Sweden will phase out its development cooperation with Myanmar by 30 June 2026, according to a government announcement on 11 September 2025. The decision is part of a broader shift in Swedish aid policy aimed at prioritising Ukraine.
According to the Swedish government, conditions for development cooperation in Myanmar have steadily worsened since the military coup in 2021. The government said that Sida, the Swedish International Development Cooperation Agency, may disburse up to SEK 175 million in 2025 and SEK 140 million in 2026 under existing agreements before the cooperation ends. Humanitarian assistance to Myanmar will not be affected.
“Ukraine is Europe’s foremost line of defence, and they are defending both their own freedom and ours. The restructuring of Swedish aid is therefore more important than ever. With this decision, the government continues its work to phase out several strategies in order to create room for even stronger support for Ukraine,” said Minister for International Development Cooperation and Foreign Trade Benjamin Dousa in the announcement.
The decision follows Sweden’s “Development Assistance for a New Era” policy, which reduces the country’s long-standing commitment to spending one percent of Gross National Income on development aid.
Human Rights Myanmar described the phase-out as a severe blow to local human rights defenders, independent media, and civil society groups. According to the organisation, Sweden’s withdrawal could cost Myanmar’s independent media around USD 2.4 million annually and human rights groups about USD 255,000 from 2026. The NGO argued that the withdrawal undermines international solidarity and risks weakening efforts to document rights abuses under military rule.
According to Human Rights Myanmar, Sweden has provided about USD 176 million in development aid to Myanmar since the 2021 coup, with much of it directed toward emergency response, conflict resolution, democratic participation, and media programmes.
Sources: Regeringskansliet and Mizzima
