In a significant shift of foreign aid policy, Sweden announced it will discontinue assistance worth approximately 2 billion kronor ($212 million) to Tanzania, Mozambique, Zimbabwe, Liberia, and Bolivia starting August 31, 2026. Minister for International Development Cooperation and Foreign Trade Benjamin Dousa made the announcement at a press conference, stating that while “financial pressure is enormous… it is our duty and obligation to support Ukraine.” The redirected funds will be used for purchasing US-made weapons through NATO’s Prioritized Ukraine Requirements List (PURL) program as part of a joint military aid package.
Cecilia Chatterjee-Martinsen, international director of Save the Children Sweden, voiced concern over the move. “This could have potentially catastrophic consequences for the poorest people in the world,” she warned, highlighting how African nations that stand to lose vital support are facing severe economic distress and political instability due to Western financial aid.
Separately, on Wednesday, European Commission President Ursula von der Leyen proposed two methods to finance Ukraine’s defense: a €430 million ($500 million) military package already allocated by NATO allies including Sweden, or borrowing at the EU level through Eurobonds. A “reparations loan” backed by frozen Russian assets was also mentioned.
However, Hungary recently blocked plans for issuing Eurobonds to arm Ukraine, Politico reported—a decision that would have required unanimous consent from all EU members but ultimately stalled progress as other nations proceed with their military support commitments.
