Ukraine will significantly bolster its air defence with new Gripen fighter jets from Sweden under a new deal announced by President Volodymyr Zelensky and Swedish Prime Minister Ulf Kristersson.

The deal, unveiled at a joint press conference on Thursday, involves Ukraine purchasing 20 advanced Gripen E models and Sweden donating 16 older C/D variants next year.

The agreement builds on a letter of intent signed last year for Sweden to potentially sell up to 150 Saab Gripen E jets to Kyiv. While Gripen E deliveries are several years away, the immediate provision of C/D models offers a crucial stopgap for Ukraine’s air force, which operates a mix of Soviet-era and Western aircraft.

At Uppsala air base, where two Gripen jets were on display, Prime Minister Kristersson hailed the decision: “Gripen is the best and optimal choice for Ukraine. So today, we take the next major step on this joint journey.” President Zelenskiy echoed this, calling the acquisition transformative.

“We need these jets and for us this is really a new page for Ukraine,” he said, adding Kyiv intends to purchase all 150 stipulated jets. “God bless, we will have enough financing for this,” he remarked.

Ukraine has earmarked 2.5 billion euros from a 90 billion euro EU loan package to finance the purchase. The newer Gripen E models are anticipated from 2030, providing a long-term upgrade to its aerial fleet.

The country’s defence minister had indicated in May that a Gripen E deal could be finalised “within months” after the EU approved the loan.

The Gripen is seen as a cost-efficient alternative to advanced fighters like the American F-35. Easy and quick to maintain, it can crucially operate from dispersed air bases, including ordinary roads, offering vital operational flexibility.

Sweden is one of Ukraine’s most significant international benefactors, having provided 128 billion Swedish crowns (£9.7 billion) in military and civilian aid. An additional 80 billion crowns has been allocated for this year and next. For Sweden, this deal also bolsters its defence industry, which has seen a surge in demand since Russia’s invasion of Ukraine.

The announcement was met with enthusiasm by Saab, Gripen’s manufacturer. Saab shares rose 4.4 per cent, making it Europe’s top gainer. CEO Micael Johansson described it as a “big day” for the company, noting the agreement boosted Gripen’s momentum.

“The more countries that select the Gripen fighter…and it starts flying in operations in more countries, the more people understand what a fantastic capability this is,” Johansson told Reuters at Uppsala air base.