Ukraine and Japan Sign $3 Billion Loan Deal Funded by Frozen Russian Assets

Ukraine and Japan have signed a key agreement that will unlock a $3 billion loan for Ukraine, financed through revenues generated from frozen Russian assets.

Prime Minister Denys Shmyhal announced the deal via Telegram on June 5

Shmyhal noted that the agreement was signed under the framework of the Extraordinary Revenue Acceleration (ERA) initiative. The Japan International Cooperation Agency represented the Japanese side in the signing.

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Prime Minister also stated that the funds will be directed toward priority budget expenditures aimed at driving economic development and reinforcing national resilience.

“To date, Ukraine has received $14.7 billion through the ERA mechanism. We continue to work on establishing a global instrument that will allow for the full confiscation of frozen Russian assets in support of Ukraine,” he said.

Earlier, Ukraine had received €1 billion ($1.13 billion) from the European Union under the ERA program. The funding comes from profits generated by frozen assets of Russia’s Central Bank.

Denys Shmyhal emphasized that the disbursement reflects a fair and principled approach — holding Russia financially accountable for the destruction it has caused in Ukraine. The funds will be used to cover essential budget needs and support Ukraine’s defense and recovery efforts.

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