Sweden Helps Arrange 'Emergency Solution' for Ukraine Worth 300 Billion SEK

Hungary and Slovakia are blocking the massive loan of 963 billion SEK to Ukraine, due to a dispute between the countries. The conflict partly concerns a halt in oil flow from Russia that passes through Ukraine to these countries. Meanwhile, Nordic and Baltic EU countries are reportedly working out an emergency solution to send money to Ukraine themselves. A package of around 321 billion SEK from taxpayers in these countries is said to already be ready. The money aims to cover the missing loan and ensure Ukraine’s needs can be met over the coming months. The original loan was intended so that EU member states would primarily guarantee the loan and cover the interest – now it is unclear how the risk will be shared.

Sweden is already considered one of Ukraine’s largest donors in relation to its economic capacity. By mid-February, support had totaled 128 billion SEK since Russia’s invasion in the spring of 2022, according to the government’s website. Several additional billions have already been decided and will be sent through various initiatives, which is expected to bring the total support to around 180 billion SEK. At the same time, Swedish politicians have announced that there is no cap for the support and that it will continue indefinitely.

On Wednesday, the newspaper Politico reported that the Nordic and Baltic EU member states are prepared with a package of about 321 billion SEK from taxpayers that could be sent to Ukraine in an alternative financing plan. This aims to ensure that Ukraine can continue to finance its economy – but it is only sufficient for the upcoming months.

According to media reports, if Ukraine does not receive the billions, the country will be left without sufficient funds already at the beginning of April.

The background to the situation is that the massive loan of 963 billion SEK, plus interest, which Commission President Ursula von der Leyen has advocated for, is now stalled. In December, member states agreed that the money would be lent out, after the EU concluded that it could not use frozen Russian assets.

But Hungary demands that Ukraine ensures the continued flow of Russian oil transported through pipelines in the country. According to Hungary, Ukraine is deliberately sabotaging by restricting the oil flow. Ukraine, for its part, claims that the pipelines were damaged in a Russian attack, which has affected the transport of Russian oil to the EU.

Meanwhile, Ukraine may be able to manage until May with payments from the International Monetary Fund (IMF) that cover urgent expenses. Thereafter, the country risks being left without funds if money from the EU is not sent.

Ukrainian soldier in a trench / Ukraine’s President Volodymyr Zelenskyy.

Kristersson Promises to Cover Ukraine’s Needs

At the end of last year, Ursula von der Leyen and Prime Minister Ulf Kristersson (M) announced that the EU and Sweden are prepared to cover all of Ukraine’s economic needs – both military and budgetary – “for as long as necessary.”

– We are looking at Ukraine’s economic needs for the years 2026 and 2027, and I am very glad and grateful that the European Council has committed to covering the economic needs for Ukraine for the years 2026 and 2027. With military needs and, if required, with budgetary needs, announced Ursula von der Leyen.