Jens Asbjørn Bøgen
Finland has been selected as one of the states implementing European Union measures to supply Ukraine with defence materiel using proceeds from frozen Russian assets.
Finland has been selected as one of the states implementing European Union measures to supply Ukraine with defence materiel using proceeds from frozen Russian assets.
What is going on?
Finland has made an agreement with the European Commission to supply Ukraine with heavy ammunition.
The ammunition will be procured from Finnish suppliers, and the procurement will be funded with proceeds from frozen Russian assets.
EUR 90 million worth
The ammo will be channelled through the European Peace Facility (EPF), and the agreement is valued at EUR 90 million.
Money from frozen assets
“We were able to negotiate additional funding for Finland’s support for Ukraine. The funds come from frozen Russian assets. The products are purchased from Finnish industry to boost employment at home and sent to Ukraine to help its defence. I am very pleased with the outcome,” said Finnish Minister of Defence Häkkänen in a press release.
EUR 660 million of support
“This new package alongside our national EUR 660 million support programme will forge closer links between the Finnish industry and Finland’s support for Ukraine. This is a great example of the Finnish defence industry’s abilities, and it shows that our investments into ammunition production capacity are paying off,” said Minister Häkkänen.
What’s with the frozen assets?
When Russia invaded Ukraine in 2022, the U.S. and the Western Countries froze Russian foreign exchange reserves. Latest numbers suggest that more than $300 billion has been frozen this way.
The question of interests
Since then, there has been an ongoing discussion on what to do with the assets, including the interests the money collect while being frozen.
Rebuild Ukraine with Russian money
In March, 130 Nobel laureates suggested using the frozen Russian assets to rebuild Ukraine and compensate victims of the war, according to The Guardian.
Seizure could be an “act of war”
The problems is that an actual seizure of the frozen assets could be seen as an act of war, which would be playing with fire in the efforts to avoid WW3.