Sweden has awarded Naval Group a €3.7bn contract to build four warships, beating UK's Babcock International and Spain's Navantia. The deal delivers one frigate annually starting in 2030, bolstering Sweden's naval capabilities against Baltic Sea threats from Russia.

Prime Minister Ulf Kristersson called the contract essential for modernizing the Royal Swedish Navy. Swedish defense minister Pål Jonson noted Naval Group's promise of "quick delivery" of a "proven system" influenced the decision, with potential for cost sharing since France and Greece already use the FDI frigates.

The frigates represent a strategic shift for Sweden, which joined NATO in 2024. France gains a significant foothold in European defense cooperation, reducing reliance on US-made weapons. The deal comes as European countries increase naval spending following Russia's invasion of Ukraine, with intense competition among contractors in the sector.