Japan to Extend $3.3 Billion in Loans to Ukraine as Part of G7 Support Initiative

The G7 aims to commence the $50 billion support project for Ukraine by the end of this year, leveraging frozen Russian assets.

Tokyo — Japan is preparing to extend $3.3 billion in loans to Ukraine, contributing to a broader $50 billion support package from the Group of Seven (G7) nations. This initiative utilizes interest from Russian sovereign assets that have been frozen due to sanctions imposed following Moscow’s invasion of Ukraine, diplomatic sources revealed on Tuesday.

The G7 nations, comprising the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom, have been coordinating the disbursement of this aid since their leaders’ agreement during the June summit in Italy. The package aims to bolster Ukraine, which has been under continuous attack from Russian forces since February 2022.

According to the sources, the United States and the European Union will each contribute $20 billion to the fund, while Japan, the United Kingdom, and Canada will collectively shoulder the remaining $10 billion. The G7 is targeting the initiation of this project by the end of the year.

Notably, France, Germany, and Italy are not expected to participate in this specific lending program for now. The European Union already has a similar support scheme in place for Ukraine, the sources added.

The matter is scheduled for further discussion when G7 finance ministers and central bank chiefs convene in Rio de Janeiro later this month. The meeting will occur on the sidelines of a larger gathering involving their counterparts from the Group of 20 economies.

This loan agreement emerges amid growing concerns about “Ukraine fatigue.” There are persistent doubts regarding how long the United States and its allies can maintain their unified stance in providing Kyiv with both military aid and assistance for rebuilding its war-torn infrastructure.

In their communique released after the Italian summit, G7 leaders reaffirmed their commitment to allocate these funds to Ukraine “within the constraints of our respective legal systems and administrative requirements.” This coordinated effort underscores the G7’s ongoing dedication to supporting Ukraine in its struggle against Russian aggression and in its efforts to restore stability and rebuild its economy.

About the G7

The Group of Seven (G7) is an intergovernmental organization consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The European Union is also represented at the G7 meetings. The group is known for its significant influence on global economic policy and international governance.