Sweden pledges $79 million to help plug Ukraine’s budget deficit

The Swedish government has decided to allocate an additional 750 million kronor (approximately $79 million) to help cover the funding deficit in Ukraine’s state budget.

The Swedish Government Office announced the information, Caliber.Az reports, citing Russian media.

“The government has decided to conclude a new agreement with the EU to allocate 750 million kronor for 2025 as part of additional budgetary support to Ukraine through the European Union’s Ukraine Facility. This assistance will help cover the funding shortfall in Ukraine’s state budget,” the statement said.

According to Minister for International Development Cooperation and Foreign Trade, Johan Forssell, Sweden continues to increase its support for Ukraine.

He added that thanks to the new agreement, Sweden had become the first EU country to pledge additional funding through the EU’s Ukraine Facility to strengthen Ukraine’s state budget, emphasizing that economic stability was a necessary condition for Ukraine to continue paying salaries and pensions, as well as maintaining healthcare, schools, and social services.

Swedish officials emphasized that “macroeconomic stability is critically important for Ukraine’s resilience and will be one of the most serious challenges facing the country next year.” They also noted that supporting Ukraine’s 2026 state budget will require further measures, with an estimated $40 billion needed to cover the projected deficit.

By Vafa Guliyeva