Sweden To Hike Defense Budget Over Ukraine Crisis

Sweden plans to increase its annual defence spending over the next 10 years, citing the crisis in Ukraine and an "unsettling" development in Russia.

The government on Tuesday said that spending would rise gradually until 2024, when the annual defence budget increase would be around 5.5 billion kronor (604 million euros, $835 million), more than in previous estimates, according to AFP. The Swedish defence budget for this year was 47 billion kronor.

"The recent past has been characterised by a deeply unsettling development in and around Ukraine," the government said in a statement. "Russia has occupied parts of a sovereign state."

The focus of the increase would be on the Baltic Sea and the Swedish island of Gotland, located in the region, the report said.

Sweden, which is not a NATO member, wants to expand its fleet of fighter jets from 60 to 70 Jas 39 E, buy two new submarines to reach a total of five and refurbish other ships.

The government said that the growing material spending would be financed by redistributing the defence budget and also by cutting cooperation with Russia in environmental and nuclear energy issues, among other measures.