Business news from Ukraine

Business news from Ukraine

Sweden to provide 4.8 bln kronor in funding for air defense systems, drones, and ammunition for Ukraine

Sweden is allocating 4.8 billion Swedish kronor to strengthen Ukraine’s defense capabilities. This support is part of the 19th aid package presented this year.

According to the Swedish Ministry of Defense, on May 22, the government decided to instruct the Swedish Armed Forces to make financial contributions to multilateral funds and initiatives aimed at strengthening Ukraine’s defense capabilities. The total amount of donations is approximately 4.8 billion Swedish kronor. The international community has established a number of multilateral funds and initiatives aimed at purchasing materials and equipment to strengthen Ukraine’s defense capabilities. Sweden is contributing to several of them.

“These payments will make the Ukrainian Armed Forces and defense industry stronger in their defense against Russia,” said Defense Minister Paul Jonson.

In particular, these are contributions to several capability coalitions within the Contact Group on Defense for Ukraine:

Demining Coalition: SEK 100 million. Sweden’s assistance will help finance the purchase of demining equipment.

Drone Coalition: SEK 300 million. Sweden will help finance the purchase of various types of unmanned aerial vehicles.

Maritime Security Coalition: SEK 50 million. Sweden’s contribution will help finance the training of Ukrainian Navy personnel as part of Operation Interchange.

Security and IT Management Coalition: SEK 30 million. Sweden’s contribution will help finance the purchase of equipment for the creation of Ukraine’s Delta management system.

Sweden has also agreed to further contribute to the “Danish model” of arms procurement. The government has now decided to allocate an additional SEK 1 billion.

In addition, the government has decided to allocate SEK 418 million for the purchase of equipment to support the build-up of Ukraine’s ground combat capabilities, such as armored vehicles. Denmark is leading the procurement. Ukraine has asked the countries of Northern and Baltic Europe for support in developing the country’s mechanized ground combat capabilities. Sweden has therefore initiated cooperation with the countries of Northern and Baltic Europe for this purpose. Thanks to cooperation between the countries of Northern and Baltic Europe, there are opportunities to develop joint solutions and coordinate support from different countries in order to achieve a greater effect for Ukraine.

As a supplement to Sweden’s national procurement of ammunition for Ukraine, the government has decided to support two multilateral initiatives for the procurement of ammunition. The Czech Republic has taken the initiative to procure large quantities of ammunition with short delivery times on the global market. This includes artillery ammunition, which Ukraine is in great need of. Sweden has previously contributed to this initiative, and the government has now decided to allocate an additional SEK 550 million.

Estonia has taken a similar initiative, which also aims to co-finance the purchase of ammunition. The government has decided to allocate just over SEK 546 million to the Estonian initiative.

It is noted that Sweden’s contribution in the field of ammunition is an important part of achieving the EU’s goal of providing Ukraine with at least 2 million artillery shells by 2025.

The government is also allocating more than SEK 1 billion for the purchase of both air defense systems and long-range drones to combat targets deep in the battlefield as part of multilateral cooperation.

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