Sweden to Phase Out Development Aid to Iraq

Sweden has announced its decision to gradually phase out its development aid to Iraq, citing the country's ample resources to support its population.

The Swedish government revealed that it has instructed relief agencies, including the Swedish International Development Cooperation Agency (Sida) and the Folke Bernadotte Academy, to start winding down their operations by June 30, 2025.

According to the Swedish government, this move presents an opportunity to enhance bilateral relations with Iraq through collaboration in areas such as trade, environment, and migration.

Over the past decade, Sweden has provided approximately 3 billion kronor ($284 million) in development aid to Iraq.

The decision comes amidst strained relations between the two nations, triggered by incidents in the summer of 2023.

Protests in Sweden involving the desecration of the Quran led to Iraqi demonstrators storming the Swedish embassy in Baghdad on two occasions in July 2023.

The embassy was set on fire during the second attack, and Iraq subsequently expelled the Swedish ambassador.

In July 2024, tensions further escalated when the Swedish Foreign Ministry reported that three Swedish citizens had been sentenced to death in Iraq for their involvement in a shooting incident.

A fourth Swedish national potentially faces the same penalty for a drug-related crime.

Sweden's government has called upon the Iraqi chargé d'affaires to protest these death sentences, emphasizing Sweden's stance against the death penalty and its opposition to its implementation under any circumstances.