Sweden Redirects Foreign Development Funds to Ukraine, Increases Aid to $1B for 2026

Sweden will phase out development aid programs for five countries in the coming years and redirect the funds to substantially increase support for Ukraine, the government announced.

According to Reuters on December 5, the aid cuts will affect Zimbabwe, Tanzania, Mozambique, Liberia, and Bolivia. The Swedish government plans to channel the redirected resources toward reconstruction and humanitarian support for Ukraine.

Minister for International Development Cooperation and Foreign Trade Benjamin Dousa said that Ukraine remains a top priority for Sweden’s foreign and humanitarian policy. In 2026, Stockholm plans to increase assistance to Kyiv to at least 10 billion Swedish kronor ($1.06 billion).

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War in Ukraine

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The government estimates that more than 2 billion kronor (around $212 million) will be freed up over the next two years and reallocated to Ukraine, including for rebuilding critical energy infrastructure damaged by Russia’s war.

Since 2022, Sweden has already reduced aid to more than ten countries, including Burkina Faso and Mali. While the annual budget for international aid has stood at around 56 billion kronor (approximately $5.9 billion) in recent years, it will be reduced to 53 billion kronor (about $5.6 billion) for 2026–2028, with part of the funds redirected to costs associated with migration and repatriation.

Earlier, it was reported that Scandinavian X—a Swedish company developing drones based on Ukrainian technology—secured a supply deal for domestically produced TNT from explosives manufacturer SWEBAL Sweden Ballistics.

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