War in Ukraine: Finland steps in and taps into Russian assets

The Kremlin had nevertheless stated that any decision aiming to seize frozen Russian assets could set a dangerous precedent and would be vigorously challenged in court.

The threat didn't prevent Finland from using the proceeds from frozen Russian financial assets held by the European Union (EU) to supply Ukraine with ammunition worth 90 million euros. This information was revealed by the Finnish Ministry of Defence on Monday, 19 May, and reported by the media outlet L’Indépendant.

According to the EU, some 210 billion euros out of approximately 266.38 billion euros of Russian assets frozen following the invasion of Ukraine are now held within bloc countries. These assets are mainly in the form of government bonds stored by the Russian central bank as reserves. In 2024, the European Commission estimated that the proceeds from these assets could be used to support Ukraine through a fund managed by the European Union.

Further Support for Kyiv

“We have been able to negotiate additional funding for Finland’s support to Ukraine,” said Antti Hakkanen, Finland’s Defence Minister. He added: “The goods are purchased from Finnish industry to boost employment in the country and are sent to Ukraine to aid its defence effort. I'm very happy with this outcome.”

At present, the Kremlin has not commented on this decision.

(MH with Manon Pierre - Source: L’Indépendant - Illustration: ©Unsplash)