By Simon Johnson and Johan Ahlander
UPPSALA, Sweden, May 28 (Reuters) - Ukraine will buy 20 new Gripen fighter jets and Sweden will donate 16 of an older model next year, Ukraine's President Volodymyr Zelenskiy and Sweden's Prime Minister Ulf Kristersson said at a joint press conference on Thursday.
The two leaders had signed a letter of intent last year paving the way for Sweden to sell up to 150 Saab Gripen model E fighter jets to Ukraine, though deliveries of the newer model are several years away.
The planes are a priority for Ukraine's fighter fleet and the country's defence minister said in May that a deal for Gripen E could be signed "within months" after the European Union approved a 90 billion euro loan for Ukraine.
"Gripen is the best and optimal choice for Ukraine. So today, we take the next major step on this joint journey," Kristersson said at a press conference alongside Zelenskiy at Uppsala air base, where two Gripen jets were on display.
"We need these jets and for us this is really a new page for Ukraine," Zelenskiy said, adding it planned to buy all the 150 jets stipulated in the original letter of intent. "God bless, we will have enough financing for this," he said.
The transfer of older model C/D jets enables a stopgap solution for Ukraine's air defence in the meantime.
Zelenskiy said Ukraine had earmarked 2.5 billion euros out of a 90 billion euro EU loan package for the planes. Deliveries of the new model are expected to reach Ukraine from 2030.
'BIG DAY' FOR GRIPEN MANUFACTURER SAAB
Shares in Saab were up 4.4% at 1141 GMT, making it the top gainer in Europe.
Saab CEO Micael Johansson said it was a big day for the company and that the deal added to the momentum around Gripen.
"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 the Uppsala air base.
Sweden is one of the largest contributors to Ukraine and has sent 128 billion Swedish crowns ($13.75 billion) worth of military and civilian aid so far. It has also set aside 80 billion crowns in aid for this year and next.
Ukraine's air force is made up of a mixture of Soviet-made and western aircraft. Gripen is seen as a cost-efficient alternative to fighters like the more advanced American F-35, being easy and quick to maintain and able to operate from dispersed air bases such as ordinary roads.
For Sweden, the deal also offers an opportunity to leverage its large defence industry, which has seen a surge in demand since Russia's invasion of Ukraine.
($1 = 9.3114 Swedish crowns)
(Reporting by Simon Johnson in Uppsala and Johan Ahlander in Stockholm. Additional reporting by Yuliia Dysa in Kyiv, Louise Rasmussen in Copenhagen and Essi Lehto in Helsinki; Editing by Niklas Pollard, Emelia Sithole-Matarise, Chiara Rodriquez, Elaine Hardcastle)
