Sweden to cut development aid to five countries, divert money to Ukraine

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)