Finland to Send Ammunition to Ukraine Using Proceeds from Frozen Russian Assets
In a significant move, Finland has agreed to supply heavy ammunition to Ukraine using the proceeds from frozen Russian assets. This decision is part of a broader European Union initiative to channel funds from immobilized Russian assets into support for Ukraine’s defense.
According to a statement by the Finnish Ministry of Defence, the country will provide 90 million euros (approximately $100 million) worth of heavy ammunition procured from domestic suppliers. The ammunition was purchased from Finnish industry, which is expected to benefit from this deal and boost employment at home.
This move not only reinforces Finland’s support for Ukraine but also highlights the importance of utilizing frozen Russian assets to aid in the country’s defense. As noted by Finnish Defense Minister Antti Hakkanen, “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 defense.”
This announcement follows a previous package of military aid provided by Finland in March, valued at approximately 200 million euros (now $225 million). Since Russia’s full-scale invasion in 2022, Western countries have frozen approximately $300 billion in Russian sovereign assets.
The European Union has launched an initiative to funnel military aid to Ukraine using the proceeds from these frozen funds. This move aims to formalize mechanisms for seizing frozen Russian assets to finance Ukraine’s defense and reconstruction. Kyiv has consistently urged allies to take this step, as Western governments have primarily relied on reallocating interest income generated by the frozen funds.
While some may view this decision as a bold move against Russia, it is essential to note that the Kremlin has warned of retaliation if Russian assets are confiscated for Ukraine’s benefit. In early 2024, Moscow amended its legislation to allow counter-seizure of Western-owned property in response to asset seizures abroad.
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