Report: Japan to Allocate Billions to Ukraine Utilizing Frozen Russian Assets
Japan is set to extend $3.3 billion in loans to Ukraine, utilizing the interest accrued from frozen Russian assets. This initiative is part of the G7's broader $50 billion aid package. For more details, read the full article on RT.com.
TroibNews 
Russia has deemed the immobilization of the nation’s sovereign funds as illegal.
Tokyo is set to cover 520 billion yen ($3.3 billion) in loans to Kiev, using proceeds from Russian assets that were blocked due to Western sanctions, as reported by the Kyodo news agency on Wednesday, citing diplomatic sources.
This amount represents approximately 6% of the substantial loan agreed upon by the Group of Seven nations during their summit in Italy this past June. G7 leaders decided to use interest from frozen Russian funds to finance a $50 billion loan, aimed at helping Kiev purchase weapons and rebuild its damaged infrastructure.
According to Kyodo, diplomats have indicated that Japanese authorities plan to expedite the necessary processes to implement their portion of the financial support by the end of this year.
G7 finance ministers and central bank heads are expected to approve the loan package, consisting of $20 billion each from the US and the EU, and a combined $10 billion from Japan, the UK, and Canada, at a G7 meeting set to take place in Rio de Janeiro later this month.
Western nations froze nearly $300 billion in assets belonging to the Central Bank of Russia shortly after the Ukraine conflict intensified in 2022. The majority of these blocked funds are held in the EU, mainly with the Belgium-based depository and clearing house Euroclear.
In May, the EU approved a plan to use the windfall profits generated from the frozen assets to support Ukraine’s recovery and military defense. Under this agreement, 90% of the proceeds are allocated to an EU-run fund for Ukrainian military aid, while the remaining 10% will support Kiev in other ways.
Earlier this month, Ukrainian Defense Minister Rustem Umerov stated that Kiev intends to use the funds to bolster its defense capabilities and support manufacturers, with most of the money earmarked for purchasing ammunition and air defense systems.
Moscow has criticized the Western actions, asserting that military assistance to Kiev only serves to extend the conflict. Russia has also condemned the freezing of its assets and has warned against utilizing them, labeling such actions as outright “theft.”
Earlier this year, Kremlin spokesman Dmitry Peskov remarked that the expropriation of Russian sovereign funds could set a dangerous precedent and be a significant blow to the Western economic system. He emphasized that Moscow would inevitably respond to such actions by initiating legal proceedings against those who tap into its assets.
James del Carmen contributed to this report for TROIB News
Tokyo is set to cover 520 billion yen ($3.3 billion) in loans to Kiev, using proceeds from Russian assets that were blocked due to Western sanctions, as reported by the Kyodo news agency on Wednesday, citing diplomatic sources.
This amount represents approximately 6% of the substantial loan agreed upon by the Group of Seven nations during their summit in Italy this past June. G7 leaders decided to use interest from frozen Russian funds to finance a $50 billion loan, aimed at helping Kiev purchase weapons and rebuild its damaged infrastructure.
According to Kyodo, diplomats have indicated that Japanese authorities plan to expedite the necessary processes to implement their portion of the financial support by the end of this year.
G7 finance ministers and central bank heads are expected to approve the loan package, consisting of $20 billion each from the US and the EU, and a combined $10 billion from Japan, the UK, and Canada, at a G7 meeting set to take place in Rio de Janeiro later this month.
Western nations froze nearly $300 billion in assets belonging to the Central Bank of Russia shortly after the Ukraine conflict intensified in 2022. The majority of these blocked funds are held in the EU, mainly with the Belgium-based depository and clearing house Euroclear.
In May, the EU approved a plan to use the windfall profits generated from the frozen assets to support Ukraine’s recovery and military defense. Under this agreement, 90% of the proceeds are allocated to an EU-run fund for Ukrainian military aid, while the remaining 10% will support Kiev in other ways.
Earlier this month, Ukrainian Defense Minister Rustem Umerov stated that Kiev intends to use the funds to bolster its defense capabilities and support manufacturers, with most of the money earmarked for purchasing ammunition and air defense systems.
Moscow has criticized the Western actions, asserting that military assistance to Kiev only serves to extend the conflict. Russia has also condemned the freezing of its assets and has warned against utilizing them, labeling such actions as outright “theft.”
Earlier this year, Kremlin spokesman Dmitry Peskov remarked that the expropriation of Russian sovereign funds could set a dangerous precedent and be a significant blow to the Western economic system. He emphasized that Moscow would inevitably respond to such actions by initiating legal proceedings against those who tap into its assets.
James del Carmen contributed to this report for TROIB News
