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, Azernews reports, citing
Tribune.
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.
AloJapan.com