Sweden and Ukraine make progress on Gripen E fighter deal financing discussions

Sweden and Ukraine are making progress on financing a potential multi-billion-crown deal that could see Kyiv acquire up to 150 Saab JAS 39 Gripen E fighters, Swedish Defense Minister Pål Jonson told Reuters on November 6, 2025. 

The two governments are exploring a range of funding mechanisms that could combine Ukrainian payments with Swedish military assistance and multilateral support. If finalized, the package would represent Sweden’s largest aircraft order to date. 

Financing under discussion 

Sweden and Ukraine signed a long-term air defense cooperation agreement on October 22, 2025, which includes the option to export the Gripen fighter jet. The letter of intent outlines a framework for between 100 and 150 aircraft, a scale that would roughly double Saab’s current production plans. 

While no value has yet been disclosed, Saab’s recent sale of four Gripens to Thailand for 5.3 billion Swedish crowns ($563 million) has prompted questions about Kyiv’s ability to fund such a large purchase. 

The earlier Gripen C/D series was once marketed as an affordable fighter compared to other aircraft of its generation. However, the newer Gripen E/F variant, previously described by Jonson as “a modern combat aircraft that, in almost every respect, is entirely new,” comes at a significantly higher unit cost. 

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Jonson noted that discussions on financing are “moving forward” and that Ukraine’s post-war budget capacity would be “a central part of the deal” alongside other funding sources.  

Options that Stockholm is considering export include credits, frozen Russian assets, and its Ukraine aid framework, set at 40 billion crowns ($4.2 billion) for 2026 and another 40 billion crowns ($4.2 billion) in 2027.  

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The proposal has also been presented to the Coalition of the Willing, a group of 16 European countries funding Ukraine’s defense, some of which could contribute given their involvement in Gripen component production. 

At the same time, Sweden is pushing within the European Union to unlock €200 billion ($215 billion) in frozen Russian assets to help finance Ukraine’s war effort and post-war reconstruction. 

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Delivery timeline and long-term vision 

Prime Minister Ulf Kristersson has described the Gripen agreement as “very realistic,” while noting that the first deliveries would not take place until around three years after a final contract is signed. Swedish officials have emphasized that any transfer of new-build Gripen E/F fighters would occur only once the war ends, though limited access to earlier-generation Gripen C/D jets could be considered sooner, depending on Sweden’s own transition schedule. 

For Ukraine, the Gripen’s dispersed basing capability, ease of maintenance, and multirole design make it an attractive option as Kyiv seeks to replace its Soviet-era fleet.  

Saab expansion plans 

The potential Ukrainian order would require Saab to expand its production network beyond Sweden and Brazil. CEO Micael Johansson has said the company is evaluating options to “rapidly increase output,” including new assembly lines outside of Sweden.

Saab is already in discussions with Bombardier about localizing Gripen production in Canada, a move that would also serve North American and export markets. The two companies already cooperate on the GlobalEye early warning aircraft, built on Bombardier’s Global 6000 platform. 

Saab recently delivered its first Gripen E to the Swedish Air Force, during a ceremony at the Skaraborg Air Wing (F 7) in Såtenäs on October 20, 2025. The model features a new engine, radar and electronic warfare suite, as well as software-driven systems that allow for rapid updates to counter evolving threats. The post Sweden and Ukraine make progress on Gripen E fighter deal financing discussions appeared first on AeroTime.

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