Finland proposes to allocate €80B from ESM to Ukraine

The head of the Finnish central bank Olli Rehn said this to Bloomberg, Ukrinform reports.

He noted that the ESM could become a "plan B" to help Kyiv.

There is no immediate need for an ESM in financial markets, but there is a deep, existential need for Ukraine. It is a matter of freedom, democracy and the defense of Europe, Rehn said.

Finding funds quickly is essential to deter the threat and imperialistic aspirations of Putin, he said.

He said he was very concerned about the disunity of Europe and Hungary's veto. There is no time to waste, so the other 26 EU member states must get together quickly and prepare a "plan B" without the consent of Hungary, which seems to be going its own way.

The ESM, established in 2012, has so far been seen as a potential instrument to support Ukraine's recovery in discussions between officials in Brussels and Berlin. According to ESM's Managing Director Pierre Gramegna, the mechanism has the largest paid-in capital of any international institution at just over €80 billion, with additional available capital of around €620 billion.

Rehn also noted that a realistic and credible long-term strategy for the EU should include the use of the €260 billion in securities and cash assets of the Central Bank of Russia frozen by the EU, G7 countries and Australia. More than two-thirds of these funds are in the EU.

As Ukrinform reported, during the European Council on December 14-15, European leaders failed to adopt a decision on amendments to the EU's multi-annual budget for 2024-2027, which provides for the allocation of €50 billion in aid to Ukraine. This decision was blocked by Hungary.

That is why a special EU summit to approve amendments to the 2024-2027 multi-annual budget, which include the creation of a €50 billion Ukraine Fund, will be held on February 1 next year.