Sweden to invest $260 million in new foreign intelligence body

The Swedish government said on May 5 that it is moving forward with plans to establish a new foreign intelligence agency, following criticism that security officials failed to anticipate Russia’s full-scale invasion of Ukraine in 2022 despite clear signs of a military build-up.

The creation of a new civilian foreign intelligence agency, which will report directly to the government, was first proposed in a public investigation and received initial approval in 2025.

“As is well known, we have a serious security situation and we face a broad and complex threat picture every day, and this places new and increased demands on our capabilities,” Foreign Minister Maria Malmer Stenergard told a press conference.

“We also have new expectations of ourselves as a NATO ally, and as we now develop our intelligence structure, we will also better match the structures that exist within NATO and among our allies.”

Like many intelligence services, Sweden’s Military Intelligence and Security Service (MUST) did not foresee a full-fledged Russian invasion of Ukraine, prompting criticism both in an official review and from some politicians.

The new agency will operate alongside existing institutions, including MUST, the Swedish Security Service — which is part of the police — and the National Defence Radio Establishment, which is responsible for signals intelligence.

Stenergard said the cost of establishing the new agency is expected to be around 2.8 billion Swedish crowns (approximately $260 million), with funding primarily reallocated from the armed forces budget.

The agency is scheduled to begin operations at the turn of the year.

By Tamilla Hasanova