Sweden Expands Export Credit Guarantees to Boost Ukraine’s Reconstruction

The Swedish government has significantly expanded the framework for special export credit guarantees, aiming to enhance Swedish businesses’ participation in Ukraine’s reconstruction. Effective February 1, 2025, the updated policy increases financial support and extends coverage to services, reflecting Sweden’s commitment to aiding Ukraine’s sustainable recovery.

Expanding Financial Support and Coverage

Initially launched in April 2024, Sweden’s special export credit guarantee program for Ukraine provided SEK 333 million ($32 million) to facilitate business transactions that contribute to economic and social development. With the recent expansion, the total guarantee allocation has grown to SEK 888 million ($86 million), allowing for greater business engagement. Key modifications include:

• Extended Loan Maturity: The maximum maturity period for guarantees has increased from three to four years, providing businesses with more flexibility.
• Higher Coverage Rate: Guarantee coverage has been raised from 80% to a maximum of 95%, reducing financial risk for Swedish exporters.
• Larger Allocations for Business Groups: The cap on guarantees available to businesses within the same corporate group has risen from SEK 100 million ($9.7 million) to SEK 300 million ($29 million).

Minister for International Development Cooperation and Foreign Trade Benjamin Dousa emphasized the importance of these adjustments, stating,

“Swedish businesses both want and are able to contribute more to Ukraine’s reconstruction, but they need support that mitigates the risk. The aim of amending the conditions is to make it easier and safer for Swedish companies to export to Ukraine.”

Swedish Businesses Positioned for Reconstruction Efforts

Swedish industries, particularly in infrastructure, energy, and digitalization, are well-positioned to contribute to Ukraine’s rebuilding efforts. According to Business Sweden, Swedish companies have expertise in sustainable urban development, energy-efficient construction, and digital infrastructure—key sectors for Ukraine’s post-war recovery.

Ukraine’s $750 billion  National Recovery Plan, introduced in 2023, outlines an investment strategy focused on sustainable development, including green energy, critical infrastructure, and digital transformation. Sweden’s export credit guarantees align with this framework by lowering financial barriers for companies looking to engage in these sectors.

Strategic Partnerships and Global Support

Sweden’s initiative is part of a broader international effort to support Ukraine’s economic stability. The European Bank for Reconstruction and Development (EBRD) has committed over €3 billion ($3.2 billion) to Ukraine since 2022, targeting infrastructure resilience and private sector revitalization. Similarly, the U.S. International Development Finance Corporation (DFC) has provided guarantees to encourage private investment in Ukraine’s energy and transportation sectors.

The Swedish government’s enhanced export credit program strengthens these global efforts by ensuring Swedish businesses can participate in reconstruction projects without undue financial risk.

With an increased guarantee framework and broader eligibility criteria, more Swedish businesses are expected to participate in Ukraine’s recovery. Expanding these financial instruments could pave the way for long-term economic partnerships between Sweden and Ukraine, reinforcing both nations’ commitments to sustainable reconstruction.