Swedish companies to receive credit guarantees for military supplies to Ukraine

The Swedish government intends to provide credit guarantees to companies in the kingdom for the export of defence industry products to Ukraine.

"Due to the worsening security situation, a number of countries have increased investments in defence, leading to a significant rise in defence spending. The high level of risk associated with doing business with the Ukrainian state is a barrier for companies when exporting to Ukraine," the government office said in a press release, Caliber.Az reports, citing foreign media.

The press release read that existing rules also involve significant difficulties in issuing guarantees for export operations to Ukraine for the supply of military goods.

For this reason, a new support mechanism for Swedish exports is proposed through a new provision on special export credit guarantees for defence exports to the Ukrainian state," the statement reads.

Currently, the Swedish Export Credit Agency has the right to provide special export credit guarantees to cover losses on operations involving goods and services if their goal is "to contribute to the economic and social development and well-being of Ukraine."

However, these guarantees have not yet been extended to the export of military goods.

By Khagan Isayev