Sweden has announced a historic financial commitment to Ukraine, pledging €10.7 billion in aid. A recent article published by FREE Network examines how Sweden’s support strengthens Ukraine’s military and economic resilience. The article places the pledge in the broader context of Europe’s long-term support for Ukraine after Russia’s full-scale invasion.
Torbjörn Becker, Director of the Stockholm Institute of Transition Economics (SITE), contributed expert analysis to the discussion. Torbjörn Becker emphasized that economic endurance will shape the outcome of the war. Russia’s economy remains larger than Ukraine’s. However, the combined economic strength of the European Union and the United States far exceeds Russia’s. Torbjörn Becker noted that steady political commitment could sustain Ukraine and gradually shift the strategic balance.
Torbjörn Becker also highlighted weaknesses in Russia’s war economy. Russia still depends heavily on oil revenues. Lower oil prices or tighter sanctions could therefore reduce government income. Russia also relies on China for key technology components. This dependence creates long-term economic risks. In addition, high interest rates, estimated at around 20–25 percent, continue to strain Russian banks and businesses.
Torbjörn Becker also discussed Ukraine’s fiscal pressures. The country now spends more than half of its budget on defense. At the same time, roughly $300 billion in frozen Russian central bank reserves remain abroad. Torbjörn Becker noted that these funds could support Ukraine’s reconstruction if governments reach a political agreement.
To explore the full analysis and Torbjörn Becker’s insights on Sweden’s support for Ukraine, read the complete article.
Further Reading
In his recent policy brief, Anders Olofsgård, Associate Professor and Deputy Director of SITE, examines the legal and economic arguments in the ongoing debate over whether Russian state assets frozen in Western democracies should be confiscated and redirected to support Ukraine’s resilience and reconstruction. The brief also outlines concrete proposals for how such measures could be implemented in compliance with international law while limiting potential economic risks. To learn more, read the full policy brief on the FREE Network website.
