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Ambassador: Japan is ready to provide loans to Ukraine under G7 initiative on Russian assets

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Ambassador of Japan to Ukraine Matsuda Kuninori said he was ready to provide Ukraine with loans under the G7 initiative on frozen Russian assets, as he announced on Wednesday at the Make Russia Pay conference, UNN reports.

Details

"Regarding Russia's frozen assets, Japan is working, and we are working in close cooperation with G7 partners and Ukraine to move forward with discussions and implementation on additional loans to increase revenue for Ukraine. (...) Japan is fully prepared to provide these loans to Ukraine," said Japanese Ambassador to Ukraine Matsuda Kuninori.

He reminded that the G7 "after long discussions" decided to launch additional loans to increase revenues for Ukraine, "to provide Ukraine with about $50 billion in financing by the end of this year." "We are committed to further discussions... on new steps to be taken in the future," he said in this context.

Recall

The President of the European Commission, Ursula von der Leyen, has recently announced a proposal to provide Ukraine with macro-financial assistance of up to EUR 35 billion for 2024-2025.

ЄС надасть Україні кредит до 35 млрд євро в межах зобов'язань G720.09.24, 13:29

The loan will be repaid exclusively from future earnings from Russia's frozen sovereign assets in the EU. Thus, it is expected that all macro-financial assistance to Ukraine will be on a non-repayable basis. Domestic financial resources will not be used for repayment.

It was proposed to create the Ukraine Loan Cooperation Mechanism (ULCM), which would provide a non-repayable form of macro-financial assistance.

The European Commission's decision is part of the G7's initiative (not an alternative) to the Extraordinary Revenue Acceleration Loans for Ukraine (ERAL) mechanism to increase Ukraine's budget revenues.

June 14 The G7 reached a consensus to launch an Extraordinary Revenue Acceleration Loans for Ukraine (ERA) mechanism to provide Ukraine with about $50 billion in additional financing by the end of the year.

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