Japan's JICA Explores Filling USAID's Role in Ukraine's Energy Sector

The Japan International Cooperation Agency (JICA) is considering funding energy and infrastructure projects in Ukraine previously overseen by the United States Agency for International Development (USAID). JICA’s Ukraine office head Hideki Matsunaga made this statement at the 5th Ukrainian-Japanese Forum, organized by the New Europe Center, Ukrinform reports.

Matsunaga noted that while JICA and USAID have different approaches, fully taking over some USAID programs—especially in the legal sector or direct funding of civil society—would be challenging.

“However, we want to assess the gaps that have emerged in the energy sector and do our best to fill them. Of course, we have certain budget constraints, but we would like to do more,” Matsunaga said.

He emphasized that JICA will carefully evaluate Ukraine’s energy and infrastructure sectors as potential areas for future support.

In early 2024, USAID began scaling back its programs in Ukraine due to budget constraints and shifting U.S. foreign policy priorities. The cuts primarily affected energy, infrastructure, and governance projects, reducing direct funding for Ukrainian civil society and economic development initiatives. The reduction in aid has left gaps in critical sectors, prompting discussions about alternative sources of funding.

On March 4, U.S. media reported that Trump had ordered all military aid to Ukraine to be suspended until he sees what he described as “good faith efforts toward peace” from Ukraine’s leadership. The decision reportedly affects weapons shipments already en route from the U.S. to Ukraine.

Shortly after, Polish Prime Minister Donald Tusk stated that reports from the Ukrainian border and the U.S. aid hub in Jasionka confirmed that U.S. military assistance to Ukraine had indeed been put on hold.