Japan to provide Ukraine with $3 billion from Russian assets
Photo: Serhii Marchenko and Masashi Nakagome (minfin.gov.ua)
Japan will provide Ukraine with a loan of about $3 billion. The funds are part of the ERA mechanism of the G7 countries, totaling about $50 billion, the Ministry of Finance of Ukraine says.
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 received from immobilized Russian sovereign assets.
The financing is provided for 30 years. The funds raised will be used to support priority budgetary needs and contribute to the reconstruction and development of Ukraine.
"Japan is a vivid example of international solidarity, having become one of Ukraine's leading partners in our struggle for freedom and dignity," Marchenko said.
He added that over the past 3 years, Japan has already provided budgetary support to Ukraine of more than $8.5 billion.
G7 mechanism
The mechanism provides for Ukraine to receive $50 billion from the G7 countries, with subsequent repayment from the proceeds of frozen Russian assets.
It is planned to receive $20 billion from the United States, $20 billion from the EU, $3 billion from the United Kingdom, $3.7 billion from Canada, and $3 billion from Japan.
The program's peculiarity lies in the possibility of directing part of these funds (from the EU and the UK) directly to defense needs.
