Business news from Ukraine

Business news from Ukraine

Sweden increases aid to Ukraine, closing programs in five countries

The Swedish government plans to significantly increase aid to Ukraine, to at least SEK 10 billion in 2026, and in this regard is gradually phasing out development aid to five countries: Zimbabwe, Tanzania, Mozambique, Liberia, and Bolivia.

According to the Swedish government’s official website, in June 2025, the government decided to redirect Swedish aid and allocated approximately SEK 1.7 billion from the aid budget to provide additional support to Ukraine and for vital humanitarian measures around the world.

“We are at a decisive moment in European history. Ukraine is under pressure both at the negotiating table and on the front lines. To increase support for Ukraine, we need to make difficult priorities. Therefore, Sweden is gradually phasing out development aid to Zimbabwe, Tanzania, Mozambique, Liberia, and Bolivia,” said Minister for Aid and Foreign Trade Benjamin Dusa.

Due to the termination of bilateral strategies, embassies in Bolivia, Liberia, and Zimbabwe are being closed. Diplomatic relations with these countries remain important and will be maintained, for example, through accreditation from another country in the region.

It is specified that humanitarian aid is not affected by the termination of development aid, and Sweden continues to be one of the world’s largest donors of humanitarian aid and long-term development cooperation worldwide.

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Denmark cuts aid to Ukraine by half

The Danish government plans to cut the amount of aid provided to Ukraine by almost half, according to Danish public broadcaster DR (Danmarks Radio).

“In response to a request from the Defense Committee, Defense Minister Troels Lund Poulsen said that Denmark will provide 9.4 billion kroner next year. Last year, we provided 16.5 billion kroner, and the year before that, almost 19 billion kroner,” the report said.

Earlier, in 2023, a broad majority in the Danish parliament agreed to create the Ukraine Fund. This is an economic framework that determines how much aid Denmark will provide to Ukraine. To date, Denmark has provided Ukraine with more than 70 billion in military aid.

Denmark is currently the country that has provided Ukraine with the most support as a percentage of GDP. Therefore, according to Simon Kollerup, spokesperson for the Social Democratic Party on defense issues, it is “natural” that support is being reduced.

“We decided to be one of the countries that provided the most extensive support at the beginning of the war. I also think it is fair to say that this support is somewhat more than what one might expect given the size of our country. Therefore, I think it is quite natural that support is gradually decreasing,” he said.

Kollrup also noted that it has not yet been decided politically whether support will remain reduced, despite current decisions.

“I think we will allocate more money than is currently planned. Does this mean that we will necessarily be at the forefront, as we were before? I’m not sure,” he said.

He pointed out that politicians had long ago decided to create a model for the Ukraine Fund, where most of the billions were spent during the first three years of the war. And that the time will soon come for other countries to contribute to this fund.

“We are a small country with a healthy economy and a high capacity for decision-making, so we were actually able to find the funds in our economy to provide significant support at the beginning. But I also believe that there is room for other countries to come on the scene,” Kollrup explained.

In turn, Stinus Lindgren, defense spokesman for the Radical Left party, said that now is not the time to reduce support for Ukraine.

“The problem is that we haven’t allocated new funds for a long time. If we think it’s so important to support Ukraine, and I hear that all parties say so, then right now we need to sit down in parliament and make sure we have the money ready,” he said.

He clarified that he considers the amounts allocated in previous years to be sufficient.

“I believe that we should return to the level we were at in previous years,” he said.

Lindgren added that Ukrainians have been under intense pressure on the battlefield recently. The Kremlin claims that the strategically important city of Pokrovsk, which has been the scene of fierce fighting for a long time, has finally fallen into Russian hands.

“If you look at the situation in Ukraine right now, it is critical. Now is not the time to lower our ambitions. Neither in Denmark nor internationally,” he concluded.

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Polish President doubts that increased aid to Ukraine from Europe will be able to compensate for suspension of aid from United States

President of Poland Andrzej Duda has stated the need to end the war in Ukraine with a just and lasting peace and emphasized the importance of transatlantic ties, the Polish President’s Office reports.

“Every day we bear the risks of war on our shoulders. The war in Ukraine must end. It must end in a just and lasting peace. Maintaining ties between the United States and Europe is fundamental,” Duda said.

He expressed doubt that increased aid to Ukraine from European countries would be able to compensate for the cessation of US aid, and called on Ukrainian President Volodymyr Zelenskyy to return to talks with the US side on continued support.

“President Zelensky must return to the negotiating table at any cost and as soon as possible, because it is in his interest that Ukraine survives this war. In my opinion, Ukraine will not survive without the support of the United States,” the Polish president said.

According to him, there is nothing to indicate that Europe will change its behavior and provide large-scale assistance to Ukraine. “Perhaps the whole of Europe will radically change its previous behavior and suddenly stand firmly and unanimously against Russia and provide Ukraine with exceptionally large-scale assistance that will allow it to continue to defend and fight. Perhaps it will provide such assistance and Ukraine will not be conquered by Russia, and secondly, this war will end happily for Ukraine. However, after what Europe has done in this regard, there is absolutely nothing to indicate this. If anyone can force Russia to end the war, it is the United States of America,” the president said.

