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Some of the ammunition procured by the Czech Republic in cooperation with other countries will be financed using frozen Russian assets. The proceeds will be used to purchase hundreds of thousands of additional shells.
This announcement was made by Czech Defence Minister Jana Černohová.
«This is a unique opportunity to support Ukraine, use resources that originally belonged to Russia, and save the public finances of European countries», — she explained.
According to Černohová, this decision was made by the European Union. She described it as «yet another proof of the allies’ confidence» in the Czech Republic and its ammunition initiative.
To recap, the finance ministers of the Group of Seven (G7) supported the idea of providing Ukraine with a loan financed by the proceeds from frozen Russian assets. It aims to ensure Kyiv’s financing after 2024.
The G7 is a group of countries with developed economies. It includes all of Ukraine’s major Western allies. The group is working to secure future funding for Kyiv.
One official noted that Europeans are particularly concerned about «fair risk sharing». They fear that Europe will bear the brunt of financial and legal risks, as well as potential retaliation from Russia. This is due to tha fact that most of the Russian assets are located on the continent.
Earlier, the EU officially approved a plan to use the interest from frozen Russian assets, which it estimates could bring Ukraine up to three billion euros annually.
The Czech Ministry of Defence is preparing to launch a second initiative to supply Ukraine with artillery ammunition for 2025. This initiative will involve Czech manufacturers.
The project, tentatively titled «Initiative 2025,» will include five Czech arms companies that will produce shells for Ukraine with funding from European donors.
«This is a natural extension of the mechanism already in place. Moreover, the sooner donors allocate funds, the sooner our companies can sign long-term contracts», — said Jana Černohová.
Earlier, the governments of Ukraine and the Czech Republic signed two agreements on joint arms production. Ukrainian Prime Minister Denys Shmyhal announced that a new cartridge factory will be built in Ukraine, with the agreement signed between Sellier & Bellot and Ukroboronservice.