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Financing for Ukraine fighter jet deal progressing, Sweden

says

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Deal could include up to 150 Gripen E planes

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Sweden could help fund deal through export credits, aid

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Sweden lobbying hard for use of frozen Russian assets

By Johan Ahlander

STOCKHOLM, Nov 6 (Reuters) - Sweden and Ukraine are

making progress on financing for a major deal that could include

Kyiv buying up to 150 Gripen E fighter jets, Sweden's defence

minister told Reuters on Thursday, adding that Stockholm could

fund part of the deal via military aid.

Sweden signed a long-term cooperation agreement in October

with Ukraine for air defences that includes the possibility of

exporting the fourth-generation fighter jets, in what would be

Sweden's biggest aircraft order yet.

The cost of the potential deal has not been disclosed but

manufacturer Saab sold four Gripen aircraft in the

third quarter to Thailand in an order valued at 5.3 billion

Swedish crowns ($563 million), raising questions over Ukraine's

ability to finance the purchase.

FINANCING OPTIONS

"It (the financing) is moving forward and we're working

closely with the Ukrainian side," Pal Jonson said, adding that

Ukraine's ability to finance the planes from its budget after

the war would be a central part of the deal but that there were

other ways as well.

"We can look at export credits, the frozen Russian assets

and our framework for Ukraine aid, which is 40 billion crowns

next year and 40 billion in 2027," he said.

Jonson said that Sweden had presented the deal to the

so-called coalition of the willing, a group of 16 European

countries determined to help fund Ukraine's war against Russia,

and that some of them might be willing to help fund the planes.

"It could be that countries who have subcomponents in the

Gripen system may have extra incentives to help finance the

deal," he said.

Gripen is fitted with engines from General Electric ( GE ), and

also many components made in Britain.

Jonson said Sweden was pushing hard in negotiations with

other EU countries to use 200 billion euros of frozen Russian

assets to fund Ukraine's war effort.

Swedish Prime Minister Ulf Kristersson told Reuters in

October that the jet deal with Ukraine was "very realistic" but

that a lot of work remained and first deliveries could take

place in three years' time.

Saab has said it can ramp up Gripen production to meet

demand and that it was considering cooperation with Ukraine,

Canada and other countries to add to the production in Sweden

and an assembly line in Brazil.

Jonson is hosting his Ukrainian counterpart Denys Shmyhal in

Stockholm on Thursday.

Gripen is seen by analysts as a low-cost alternative to more

expensive fifth generation warplanes, such as the F-35.

($1 = 9.4155 Swedish crowns)