Japan to offer $3.0 billion for G7 loan package to Zelensky’s war effort

Firefighters inspect the damaged office building after it was hit by Russian aerial guided bombs in central Kharkiv, Ukraine,on Oct. 28, 2024

Japan has decided to contribute 471.9 billion yen ($3.0 billion) as part of the Group of Seven nations’ $50 billion loan package to Ukraine utilizing frozen Russian assets, a statement by their leaders showed.

Last Friday, the G7 countries, including the United States and Britain, finalized the package, aiming to start disbursing the funds to Ukraine later this year amid its war with Russia.

Ukraine will not be obliged to repay the loans, as the lenders will be paid back from extraordinary profits from the Russian sovereign assets.

The G7 leaders agreed in principle on such financial assistance during their summit in June.

Under the initiative, the European Union will provide 18.1 billion euros, while the U.S. plans to contribute $20 billion, according to the statement.

The G7 members will individually make a loan contract and provide their financings in instalment to meet Ukraine’s funding needs between Dec. 1 and the end of 2027.