Ukraine and Japan discussed the potential mobilization of additional financing for Ukraine’s budget support

Deputy Minister of Finance of Ukraine Olga Zykova met with Deputy Director for Multilateral Development Banks at the International Bureau of the Ministry of Finance of Japan Shinichiro Kurasawa, and other representatives of the Japanese side.

Participants also included Deputy Director for Development Finance at the International Bureau of the Ministry of Finance of Japan Natsumi Tajima, First Deputy Director of the Central and South-Eastern Europe and Baltic Division at the European Affairs Bureau of the Ministry of Foreign Affairs of Japan Daisuke Minamino, and Second Secretary of the Embassy of Japan in Ukraine Shiho Togano.

On 25–26 March 2026, Olga Zykova held a series of meetings with international partners who arrived in Kyiv to participate in the Ukrainian Donor Platform.

The Deputy Minister briefed partners on the state of Ukraine’s financial system. Despite the full-scale war, economic growth is projected for 2026 and inflation remains under control. She noted that more than USD 60 billion this year is being directed to the security and defence sector. At the same time, Ukraine requires continued international support to finance social and humanitarian expenditures.

The parties discussed opportunities to mobilize additional financing from Japan to support Ukraine’s State Budget, including through World Bank mechanisms. The Deputy Minister thanked the Japanese side for its unwavering financial support since the start of russia’s full-scale invasion in 2022.

“I am grateful for your decision to provide Ukraine with the second tranche under the ERA loans through the World Bank’s PEACE in Ukraine project, amounting to over USD 1.2 billion, which will be directed to cover old age social payments of the State Budget. This consistent and substantial support is highly valued, and we look forward to further strengthening the partnership between our countries,” said Olga Zykova.

Since February 2022, Japan’s budget support to Ukraine has exceeded USD 9.5 billion, ranking second among countries and fourth among all donors. Of this amount, USD 1.5 billion has been provided in grants.

During the meeting, the parties also discussed the implementation of the new IMF Extended Fund Facility programme for 2026–2029 worth USD 8.1 billion and prospects for finalizing a decision to mobilize up to EUR 90 billion in financing from the European Union in the near future.

Special attention was given to the need for additional financing for state-owned companies, including Ukrainian Railways (Ukrzaliznytsia), Naftogaz of Ukraine, and Ukrenergo, as well as Ukraine’s progress in implementing structural reforms, particularly in the anti-corruption area.

The Japanese side expressed interest in expanding the presence of Japanese businesses in Ukraine and emphasized the importance of private sector engagement in the country’s recovery and reconstruction.

Representatives of Japan reaffirmed their unwavering support for the Ukrainian people and Government and noted that Japan is already channeling funding through several international mechanisms and funds, including:

• the IMF’s Ukraine Capacity Development Fund (UCDF);
• the World Bank’s MIGA Support for Ukraine’s Reconstruction and Economy Trust Fund (SURE TF);
• the World Bank’s Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF);
• the World Bank’s ADVANCE Ukraine Trust Fund supported by the Government of Japan;
• the Emergency Recovery Programme implemented by the Japan International Cooperation Agency (JICA).

The parties agreed to continue close dialogue to strengthen Ukraine’s financial resilience and support its recovery.