Japan has pledged approximately $3 billion in financial support to Ukraine through the G7’s innovative ERA (Extraordinary Revenue Acceleration) mechanism, which utilises profits from frozen Russian sovereign assets.
The announcement was made by Ukraine’s Ministry of Finance following an agreement signed between Ukrainian Finance Minister Serhii Marchenko and Japan’s Ambassador to Ukraine, Masashi Nakagome.
The loan will be repaid using future revenue generated from immobilized Russian assets seized by G7 nations following Russia’s 2022 full-scale invasion of Ukraine.
The financial support is structured over a 30-year term and will contribute to Ukraine’s urgent budgetary needs as well as long-term reconstruction and development efforts.
“This agreement not only meets critical fiscal demands but also underscores Japan’s steadfast commitment to democratic values and support for Ukraine,” Marchenko said.
Japan has so far extended over $8.5 billion in aid to Ukraine since the start of the war.
This latest move follows a July 2024 agreement by G7 and EU leaders to allocate $50 billion to Ukraine, to be financed by interest accrued on roughly €280 billion ($318 billion) in frozen Russian assets globally—most of which are held in the European Union.
The bulk of these funds, approximately €191 billion ($217 billion), are managed by Belgium-based Euroclear, which generated nearly €4.4 billion ($4.8 billion) in profits from these assets in 2023, according to the Financial Times.
The US., EU, and UK are also contributing to the broader G7 plan, with the United States previously announcing a $20 billion loan, the EU up to $35 billion, and the UK nearly $3 billion.
The agreement highlights continued G7 coordination in sustaining Ukraine’s economy while increasing pressure on Russia through strategic asset immobilization.
