Ukraine and Japan Sign $3 Billion Deal Using Profits From Frozen Russian Assets

Ukraine and Japan have signed a landmark agreement that unlocks a $3 billion loan for Ukraine, funded through revenues generated from frozen Russian assets — marking a major step in holding Moscow financially accountable for its war of aggression, The Gaze reports.

The deal, signed between Ukraine and Japan’s international development agency JICA (Japan International Cooperation Agency), was announced by Ukrainian Prime Minister Denys Shmyhal.

“The funds will be repaid using the income generated from frozen Russian assets. We will direct the money to priority budget expenditures that will drive economic development and strengthen Ukraine,” Shmyhal wrote.

The Extraordinary Revenue Acceleration (ERA) initiative — developed by G7 nations — is designed to redirect proceeds (not the principal) from immobilized Russian sovereign assets to support Ukraine’s financial stability and recovery.

Shmyhal praised Japan and G7 partners for establishing a mechanism that “forces Russia to pay” and added that $14.7 billion has already been delivered to Ukraine through the ERA so far.

“We are continuing to work on an international legal instrument that would allow the full confiscation of all frozen Russian assets for the benefit of Ukraine,” Shmyhal said.

This agreement comes amid growing global debate over the future of more than $300 billion in frozen Russian central bank assets held across the West — with Ukraine advocating for their full use in reconstruction and reparations.

As The Gaze previously reported, on 8 May, the European Commission disbursed the fourth tranche of macro-financial assistance to Ukraine in the amount of €1 billion under the G7 Extraordinary Revenue Acceleration initiative.