Ukraine and Japan have signed an agreement to provide Kyiv with a loan of up to 471.9 billion Japanese yen (about 3 billion US dollars), which will be repaid with proceeds from frozen Russian assets.
Points of attention
- Ukraine and Japan sign agreement for a $3 billion loan, to be repaid with proceeds from frozen Russian assets, under the G7 ERA Initiative.
- The G7 ERA Initiative allocates $50 billion to Ukraine, with significant financial support aimed at addressing the country's priority budgetary needs and development.
- Ukraine expresses gratitude to Japan for the critical financial assistance, with over $8.5 billion already provided since the beginning of Russia's invasion.
Ukraine will receive a 3 billion loan from Japan
On April 18, the Minister of Finance of Ukraine, Serhiy Marchenko, and the Ambassador Extraordinary and Plenipotentiary of Japan to Ukraine, Masashi Nakagome, signed an Agreement in the form of an exchange of notes. It provides for the provision of a loan to Ukraine of up to 471.9 billion Japanese yen (about 3 billion US dollars).
The funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism of the G7 countries, totaling about $50 billion.
As explained by the Ministry of Finance, the financing is provided for 30 years. The loan will be serviced and repaid with future profits received from immobilized Russian sovereign assets.
The funds raised will be used to support priority budget needs and promote the reconstruction and development of Ukraine.
Marchenko expressed gratitude to the government and people of Japan for this critically important support for us and for all the financial assistance we have received since the beginning of Russia's full-scale invasion.
He added that over the past three years, Japan has already provided budget support to Ukraine of over $8.5 billion.
The G7 Extraordinary Revenue Acceleration (ERA) initiative provides for the allocation of $50 billion to Ukraine, of which $20 billion will be provided by the European Union.
In December 2024, Ukraine signed an agreement with the EU to establish a Ukraine Loan Cooperation Mechanism (ULCM), which will allow the use of proceeds from frozen Russian assets to repay loans worth up to 45 billion euros within the framework of the G7 initiative (ERA).
Within the framework of the ERA mechanism, Ukraine received $1 billion from the United States in December last year. In January of this year, the European Union transferred the first 3 billion euros from its own part of the loan to Ukraine.
