Sergii Marchenko and Japanese Ambassador to Ukraine Masashi Nakagome discussed fiscal reforms and budgetary needs

On August 5, Minister of Finance of Ukraine Sergii Marchenko met with Ambassador Extraordinary and Plenipotentiary of Japan to Ukraine Masashi Nakagome.

The meeting was also attended by Deputy Ministers of Finance Olga Zykova and Oleksandr Kava, as well as Deputy Minister for European Integration Yuriy Draganchuk.

The parties discussed the current economic situation in Ukraine, budget support needs for 2026-2027, progress in implementing fiscal reforms, and the engagement of Japanese businesses in Ukraine’s recovery.

Sergii Marchenko expressed gratitude to the Ambassador of Japan for his solidarity with Ukraine and Japan’s consistent financial support since the early days of russia’s full-scale invasion.

Recently, the Ministry of Finance of Ukraine and the Japan International Cooperation Agency (JICA) signed a loan agreement worth 471.9 billion Japanese yen (over USD 3 billion). These funds are part of the G7’s Extraordinary Revenue Acceleration (ERA) mechanism totaling around USD 50 billion and will be used to finance priority expenditures of the State Budget of Ukraine to support economic development and recovery.

Today, Japan is one of Ukraine’s leading financial partners. Since February 2022, it has become the second-largest contributor of budget support, providing over USD 8.7 billion, including nearly USD 1 billion in grants. This support has been critical for maintaining Ukraine’s economic and financial stability.

This year alone, Ukraine expects to receive around USD 500 million from Japan through World Bank mechanisms, of which USD 190 million has already been disbursed for the DRIVE project - aimed at strengthening the resilience of the national road network, modernizing infrastructure, and restoring bridges.

According to Sergii Marchenko, Ukraine’s external financing needs for the current year - USD 39.3 billion - are fully covered thanks to support from international partners. The Government is currently working with partners to secure financing for the coming years. Ukraine has already received commitments for USD 37.4 billion in assistance for 2026-2027, while an additional USD 37.4 billion in international financing remains to be secured.

In turn, Ambassador Masashi Nakagome reaffirmed the Government of Japan’s commitment to continuing its comprehensive support for Ukraine.