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Japan Converts Frozen Russian Assets into a $3 Billion Lifeline for Ukraine’s Recovery

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Photo of Dariia Mykhailenko
Dariia Mykhailenko
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Japan Converts Frozen Russian Assets into a $3 Billion Lifeline for Ukraine’s Recovery
The Japanese flag is pictured as it flutters in the wind in front of Japan’s Ministry of Justice building in central Tokyo on February 4, 2025. (Source: Getty Images)

Japan has converted a $3 billion loan to Ukraine, representing a substantial financial commitment aimed at bolstering the country’s resilience amid ongoing Russian aggression.

The aid will be repaid using future revenues derived from frozen Russian sovereign assets —a pioneering mechanism under the G7’s ERA for Ukraine initiative.

Ukraine and Japan formalized a landmark financial agreement as Finance Minister Serhiy Marchenko and Japanese Ambassador Masashi Nakagome signed an exchange of notes for a $3 billion loan on April, 18.

The funds, equivalent to 471.9 billion Japanese yen, are part of the G7’s broader $50 billion support initiative known as ERA for Ukraine.

Structured over a 30-year term, the loan will address Ukraine’s urgent budgetary needs and contribute to the country’s long-term reconstruction and development. Crucially, it will be repaid using profits generated from frozen Russian sovereign assets.

Minister Marchenko acknowledged Japan’s steadfast support, noting that Tokyo has already provided more than $8.5 billion in budgetary assistance over the past three years. “These funds have played a critical role in safeguarding Ukraine’s economic and financial stability,” he stated.

Earlier, Sweden has unveiled a military aid package for Ukraine, committing 16 billion Swedish kronor (approximately $1.6 billion) in defense support.

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