Sweden and Ukraine Ink Air Defense Cooperation with Potential Saab Gripen Jet Sale
Sweden and Ukraine have signed a defense collaboration agreement that may lead to Ukraine purchasing up to 150 Saab Gripen E fighter jets, significantly advancing military ties and boosting Saab's stock.
- • Sweden and Ukraine signed a letter of intent for air defense collaboration.
- • The deal could lead to Ukraine buying 100 to 150 Saab Gripen E fighter jets.
- • Ukrainian President Zelenskyy visited Saab's production facility in Linköping and met with PM Ulf Kristersson.
- • Saab’s stock rose over 5% following the announcement despite tempered analyst outlooks.
- • Discussions emphasized continued Swedish support for Ukraine amid the ongoing conflict.
Key details
Sweden and Ukraine have taken a significant step forward in their defense cooperation by signing a letter of intent centered on collaboration within air defense. This agreement creates the potential for Ukraine to acquire between 100 to 150 Saab Gripen E fighter jets, which represent the latest version of Saab's renowned combat aircraft. The announcement was contemporaneous with Ukrainian President Volodymyr Zelenskyy's visit to Saab's production facility in Linköping, marking a symbolic endorsement of close military ties and future cooperation.
During his visit, Zelenskyy met with Swedish Prime Minister Ulf Kristersson at the Saab facilities. Andrij Jermak, Zelenskyy's chief advisor, expressed appreciation for Sweden’s ongoing support for Ukraine since Russia's full-scale invasion in February 2022. While specific details of the discussions remain undisclosed, Jermak highlighted the forward-looking nature of the talks, emphasizing the importance of collaboration in shaping Ukraine's defense future.
The news had an immediate positive impact on Saab’s stock, which surged over 5% to about 505 kronor. Despite challenges this October where the stock fell over half the trading days, this deal injected optimism. Saab anticipates reporting a 15% increase in sales to 15.6 billion kronor for the quarter, although profitability is expected to decrease. Analyst sentiment remains cautious, with many skeptical about the stock’s longer-term momentum, partly due to geopolitical uncertainties and market dynamics including China’s new export restrictions on rare earth metals. Saab’s CEO Micael Johansson affirmed the company is currently unaffected by these restrictions.
This agreement not only highlights Saab’s strategic role as a defense supplier but also reflects growing Swedish support for Ukraine’s defense capabilities amid ongoing conflict. If the fighter jet deal proceeds, it would represent a major boost for Ukraine’s air power and a substantial contract for Sweden’s defense industry.
As of October 22, 2025, formal negotiations and implementation details are still evolving, with both governments showing commitment to strengthening their defense partnership.