$3 Billion Japan-Ukraine Agreement Officially Adopted

Ukraine and Japan have officially signed a new financial agreement that will bring $3 billion in aid to Ukraine, funded by the revenues from immobilized Russian sovereign assets. 

The deal was approved by the Ukrainian Cabinet of Ministers and is part of the broader Extraordinary Revenue Acceleration (ERA) initiative led by the G7, The Gaze reports.

According to Ukrainian Prime Minister Denys Shmyhal, the funds will be used to support priority budget expenditures, as well as reconstruction and long-term development efforts. The ERA mechanism is expected to raise a total of $50 billion for Ukraine using interest and returns generated from frozen Russian assets held in G7 and EU jurisdictions.

“We thank our partners from the G7 and EU for creating a mechanism that makes Russia pay for the damage it has caused,” Shmyhal said. “We hope that all immobilized Russian assets will eventually be confiscated and directed toward rebuilding Ukraine.”

The agreement with Japan marks a major step in unlocking these funds. The $3 billion credit will be provided on 30-year terms, with repayment tied to future revenues from the frozen Russian assets. This model represents an innovative financial workaround to hold aggressor states accountable for wartime damage, without immediate asset confiscation.

Japan has emerged as one of Ukraine’s most reliable financial supporters. Over the past three years, Tokyo has provided more than $8.5 billion in direct budgetary support to Ukraine, playing a crucial role in stabilizing the country’s economy amid Russia’s full-scale invasion.

As The Gaze previously reported, on April 18, 2025, Ukrainian Finance Minister Sergii Marchenko and Japanese Ambassador to Ukraine Masashi Nakagome signed the agreement in the form of an exchange of diplomatic notes.