Ukraine and Japan Agree on New Phase of Financial Support for Reconstruction
In Kyiv and Tokyo, significant negotiations took place between representatives of Ukraine’s Ministry of Finance and the Japan International Cooperation Agency (JICA), culminating in an agreement on a new phase of financial assistance dedicated to Ukraine’s post-war recovery.
Central to the deal is the signing of a credit agreement amounting to over three billion US dollars, or approximately 471.9 billion yen.
Ukraine intends to service this debt utilizing proceeds from frozen Russian assets, a pioneering precedent in international financial practice.
The loan is provided under the ‘Extraordinary Revenue Acceleration for Ukraine’ (ERA) initiative, which was coordinated by G7 countries and aims to mobilize additional resources for Ukraine’s economy, public finances, and infrastructure restoration.
The overall budget of the program approaches 50 billion dollars, focusing on sectors such as energy, transportation, healthcare, education, agriculture, water supply, waste management, and humanitarian demining.
Additionally, Japan has implemented new sanctions against Russia and lowered the price ceiling on Russian oil, reinforcing a strategic and symbolic stance.
Ukraine’s Deputy Minister of Finance Olga Zikova emphasized: “This decision holds both strategic and symbolic importance.
Russian assets are beginning to serve Ukraine’s interests.
We thank the Japanese government for its unwavering support and assistance, which remains vital for our economy.” Since the full-scale invasion began, Japan has provided Ukraine with over 8.7 billion dollars in financial aid, including 955 million dollars in grants.
In 2023, a specific Emergency Ukraine Recovery Program was launched, allocating 100.1 billion yen (about 698 million dollars).
Through this initiative, Ukraine received modern technology and equipment for energy, transport, medical, educational, agricultural sectors, water systems, and humanitarian mine-clearing efforts, which are essential for the country’s rapid recovery and stabilization.