Sweden will contribute SEK 1.4 billion ($145 million) to a new World Bank crisis facility supporting Ukraine, a move expected to enable approximately SEK 4.2 billion ($434 million) in new loans for Ukraine, said the Swedish government.
According to Stockholm’s Thursday press release, Sweden described the World Bank as a key partner in strengthening Ukraine’s economic resilience and supporting reforms while Russia’s full-scale war continues.
JOIN US ON TELEGRAM
Follow our coverage of the war on the @Kyivpost_official.
“Ukraine’s resilience must not be taken for granted. Ukraine requires extensive support in order to be able to continue to pay salaries to its healthcare staff and keep its electricity grid intact,” Benjamin Dousa, Sweden’s minister for international development cooperation and foreign trade, was quoted as saying.
“Ukraine is defending not only its own freedom, but ours as well,” he added.
According to the Swedish government, the contribution will be channeled through the World Bank’s Special Program for Ukraine Recovery 2.0 under the newly established IDA Crisis Facility 2.0.
The funding mechanism allows the World Bank to leverage its balance sheet and borrow on capital markets, meaning every Swedish krona contributed can generate up to three times that amount in lending to Ukraine.
“For Ukraine to be able to continue to function and persist in its struggle against Russia’s aggression, the country’s economy must be bolstered, in both the short and long term. This support is an effective investment in Ukraine’s resilience and future, and thus also an investment in the security of Sweden and Europe. In combination with sanctions against Russia, this will make it difficult for the Russian aggressor to succeed in its war,” said Aron Emilsson, foreign policy spokesperson for the Sweden Democrats.
‘No Good Options’: Why EU-Ukraine Defense Deal is Bad News for Putin
“Stronger Ukrainian economy is essential to the country’s resilience”
Since Russia’s full-scale invasion started in February 2022, the World Bank Group has directed more than $90 billion to Ukraine, supporting sectors including energy, healthcare, agriculture, education, and transport.
The institution has also supported reforms aimed at strengthening Ukraine’s economy and advancing its path toward EU membership.
“The Government continues to prioritize support to Ukraine. A stronger Ukrainian economy is essential to the country’s resilience, recovery and reform efforts on its way to future EU membership,” said Minister for Upper Secondary School, Higher Education and Research Lotta Edholm.
The new facility builds on the previous World Bank Crisis Facility, which operated between 2023 and 2025. During that period, Sweden contributed SEK 720 million ($74 million) to the program supporting Ukraine and Moldova, helping enable approximately $6 billion in lending to Ukraine.
“This is why Sweden’s support via the World Bank is so vital – it will help Ukraine stand its ground today, and rebuild tomorrow,” said Magnus Berntsson, foreign policy spokesperson for Sweden’s Christian Democrats.
You can also highlight the text and press Ctrl + Enter
OPINION: The Bill for Crimea Comes Due for Putin
