Finance
Sweden to cut development aid to five countries, divert money to Ukraine
Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Sweden will cut development aid to five countries, redirecting funds to Ukraine, prioritizing its foreign policy and aid strategy.
STOCKHOLM, Dec 5 (Reuters) - Sweden will phase out development aid to five countries in coming years and use the money to increase support for Ukraine, the government said on Friday.
The Nordic country plans to phase out aid to Zimbabwe, Tanzania, Mozambique, Liberia and Bolivia, Minister for International Development Cooperation and Foreign Trade Benjamin Dousa said.
"Ukraine is Sweden's most important foreign policy and aid policy priority a-5nd therefore the government is going to increase aid to Ukraine to at least 10 billion crowns ($1.06 billion) in 2026," Dousa said.
"There isn't a secret printing press for banknotes for aid purposes and the money has to come from somewhere."
The government said the measures would free up more than 2 billion crowns over the next two years that could be diverted to Ukraine, to be used in such projects as rebuilding the country's energy infrastructure.
Sweden has already cut aid to more than 10 countries since the current government took power in 2022, including Burkina Faso and Mali.
Sweden is a major donor of development and humanitarian aid, with a budget of 56 billion crowns a year over the last three years.
The government has said it will cut that to 53 billion crowns a year for the period 2026-2028 and has reprioritised spending, including using some of the money to pay for the costs of immigration and repatriation of migrants.
($1 = 9.4094 Swedish crowns)
(Reporting by Simon Johnson, editing by Anna Ringstrom)
Humanitarian aid refers to assistance provided to people in need, typically during crises such as natural disasters or conflicts, aimed at saving lives, alleviating suffering, and maintaining human dignity.
A budget is a financial plan that outlines expected income and expenditures over a specific period, helping individuals or organizations manage their finances effectively.
Infrastructure refers to the basic physical systems and facilities needed for the operation of a society, such as transportation, communication, and utilities, which are crucial for economic development and growth.
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