Sweden plans US$1.45 billion in subsidies following Ukraine invasion price hikes
- Swedish government says subsidy package necessary to help residents cope with soaring prices due to war and winter’s high energy prices
- Subsidies include one-time minimum payout to car owners and a one-month extension of winter electricity subsidy for homeowners
Sweden announced plans Monday for a US$1.45 billion (1.32 billion euro) subsidy package to help Swedes cope with soaring prices resulting from Russia’s invasion of Ukraine on the heels of winter’s sky-high energy prices.
The proposed subsidies include a temporary reduction of petrol and diesel taxes, a one-time minimum payout of 1,000 kronor (US$104) to car owners, a one-month extension through March of a winter electricity subsidy for homeowners in central and southern Sweden, and a temporary increase in housing subsidies for the poorest families.
If approved by parliament, the measures would come into effect on June 1.
“We are today presenting an exceptional package of measures to counter the price increases we are now seeing as a result of Russia’s invasion,” Finance Minister Mikael Damberg said in a statement.
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“The situation is still uncertain and prices are very volatile, but we can see that we need to support consumers in this acute stage and at the same time take measures to reduce our fossil fuel dependency.”