Government proposes SEK 300 million to Swedfund to invest in Ukraine

Support to Ukraine is one of the most important priorities for the Government and the cooperating parties. There is a great need for investment to support the reconstruction of Ukraine, job creation and increased access to crucial goods and services. Swedfund has extensive experience of investment in difficult contexts, and well-established working methods to assess and manage risks linked to investments. In the light of Russia’s full-scale invasion, the risk scenario in Ukraine remains complex and the financial risks are substantial

“The capital injection of SEK 300 million contributes to developing a strong and sustainable Ukrainian business sector. Swedfund is already an important actor in Swedish development cooperation. Through the capital injection, we will increase Swedfund’s opportunities to invest in Ukraine, and strengthen both Ukraine’s resilience and its reconstruction,” says Minister for International Development Cooperation and Foreign Trade Johan Forssell.

Swedfund’s assignment is to contribute to the objective of international development assistance – to create conditions to improve the lives of people living in poverty and oppression – by investing in the development of sustainable businesses in low- and middle-income countries. In addition to the capital injection, the Government and the Sweden Democrats have previously approved special funds to Swedfund for feasibility studies in Ukraine in 2024. These studies are key to developing sustainable projects and contribute to business opportunities for Swedish businesses that offer sustainable solutions.

The Government proposes that the Riksdag authorises the Government to approve a capital injection of a maximum of SEK 300 million to Swedfund for investment in Ukraine in 2024, using funds from Sweden’s international development cooperation.

The Government intends to present this proposal to the Riksdag in the 2024 Spring Amending Budget. The proposal is based on an agreement between the Government and the Sweden Democrats.