Ukraine to Receive $3 Billion from Japan Using Frozen Russian Assets

Japan will provide Ukraine with a loan of about $3bn under the G7 ERA mechanism using frozen Russian assets.

The Gaze reports on this with reference to the press service of the Ministry of Finance of Ukraine.

The agreement in the form of an exchange of notes was signed by the Minister of Finance of Ukraine Serhii Marchenko and the Ambassador of Japan to Ukraine Masashi Nakagome.

The loan will be serviced and repaid from future profits generated by the immobilised Russian sovereign assets.

The financing is provided for 30 years. The proceeds will be used to support priority budgetary needs and contribute to the reconstruction and development of Ukraine.

‘The signing of today's agreement will not only help meet our urgent budgetary needs, but will also be another confirmation of Japan's sincere commitment to the common values that unite our countries,’ Marchenko said.

According to the minister, over the past three years, Japan has already provided budgetary support to Ukraine in the amount of more than $8.5 billion.

As The Gaze reported earlier, the United Kingdom on 14 April disbursed 752 million pounds ($990 million) to Ukraine under the Group of Seven loan facility using frozen Russian assets.