Ukraine Secures Nearly $3B Loan from Japan Backed by Frozen Russian Assets

Ukraine is set to receive nearly $3 billion from Japan through a loan backed by revenues from frozen Russian assets, approved recently by Ukraine’s Cabinet of Ministers. Prime Minister Denys Shmyhal emphasized that the funds will finance priority budget needs, helping to maintain macro-financial stability amid ongoing conflict. This financial support is part of the G7's Extraordinary Revenue Acceleration (ERA) initiative, with Japan having already provided $8.5 billion in aid since the war escalated. The use of frozen Russian assets as collateral has drawn strong condemnation from Moscow, warning of negative impacts on Russia-Japan relations. Additionally, Ukraine anticipates a further IMF tranche of approximately $500 million following an agreement on program revision. The broader context includes the EU’s plans to allocate substantial military and financial support to Ukraine, highlighting international efforts to sustain Ukraine's defense and budgetary resilience.