Sweden Eyes Fighter Jet Deal with Peru in $2 Billion Gripen Package
Sweden is taking a bold step toward deepening its defence ties with Latin America by seeking parliamentary approval for a high-value sale of up to 12 Saab JAS 39 Gripen E/F fighter jets to Peru. The move marks a significant potential milestone for both nations: for Sweden, a chance to expand its aerospace influence; for Peru, an opportunity to modernize an ageing air force with cutting-edge technology.
The proposed deal, valued at around $2 billion, includes not only the aircraft but also unspecified air defence systems. It was recently submitted as part of Sweden’s supplementary budget for 2025, highlighting its strategic importance. If passed by the Swedish Parliament—a step considered likely due to Sweden’s strong support for defence exports—the deal would pave the way for a formal government-to-government agreement. This approach aligns with Peru’s procurement preferences, giving the deal a stronger chance of success.
Peru, facing the pressing need to replace its decades-old Mirage 2000 and MiG-29 fighters, has already earmarked $2 billion through its Public Debt Law for this initial batch of 12 jets. This is part of a broader $3.42 billion program to acquire 24 new fighter jets in total, with a second phase planned for 2026. The Gripen E/F has emerged as a front-runner in the competition, going head-to-head with top Western platforms like the U.S. F-16 Block 70 and France’s Dassault Rafale.
What sets the Gripen apart is its modern suite of capabilities—advanced AESA radar, powerful electronic warfare systems, and efficient operating costs. Designed to work effectively in tough and varied terrains, the Gripen can also take off from short or improvised runways, a practical advantage in Peru’s diverse geography that includes jungle, mountains, and coastline.
But Sweden’s offer goes far beyond simply supplying jets. The proposed deal includes elements of technology transfer and local industrial collaboration, modeled after the successful Gripen program in Brazil. This could mean assembling parts of the aircraft or setting up maintenance facilities within Peru, creating skilled jobs and technical expertise locally. It also opens the door for future defence cooperation across South America, with Brazil, Colombia, and possibly Peru sharing common platforms.
Deliveries could begin as early as 2028 and extend to 2030. The primary production would take place in Sweden, but there’s potential for additional support from Embraer’s facilities in Brazil, which are already involved in Gripen production. This collaborative model would not only streamline logistics and maintenance across the region but also strengthen regional defence ties.
Strategically, Sweden’s push into Peru represents a broader shift in the region’s defence posture. Latin American countries have traditionally leaned toward U.S.-made equipment, but Sweden’s Gripen has recently gained traction. If the deal goes through, it would solidify Saab’s growing footprint in the region and promote interoperability among air forces using the same platform.
However, the path isn’t entirely free of hurdles. The Gripen’s GE-F414 engine is American-made, and its export to a third country like Peru may require U.S. government approval. Additionally, geopolitical considerations may come into play, especially as other major defence players eye the Peruvian market.
In summary, Sweden’s proposed Gripen sale is more than just a fighter jet transaction—it’s a strategic partnership opportunity. For Peru, it represents a leap toward a modern, capable air force. For Sweden, it's a bid to secure a long-term presence in Latin America’s defence market, build industrial bridges, and shift the balance of regional airpower. If all goes well, this deal could reshape the future of South American air defence.
