Swedish neutrality refers to Sweden's policy of neutrality in armed conflicts, which has been in effect since the early 19th century. The policy originated largely as a result of Sweden's involvement in the Napoleonic Wars during which over a third of the country's territory was lost, including the traumatic loss of Finland to Russia. Resentment towards the old king precipitated a coup d'état and the new regime formulated a new foreign policy which became known as The Policy of 1812. Since the time of the Napoleonic Wars, Sweden has not initiated any direct armed combat. However, Sweden's military and government have been involved in major peacekeeping actions and other military support functions around the world. The accession to the European Union in 1995 meant that neutrality as a principle was abolished. Sweden is still today a neutral and non-aligned country in regard to foreign and security policy. However, it maintains strong links to NATO.
Nevertheless, the Swedish neutrality during World War II has been much debated and challenged later. Despite the British naval blockade of Nazi Germany and the official proposed intentions from the Swedish government to maintain political neutrality, Sweden exported iron ore to supply Nazi Germany's war industry via the Norwegian port of Narvik.
Nazi Germany's war industry's dependence on Swedish iron ore shipments was the primary reason for Great Britain and their allies to launch their Operation Wilfred and the Norwegian Campaign in early April 1940. By early June 1940 the Norwegian Campaign stood as a failure for the allies, and by securing access to Norwegian ports by force, Nazi Germany could obtain the Swedish iron ore supply it needed for war production despite the British naval blockade.
Sweden also supplied the Nazi German war industry with steel and machined parts throughout the war and provided transportation of armed German reinforcement troops, the 163rd Infantry Division/Division Engelbrecht commanded by General Erwin Engelbrecht, and military equipment through Swedish territory by train from Norway to the eastern front in Finland.