Japan to provide Ukraine with $ 3 bn from Russian assets

On April 18, Ukraine’s Finance Ministry announced that Japan will extend a loan of around $3 billion to Ukraine, part of the G7’s ERA initiative that taps into profits from frozen Russian assets.

The deal was formalized through an exchange of notes between Ukraine’s Finance Minister Serhii Marchenko and Japan’s Ambassador to Ukraine Masashi Nakagome.

The loan will be paid back using future earnings from frozen Russian state assets. It comes with a 30-year term and is aimed at covering urgent budget needs and supporting Ukraine’s recovery and development.

“This agreement not only addresses our pressing financial needs, but also reaffirms Japan’s deep commitment to the values shared between our nations,” Marchenko said.

According to Marchenko, Japan has provided Ukraine with over $8.5 billion in budget aid over the past three years.

Since the start of Russia’s full-scale invasion, nearly €280 billion ($318 billion) in Russian Central Bank assets have been frozen internationally—over two-thirds of it within the EU. Belgium-based Euroclear holds around €191 billion ($217 billion) of these funds and earned roughly €4.4 billion ($5 billion) in 2023 alone from them, according to the Financial Times.

In July 2024, the G7 and EU agreed to redirect interest from these frozen Russian assets to raise $50 billion for Ukraine. However, the U.S. pushed for firm assurances that the full loan would be backed by EU-held assets, given that European sanctions on Russia have expiration dates.

Washington later made clear it wouldn’t release Russian assets until Moscow provides full reparations to Ukraine.

By October 2024, G7 leaders had approved the $50 billion plan, to be repaid using proceeds from the frozen assets.

On December 10, the U.S. pledged a $20 billion loan, with the EU contributing up to $35 billion and the U.K. offering nearly $3 billion through the G7 framework.