Ukraine and Japan’s JICA signed over $3 billion agreement to be repaid using revenues from frozen russian assets

Today, Minister of Finance of Ukraine Sergii Marchenko and Chief Representative of the Japan International Cooperation Agency (JICA) Ukraine Office Hideki Matsunaga signed a Loan Agreement.

The document provides for a loan to Ukraine in the amount of JPY 471.9 billion (over USD 3 billion). Servicing and repayment of the loan will be carried out using future revenues from immobilized sovereign assets of russia.

These funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism initiated by the G7 countries, with a total volume of around USD 50 billion.

The funds provided by Japan will be directed toward financing priority expenditures of Ukraine’s State Budget, aimed at promoting economic stabilization and development.

Minister of Finance of Ukraine Sergii Marchenko expressed gratitude to the Government of Japan and JICA for their unwavering support of Ukraine since the outset of russia’s full-scale aggression.

“Japan is one of Ukraine’s key partners. It is the second-largest provider of budget support since February 2022, having extended over USD 8.5 billion, of which USD 955 million was provided on a non-repayable basis. I am grateful for the continuation of this critically important assistance. Implementation of the ERA mechanism will help address Ukraine’s budgetary needs in 2025 and ensure medium-term fiscal sustainability,” said Sergii Marchenko.

At the same time, the Minister emphasized that the ERA mechanism is a transitional solution. Ukraine’s ultimate goal is to establish an international compensation mechanism that will enable the full confiscation of the russian central bank’s frozen assets and their use to compensate for the damages caused by russian aggression.