Additional funding to safeguard the Squadron 2020 project and Finnish maritime industry

The Government’s fourth supplementary budget proposal for 2022 includes EUR 104 million in additional funding for the Squadron 2020 project for 2025-2027. The need for additional funding is based on the overall solution negotiated to secure the operating conditions of Rauma Marine Constructions and to ensure the completion of the Squadron 2020 project.

The two-part solution consists of measures that stabilise and secure the financial position and operational capacity of the shipyard and the changes made by the Defence Forces to the contractual arrangements of the Squadron 2020 project package. As a buyer, the Defence Forces will assume responsibility for the financial consequences of the project’s delay. These additional costs relate to the project itself, extending the life cycle of the vessels to be decommissioned, and timetable related and contractual changes with, for example, Saab, the combat system supplier. 

F-35 project making good progress

The appropriations for 2022 will be influenced by a change to the funding of the F-35 project, which will transfer EUR 188 million from the procurement authorisation to transferable appropriations. The technical change is in line with the Government’s procurement decision and will be implemented within the total funding granted to the project in the 2021 budget. In addition, the supplementary budget proposal includes a provision of EUR 74 million for exchange rate losses in 2022.

Materiel support to Ukraine

The Defence Forces will be granted EUR 74 million to replace the materiel already delivered to Ukraine. The subscription authorisation funding will be mainly allocated to 2024. 

The Ministry of Defence will also examine the possibility of channelling materiel assistance to Ukraine through funds. For this purpose, the Government’s proposal includes EUR 30 million in additional funding. This can be used to make funding contributions to international funds later or to finance procurements in Finland.

- Finland continues to support Ukraine. We are also exploring new ways to deliver defence materiel assistance to Ukraine, together with our partners, says Minister of Defence Antti Kaikkonen. 

The supplementary budget proposal also includes changes to the payments of ongoing procurements and technical allocations of appropriations.

Inquiries: Kristiina Olsson, Director of Finance, Ministry of Defence, tel. +358 295 140 220.