Sweden Redirects Development Aid to Boost Ukraine Support to $1B in 2026
Sweden will scale back long-running development assistance programs in several countries as it restructures its foreign aid budget to significantly expand support for Ukraine.
The Gaze reports this, referring to Reuters.
In particular, Stockholm plans to gradually phase out aid to Zimbabwe, Tanzania, Mozambique, Liberia, and Bolivia, reallocating those resources to Ukraine’s reconstruction and humanitarian needs.
Swedish Minister for International Development Cooperation and Foreign Trade Benjamin Dousa stressed that Ukraine remains at the center of Sweden’s foreign and humanitarian agenda.
As part of the shift, Sweden intends to increase its Ukraine-related assistance in 2026 to at least 10 billion kronor (approximately $1.06 billion).
Government estimates suggest that more than 2 billion kronor (roughly $212 million) will be freed up over the next two years and redirected to Ukraine. These funds are expected to support efforts such as rebuilding critical energy infrastructure destroyed by Russia’s full-scale invasion.
The rebalancing of Sweden’s aid portfolio continues a broader trend since 2022, during which Stockholm has already reduced assistance to over ten countries, including Burkina Faso and Mali.
Sweden’s overall international aid budget, traditionally around 56 billion kronor ($5.9 billion), will be trimmed to 53 billion kronor ($5.6 billion) for 2026–2028. Part of this reduction will be diverted to cover migration- and repatriation-related costs.
The announcement comes as cooperation between Sweden and Ukraine deepens across multiple sectors. Recently, Swedish drone developer Scandinavian X secured a supply agreement with explosives manufacturer SWEBAL Sweden Ballistics for TNT used in drones based on Ukrainian technology.
As The Gaze reported earlier, Sweden is also considering financial support for a major deal with Ukraine to purchase up to 150 Gripen E fighter jets.
Read also on The Gaze: Sweden is One of Ukraine's Largest Donors and Will Continue to Support Ukraine