Finland has made a deal with the European Commission to supply heavy ammunition to Ukraine using the proceeds from immobilised Russian assets.
This procurement, sourced from suppliers within Finland, is set to be channelled through the European Peace Facility (EPF).
The deal has been valued at €90m ($101m). Details regarding the specifics, method, or timing of the delivery have not been disclosed.
In February 2025, the Finnish Ministry of Defence unveiled plans to roll out a new initiative aimed at bolstering support for Ukraine. This programme involves placing orders directly with the Finnish defence sector, with a total value of €660m earmarked for these procurements.
Finland Defence Minister Antti Häkkänen said: “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.
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By GlobalData“Finland’s support for Ukraine is unwavering and strong even in other respects. This new package alongside our national €660m support programme will forge closer links between the Finnish industry and Finland’s support for Ukraine.”
Following Moscow’s military incursion into Ukraine in 2022, the Group of Seven (G7) nations moved to immobilise approximately $300bn in Russian financial assets, reported Reuters.
The EU se assets are primarily in the form of government bonds from Russia’s central bank, which were kept as reserves.
As per the estimates, these assets would generate profits in the range of €15bn-€20bn ($16.30-$21.70bn) by the year 2027, according to the news agency.
In May 2024, EU countries agreed on a plan to utilise the windfall profits from these frozen Russian central bank assets to support Ukraine’s defence efforts.
According to the plan, 90% of the proceeds will be directed into an EU-administered fund dedicated to military aid for Ukraine. The remaining 10% will be allocated to assist the country’s other capacities.
Subsequently, Ukraine received a first tranche of funds worth about $1bn from the UK. This funding was secured by the proceeds of the frozen Russian assets.
