Sweden proposes new defence export initiative

A government inquiry (Swedish Government Official Report SOU 2026:16) proposes that Sweden launch its first comprehensive defence export initiative in 2026. The initiative runs until 2030 and includes 300 million Swedish kronor for a new thematic area within the Team Sweden trade promotion framework, to be called Team Sweden Defence & Security. The proposal was put forward by investigator Pär Ahlberger in March 2026, following more than a year of inquiry work.

The inquiry concludes that state export support is characterised by fragmentation, reactivity, and a lack of resources. Since the Swedish Defence Export Agency was dissolved in 2015, a coherent strategic direction has been absent. Russia's invasion of Ukraine and Sweden's accession to NATO in March 2024 have sharpened the need further: more countries are seeking government-to-government agreements, and buyer nations are increasingly demanding that the Swedish state act as guarantor.

"Exports not only strengthen companies' opportunities to grow, but also Sweden's competence, capacity, and relevance as a partner. In a more dangerous world, having our defence companies competitive internationally is a security policy asset," said Robert Limmergård, Secretary General of the Swedish Security and Defence Industry Association (SOFF), in a statement from the organisation.

Swedish exports of military materiel amounted to 29 billion kronor in 2024, which the inquiry notes is the highest value ever recorded, representing an increase of 23 per cent compared with 2023. SOFF's 350 member companies had a combined turnover of 99.7 billion kronor during the same year, an increase of 56 per cent.

"Successfully conducting effective promotion work in the defence sector represents one of the greatest challenges for state trade promotion in modern times," writes investigator Pär Ahlberger in the report.

The inquiry proposes a new regulation on export activities in the defence sector that consolidates the rules for the Swedish Defence Materiel Administration (FMV), the Swedish Armed Forces (Försvarsmakten), and the Swedish Defence Research Agency (FOI) into a single document, with entry into force on 1 October 2026. Export campaigns are to be decided by the Ministry of Defence. FMV is proposed to receive expanded coordination responsibility and to conduct proactive analytical work. The application fee of 15,000 kronor for export support is proposed to be abolished.

"In the defence market, business is built on trust over time. Trust in companies is closely linked to trust in the exporting country's policies, institutions, and ability to be a long-term and credible partner. This is why state export promotion needs to be coordinated, predictable, and proactive," said Robert Limmergård.

Team Sweden Defence & Security is proposed to be jointly led by the Ministry for Foreign Affairs and the Ministry of Defence, and to encompass defence agencies, the Swedish Export Credit Corporation (EKN), the Swedish Export Credit Agency (SEK), Business Sweden, and regional defence clusters. The 300 million kronor is intended to cover, among other things, 15 Swedish pavilions at defence exhibitions, 25 bilateral defence market days, and around ten industry delegations during the period 2026 to 2030.

The inquiry highlights that export support in its current form has primarily benefited large defence companies. SOFF shares this assessment and argues that the initiative must also work for small and medium-sized enterprises.

"It is crucial that the entire ecosystem functions. This is not only about the large platforms, but also about the many smaller companies that contribute technology, components, services, and innovation. For Sweden to succeed internationally, they too must have reasonable conditions to reach international markets," said Limmergård.

Initially, eight overseas missions in key allied and partner countries are proposed to be reinforced with defence market hubs, consisting of defence industry attachés and defence promotion offices. The coordination function for defence materiel exports at the Ministry for Foreign Affairs is proposed to be expanded into a secretariat, and an export coordination function is to be established at the Ministry of Defence, linked to the Director of Defence Materiel (NAD).

SEK and EKN are proposed to receive an explicit mandate to support government-to-government defence transactions. The regulations on export credit financing and export credit guarantees are proposed to be amended so that state defence exports are explicitly included.

SOFF emphasises that export controls and export promotion are separate matters. Export controls must continue to be strict and legally sound. State promotion should be developed within the framework set by Swedish legislation and security policy.

The report has been submitted to Minister Pål Jonsson and is now being circulated for consultation. The inquiry proposes that budgetary reinforcements begin through the 2026 spring supplementary budget.