Duda is also convinced that if an agreement is concluded between the US and Ukraine on minerals, “Ukraine will become strategic for the interests of the United States, and I am convinced that they will protect it.”

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France pledges €650 mln in aid to Ukraine

On Friday, June 7, Emmanuel Macron and Volodymyr Zelenskyy will sign two agreements to provide Ukraine with €650 million in loans and grants, in particular to support local authorities and critical infrastructure, the Elysee Palace said on Wednesday, Le Monde reports.

The first agreement will reportedly provide the French Development Agency with “€400 million in loans and €50 million in grants until 2027” to “expand its activities in Ukraine” by providing support in the energy and transport sectors, in particular “to develop administrative capacity.”

The second agreement concerns the creation of a “support fund” for critical infrastructure, which will be invested with €200 million euros “to support French companies in future tenders (…) in the energy, transport, water and sanitation, health and agriculture sectors”.

It is noted that “these funds will be used to finance large projects, strengthen or replace failing energy infrastructure” as it is the object of special attention from Moscow.

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Cabinet of Ministers approves agreement with US on $7.85 bln in aid to Ukrainian budget

At a meeting on Thursday, the Cabinet of Ministers approved an intergovernmental agreement with the United States to raise $7.849 billion in economic aid for the Ukrainian budget.

“Today we are approving a draft agreement between Ukraine and the United States, which will allow Ukraine to receive about $7.9 billion in financial and economic support. These are funds under the new US aid package that will be allocated to the Ukrainian budget,” Shmyhal said at a government meeting.

According to the text of the agreement, published in Telegram by MP Yaroslav Zheleznyak, another $50 million will be allocated to prevent and respond to food insecurity, but the list of recipient countries will be determined later.

In addition, Ukraine may be among the countries that will receive another $1.575 million in economic assistance.

It is noted that the United States provides funds on an interest-free loan with the condition of repayment in one payment 40 years after September 30, 2025. At the same time, the agreement provides for the possibility of writing off part or all of this debt by the US President: after November 15, 2024, up to 50% of the loan may be canceled, and after January 1, 2026, the entire amount of debt may be canceled.

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Biden signs bill to provide aid to Ukraine and Israel – New York Times article

The $95.3 billion bill was passed after months of congressional gridlock jeopardized a major thrust of President Biden’s foreign policy.

President Biden was set to sign a $95.3 billion aid package for Ukraine, Israel and Taiwan on Wednesday, reaffirming U.S. support for Kyiv in its fight against Russia’s military attack after months of congressional gridlock threatened the White House’s main foreign policy thrust.

On Tuesday evening, the Senate voted overwhelmingly to approve the package, a sign of bipartisan support after growing policy divisions raised questions on Capitol Hill and among U.S. allies about whether the United States would continue to support Kyiv. The 79 to 18 vote gave Biden another legislative achievement to boast about, even in the face of an obstructionist House of Representatives.

“Congress passed my bill to strengthen our national security and send a message to the world about the strength of American leadership: We stand firmly for democracy and freedom, against tyranny and oppression,” Mr. Biden said Tuesday night, just minutes after the Senate vote.

He said he would sign the bill into law and address the American people on Wednesday “so we can start sending weapons and equipment to Ukraine this week.”

The White House first requested the security package in October, and officials explicitly acknowledged that the six-month delay has put Ukraine at a disadvantage in its fight against Russia.

“The Russians are slowly but successfully taking more and more territory from the Ukrainians and pushing them to the first, second, and sometimes third line of defense,” John F. Kirby, spokesman for President Biden’s National Security Council, said on Air Force One on Tuesday. “The short answer is yes, there has been damage done over the last several months.”

Nevertheless, the passage of the legislation ended an extraordinary period in Washington. Speaker Mike Johnson had to overcome fierce right-wing opposition to get it through the House of Representatives. The aid is split into four parts: one measure for each of the three US allies and another designed to sweeten the deal for conservatives, which includes a provision that could lead to a nationwide ban on TikTok.

The bill includes $60.8 billion for Ukraine; $26.4 billion for Israel and humanitarian aid to civilians in conflict zones, including Gaza; and $8.1 billion for the Indo-Pacific. It also includes sanctions against Iranian and Russian officials.

The House of Representatives also added a provision requiring the president to demand that the Ukrainian government repay $10 billion. The idea to include a portion of the aid to Ukraine in the form of a loan was another example of former President Donald Trump’s influence on Congress. Trump called for making any future aid to Ukraine a loan.

The White House tried to reach an agreement with Mr. Johnson in various ways for six months. Officials even agreed to some tougher measures at the US border when Mr. Johnson said he would not allow aid to Ukraine without border restrictions. But when Trump denounced the law, hoping to prevent Biden from winning the election, Republicans followed suit.

But when the Senate passed its own bill to provide $95 billion in emergency aid to Ukraine, Israel, and Taiwan without any immigration measures, it increased the pressure on Mr. Johnson.

https://www.nytimes.com/2024/04/24/us/politics/biden-ukraine-israel-aid.html

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