In the first two months of 2024, Japan was the largest donor of budgetary assistance to Ukraine: Sergii Marchenko during a meeting with the Minister of Finance of Japan

Today, on 19 February, in the framework of the official visit to Tokyo for the Japan-Ukraine Conference for Promotion of Economic Growth and Reconstruction, Prime Minister of Ukraine Denys Shmyhal and Minister of Finance of Ukraine Sergii Marchenko met with Minister of Finance of Japan Suzuki Shunichi.

The meeting was also attended by Deputy Minister of Finance of Ukraine Olga Zykova. 

Sergii Marchenko thanked the Government of Japan for its comprehensive support, which has been provided in a timely manner and in full over the two years of the full-scale war: "Despite the long geographical distance, Japan is a reliable partner of Ukraine. The Government of Ukraine greatly appreciates Japan's contribution to the financial stability of our country. Direct budget support in 2024 amounts to USD 436 million, of which grants are about USD 140 million."

Financing in 2024 consists of a USD 300 million loan under the Integrated Social Protection Inclusion and Resilience Project (INSPIRE), an USD 89.8 million grant under the Agriculture Recovery Inclusive Support Emergency (ARISE) Project, and a USD 49.4 million grant under the World Bank's  Housing Repair for People’s Empowerment (HOPE) project. The projects are aimed at restoring agriculture, social protection and housing reconstruction.

During the meeting, the parties discussed Ukraine's external financing needs for 2024.

"Ukraine relies on the support of its partners to finance priority expenditures, particularly in the social and humanitarian spheres, on time and in full, given that the country finances its defence and security entirely through domestic revenues and borrowings. The need for external financing is USD 37.3 billion. In 2024, Japan is a leader in providing direct budget support to Ukraine. We expect the assistance to continue in the next budget year," added Sergii Marchenko.

In the first quarter, Ukraine is expected to receive an additional USD 1.8 billion from Japan. The funds will be mobilised through World Bank framework projects.

The meeting participants also stressed the importance of coordinating the governments' efforts to attract investment, including from Japanese businesses, to rebuild Ukraine. According to the RDNA3 assessment, Ukraine's rapid recovery needs amount to USD 15 billion, of which USD 5.5 billion has already been covered by the State Budget and donor support. Thus, Ukraine needs another USD 9.5 billion to finance priority recovery.

As a result of the meeting, the parties agreed to continue an active dialogue to further strengthen cooperation between the countries.