government and the Sweden Democrats agree to introduce a military support program for Ukraine for 2024-2026. Sweden will increase its support, and its volume will amount to SEK 75 billion in military support for 2024-2026, SEK 25 billion per year,” the statement said.

It is noted that Sweden’s total military and civilian support for Ukraine, taking into account this proposal, will amount to more than SEK 100 billion. Military support within Ukraine can, for example, take the form of free transfer of defense equipment, financial contributions and financial support for the purchase of defense equipment.

The government also noted that, depending on the type of support used, the program’s framework could burden public finances for several years and even beyond 2026.

Following the Russian invasion in February 2022, Sweden has allocated the equivalent of SEK 37 billion for various efforts to support Ukraine. In particular, through 15 military support packages totaling about SEK 30 billion, and that Ukraine is now the largest country where Swedish aid is directed.

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Denmark to increase military support for Ukraine by another DKK 4.4 bln

The Danish government and parliament have agreed to increase military support for Ukraine by another DKK 4.4 billion (EUR 590 million) this year, the press service of the Danish Ministry of Defense reports.

“Today, the Danish government and the Socialist People’s Party, the Danish Democrats, the Liberal Alliance, the Conservative People’s Party, the Social Liberal Party and the Danish People’s Party have agreed to increase the framework of military support for Ukraine by another DKK 4.4 billion in 2024,” the statement said on Thursday.

Defense Minister Trolls Lund Pulsen noted that since the beginning of the full-scale Russian invasion of Ukraine, Denmark has been one of the most active donor countries.

“We must continue in the same spirit, so I am pleased that a broad majority of parties in the Danish parliament support the addition of an additional DKK 4.4 billion to the Military Support Fund for Ukraine in 2024. It is extremely important to show Ukrainians that we support them in this serious situation,” he emphasized.

The Ministry notes that most of the funds already allocated for military support in 2024 have already been used. However, the Danish government and parliament agreed on the need for further military support for Ukraine this year, so it was decided to increase it.

“The purpose of military support under the Fund for Ukraine in 2023-2028 will continue to be to provide direct military support to Ukraine in the form of weapons, other military equipment and training efforts. This includes the purchase of equipment, weapons, etc. from Danish and foreign defense companies for transfer to Ukraine, as well as financial donations and cooperation with other countries to support Ukraine,” the statement said.

In addition, representatives of the Danish government and parliament agreed that the possibility of direct purchases from the Ukrainian defense industry can be realized if the necessary control mechanisms are in place.

In total, the total amount of military support under the Ukraine Fund, taking into account its increase, will amount to DKK 64.8 billion (EUR 8.7 billion) in 2023-2028.

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Norway increases military support to Ukraine to $950 mln in 2023

Norway has decided to increase military support to Ukraine this year by NOK2.5 billion ($249 million) to NOK10 billion ($950 million) as part of the previously adopted Nansen program on military and civilian support to Ukraine of NOK15 billion annually, the Norwegian government website said Tuesday.
“Ukraine is now in urgent need of additional military support and materials. Norway is therefore increasing its military support to Ukraine by NOK2.5 billion to NOK10 billion in 2023,” Norwegian Prime Minister Jonas Gahr Støre said at a press conference marking the opening of the NATO summit in Vilnius.
In addition, Norway has also decided to increase its contribution to NATO’s Ukraine support fund to NOK300 million ($29 million) annually.
“Norway is increasing its contribution to the NATO support fund for Ukraine. Norway will contribute NOK300 million in 2023 and contribute a total of NOK1.5 billion over five years. This is a clear signal of long-term support for Ukraine’s reforms, which will further connect Ukraine to the Alliance,” the Norwegian prime minister said.
Stere also spoke about the decision to increase Norway’s investment in its own defense to a minimum of 2% of GDP.
The summit will also decide on the establishment of a NATO center for critical undersea infrastructure. “The war in Ukraine has shown once again that the protection of critical infrastructure is important for security policy. As the largest supplier of gas to Europe, Norway has a special responsibility to protect submarine infrastructure… NATO is now establishing a separate center for the protection of critical submarine infrastructure,” the Norwegian prime minister told the summit.
According to Støre, the Vilnius summit “will be the most important NATO summit of our time.”
“Among other things, we will undertake a historic increase in NATO’s collective defense capabilities with regional defense plans that have been updated for the first time since the Cold War,” he said.
The prime minister said the summit’s decisions will be important for both the entire Alliance and Norway’s security, and there are at least four reasons why the summit is crucial for the Norwegian state. “First, it will strengthen NATO’s ability to fulfill its primary task, namely the defense of member states in crisis and war. Second, the increased defense contribution means a clear strengthening of its own preparedness, security and defense capabilities. Thirdly, the summit will decide on the establishment of a separate center for the protection of undersea infrastructure, which is of fundamental importance to Norway. And fourth, the membership of Finland, and now Sweden, means a stronger Northern Europe in NATO,” Støre emphasized.

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Josep Borrell hopes another EUR 500 mln military support for Ukraine to be approved

High Representative of the European Union for Foreign Affairs and Security Policy Josep Borrell hopes that a decision will be found this week to unlock another tranche of EUR 500 million in military support for Ukraine.
He said this at a press conference after a meeting of the Council at the level of defense ministers of the member countries of the European Union in Brussels on Tuesday.
Borrell said this issue is still under discussion. He said any hurdles to approve this amount will be overcome this week and it was the subject of discussion at the technical meeting of the committee.
As it is known, the allocation of this amount is blocked by Hungary, arguing that one of its banks is on the Ukrainian “black list.”

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