In 2023, Japan is the third largest donor of financial aid to Ukraine, with USD 3.7 billion in budget support
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Japan is the third largest donor of financial aid to Ukraine. In 2023, the State Budget of Ukraine received USD 3.7 billion in concessional financing and grants.
"In 2023, Japan is one of the largest donors in terms of funding aimed at strengthening the country's budgetary system in times of war. I am grateful to the Government of Japan for its unprecedented and large-scale support, as well as for its leadership in consolidating attention to Ukraine's needs during Japan's G7 presidency in 2023. Since the beginning of the full-scale Russian invasion, Japan has provided financial assistance to the State Budget of Ukraine in the amount of about USD 4.2 billion, including project finance," said Minister of Finance of Ukraine Sergii Marchenko.
Funding from Japan helped to support the social sector, restore damaged critical infrastructure, healthcare and education. In 2023, Ukraine received a total of:
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a loan of almost USD 1.5 billion to support development and recovery policy (Development Policy Loan);
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a loan of USD 1.086 billion under the project "Public Expenditure Support for Enhanced Accountability and Sustainable Governance in Ukraine" (PEACE in Ukraine);
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a concessional loan of about USD 900 million under the World Bank's Investing in Social Protection for Improved Coverage, Resilience and Efficiency (INSPIRE) project;
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a grant of USD 180 million under the World Bank's Emergency Project for Inclusive Support for the Recovery of Agriculture in Ukraine (ARISE);
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a grant contribution of USD 52.4 million under the World Bank's Housing Opportunities for People's Empowerment (HOPE) project.
Japan also assured that it is actively working with international partners to provide Ukraine with the necessary financial support for 2024.
“Since February 2022, Japan has been providing Ukraine with the necessary comprehensive assistance, including financial, military and humanitarian aid. The governments of Ukraine and Japan are also actively cooperating on recovery initiatives. I am convinced that Japan's experience in creating and managing recovery projects is extremely valuable and will help make the reconstruction process more effective” - said Deputy Minister of Finance of Ukraine Olga Zykova.
Japan also contributes to the development of Ukraine's private sector through its support of the SURE War Risk Insurance Trust Fund, established by the Multilateral Investment Guarantee Agency (MIGA). The funds raised through the fund help to implement insurance projects in Ukraine. The contribution of the Government of Japan amounted to USD 23 million.
In the area of recovery, the Government of Ukraine and the Government of Japan are implementing initiatives through joint projects with the Japan International Cooperation Agency (JICA).
In March-April 2023, the Government of Ukraine and the Japan International Cooperation Agency (JICA) launched the Emergency Recovery Programme, which provides for the implementation of 19 projects totalling approximately USD 573 million (grant). The Programme is aimed at providing support for infrastructure development, strengthening the energy system, restoring the agricultural, healthcare and education sectors by purchasing equipment and materials necessary for the reconstruction of Ukraine.
In addition, the Government of Japan is making great efforts to reduce russia's ability to finance the war against Ukraine. Japan has already frozen a number of assets of russian individuals and legal entities, as well as banned the export of goods to russian military companies and the export of strategic services.