Japan will provide Ukraine with more than $3 billion as part of a $50 billion loan from the Group of Seven countries, which will be repaid from the frozen assets of the Russian central bank. This was announced by Prime Minister of Ukraine Denys Shmyhal.
According to the Nikkei, the funds, equivalent to 471.9 billion yen, will be provided by the Japan International Cooperation Agency (JICA) through the World Bank fund. The condition of the Japanese contribution is that these funds will not be used for military purposes.
‘We call on all our partners to transfer frozen Russian assets to Ukraine. We have to make the aggressor pay,’ Shmyhal stressed.
A $50bn loan for Ukraine
In June, the Group of Seven leaders approved a $50 billion long-term loan to Ukraine to be repaid from future proceeds of frozen Russian assets in the EU and other jurisdictions. The decision also includes support for the principle that Russia should compensate Ukraine for the losses it has caused, which the World Bank estimates at more than $486 billion.
On 26 October, the G7 leaders announced the launch of a new initiative, the Extraordinary Revenue Acceleration (ERA), under which the US will provide $20 billion, Japan, Canada and the UK will each provide $3 billion, and the EU will provide up to €35 billion in macro-financial assistance.
Each G7 country will sign a separate loan agreement with Ukraine, disbursing the funding in instalments from 1 December 2024 to the end of 2027. These funds will be repaid from the proceeds of frozen Russian assets, which frees Ukraine from financial obligations.
