Japan rejects EU proposal to confiscate Russian assets for Ukraine
Photo: The European Commission aims to finalise a decision before the leaders’ summit (Getty Images)
Japan has refused to support the European Union’s initiative to use frozen Russian state assets for Ukraine, effectively undermining Brussels’ attempt to secure global backing for the plan, according to Politico.
According to two European diplomats, during a meeting of G7 finance ministers, Tokyo made it clear that it cannot use the roughly USD 30 billion in frozen Russian assets held in Japan to provide Ukraine with a loan, citing legal restrictions.
The European Commission aims for EU member states to agree on a mechanism to use up to EUR 210 billion in frozen Russian funds before the 18 December leaders’ summit. However, progress is being blocked by Belgium, which fears it may have to compensate Moscow for potential legal claims.
Brussels is pushing for broader participation from G7 partners outside the EU, who could also provide Ukraine with a loan backed by the frozen assets held in their jurisdictions. Belgian Prime Minister Bart De Wever argues that shared participation would reduce the risk of Russian retaliation.
However, both the United States and Japan have declined to join the scheme, leaving the EU without global backing. One diplomat said the US delegation indicated at the meeting that Washington would scale back support for Ukraine once repayments conclude on the G7 loan approved under former US president Joe Biden in 2024.
In a joint statement, G7 finance ministers confirmed they would continue exploring financing options for Ukraine, including the possible use of the full value of frozen Russian sovereign assets, until Moscow pays reparations. At the same time, any decisions must comply with national legal frameworks.
Sources note that Japan’s resistance stems not only from legal constraints but also from Tokyo’s unwillingness to deviate from the US position. U.S. President Donald Trump has signalled that he views Russian assets as leverage to pressure Vladimir Putin into negotiations. Under a US proposal, part of the assets could be returned to Russia, while another portion would fund American investment projects in Ukraine.
Despite these setbacks, European Commission President Ursula von der Leyen continues promoting the plan to use Russian assets. After meeting with President Volodymyr Zelenskyy, she stated that the proposed reparations loan mechanism is intended to raise the cost of the war for Russia.
The EU’s position has already been backed by the United Kingdom and Canada, which expressed readiness to transfer frozen Russian assets to Ukraine if the Brussels mechanism is implemented.
EU member states are expected to announce their decision on confiscating frozen Russian assets as early as this week or next.
Belgium has outlined its conditions for providing Ukraine with a reparations loan, given that it holds the largest share of the frozen assets and fears potential legal consequences from Moscow.
However, earlier reporting suggested Belgium’s resistance may have more practical motivations: Brussels may be benefiting financially from holding Russian assets.
