Kyodo: Japan to loan Ukraine $ 3.3 billion out of $ 50 billion from frozen Russian assets

Japan is finalizing arrangements to provide $3.3 billion in loans to Ukraine from frozen Russian assets as part of a broader Group of Seven (G7) support initiative, according to diplomatic sources of Kyodo news agency. 

The leaders of the G7 at the June summit in Italy agreed to provide Ukraine with a $50 billion loan using revenues from Russian assets frozen in Western countries since the start of Russia’s full-scale war in Ukraine.

 The United States and the European Union are each expected to contribute $20 billion to the aid package. The remaining $10 billion will be shared among Japan, Britain, and Canada. Japan’s contribution represents approximately 6% of the total $50 billion aid package.

Kyodo reports that France, Germany, and Italy are unlikely to participate in this specific lending program, as the European Union already has a similar support plan in place.

The loan deal comes amid concerns over “Ukraine fatigue” and questions about how Ukraine’s partners can sustain long-term international support for Kyiv.

Russian assets frozen in Western countries are estimated at $300 billion, which Ukraine argues it could use for air defense systems, jets, tanks, and reconstruction.

Legal hurdles and political reluctance, due to fears of escalation and potential impacts on future negotiations with Russia, impede full confiscation of frozen Russian assets.

Related:

• EU seeks to sidestep Hungary’s veto in sending Russian frozen assets profits to Ukraine
• AP: G7 leaders agree to lend Ukraine billions in Russia’s frozen assets
• Zelenskyy announces signing of security agreements with US and Japan
• Japan imposes export controls on Russia, targeting industrial and oil, gas sectors