World Bank project: Japan to fund Ukraine with $246 million
Photo: Ukraine will receive over $246 million from Japan (Getty Images)
Ukraine and the International Bank for Reconstruction and Development have signed a $246.5 million loan agreement. The funds will be drawn from a fund supported by the government of Japan, according to the Cabinet of Ministers' press service.
The key goal of the project is to support the Ukrainian government’s efforts to create an investment management system for post-war recovery and reconstruction.
It is planned that by the end of 2025, $229.7 million will be allocated to the state budget. Part of the loan, $16.8 million, will be used to capitalize interest in order to reduce the cost of servicing Ukraine’s debt obligations.
The SURGE project has been implemented in Ukraine since 2024. During this time, the World Bank has signed agreements with Ukraine worth $760 million.
"Cooperation under the SURGE project allows us not only to manage public investments and resources more effectively but also to enhance the financial resilience of communities, increase transparency in fund usage, and build taxpayer trust," said Ukrainian Finance Minister Serhii Marchenko.
Japan's assistance to Ukraine
Earlier reports stated that the government approved a draft agreement between Ukraine and Japan on a grant of 8.8 billion Japanese yen ($58 million). These funds are intended to finance reconstruction projects.
In addition, Japan has provided Ukraine with over $3 billion in financial assistance under a G7 loan, which will be repaid from revenue generated by frozen Russian assets.
Japan has also joined the coalition to return Ukrainian children deported by Russia, an initiative launched by Ukraine and Canada.
