Q:

Can I develop an SSH client for iPad in Sweden and sell it in Apple App Store?

I wonder, if I am allowed to develop an SSH client for distribution through Apple App Store without breaking any export regulations? I don't really know much about the encryption algorithm. Below is a screenshot from App Store:

A:

This falls under the Wassenaar Arrangement / COCOM (Coordinating Committee for Multilateral Export Controls) for Sweden:

Since 1 January 1995, Sweden restricts export of encryption according
  to the Wassenaar Arrangement, including the General Software Note.
  This regulation refers to the EU regulation (1334/2000) instead of
  maintaining a national list of controlled goods. The relevant
  regulations are the Law on control of dual-use goods and of technical
  assistance (SFS 2000:1064) of 30 November 2000, and the corresponding
  Decree (SFS 2000:1217)

Then it goes on to limit certain restrictions:

A Foreign Affairs press release of 23 June 1999 announced that as of 1
  August 1999, the Inspection for Strategic Products has the power to
  proclaim rules for general export licenses for crypto products. The
  general export license published (TFS 1999:40, 1 July 1999) allows
  crypto exports of up to 128-bit symmetric mass-market crypto to a list
  of about 60 approved countries:Argentina, Australia, Bahrain,
  Bangladesh, Brazil, Bolivia, Brunei, Bulgaria, Canada, Chechnya,
  Chile, China, Cyprus, Ecuador, Egypt, Estonia, Hong Kong SAR, Hungary,
  Iceland, India, Indonesia, Israel, Japan, Jordan, Kuwait, Latvia,
  Lebanon, Lithuania, Macao SAR, Macedonia, Malaysia, Mauritius, Mexico,
  Morocco, New Zealand, Norway, Oman, Pakistan, the Philippines, Poland,
  Qatar, Rumania, Russia, Saudi Arabia, Singapore, Slovakia, Slovenia,
  South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand,
  Tunisia, Turkey, Ukraine, the United Arab Emirates, Venezuela,
  Vietnam.Transport within the European Union is not considered
  export, so any crypto transfer is allowed. For other countries and
  products, an individual license is required.

And here is the Sweden's May 1999 Government Communication 1998/99:116 On cryptography.
Short answer: Yes.
The rest is then in the two documents I linked to. It's a bit lengthy read I'm afraid, but the Apple Store asks these questions for the reason of limiting product sales to those countries that laws and regulations of exporting countries might prohibit. In short, follow the questionnaire upon publishing your application, and the restrictions need to be followed by the App Store, not you.

The application process paper the documentation links to is sadly dead, so I dug around a bit to see what authority authorises export of cryptography products in your country:
Edit to add: If, however, your product's encryption strength isn't excluded from these export restrictions, or you need to acquire a licence to export to other countries that aren't implicitly listed as allowed to export cryptography products to, then in your case (Sweden), the national authority handling decisions on matters concerning licensing of the production and export of "dual-use" products (including: advanced technology machine tools, chemicals, encryption and navigation equipment, heat exchangers and pumps, but also knowledge, software and training material) is the ISP (Swedish Agency for Nonproliferation and Export Controls). That would be my first contact of choice, if you require obtaining export licence for your product and you also plan on selling your solution to other, not listed countries.

