Japan Considering ¥500 Billion Contribution to Ukraine Fund To Be Established by G7 Nations; Repayments To Come from Frozen Russian Assets

The Yomiuri Shimbun

16:10 JST, July 18, 2024

The government is considering a contribution of about ¥500 billion to a fund that would aim to support Ukraine using frozen Russian assets.

The fund, set to be established by the Group of Seven major industrialized nations, would be used to loan money to Ukraine to provide military and financial assistance as well as support for reconstruction efforts. Japan plans to provide yen loans through the Japan International Cooperation Agency (JICA) while ensuring its contributions are not used to provide support for military activities.

Finance Minister Shunichi Suzuki is expected to attend a meeting of G7 nations in Brazil on Wednesday when it will be decided how much each county will contribute to the fund. The meeting will take place one day before the Group of 20 finance ministers and central bank governors meeting.

At the G7 leaders’ summit in June, it was announced that a total of about $50 billion (¥7.9 trillion) would be contributed to the fund by the end of the year. The United States will contribute $20 billion, and Germany, France and Italy will collectively provide $20 billion. The remaining $10 billion will be provided in equal shares by Japan, the U.K. and Canada.

Ukraine will not be obligated to pay back the loans. Repayments to the fund will be made using the profits gained from the investment of Russian central bank assets, which were frozen by the European Union in response to Russia’s aggression against Ukraine.