Sweden to provide EUR 522.6M for Ukraine’s recovery projects

This was announced by Johan Forssell, Minister for International Development Cooperation and Foreign Trade of Sweden, during an online meeting with Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, on June 21, Ukrinform reports citing the Cabinet press service.

The report notes this is Sweden’s largest-ever bilateral development assistance strategy, and Ukraine is the recipient of the aid.

“We highly appreciate Sweden’s commitment to invest SEK 6 billion in Ukraine’s economic development and bring us closer to victory. This is the first comprehensive multi-year strategy to support Ukraine adopted by our partners. The funds will be used for rebuilding infrastructure, green development, entrepreneurship, trade, demining, and media. We also welcome the fact that the Swedish government will encourage large companies to enter and develop in Ukraine,” said Yuliia Svyrydenko.

According to the First Deputy PM, the private sector is the most important actor in the reconstruction of Ukraine. “It is important for us to attract foreign investment, involve international companies in reconstruction projects and expand cooperation with Ukrainian businesses,” she stressed.

The strategy’s budget has been distributed among its implementing agencies: the Swedish International Development Cooperation Agency (SIDA) – SEK 5.7 billion, the Swedish Institute (SI) – SEK 225 million, and the Folke Bernadotte Academy (FBA) – SEK 75 million.

The First Deputy Prime Minister also spoke about the Government’s extensive work on the economic recovery plan for Ukraine for 2024-2027 within the framework of the Ukraine Facility mechanism proposed by the EU as a key instrument to support Ukraine for 2024-2027.

The parties also discussed the issue of military risk insurance, cooperation with MIGA and DFC. The Swedish side noted that it was working to resolve the issue of insurance for Swedish companies and guarantees for trade operations, as the Ukrainian market is promising for the development of trade and economic cooperation between the two countries.

Attention was also drawn to the importance of humanitarian demining in Ukraine, the replenishment of specialized equipment, the training of demining engineers and the survey of contaminated land.

Yuliia Svyrydenko stressed the need to prevent trade restrictions on Ukrainian agricultural products: “Blocking Ukrainian grain blocks the Ukrainian economy and threatens global food security.

“The Government of Ukraine calls on the European community not to extend the restrictions on imports of certain Ukrainian agricultural products, which are currently in force until mid-September 2023,” Svyrydenko said.

As Ukrinform reported earlier, President Volodymyr Zelensky of Ukraine expressed gratitude to Sweden’s prime minister and government for approving a EUR 522 million recovery program for Ukraine for 2023-2027.