Finland to send ammunition to Ukraine using proceeds from frozen Russian assets

Finland will supply heavy ammunition to Ukraine using proceeds from frozen Russian assets, the country’s Ministry of Defence said on May 19.

The move is part of a broader European Union initiative to channel profits from immobilized Russian assets into support for Ukraine’s defense. Finland has reached an agreement with the European Commission to implement the measure through the European Peace Facility (EPF), the ministry said in a statement.

Under the agreement, Finland will provide 90 million euros (approximately $100 million) worth of heavy ammunition procured from domestic suppliers. The Finnish government says the deal not only reinforces its support for Ukraine but also benefits its national defense industry.

"We were able to negotiate additional funding for Finland's support for Ukraine. The funds come from frozen Russian assets," said Finnish Defense Minister Antti Hakkanen.

"The products are purchased from Finnish industry to boost employment at home and sent to Ukraine to help its defense. I am very pleased with the outcome."

The Finnish Defense Ministry did not provide details on the timeline, type of ammunition, or delivery logistics due to operational security concerns.

In March, Finland announced its 28th military aid package for Ukraine, valued at approximately 200 million euros (now $225 million).

Since Russia launched its full-scale invasion in 2022, Western countries have frozen approximately $300 billion in Russian sovereign assets, with two-thirds held in the EU.

In October 2024, the Group of Seven (G7) approved nearly $50 billion in loans for Ukraine to be repaid from the proceeds of those frozen funds. The EU has also launched a separate initiative on funneling military aid to Ukraine by similarly using the funds.

Kyiv has consistently urged allies to formalize mechanisms for seizing frozen Russian assets to finance Ukraine's defense and reconstruction.

Western governments have primarily relied on reallocating interest income generated by the frozen funds to support Kyiv rather than confiscating the assets outright.

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.