Japan Nears $3.3 Billion Transfer to Ukraine from Frozen Russian Assets

Japan is in the final stages of negotiating the transfer of $3.3 billion to Ukraine, sourced from frozen Russian assets. This move marks Japan’s commitment to supporting Ukraine, with the aim to complete the aid implementation system by year-end.

According to diplomatic sources cited by Kyodo, Japan’s contribution represents over 6% of the total $50 billion aid package earmarked for Ukraine. The allocation is part of broader international efforts, where the United States and the European Union lead in utilizing frozen Russian assets, contributing $20 billion each. The remaining $10 billion will be shared among Japan, the United Kingdom, and Canada.

The G7 has decided that aid to Ukraine, amid ongoing Russian aggression, will be structured as a loan, utilizing investment returns from frozen Russian assets to offset repayment obligations.

At the G20 meeting of finance ministers and central bank governors in Rio de Janeiro, Brazil, scheduled for late July, discussions are expected to finalize agreements on this coordinated international support initiative.

This financial assistance follows the G7 summit in Italy in June, where leaders agreed to extend a $50 billion credit line to Ukraine, leveraging revenues from frozen Russian assets held in Western countries since the onset of the Ukraine war. The funds are intended to be disbursed to Ukraine by the end of 2024.

European Union countries aim to cover up to 60% of the total credit amount required by Ukraine.