STOCKHOLM, August 25. /TASS/. The Swedish government has decided to allocate an additional 750 mln kronas ($79 mln) to cover the funding gap in the Ukrainian state budget, the government’s office reported.

"The government has decided to conclude a new agreement with the EU on the allocation of 750 mln kronas for 2025 as part of additional budget support for Ukraine through the European Fund for Ukraine Support. This aid will help address the funding gap in the Ukrainian state budget," the report said.

Sweden continues to expand support for Ukraine, Minister for International Development Cooperation and Foreign Trade Benjamin Dousa said.

"With a new agreement, Sweden is becoming the first EU country to provide additional funds through the European Fund for Ukraine Support to strengthen Ukraine's state budget. Economic stability is a prerequisite for Ukraine to be able to continue paying wages and pensions, as well as ensuring the functioning of health care, schools, and social services," he was quoted as saying.

"Macroeconomic stability is critical to Ukraine's resilience and will be one of the country's biggest challenges next year," while Ukraine's 2026 budget financing requires support measures, according to Swedish politicians. An estimated amount of up to $40 bln in aid will be needed to bridge the financing gap.

The EU established the Ukraine Support Fund in 2024 as a mechanism to help Kiev. The Fund is financed by EU member states and amounts to 50 bln euros, which will be disbursed over 2024-2027. The funding objectives are budget support, private sector incentives, and technical assistance/support projects.

The total amount of funds allocated by Sweden to help Ukraine reaches 95.8 bln kronas (more than $10 bln). The largest portion of funds, amounting to 83 bln kronas ($8.74 bln), has been allocated to the needs of the Ukrainian army.