Japan signs agreement with Ukraine on allocating $3 bln under ERA mechanism
Minister of Finance of Ukraine Serhiy Marchenko and Ambassador of Japan to Ukraine Masashi Nakagome signed an Agreement in the form of an Exchange of Notes, which provides for the provision of a loan to Ukraine of up to JPY 471.9 billion (about $3 billion).
As the Ministry of Finance reported on Friday, the funds are part of the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism of the G7 countries with a total volume of about $50 billion.
It is noted that the loan will be serviced and repaid at the expense of future profits received from immobilized Russian sovereign assets.
The financing is provided for 30 years. The funds attracted will be used to support priority budgetary needs and promote the reconstruction and development of Ukraine.
"Japan is a shining example of international solidarity, having become one of Ukraine's leading partners in our struggle for freedom and dignity. I express my deep gratitude to the government and people of Japan for this critically important support for us and for all the financial assistance we have received since the beginning of Russia's full-scale invasion," Marchenko said. He said over the past three years, Japan has already provided budget support to Ukraine worth more than $8.5 billion.