Finland is proposing to allocate 80 billion euros to support Ukraine

Olli Rehn, the head of the Bank of Finland, suggested that the European Stability Mechanism could serve as a “plan B” to assist Kyiv.

“There is no urgent need for the ESM in financial markets, but there is a deep existential need for Ukraine. This is a question of freedom, democracy, and the protection of Europe,” Rehn stated.

He emphasized the importance of a quick search for funds to counter the “threat and imperialist aspirations of Putin.” Rehn expressed concern about the disunity in Europe and Hungary’s veto, urging the other 26 EU member states to swiftly prepare a “plan B” without Hungary’s consent.

The European Stability Mechanism, established in 2012, has been considered a potential instrument to support Ukraine’s recovery in discussions among officials in Brussels and Berlin. According to Pierre Gramegna, the Managing Director, the mechanism has the highest paid-up capital among all international institutions—just over 80 billion euros, with additional capital of around 620 billion euros.

Rehn also suggested that a “realistic and reliable long-term strategy for the EU” should involve using the 260 billion euros in assets of the Central Bank of Russia, in the form of securities and cash frozen by the EU, the “G7” countries, and Australia. Over two-thirds of these funds are within the EU.

Earlier reports also mentioned that on Thursday, December 21, Finnish President Sauli Niinistö decided to provide Ukraine with the 21st package of military aid worth over 100 million euros. The allocation of aid from Finland is expected to require approximately 106 million euros in return.

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