The governments of Ukraine and Finland have signed a Framework Agreement under which Finland will mobilize up to EUR 50 million next year for projects financed under the Finnish-Ukrainian Investment Fund (FUIF) program, according to a press release from the Ministry of Finance.
“Under the agreement, loans of up to EUR 50 million are planned for 2025. Further implementation of the Program will involve the conclusion of relevant loan agreements to determine the amount, terms and conditions of loans,” the release said.
The agreement was signed on behalf of Ukraine by Finance Minister Sergii Marchenko, while the signatory on behalf of Finland was Minister of Foreign Trade and Development Ville Tavio.
It is specified that the grant component of the project will amount to at least 35% of the total cost, which will provide preferential financing terms.
In addition, the ministers discussed current development programs and support for Ukraine’s recovery with the assistance of Finland. Marchenko emphasized the importance of cooperation within the framework of the Ukrainian Donor Platform, whose steering committee Finland joined in April 2024 as an observer.
In his turn, Tavio emphasized that the most promising sectors for investment and recovery for the Finnish side are energy, education, infrastructure, digital technologies and agriculture.
The Ministry of Finance reminded that Finland’s direct budget support since February 2022 has amounted to more than $36 million in grant funding.
The Helsinki District Court has satisfied the petition of Naftogaz Ukrainy and five other companies of the group and seized certain assets owned by Russia in Finland, the company’s press service said on Monday. According to its data, it is about real estate and other assets, which are estimated at tens of millions of dollars.
“This decision is part of Naftogaz’s global strategy to recover compensation for the damage caused by the seizure of assets of group companies in Crimea in accordance with the decision of the Hague arbitration,” the report said.
The company specified that this is also the first publicly known successful seizure of assets outside of Ukraine in fulfillment of the arbitral award on cases on claims of Ukrainian companies to Russia because of the expropriation of property in Crimea in 2014.
The decision is an interim step towards the actual recovery of assets in favor of Naftogaz. At the same time, interest stipulated for non-payment of funds under the arbitration award continues to accrue until the compensation is paid in full.
“Since Russia refuses to voluntarily pay Naftogaz the funds stipulated by the Hague ruling, we continue to use all available mechanisms to recover them. Today we have stood one step closer to restoring justice. At the same time, we are taking active steps to enforce the arbitration award in other target jurisdictions where there are Russian assets,” the head of the group, Oleksiy Chernyshev, said.
In Finland, Naftogaz is being represented pro bono by attorneys Mikko Leppa and Tatu Jaarinen of HPP Attorneys, supported by Covington & Burling, acting as lead legal counsel to coordinate Naftogaz’s international enforcement efforts.
As reported, in October 2016, Naftogaz and its subsidiaries initiated arbitration proceedings against Russia for damages due to the seizure of their assets in Crimea, and in September 2017 an application was filed with the tribunal at the Court of Justice in The Hague.
The Arbitration Tribunal at the Permanent Court of Arbitration in The Hague in April 2023 ordered the Russian Federation to pay Naftogaz Ukrainy $5 billion for damages caused by the seizure of assets of Naftogaz group companies in Crimea in 2014.
Finland will send a new military aid package to Ukraine, a decision made by the president on June 28 on the proposal of the government.
According to the website of the Finnish Ministry of Defense, this is the 24th delivery of defense equipment from Finland to Ukraine. It is estimated that the replacement of the equipment included in this shipment will cost Finland approximately 159 million euros. The total value of defense equipment supplied by Finland to Ukraine is EUR 2.2 billion.
“Finland intends to support Ukraine in its fight against Russia’s unjustified aggression. It is not only about Ukraine, but also about the right of all free nations to their ultimate existence. We, the Finns, have learned from our own history how important this issue is,” said Defense Minister Antti Häkkänen.
The ministry noted that Finland is also participating in the Czech initiative for joint procurement of ammunition. Finland has also decided to participate in an armored coalition led by Poland, Germany and Italy, and an information technology coalition led by Estonia and Luxembourg. The purpose of the international coalitions is to provide long-term support to Ukraine.
“For operational reasons and to ensure the safe delivery of aid, its exact content, methods and timing are not disclosed. When providing assistance, both the needs of Ukraine and the state of the resources of the Defense Forces are taken into account,” the Defense Ministry said.
Finland is sending the 22nd military aid package worth up to €190 million and is preparing a long-term plan to support Ukraine, the Finnish government’s press service reports.
“Finland is sending more defense equipment to Ukraine. The President of the Republic made a decision on this issue on February 9, 2024, on the proposal of the government. This is the 22nd consignment of military aid from Finland to Ukraine,” the Finnish government said in a statement on its official website on Friday.
As noted, the total cost of the package will be approximately 190 million euros. This package includes equipment and products made in Finland, while “separate funding of 30 million euros will be allocated to support Ukraine.”
“At the national level and more broadly, we need to find new ways to support Ukraine in the long term. We are currently preparing a long-term plan to support Ukraine,” Finnish Defense Minister Antti Hakkanen said, as quoted by the press service. According to him, the Finnish industry has a lot of know-how, “and we are working to ensure that this know-how and potential can be used more effectively in supporting Ukraine. One example of this is our domestic ammunition production.”
It is also reported that Finland has decided to participate in the artillery and demining coalitions operating within the framework of the Contact Group for the Defense of Ukraine, a group that coordinates assistance to Ukraine in the field of armaments.
“We are grateful to Finland for its continued support,” the Ukrainian Defense Ministry said in a post on social media platform X.
Voting in the presidential election in Finland ended on Sunday, with a voter turnout of 74.9%. Since none of the candidates received more than half of the votes, a second round of voting will be held on February 11 with the participation of Alexander Stubb and Pekka Haavisto, the Finnish edition of Yle reported on Sunday.
After counting 100% of the votes, former Prime Minister Aleksandra Stubb received 27.2% of the vote, and former Foreign Minister Pekka Haavisto 25.8%.
According to the country’s legislation, the president is elected for 6 years for no more than two consecutive terms, so Finnish President Sauli Niinistö will no longer be able to claim a third term in office, and a new, thirteenth head of state will come to power, whose term of office will begin on March 1, 2024.
Earlier, the Experts Club information and analytical project analyzed all the major elections scheduled for 2024, and you can learn more about the 2024 global elections in the video here: https://youtu.be/73DB0GbJy4M?si=rAMBZvZ4ozNmSr4v
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On Thursday, November 23, the Finnish government submitted a proposal to the parliament to amend the draft budget for 2024, among other things, the proposal contains amendments to support Ukraine, the government’s website reports.
In particular, it is proposed to increase by €95.7 million the maximum amount of authorization for the purchase of military equipment for the UKR 2023 Defense Forces for 2024-2028. The proposal will cover the cost of replacing equipment as a result of the 19th package of material assistance provided to Ukraine. The increase in allocations in 2024 will amount to EUR 20.7 million. As a result of the increase, the maximum amount of procurement authorization will be EUR 1 billion 451 million.
In addition, the government proposes to increase the capital of the Finnfund by EUR 25 million, which will be used for investments and loans focused on Ukraine.
