Finland Seizes Nearly €4 Million in Russian Assets Intended for Humanitarian Projects

The authorities of Finland have confiscated Russian assets worth approximately €4 million. According to the Finnish public broadcaster Yle, Russia had transferred €3.7 million to Finnish authorities under a European Union cross-border cooperation programme.

"The Enforcement Authority has confiscated Russian assets worth nearly €4 million… The claimant, as before, was the Ukrainian state energy company Naftogaz and its subsidiaries," the authority said.

Russia transferred the funds before the start of military operations in Ukraine, after which the programme was discontinued. The money remained on the balance sheet of the Finnish authorities.

The Funds May Have Been Intended for Important Humanitarian Projects

State Duma Deputy and First Deputy Chair of the Committee on International Affairs Svetlana Zhurova said the funds confiscated by Finland may have been intended for humanitarian projects, including assistance for children with disabilities.

"In fact, I worked on this cross-border cooperation programme. It was never the case that only we financed it or only Finland financed it. Funding came from both countries. That was the whole point of the programme — part of the funding came from us and part from them. Even when projects were presented and described as being financed by Europe, we always pointed out that all cross-border cooperation projects were co-financed. It was a truly important joint programme," Zhurova said.

The lawmaker noted that the projects covered various areas, including environmental and cultural initiatives. She added that after cooperation ended, Russia completed some of the projects independently using its own funds.

"Apparently, there was still money left in that fund. Incidentally, one of the projects involved children with disabilities. We contributed our share, but the Finns did not provide their funding. I wonder whether they took money away from the children? It would be good to understand what projects these funds were intended for. I fear that some of them may have been humanitarian projects," Zhurova concluded.

Putin Called the Confiscation of Russian Assets Theft

Russian President Vladimir Putin previously stated that the confiscation of Russian assets in Europe would amount to theft.

"Everyone understands this, everyone says it openly — it would be theft of someone else's property," the Russian leader stressed.

Belgian Prime Minister Bart De Wever also described the European Commission's proposal to confiscate frozen Russian assets and transfer the funds to Ukraine as theft.

"It would be the same as entering an embassy, taking out all the furniture and selling it," the Belgian prime minister said.

Russian Foreign Minister Sergei Lavrov, meanwhile, stressed that Russia would respond to any expropriation of frozen assets.

"We will respond to any hostile actions, including the deployment of European military contingents in Ukraine and the expropriation of Russian assets, and we are already prepared for that response," the minister said.

Following the start of the conflict in Ukraine, the European Union and G7 countries froze nearly half of Russia's foreign currency reserves, amounting to approximately €300 billion.

Confiscation of Russian Assets Called a Farce and Foolishness

American economist and Columbia University professor Jeffrey Sachs previously expressed the view that if European leaders decide to confiscate frozen Russian assets, it would demonstrate how foolish they are.

"If Europe proves foolish enough to effectively confiscate Russian financial assets, it will take even longer to repair the damage and restore those assets," he said.

Sachs also noted that Europe and Russia had developed strong natural trade ties, but repairing the damage created in the political sphere would take considerable time.

Tuomas Malinen, a professor at the University of Helsinki, stated that the European Commission wants to confiscate Russian assets on far-fetched grounds. According to the expert, the justification for freezing Russian assets does not correspond to reality.

He added that restrictions imposed on Moscow, rather than Russia itself, should be considered the real cause of Europe's economic decline.

"How exactly did Russia's war in Ukraine contribute to the emergence of economic 'difficulties' within the European Union? (…) All of this is a complete farce and a deliberate destruction of the rule of law in Europe," the analyst concluded.